SUGAR LAND, TX-After a seven-year wait, Granite Properties Inc. is ready to start work on a 204,000-sf twin in its Sugar Creek development at the city’s northern gateway. The eight-story spec building will cost just shy of $200 per sf to develop.

Ground will break within 30 days on the 20.1-acre site at 13131 Dairy Ashford Rd., with Granite Towers at Sugar Creek’s last building delivering in 14 months. “We’ve had tenants in the initial building we’ll probably have to let go because we can’t meet their needs,” Scott Martin, the developer’s managing partner in Houston, tells GlobeSt.com, explaining Granite’s motive for starting another class A office building at this time. “There’s equilibrium in supply and demand so it was a good time to move on this one.”

Martin says space in the second building is being quoted at $19 per sf triple net. He anticipates the twin will do well since the first building is 100% occupied and the office market demand is steadily increasing. In the Energy Corridor, Granite has hit 50% preleasing for the under-construction 320,000-sf Granite Westchase II at 10350 Richmond Ave. “Westchase II is more energy sector driven,” he says. “I think the general business services are where we’ll see most of the tenants come from for Sugar Creek.”

Kirksey & Partners Architects Inc. in Houston is the architect for Granite Towers at Sugar Creek. The second building, just like the first, will include a parking garage and surfaces spaces. It also will house an on-site deli, bank and 24-hour security. E.E. Reed Construction LP of Sugar Land is the general contractor.

This year, Granite plans to buy and develop sites valued at $100 million in Greater Houston. Historically, it invests an average of $150 million per year in its core cities, including Dallas/Fort Worth, Atlanta and Denver. Nationwide, the plan is to deploy $250 million this year.

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