Houston Commercial Real Estate,Houston,Texas | Tenant Representation

by Patsy Fretwell on January 26, 2011

Houston Office Market

Houston’s office market is gearing up for increased leasing activity in 2011, particularly among Class A buildings, which ended the year with positive absorption, according to quarterly market research compiled by Commercial Gateway, the commercial division of the Houston Association of REALTORS®.   Citywide, the office market recorded overall negative net absorption of 144,279 square feet in the fourth quarter, contributing to the 2010 year-end total of a negative 1.1 million square feet. Class B buildings account for the most red ink both for fourth quarter and year-to-date, recording over 1.6 million square feet of the total negative absorption for the year.  Class A space continued its third consecutive quarter of positive absorption, 279,815 square feet, to finish out the year with a positive 683,337 square feet. Several submarkets finished 2010 with positive absorption but only four submarkets – Energy Corridor, Northeast, Uptown and West — reported positive absorption activity in both fourth quarter and for yearend.

The current 13.4% vacancy rate is 0.6 percentage points higher when compared to Fourth Quarter 2009’s 12.8%, and rental rates are decreasing. The overall annual, weighted averaged, gross rental rate quoted for this quarter of $23.03 per sq.ft. is 5.2% lower than the same quarter last year, which was $24.29.   The Central Business District’s (CBD’s) quoted rates dropped 6.4% to $29.69 from a year ago’s $31.71.  Rental rate concessions vary across the board, with tenants negotiating for the lower rates ahead of an anticipated increase in sublease space hitting the market. Overall sublease space, at 3.2 million square feet, decreased marginally from last quarter, but shows less square footage, 3.6 million, than reported in the same quarter a year ago.  The effects of various ongoing company consolidations in the marketplace have yet to be fully realized by Houston’s office market.
 

Houston Industrial Market

Houston’s industrial market continues to rebound with positive absorption recorded and limited major construction on the horizon, according to statistics released by Commercial Gateway. With a fifth consecutive quarter of positive absorption, the industrial market has seen a slow decrease in its vacancy rate and a stabilization of rental rates.  Vacancy overall is 8.5%, compared to 9.6% a year ago.

Properties classified as manufacturing are reporting the lowest vacancy rate of 4.1%, with crane-ready buildings in short supply.  However, warehouse/distribution property types are experiencing the most leasing activity this year, accounting for 83% of the total year-to-date.  Properties classified as warehouse/distribution represent about 72.6% of the total market.  Rental rates have increased slightly, about 2.3%, over the last year, with a quoted, weighted averaged annual rental rate of $5.45 per sq.ft. reported this quarter compared to $5.33 a year ago.  Sublease space reported in fourth quarter represents a slight drop from third quarter but a substantial drop from the first half of the year.

 HSACQ:
Very good article regarding Houston Commercial Real Estate Market.

Houston Site Acquisitions specializes in Houston Commercial Real Estate including , Houston Industrial Space, Houston Warehouse Space, and industrial investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com

