"There are a lot of people in that particular sector," says Richard Zigler, director of research for O'Connor & Associates in Houston. "Many are there because of HP." Others are there, he continues, because there are good buildings in nice areas. "There is a lot of executive housing in that area; the residential areas nearby are healthy; and the school districts are strong," Zigler tells GlobeSt.com, adding the announcement of the sale wasn't a surprise.
According to a Palo Alto, CA-based HP spokeswoman, the decision to sell the property was not a sudden one. "Even prior to the merger [with locally based Compaq Computers in 2002], we've been continually assessing our real estate assets and have been examining our underutilized properties for cost and operational efficiency," she tells GlobeSt.com. "The five buildings in question have been vacant or underutilized for some time, even before the merger."
Local experts say HP needs to find one buyer because of the configuration of the office building complex. The HP listing is part of a "technology corridor," where absorption has been fairly high and lease rates range from $13 per sf for class C product to as much as $20 per sf for class A space.
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