HOUSTON—Sentiment is changing in the energy capital of the world as oil prices dance around $55 per barrel and sublease glut backs off. The supporting office industries are completing most of the deals in the market, according to CBRE. This has been a big shift as the office occupier demand is diversifying, GlobeSt.com learns.
Yet, 2016 was saddled with a significant decline in demand in the largest office-occupying sector—energy. The top four leases of 2016, totaling 1 million square feet, were non-energy tenants in new or under construction buildings.
When compared to 2015, when the top four leases were energy-related renewals, energy only accounted for 18% of leasing activity last year, down from 52% from 2012 to 2014. Legal is picking up the slack with its share of leasing activity nearly doubling from 2015 volumes, due largely to national law firms opening new Houston offices, says Robert Kramp, CBRE director of research and analysis, Texas-Oklahoma-Arkansas region.
Despite this, leasing continues to remain strong for one Energy Corridor property. The Plaza at Enclave is a 344,296-square-foot, class-A office building with an attached multi-level parking garage. Anchored by DOW Chemical, the property is 98% occupied.
The six-story property is located at 1254 Enclave Parkway within “The Enclave”, a 10-building micro-market in West Houston. This location is between Interstate 10, Highway 6 and The Westpark Tollway, providing access to Houston's Inner Loop and central business district as well as the residential communities in Houston's western, northern and southern suburbs. Completed in 2008, the building is LEED-Gold certified and includes a health club and fitness center, cafe with indoor and outdoor dining, and a courtyard and entrance plaza with a multi-level fountain system.
Holliday Fenoglio Fowler LP recently arranged financing for the property on behalf of the borrower, a foreign investor. The 15-year, fixed-rate loan was secured through Allianz Real Estate of America.
The HFF debt placement team was led by senior managing directors, Wally Reid and Matt Kafka, and real estate analyst Dustin Selzer.
HOUSTON—Sentiment is changing in the energy capital of the world as oil prices dance around $55 per barrel and sublease glut backs off. The supporting office industries are completing most of the deals in the market, according to CBRE. This has been a big shift as the office occupier demand is diversifying, GlobeSt.com learns.
Yet, 2016 was saddled with a significant decline in demand in the largest office-occupying sector—energy. The top four leases of 2016, totaling 1 million square feet, were non-energy tenants in new or under construction buildings.
When compared to 2015, when the top four leases were energy-related renewals, energy only accounted for 18% of leasing activity last year, down from 52% from 2012 to 2014. Legal is picking up the slack with its share of leasing activity nearly doubling from 2015 volumes, due largely to national law firms opening new Houston offices, says Robert Kramp, CBRE director of research and analysis, Texas-Oklahoma-Arkansas region.
Despite this, leasing continues to remain strong for one Energy Corridor property. The Plaza at Enclave is a 344,296-square-foot, class-A office building with an attached multi-level parking garage. Anchored by
The six-story property is located at 1254 Enclave Parkway within “The Enclave”, a 10-building micro-market in West Houston. This location is between Interstate 10, Highway 6 and The Westpark Tollway, providing access to Houston's Inner Loop and central business district as well as the residential communities in Houston's western, northern and southern suburbs. Completed in 2008, the building is LEED-Gold certified and includes a health club and fitness center, cafe with indoor and outdoor dining, and a courtyard and entrance plaza with a multi-level fountain system.
Holliday Fenoglio Fowler LP recently arranged financing for the property on behalf of the borrower, a foreign investor. The 15-year, fixed-rate loan was secured through Allianz Real Estate of America.
The HFF debt placement team was led by senior managing directors, Wally Reid and Matt Kafka, and real estate analyst Dustin Selzer.
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