Houston Site Acquisitions provides fast, friendly, free location service to Houston, Texas corporate tenants with our Houston office space, Houston warehouse space, retail space tenant representation services, Houston Commercial Real Estate real time lease and sales listings, and Houston commercial real estate corporate facility leasing management services including searching, finding, identifying, negotiating, and securing Houston commercial real estate corporate facility sites for lease. Houston Site Acquisitions assists corporate tenants with identifying various types of Houston Commercial Real Estate current real time listings / options for lease including Houston office space, Houston office buildings, Houston warehouse buildings, Houston office warehouse space, Houston distribution center space, Houston shopping centers, Houston sublease space, Houston lifestyle centers, Houston mall space for lease, Houston retail box space for lease, Houston warehouse Space, Houston retail Space, big box locations, Houston law firm space, school space, medical space, call center space, Houston technology center space, cell site acquisition, telephone data rooms, pad sites, and raw land for Houston build-to-suits. Additionally, Houston Site Acquisitions services corporate business expansions and rollouts throughout greater Houston and the entire Houston, Texas area. Houston Office Space, Houston Industrial Space, Houston Retail Space -Start Search & Submit Requirements On-Line 24-7.Houston Tenant Representation Company. Houston Tenant Representation Broker. Houston Commercial Broker. Houston Commercial Real Estate Broker. Houston Office Space. Office Space in Houston. Houston Office Lease. Houston Office Space Lease. Houston Office Space Leasing. Start Search 24-7 by filling out the on-line form. Free Location Service Citywide for Houston Office Space, Houston Industrial Space, Houston Warehouse Space and Houston Retail Space. Houston tenant representation company. Houston Tenant Representation Broker. Houston Commercial Broker. Houston Commercial Real Estate Broker. Houston Office Space. Office Space in Houston.Houston Office Lease. Houston Office Space Lease. Houston Office Space Leasing. Houston Office Space, Houston office space for lease, office space for lease Houston, Houston Commercial Real Estate, commercial real estate Houston, Houston Industrial Space, Industrial Space Houston, Houston warehouse space, Houston warehouse space for lease, Houston Retail Space, Retail Space Houston, Office Space in Houston, Industrial Space Houston, Houston Office Spaces, Houston Tenant Representation, Houston Real Estate, commercial office space Houston, Houston office space for rent, Houston office space rental, lease office space Houston, office space rental Houston, office space rental Houston, office space for rent Houston, office space for lease in Houston, office space for lease in Houston TX, office space for rent Houston TX, commercial real estate Houston TX, Houston commercial real estate for sale, Houston TX commercial real estate, Houston commercial real estate brokers, Houston commercial real estate companies. Start Search 24-7 by filling out the on-line form. Free Location Service Citywide for Houston Office Space, Houston Industrial Space, Houston Commercial Real Estate For Sale, Houston Warehouse Space and Houston Retail Space. Houston Site Acquisitions 312 Main Street, Houston, Texas 77002 Telephone: 713-789-8700

4 replies
  1. HSACQ
    HSACQ says:

    Last Updated: March 21, 2011 06:19pm ETWillbros Picks Galleria for 87,212-SF Consolidation
    By Jennifer Duell
    http://www.globest.com/news/1874_1875/houston/308193-1.html

    HOUSTON-Willbros United State Holdings Inc. has chosen Five Post Oak Park for its world headquarters. The publicly-traded company, which provides construction and engineering services to the energy sector, signed a 10-year lease for 87,212 square feet at the class A office building.

    The deal, which represents a renewal of existing space and a 44,178-square-foot expansion, consolidates four offices totaling roughly 100,000 square feet across the Houston metro area, according to David Guion of Cushman & Wakefield of Texas Inc.

    Along with Tim Relyea and Joe Peddie of the same firm, Guion represented Willbros in its evaluation for headquarters space, as well as lease negotiations. Clint Bawcom and Brian McMackin of Capstar Commercial represented the landlord, Shorenstein Properties LLC.

    “Willbros wanted more of true headquarters atmosphere,” Guion says. “The CEO also wanted everyone – about 250 people – together under one roof.”

    Guion tells GlobeSt.com that he and his team worked with Willbros for 18 months before the company made its decision. The company’s three other offices – two situated in north Houston and one situated in west Houston – were not appropriate for Willbros’ world headquarters because they were located class B buildings.

    Willbros considered both leasing and owning, focusing its search on the Galleria and Westchase submarkets. The short-list consisted of four options in the Galleria including Five Post Oak Park, which is located at 4400 Post Oak Pkwy. “The Galleria area works for Willbros because it is convenient for its employees,” Guion notes, adding that Willbros’ lease at the 28-story Five Post Oak Park was coming up for renewal this year.

    Guion says a number of elements influenced Willbros’ decision to expand in Five Post Oak Park. Among those elements – the company’s long-term tenancy at the 567,319-square-foot property, as well as rate and concessions including free rent and TI dollars.

    “Five Post Oak Park ended up the most cost effective, but all options were fairly close,” Guion notes, adding that Willbros plans to redo its entire space at Five Post Oak Park. The renovation is scheduled for completion no later than November.

    The Willbros lease is the largest signed at Five Post Oak Park in the last 10 years, but comes on the heels of a period of intense leasing activity, according to Paul Grafft, senior vice president of asset management for Shorenstein Properties. “Although this is our largest deal to date, there have been 20 smaller leases completed at the building in the last 30 days and tenants have responded very positively to the work we have carried out to keep this building at the top if its class,” he says.

    Shorenstein acquired the property in 2008 on behalf of Shorenstein Realty Investors Nine LP, one of its closed-end real estate investment funds. It has allocated $5 million to capital improvements at the property including a completed remodeling of the building’s lobby and public elevator lobbies and upgrades to life safety and HVAC systems.

