Houston Commercial Real Estate
Houston Office Space, Houston,Texas
November 22, 2009 by HSACQ · 19 Comments
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November 10, 2009 09:50am
1M-SF JPMorgan Chase Center Sells
By Amy Wolff Sorter
http://www.globest.com
HOUSTON-Texas Tower Ltd., owner of the adjacent JPMorgan Chase Center, takes possession of the class A office building, valued at $32 million.
http://www.hsacq.com
I have to believe investors are anticipating a turn around and have started to position themselves and get in while they can. This might have an impact on the sale of Houston office buildings as trophy properties like this one are purchased and removed from the market. It will be interesting to see what the rental rates might increase to for in this building and Houston office space in the surrounding area.
November 09, 2009
http://blogs.chron.com/primeproperty/office_market/
Downtown building sold
In what could be a show of confidence in Houston’s commercial real estate market, the owner of downtown’s 75-story JPMorgan Chase Tower has purchased the JPMorgan Chase Center across the street.
The new owner is an entity affiliated with a company once led by late Lebanese billionaire and former prime minister Rafik Hariri.
Located at 601 Travis on the block bounded by Capitol, Travis, Texas and Main streets, Chase Center contains 12 levels of parking and about 450,000 square feet of office and retail space.
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October 29, 2009
Houston Chronicle
http://blogs.chron.com/primeproperty/office_market/
Another downbeat report on the Houston office market
Weak market conditions and a negative employment outlook are wearing down the Houston-area office market, according to a third-quarter report from Colliers International.
While still above 90 percent, occupancy in top-class office buildings in the Central Business District fell to 91.5 percent in the quarter from 92.8 percent a year ago.
Class A suburban buildings took a bigger hit, with occupancy falling to 82.5 percent from 87.5 percent a year ago. That’s the largest decline of all property classes citywide on a year-over-year basis, the commercial real estate firm said.
The amount of space companies are looking to sublease rose to 4.6 million square feet. That includes 2.4 million square feet of vacant space and another 2.2 of space to be available in the future.
The largest block of sublet space is 403,231 square feet at RRI Energy Plaza – the1000 Main building downtown.
Here are some of the top office leases so far this year, not including renewals.
Downtown
* Hess Corp. – 844,763 square feet in Discovery Tower, now Hess Tower
* NRG Texas – 232,962 square feet in Houston Pavilions
Energy Corridor
* Tax Masters – 107,890 square feet in Dairy Ashford Plaza
North Belt
* Southwestern Energy – 101,330 square feet in One Commerce Green
Westchase
* Washington Group International – 92,225 square feet in Richmond Park
* ABB – 85,748 square feet in 3700 W. Sam Houston Pkwy.
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November 23, 2009 09:35pm
http://www.globest.com/news/1545_1545/houston/182345-1.html?st=rss
Shadow Creek Signs First Tenant
By Amy Wolff Sorter
Shadow Creek Business Center
PEARLAND, TX-More than two years after construction began on the 80,000-square-foot Shadow Creek Business Center, the just-completed building has its first tenant, Altus Harbor., which took about 5,500 square feet. The reason why the tenant could take that amount of space, is because a master lease backed by the Pearland Economic Development Corp. meant the building didn’t require an anchor tenant to be built.
“PEDC underwrote the lease costs of the building as an inducement to the ownership to develop a spec building,” explains Mark Preston with PRS Realty Services, who represented owner ZT Group Business Center One (Pearland), LP in the lease transaction for the building at 11233 Shadow Creek Pkwy. “This means we don’t have to keep the building closed while we wait for a cost-effective, break-even tenant to lease prior to opening this building.”
Pearland Economic Development Corp. executive director Fred Welch says the board approved a master lease to jump-start construction and leasing of the city’s first class A office building. “At that time, we figured having a guarantee in there was probably important to put the initial construction financing together and bring this forward,” he tells GlobeSt.com. “The board looked at this as a one-time deal to prime the pump; this was done to establish the presence of this building.”
