National Oilwell Varco Fiber Glass Systems

Client Situation

International oilfield service giant, National Oilwell Varco (NOV), retained KMD Studley to represent its subsidiary, NOV Fiber Glass Systems, in the lease of new office space for their expansion after acquiring Ameron International Corporation. NOV Fiber Glass systems is headquartered in San Antonio and operates 15 manufacturing facilities worldwide. This was the sixth successful transaction over a one year span in which KMD Studley represented NOV.

Consideration Analysis

NOV Fiber Glass Systems’s required 8,000-12,000 rentable square feet of Class A office space within the US 281 corridor from The Quarry north to Loop 1604 with room for 40 professionals and additional space to accommodate future expansion. KMD Studley surveyed several buildings and placed them in competition to negotiate terms for NOV Fiber Glass Systems at a discount to the prevailing market rate.

Result

KMD Studley represented NOV Fiber Glass Systems in the lease of a full floor (14,671 RSF) of Class A office space in the recently constructed Killam Building at 17115 San Pedro Avenue for a ten year term. The three story 50,000+ square foot building features ClearView construction, a new construction system and process that provides the cost efficiency of a tilt-wall structure and the unobstructed views previously only available in much more expensive designs. After an initial landlord proposal of $18 triple net / rentable square feet with $0.50 annual increases, KMD Studley successfully negotiated a $14.50 triple net / rentable square feet rate with $0.50 annual increases and 12 months of free rent, saving NOV Fiber Glass Systems over $1M. In addition, KMD Studley successfully negotiated signage rights on the building facing US 281, an important element of NOV's marketing program.

Summary Information

  • Property: Killam Building 17115 San Pedro, San Antonio, Texas
  • Transaction Size: 14,671 SF (Full Floor)
  • Transaction Type: Lease Relocation
  • Service Line: Office