Wood Group USA (Westgate III) | Headquarters Building

Property Description

Wood Group USA, Inc. (“Tenant”) leases 100% of the 225,518 SF Class “A”, five-story office building located in the Energy Corridor Submarket of Houston (the “Property”). The Property, along with the neighboring property known as Westgate II, comprises the headquarters location of the Tenant, which is a subsidiary of John Wood Group, PLC (“Wood Group”), the guarantor on the lease. The Tenant is a reputable oil and gas related international engineering consulting firm that focuses on large-scale, industrial projects with mostly sizeable, investment grade rated clients. The Guarantor is an international energy services company with over $7 billion in sales, and operates in more than 50 countries. The Tenant self manages the Property with the only landlord responsibility being structural repairs and/or replacements to the roof, exterior walls and foundation.

Business Essential Attributes

The Tenant has been in occupancy in the Park 10 Regional Business Center (“Park 10”) in the Energy Corridor since the Company was founded over 25 years ago, and during the Tenant’s tenure; they have expanded into 1.3 million SF across eight buildings. The Westgate II and Westgate III buildings are the newest additions to the Business Park and represent one of the longest remaining lease durations for the Tenant. The employee composition at the Property is approximately 80% intellectual capital in the form of engineers, designers, and project staff. The Tenant has recently been consolidating employees into the Property.

Additional Property Information

Driven by robust energy, medical, manufacturing, and trade industries, the Houston MSA has one of the lowest unemployment rates in the U.S. at 4.5%, as of January 2015. The Property is located in the Energy Corridor Submarket of Houston along Interstate-10 midway between Beltway 8 and the Grand Parkway. The Energy Corridor is home to multi-national and local growth-oriented companies and is the third largest employment center in the region with more than 84,000 employees and 800,000 employed persons living within a 30-minute drive. Additional factors driving the region’s success include its proximity to executive and middle-management residential villages and master-planned communities, desirable school districts, and excellent shopping, restaurants, and entertainment venues.

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Wood Group USA (Westgate III) | Headquarters Building

Houston, Texas

PROPERTY AT A GLANCE

Property Type: Class A Office
Square Footage: 225,518

Leased: 100%
Lease Expiration: December 31, 2026 (11.8 years remaining, as of April 1, 2015)
Renewal Option(s):
One (1) ten (10)-year option at Fair Market Value
Rent Increase(s):
2.00% per annum
Tenant: Wood Group USA, Inc.
Guarantor:  John Wood Group, PLC
Website*: www.woodgroup.com
*Website is for John Wood Group, PLC, the Tenant’s parent company and guarantor of the lease.