Preston, who partnered with Derek Beck of Moody Rambin Interests on the transaction, tells GlobeSt.com that sometimes emerging submarkets such as Pearland find challenges when it comes to leasing office buildings, especially when competing with other, more established, markets. The PEDC’s aggressive stance in signing a year-long master lease, he goes on to say, could prove to be helpful in showcasing Shadow Creek as a viable option to other office space. What’s also helpful, he continues, is the project is close to the Texas Medical Center, meaning the building could appeal to healthcare clients like Altus Harbor.
In the meantime, Welch and Preston acknowledge there has been tremendous interest in Shadow Creek, with some deals currently in the pipeline. Preston adds that activity has been ramping up since the building opened recently. “We have every reason to believe that, based on the current activity, that occupancy should reach 95% within a year of opening,” Preston says.
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http://www.globest.com/news/1548_1548/houston/182410-1.html?st=rss
HOUSTON-A potential $50 million project proposed on land owned by the Houston Airport System is in the hands of the city council. An article in the Houston Chronicle reports that if council members vote their approval this week, developer Midway Cos. will lease 10 acres on which it will place a mixed-use development.
The land is located on John F. Kennedy Boulevard near George Bush Intercontinental Airport’s Consolidated Rental Car Facility. The article says that, pending council approval on Dec. 2, Midway Cos. would lease the acreage for 40 years.
The article also notes that Midway would have two years to sell the concept to potential tenants, then up to two years for development. The development would include restaurants, a gas station and a convenience store. Other possible projects could include a 125-room hotel, and retail and office space.
The Houston Airport System began looking for a developer for a potential mixed-use project in 2007 and Vaughan Ford Properties and JDDA Concession Management were originally selected for the job. During late 2008, Vaughan Ford pulled out, and Midway Cos. stepped in.
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12-09-09
HSACQ.com
Houston Office Space -For Lease-For Sale Opportunities.
This is a really good time for a tenant to consider options when leasing Houston office space.
The econonomy has certainly had an impact on the Houston office space market. The impact has been most significant behind the scenes with the landlords and owners of office buildings. Most recently we have seen quality office building portfolios going back to the lender due to the owners being unable to repay the debt owed on them. This kind of situation occurs when the (landlord)borrower has paid too much for the property and is unable to refinance or borrow additional money to refinance at a later date. In my opinion we will continue to see this kind of situation occuring in the market creating opportunities for Houston tenants to secure Houston office space and negotiate favorable terms, conditions, and concessions such as free rent. Right now many landlords in my opinion are very concerned and uncertain about the future of the economy as are many people. This will continue to cause Landlord’s to get aggresive in securing a lease for their office space.Regardless of this though from a tenant’s standpoint business must continue and an office lease will be a necessity. Leases do expire and being prepared well in advance of the expiration date and knowing what the Houston office building market has to offer will serve tenants well when it is time to renew a current lease or relocate to a new office building.
In some cases opportunities to lease a space in a nicer office property might exist while maintaining lower rents than what might be expected in a strong Houston office space market. For example a tenant moving wanting to enhance their image might decide to lease class “A” office space instead of the remaining in their Class “B” or Class “C” Houston office buildings. However, one thing that many tenants don’t take into consideration when deciding to move is what the rental rates are going to be after they have have moved and when the lease comes up for renewal in the class “A” Houston office building space several years later . A lot of times companies are stretched financially just making the jump to a nicer Houston office building.
This might be a good to consider a higher quality Houston office building and securing a longer term with lower rates while negotiating concessions for construction and free rent . Right now is probably as good a time as any to consider looking at opportunities that the Houston office space market has to offer in terms of leasing Houston office buildings. For some tenants it might be a great time to purchase a quality Houston office building, however this should probably be discussed with your C.P.A. first.
