Parker Drilling Reserves 75,000 SF in Greenway

The oil and gas drilling company is taking part of the space that will be vacated by WorleyParsons later this year. Parker Drilling will be moving from 1401 Enclave Pkwy., just outside Beltway 8. The move will put Parker Drilling's new headquarters about 14 miles east of its current location and inside the Interstate 610 loop. The high rise's quoted lease rate is $20 per sf net.

Preston Young, co-managing partner with Stream Realty Partners LP'sHouston's office, says WorleyParson's announced departure spurred discussions among Parker Drilling's management for the space. "There hasn't been any space available in this building of this size in this submarket for more than 10 years," Young tells GlobeSt.com. "WorleyParsons' departure is creating the first opportunity for new tenants to take advantage of it." He says Parker Drilling's final terms included standard concessions and a tenant-improvement allowance.

According to Transwestern's Q1 office market report, the class A vacancy is 9.9% in the Greenway Plaza submarket, with no new space in the pipeline or under construction. Out of a 6.1-million-sf inventory of class A space in the submarket, 610,893 sf is vacant.

Following WorleyParsons' departure to 6330 W. Loop South, Five Greenway Plaza will drop from 100% to 80% occupancy, including Parker Drilling's lease. But, Young says the space most likely won't be vacant for long. "This building has been favorably received in the market," he says. "Our plan is to have the entire space leased up by the time WorleyParsons leaves."

Paul Coonrod, a Stream senior associate in Houston, worked with Young to represent the New York City-based building owner, MS Crescent Greenway Plaza SPV LLC. David Anderson and Anthony Fritsche of Houston-based Fritsche Anderson Realty Partners LLC represented Parker Drilling.