Newquest, Koll Earmark 14 Acres for Office Plan

NewQuest's $200-million mixed-use development is located at Texas 130 and Interstate 45. "We like to have office components in our mixed-use developments because we like a variety of users and trip generators," says Jay Sears, principal with NewQuest. "The more trip generators we get in our projects, the more successful our retailers are."

Sears says Dallas-based Koll was a logical partner for the endeavor because the cultures of both companies mesh well and are client-centric. The companies are already planning a second project in Houston, but Sears is declining to be more specifics, for now. "I think we're a good marriage," Sears says. "We like the product they build."

Koll's senior vice president Mark Cashman says preliminary planning for the acreage includes a three- or four-story Intellicenter, a trademark office design with LEED specifications that Koll and Prudential Real Estate Services has been rolling out in select markets for the past two years. But, it will be the customer's choice if the space that goes vertical will be green or not.

[IMGCAP(2)]"It's a good location for an Intellicenter, but this is also strictly build-to-suit," Cashman says. "If the customer likes it, and wants one, we'll give it to them." He tells GlobeSt.com the development partners would like to see a user commit to at least 60% of a building before beginning any project.

Regardless of whether it's an Intellicenter or standard office building, the JV will be bringing much-needed class A office space. Sears and Cashman believe the demand for office space will increase as more executives move north and won't want to commute to Downtown Austin.

Sears believes the recent opening of Texas 130 will pull development and interest east of Interstate 35. "I think this highway will do for Austin what Beltway 8 did for west Houston," he predicts. "Beltway 8 brought a lot of development to the far west area of Houston and the same thing will happen to east Austin."