Houston Site Acquisitions helps tenants find, secure, and negotiate the best terms and conditions possible for Houston Office Space. HSACQ researches the Houston office building market and office space inventory to present the best corporate office space and for lease options. Please call or submit the easy form located on the right hand side of this website for a tenant representation broker with Houston Site Acquisitions- Houston commercial real estate company to contact you or discuss your specific Houston office space requirement. http://www.HSACQ.com
http://www.globest.com/news/1562_1562/houston/182760-1.html?st=rss
Four Chasewood Almost Full, More Planned
By Amy Wolff Sorter News
Four Chasewood
HOUSTON-Four leases totaling 16,667 square feet have pushed the 105,223-square-foot Four Chasewood office building to 90% occupancy a little more than a year after coming online. Owner GenCap Partners Inc. is readying for the next step at Chasewood Technology Park: the 235,000-square-foot Five Chasewood.
“We’ve completed design development on Five Chasewood, and we’re looking for a lead tenant,” comments David Lee, senior vice president with Transwestern’s Houston office. Lee partners with Transwestern senior property management-management services Ray Kubiak and broker associate Courtney Carnahan on leasing and managing the 30-acre Chasewood Technology Park at State Highway 249 and Chasewood Park Drive in the far northwest submarket.
Four Chasewood’s newest additions are US InfraManagement LLC; InEnTec Chemical LLC, Advanced Micro Devices Inc. and Terrabon Technology Corp. Four Chasewood broke ground in early 2007, came online in September 2008, and Lee tells GlobeSt.com that 60% of the class A office building was leased by 2009.
Lee says location played a main factor in the building’s lease-up, especially in light of the economic slowdown. But it wasn’t always that way. “When I first started working with Chasewood Technology Park in 1996, brokers didn’t know how to get there,” he says. “Three Chasewood had just come on line, and I had to draw people a map to get there.”
Over the years, he continues, residential and retail moved northwest. It also didn’t hurt that Compaq Computer’s main campus was right across the way. Compaq was eventually taken over by Hewlett-Packard, and the campus sold earlier this year to the Lone Star Educational System. But the rebranding of the campus during the late 1990s and early 2000s helped boost leasing at Chasewood Technology Park, Lee notes.
The remaining 20 acres are being targeted for two additional office towers and a hotel. Lee says discussions are underway for the hotel component, adding that, upon build-out Chasewood Technology Park will have 1.2-million square feet of office space, some retail and a hotel.
Houston Site Acquisitions specializes in Houston Commercial Real Estate including Houston Office Space, Houston Industrial Space, Houston Warehouse Space, Houston retail Space, and investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
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One of the most interesting points in this article about houston office buildings(http://www.hsacq.com) to me was the following:
“Absorption in the best quality office properties was almost flat. Asking rents were mostly unchanged.”
Absorption was flat in the best quality Houston office buildings and asking rents were mostly unchaged. The rents have maintained most of the gain made prior to any downswing in the national economy. The real softness in the marketplace in my opinion exists more so with the Landlord’s who bought Houston office buildings within the past app. 4 years and that paid too much for those buildings at the time then they were worth. Based from a rental rate standpoint, I believe that Landlord’s of most office building classes purchased prior to 4 years ago have to be happy with the rents they are able to actually command for their office buildings. Tenants are having a difficult time realizing this and feel that they should get a better deal, and these dissapointments over not getting lower rents in a lease negotiation or a renewal are going to quickly turn into nightmares for these tenants when the Landlord’s start standing on their rates and holding their ground.
Houston Site Acquisitions specializes in Houston Commercial Real Estate including Houston Office Space, Houston Industrial Space, Houston Warehouse Space, Houston retail Space, and investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
One of the most interesting points in this article about houston office buildings(http://www.hsacq.com) to me was the following:
“Absorption in the best quality office properties was almost flat. Asking rents were mostly unchanged.”
Absorption was flat in the best quality Houston office space and asking rents were mostly unchaged. The rents have maintained most of the gain made prior to any downswing in the national economy. The real softness in the marketplace in my opinion exists more so with the Landlord’s who bought Houston office buildings within the past app. 4 years and that paid too much for those buildings at the time then they were worth. Based from a rental rate standpoint, I believe that Landlord’s of most office building classes purchased prior to 4 years ago have to be happy with the rents they are able to actually command for their office buildings. Tenants are having a difficult time realizing this and feel that they should get a better deal, and these dissapointments over not getting lower rents in a lease negotiation or a renewal are going to quickly turn into nightmares for these tenants when the Landlord’s start standing on their rates and holding their ground.
