Sugar Land Continues to Demonstrate Resiliency

HOUSTON—Market vacancies have been increasing. Overall vacancy in suburban Houston class-A buildings rose again in the third quarter and is now close to 20%. Much of the almost 3 million square feet of space under construction is set to be delivered in suburban markets during the next two years. However, the Sugar Land submarket has held up well due to limited delivery of new space and an overall 92% occupancy, says Stockdale Capital Partners.

As part of that occupancy theme, industrial services company TEAM Inc. has extended and expanded its existing lease at its headquarters at Stockdale's Sugar Creek I and II office complex in the suburb of Sugar Land. Currently occupying 34,500 square feet, TEAM Inc. will take an additional 26,500 square feet and extend its lease out to 2028 under the terms of the new lease, according to Los Angeles-based Stockdale Capital Partners. The lease brings total occupancy to approximately 95% at Sugar Creek, a 409,000-square-foot class-A office complex.

 “We purchased Sugar Creek in 2014 because we felt that Sugar Land was one of the best suburban markets in Houston,” Steven Yari, managing principal of Stockdale Capital Partners, tells GlobeSt.com. “Nothing has happened to change that view, as evidenced by companies like TEAM Inc. expanding. The Sugar Land market continues to demonstrate great resiliency despite the Houston market's broader problems.”

Ryan Bishop and Craig McKenna of Stream Realty represented the landlord in the lease negotiations. Chad Baker and Matt Sanderson of JLL represented TEAM Inc.

“It's nice to have the ability to 'blend and extend' leases like this with good, solid tenants because it really is a win-win for landlord and tenant,” said Yari. “Sugar Creek is a stand-out location and we're delighted that TEAM Inc. is not only re-committing to the building but is in growth mode.”

HOUSTON—Market vacancies have been increasing. Overall vacancy in suburban Houston class-A buildings rose again in the third quarter and is now close to 20%. Much of the almost 3 million square feet of space under construction is set to be delivered in suburban markets during the next two years. However, the Sugar Land submarket has held up well due to limited delivery of new space and an overall 92% occupancy, says Stockdale Capital Partners.

As part of that occupancy theme, industrial services company TEAM Inc. has extended and expanded its existing lease at its headquarters at Stockdale's Sugar Creek I and II office complex in the suburb of Sugar Land. Currently occupying 34,500 square feet, TEAM Inc. will take an additional 26,500 square feet and extend its lease out to 2028 under the terms of the new lease, according to Los Angeles-based Stockdale Capital Partners. The lease brings total occupancy to approximately 95% at Sugar Creek, a 409,000-square-foot class-A office complex.

 “We purchased Sugar Creek in 2014 because we felt that Sugar Land was one of the best suburban markets in Houston,” Steven Yari, managing principal of Stockdale Capital Partners, tells GlobeSt.com. “Nothing has happened to change that view, as evidenced by companies like TEAM Inc. expanding. The Sugar Land market continues to demonstrate great resiliency despite the Houston market's broader problems.”

Ryan Bishop and Craig McKenna of Stream Realty represented the landlord in the lease negotiations. Chad Baker and Matt Sanderson of JLL represented TEAM Inc.

“It's nice to have the ability to 'blend and extend' leases like this with good, solid tenants because it really is a win-win for landlord and tenant,” said Yari. “Sugar Creek is a stand-out location and we're delighted that TEAM Inc. is not only re-committing to the building but is in growth mode.”