HOUSTON—The West Loop/Galleria office submarket has largely mirrored activity in the overall Houston market due to its high concentration of energy occupiers. Deal velocity was down in 2017 compared to previous years and sublease expirations will weigh on the market through 2021, according to CBRE.

One exception to that rule is the recent 353,944-square-foot lease renewal for Williams—one of the nation's leading natural gas infrastructure operators—at Williams Tower, a 64-story tower in the Galleria submarket. Although the Galleria is generally known for its smaller deal size relative to CBD occupiers, recent long-term commitments by several large tenants—including Amegy, BHP, Stage Stores and now Williams—are evidence that the Galleria submarket is still capable of attracting and retaining large users, GlobeSt.com learns.

Williams has nearly 700 employees based in the Williams Tower, the highest employee total in any location outside of its headquarters in Tulsa. The company's subsidiary, Transcontinental Gas Pipeline, has been the lead tenant in the 1.5-million-square-foot building since the tower was developed in 1983.

Global real estate investment manager, Invesco Real Estate acquired Williams Tower in 2013. The tower is 92.3% leased.

Dave Hanusa, Bonnie Kelley-Dienna and Jason Presley of CBRE's Houston office represented Invesco Real Estate.

“Williams Tower is the tallest building outside of a downtown area. Not only is it one of the most iconic buildings in the city—it is connected by covered walkway to the Galleria mall and two hotels,” Hanusa tells GlobeSt.com. “Williams Tower added a best-in-class fitness center this past year and also offers world-class tenant conference facilities. The building's tenant mix includes major financial companies and energy firms looking for a prestigious address with walkable amenities.”

Ronnie Deyo and Beau Bellow of JLL represented the tenant.

“As one of Houston's largest tenants, Williams has long played a significant role in the city's economy and the vibrancy of the Galleria. This renewal is a tremendous vote of confidence for the iconic Williams Tower and the submarket as a whole,” said Deyo. “The company's commitment to their namesake tower helps ensure the Galleria will continue to be a dynamic place to conduct business for years to come.”

Instant Insights /

Galleria Bucks Trend with Mega Renewal

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