Houston Site Acquisitions specializes in Houston Commercial Real Estate including Houston Office Space, Houston Industrial Space, Houston Warehouse Space, Houston retail Space, and investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
February 02, 2010
Anadarko buys headquarters campus in The Woodlands
http://blogs.chron.com/primeproperty/office_market/
After almost a decade leasing, Anadarko Petroleum decided to buy.
CEO Jim Hackett said this morning in an earnings conference call that in the fourth quarter the company bought its headquarters building in The Woodlands for $215 million rather than renewing its lease again.
The independent oil and gas company actually bought the entire campus: A 30-story building, a midrise on Timberloch and a parking garage, according to spokesman John Christiansen.
Incidentally, the company recently earned the first LEED green building certification for its corporate headquarters from the U.S. Green Building Council.
The tower was developed for Anadarko, which became the largest single employer in The Woodlands when the building opened in 2002.
The company, which now has about 1,700 people there, moved from Greenspoint.
Sound familiar?
Exxon Mobil is considering a similar move.
I wrote this story last week about how the company is studying its real estate options, which could include moving to a 400-acre corporate campus just south of The Woodlands at Interstate 45 and the Hardy Toll Road.
Exxon, which announced its earnings yesterday, was less forthcoming on its conference call.
“There’s a study going on in terms of where our offices are. The study is a study across the board. Beyond that, I’m not going to comment. The study is going to continue well into the end of this year and maybe next,” said Ken Cohen, Exxon’s vice president of public and government affairs, when he was asked to comment on speculation that the company may move its headquarters.
Thanks to the Chronicle’s energy reporter Brett Clanton for listening to the calls and passing along this info.
Houston Site Acquisitions specializes in Houston Commercial Real Estate including Houston Office Space, Houston Industrial Space, Houston Warehouse Space, Houston retail Space, and investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
http://www.thestreet.com/story/10682418/1/brookfield-properties-completes-12-million-square-foot-lease-renewal-and-expansion-with-kbr-at-cullen-center-in-downtown-houston.html
Brookfield Properties Completes 1.2-Million-Square-Foot Lease Renewal And Expansion With KBR At Cullen Center In Downtown Houston
By Business Wire 02/16/10 – 03:05 PM EST
BPO Brookfield Properties Corp. (BPO: NYSE, TSX) announced today that it has completed a lease renewal and expansion with KBR for a total of 1.2 million square feet of office space at KBR Tower and 500 Jefferson St. in downtown Houston.
Brookfield Properties Corporation| BPO UP“Successfully completing an office transaction of this size – involving a significant expansion – speaks to the increase in tenant activity we are beginning to see around our major markets,” said Dennis Friedrich, president & CEO of Brookfield Properties’ U.S. Commercial Operations.
KBR renewed its existing 700,000 square feet of space at KBR Tower as well as nearly 300,000 square feet at 500 Jefferson St. and is expanding its presence in both buildings by a combined 234,000 square feet.
“We are thrilled that KBR has chosen to renew and expand office space at two of our properties in the Cullen Center complex, including the tower that bears the company’s name,” said Paul Layne, regional head for Brookfield Properties’ Houston operations.
“Expanding our downtown Houston presence is not only a good business decision, but also brings the added benefit of contributing to our City’s continued downtown revitalization,” said Klaudia Brace, Senior Vice President, Administration for KBR.
Dan Bellow and Mike Boehler of Jones Lang LaSalle represented KBR in lease negotiations. Brookfield was represented in-house by Mr. Layne and Paul Frazier.
