Investors Take Serious Look at Northwest Submarket

2525 North Loop West is a 136,325-square-foot office building that recently sold.

HOUSTON—The office market has recorded a marked increase in investment activity this year. Even with the continued slowdown in leasing activity and rising vacancy, investors have re-entered the market with the notion that better yields can be realized in Houston relative to other major metros. Year-to-date transaction volume is approximately $1.47 billion, a significant increase from 2016, which recorded just $330 million worth of transactions, according to JLL research.

An example of that increased investment activity is the sale of 2525 North Loop West, a 136,325-square-foot office building. 2525 Inner Loop LP purchased the property from Lykes Building Holding Associates and Smetana Texas Realty Associates. Sean Finn, the new owner, plans to implement a capital improvement program with hopes of attracting medical-office tenants. He also plans to bring retail space to the adjacent pad sites on the property.