Item Coversheet

Item 6.b.


OFFICE SPACE

Background

H-GAC currently leases approximately 65,199 square feet of space at 3555 Timmons Lane at an annualized cost over the lease term of $23.75/RSF. The lease is scheduled to end November 30, 2019. The building has an occupancy rate of 95%. The last lease negotiation occurred in July 2012.


Current Situation 

H-GAC has received a request from the Texas Workforce Commission (TWC) to sublease space from H-GAC to relocate some of their regional personnel for better coordination of services with H-GAC.  H-GAC, through negotiation with the landlord, DAR 3555 LLC, has identified approximately 5,578 rentable square feet (RSF) on the seventh floor at 3555 Timmons Lane that would suit the needs of the TWC.  H-GAC engaged a broker, Jackson Cooksey, to perform a market analysis and negotiate terms that could be advantageous to H-GAC and TWC for the space.  The broker recommended a renegotiation of H-GAC’s current lease with an extension which would include additional square footage on the seventh floor.  The following are the details of H-GAC’s current lease and the proposed lease.

 

 

 

The forecast for continued demand of office space in the Greenway Plaza area is high and quoted rates are continuing to rise annually.  Recent lease rates in the building have been in the range of $28 - $31 RSF.


Funding Source 

Program funds


Budgeted

N/A


Action Requested 

Request authorization for the Executive Director to negotiate a lease for office space as outlined above. (Staff Contact: Nancy Haussler)