HOUSTON – (Realty News Report) – CBRE arranged a 35,000-SF long-term sublease on behalf of Costello Engineering at CityWestPlace in the Westchase submarket of Houston. The Houston-based engineering and surveying firm plans to relocate its 140 employees from 9990 Richmond in April 2018.
The building was formerly a single-tenant corporate campus for Statoil, the Norwegian energy firm that had placed many floors of unneeded office space up for sublease after the energy industry suffered a sharp downturn.
“The timing of this deal was in our client’s favor with the burgeoning sublease market. We locked in the nicest suburban office campus in Houston with significantly more amenities at a comparable price to what they were paying in Class B space,” said Kevin Saxe, first vice president, CBRE.
The Statoil space created the opportunity for Costello Engineering to upgrade.
“We’ve always made decisions based on the wellbeing of our employees, but an amazing office location has never been possible due to the costs associated with those prime spots,” said Dustin O’Neal, President of Costello. “When we learned that a CityWestPlace office was possible at nearly the same cost as our current lease, it was a simple decision. How could we pass up that opportunity for our people?”
So the Statoil sublease space, recently reported to be about 190,000 SF, is now a bit more manageable.