The Cullen Center complex consists of four office towers: the two mentioned above as well as Continental Centers I & II. These towers offer a unique combination of office space in one mixed-use complex. Amenities include a food court, the Crowne Plaza Cullen Center Hotel, full-service banking facilities, along with numerous other retail amenities and conference facilities. The complex is situated adjacent to the downtown YMCA and the Metropolitan Business and Sports Club. Abundant parking in four attached garages, convenient access to the freeway system, and numerous adjacent Metro stops add to the prominence of complex. Cullen Center is inter-connected by an overhead walkway and is accessible via the extensive downtown tunnel system.
Houston Site Acquisitions specializes in Houston Commercial Real Estate including Houston Office Space, Houston Industrial Space, Houston Warehouse Space, Houston retail Space, and investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
KTRK News Video Link:
http://abclocal.go.com/ktrk/video?id=7297506
I spoke to a friend who is a leasing agent in the area and he was surprised to learn about light rail construction on Post Oak Blvd. in the Galleria area crossing Westheimer road.
It took three years for the construction of light rail to be completed in downtown Houston.
What kind of impact do you believe light rail construction will have on businesses in the Houston Galleria area and other areas impacted and how long will construction take to be completed ?
Last Updated: March 21, 2011 06:19pm ETWillbros Picks Galleria for 87,212-SF Consolidation
By Jennifer Duell
http://www.globest.com/news/1874_1875/houston/308193-1.html
HOUSTON-Willbros United State Holdings Inc. has chosen Five Post Oak Park for its world headquarters. The publicly-traded company, which provides construction and engineering services to the energy sector, signed a 10-year lease for 87,212 square feet at the class A office building.
The deal, which represents a renewal of existing space and a 44,178-square-foot expansion, consolidates four offices totaling roughly 100,000 square feet across the Houston metro area, according to David Guion of Cushman & Wakefield of Texas Inc.
Along with Tim Relyea and Joe Peddie of the same firm, Guion represented Willbros in its evaluation for headquarters space, as well as lease negotiations. Clint Bawcom and Brian McMackin of Capstar Commercial represented the landlord, Shorenstein Properties LLC.
“Willbros wanted more of true headquarters atmosphere,” Guion says. “The CEO also wanted everyone – about 250 people – together under one roof.”
Guion tells GlobeSt.com that he and his team worked with Willbros for 18 months before the company made its decision. The company’s three other offices – two situated in north Houston and one situated in west Houston – were not appropriate for Willbros’ world headquarters because they were located class B buildings.
Willbros considered both leasing and owning, focusing its search on the Galleria and Westchase submarkets. The short-list consisted of four options in the Galleria including Five Post Oak Park, which is located at 4400 Post Oak Pkwy. “The Galleria area works for Willbros because it is convenient for its employees,” Guion notes, adding that Willbros’ lease at the 28-story Five Post Oak Park was coming up for renewal this year.
Guion says a number of elements influenced Willbros’ decision to expand in Five Post Oak Park. Among those elements – the company’s long-term tenancy at the 567,319-square-foot property, as well as rate and concessions including free rent and TI dollars.
“Five Post Oak Park ended up the most cost effective, but all options were fairly close,” Guion notes, adding that Willbros plans to redo its entire space at Five Post Oak Park. The renovation is scheduled for completion no later than November.
The Willbros lease is the largest signed at Five Post Oak Park in the last 10 years, but comes on the heels of a period of intense leasing activity, according to Paul Grafft, senior vice president of asset management for Shorenstein Properties. “Although this is our largest deal to date, there have been 20 smaller leases completed at the building in the last 30 days and tenants have responded very positively to the work we have carried out to keep this building at the top if its class,” he says.
Shorenstein acquired the property in 2008 on behalf of Shorenstein Realty Investors Nine LP, one of its closed-end real estate investment funds. It has allocated $5 million to capital improvements at the property including a completed remodeling of the building’s lobby and public elevator lobbies and upgrades to life safety and HVAC systems.
Interesting Article:
Houston Site Acquisitions specializes in Houston Commercial Real Estate including , Houston Industrial Space, Houston Warehouse Space, and industrial investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com
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http://youtu.be/jL6GBD10paI