Cautious Optimism for Houston Despite Overabundance of Office
While there is still a significant amount of new office space available, discussions surrounding hiring in West Houston upstream operations have been welcomed as one-third of energy jobs have returned.
HOUSTON—Cautious optimism surrounding the Houston office market has continued during 2019, and improvements in the local economy have been embraced by the Energy Corridor submarket, according to a third-quarter office report by NAI Partners. However, questions remain about the sustainability of the energy industry recovery.
While there is still a significant amount of new, vacant office space available, discussions surrounding hiring within West Houston upstream operations have been welcomed. Approximately one-third of energy jobs lost during the oil downturn have returned.
Still, office tenants remain committed to the Houston metro, as evidenced by the recent leasing activity reported by The Richland Companies. One example is Beltway 8 Service Center, an 87,250-square-foot office, service, warehouse property located at 11275 West Sam Houston Pkwy. that is owned and managed by The Richland Companies.
Calhoun and LaBove Enterprises LLC recently signed a 4,376-square-foot six-year lease there. The lessee was represented by Kyle Fox of Fox & Graham and Angie Steadman represented the landlord.
550 Post Oak Boulevard is a 53,872-square-foot office building located at 550 Post Oak Blvd. in Houston that is owned and managed by The Richland Companies. Michael Coulson, John Dorsa, Jesse Quezada and Eileen Allan have renewed their lease in the building. Steadman represented the landlord.
Bay Plaza office complex is a 104,091-square-foot office building located at 711 West Bay Area Blvd. in Houston that is owned and managed by The Richland Companies. DFI Organics Inc. renewed its 2,070-square-foot lease, Simien Properties LLC renewed its 3,476-square- foot lease and DYB Advisory Group LLC has renewed its 5,039-square-foot lease at Bay Plaza office complex. Steadman represented the landlord on all three leases.
“Despite an overabundance of office space availability in Houston, we are finding that office and office flex space are still in high demand,” Edna Meyer-Nelson, founder, president and CEO of The Richland Companies, tells GlobeSt.com. “Additionally, we continue to see an interest in industrial and industrial flex space, especially in San Antonio.”
Along with office demand, retail is following closely behind, with many recent leases hitting the books.
Deerbrook Corner is a 91,078-square-foot retail center located at 20020 & 20103 Highway 59 in Houston that is owned and managed by The Richland Companies. MB Phone Repair & Beyond LLC recently signed a 2,200-square-foot four-year lease there. Steadman represented the landlord.
Raton Plaza is a 33,656-square-foot retail center located at 2407 West Parkwood Ave. in Friendswood that is owned and managed by The Richland Companies.
Quba of Friendswood recently signed a three-year 1,400-square-foot lease there. Steadman represented the landlord while Donna Winfrey of Winfrey Real Estate represented the tenant.
Oils R Us LLC recently signed a 1,728-square-foot five-year lease at Raton Plaza. Keith Shotwell represented the tenant and Steadman represented the landlord.
Lakes on Eldridge Centre is a 34,089-square-foot retail center located at 5630 North Eldridge Pkwy. in Houston that is owned and managed by The Richland Companies.
Palio Pizza and Italian Grill recently renewed its 2,700-square-foot lease there. Steadman represented the landlord.
Tanner Lakes Animal Clinic recently renewed its 1,200-square-foot lease there. Steadman and Mark Brown represented the landlord.
“In Houston, we are seeing an uptick in retail, specifically destination retail centers, which are not just seasonal for the holidays as one would think, but they are looking to stay in the same space for longer periods of time,” Meyer-Nelson tells GlobeSt.com. “The one commonality we are observing in all sectors is tenants are looking for better rates and more concessions such as free rent and TI dollars. Given that, we pride ourselves on being tenant friendly and working with our tenants to ensure their success. We are still maintaining an 89% occupancy rate across the board for all of our properties, regardless of the property type.”