Wednesday, July 06, 2005

Downtown Dallas & Uptown Real Estate News

Downtown Dallas & Uptown Real Estate News

Atmos Adds 103,000 SF at Lincoln Centre

DALLAS (GlobeSt.com) -Atmos Energy Corp. has seated the former TXU Gas team in about 103,000 sf of class A space in a quietly orchestrated lease for Lincoln Centre II. Atmos, which houses its 145,000-sf headquarters right next door, has shopped, signed and settled in the team within three months.

The expansion runs concurrently with Atmos' headquarters lease, which was renegotiated last year with a 12-year term, Steve Jarvie, senior vice president for Dallas-based Staubach Co., tells GlobeSt.com. The group is filling the top three floors of the 19-story Lincoln Centre II at 5420 LBJ Freeway.

"We definitely looked at other places, but obviously with the headquarters and the space being there, it just made sense," says Jarvie, who teamed with Staubach executive vice president Scott Collier to negotiate the deal for Atmos. Jarvie says Lincoln Property Co., represented in house by David Quisenberry, was "very aggressive" with pricing.

"It was a good deal," Jarvie says. "It was comparable with what they got on their headquarters renegotiation."

Jarvie says the three floors of long-empty space came with a finish-out allowance pushing $30 per sf. The deal includes a first right of refusal on another full floor in the 612,462-sf Lincoln Centre II. According to a local database, the class A space's quoted rate hovers $20 per sf.

Atmos went in search of office space for the TXU team after donating its five buildings with 401,300 sf in Downtown Dallas to the city. Despite rumors to the contrary, Atmos' execs made it clear when it turned over the deeds that it never considered moving its 19-year, four-floor headquarters from Lincoln Center III at 5430 LBJ Freeway.