    Interesting Article:
    Houston Site Acquisitions specializes in Houston Commercial Real Estate including , Houston Industrial Space, Houston Warehouse Space, and industrial investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com

  2. HSACQ
    HSACQ says:

    Real estate transactions
    HOUSTON CHRONICLE
    March 21, 2011, 10:17PMhttp://www.chron.com/disp/story.mpl/business/7485106.htmlSales
    LAND: Sugar Land Physician Partners has purchased 4.2 acres at 16906 Southwest Freeway at First Colony Boulevard in Sugar Land. A 42,022-square-foot hospital, which will be leased to Sugar Land Surgical Hospital, will be built on the site, scheduled to open in late 2012. A two-story, 30,000-square-foot medical office building is also planned. The architect for the hospital and the professional building is Browne McGregor Architects, and the contractor will be Mission Constructors. The seller, Sugar Land Properties, was represented by Don Janssen of Planned Community Developers. Kolbe Curtice of Colliers International represented the buyer.

    LAND: Turkey Creek Crossing has purchased 24,804 square feet of land at North Eldridge Parkway and Buffalo Bayou. David Cook and Jeff Peden of Cushman & Wakefield represented the seller, Eldridge Area Partners.

    RETAIL: Goldking Realty Corp. has purchased a 3,685-square-foot building at 4373 FM 1960. Matt Keener, Ryan West, Alex Makris, Jazz Hamilton and Andrew Kelson of CB Richard Ellis represented the seller.

    OFFICE: Steven Sondag has purchased a 4,200-square-foot building at 8900 FM 1960 East in Humble. Mark Wimberly and Patrick Wimberly of Houston Commercial Development represented the Duborg estate in the sale.

    STORAGE: Sawmill Storage, a 70 percent occupied self-storage facility at 31503 Nichols Sawmill Road in Magnolia, has changed hands. The property is on 2.5 acres and was built in 2002. Bill Bellomy with the Austin-based Southern Storage Group handled the sale.

    APARTMENTS: Two Montrose apartment properties have changed hands: a 12-unit complex at 3001 Helena and a 22-unit complex at 109 Avondale. Sheri Carey of Marcus & Millichap represented the seller, a private investor. Juan Cuevas of Marcus & Millichap represented the buyer.

    RETAIL: The 3,500-square-foot AT&T Wireless store at 6900 Southwest Freeway has changed hands. Francois Le of Marcus & Millichap represented the seller.

    LAND: Bear Creek RV has purchased 21.6 acres of land on Clay Road in Katy from Tan Duc Construction Co. Jearald Dyer of Grubb & Ellis represented the seller in the transaction. Paul Grohman of Gromax Development represented the buyer.

    LAND: Texas Bay Area Credit Union has purchased 5.6 acres at Spring Trace, located at Beltway 8 and Lake Houston Parkway, from Marhaba Partners. Matthew Herring and Bill Heavin of Grubb & Ellis represented the seller. Gregory Williams of Qualified Properties represented the buyer.

    Leases

    OFFICE: Westpark Communications has leased 8,061 square feet at the Centre at Cypress Creek, a 40-acre corporate campus at 20475 Texas 249. Cody Armbrister and Steve Rocher of CB Richard Ellis represented the landlord, PCA Cypress Creek. Charles Fertitta of Colliers International represented the tenant.

    OFFICE: Pacific Drilling has expanded by 4,721 square feet at Lakes on Post Oak, a three-building complex next to the Galleria. Cody Armbrister and Rima Shpolyansky of CB Richard Ellis represented the landlord, Crocker Partners. Jon Silberman and Kelly Torian of NAI Houston represented the tenant.

    OFFICE: Denali Oil & Gas Management has renewed and expanded its lease to 10,406 square feet in Greenbriar Place at 650 N. Sam Houston Parkway East. Marci Phillips and Livy Romo of PM Realty Group represented the landlord, Younan Properties. John Richardson of Office Space Advisors represented the tenant.

    OFFICE: KS Management Services has renewed a lease for 20,470 square feet at the Professional Center at Kings Crossing at 2755 W. Lake Houston Parkway in Kingwood. Marci Phillips and Livy Romo of PM Realty Group represented the landlord, Universal Health Realty Income Trust.

    RETAIL: PZHTX has leased 1,843 square feet at The Village in Dairy Ashford Shopping Center, 1315-A South Dairy Ashford. The Rev. James Keathley represented the landlord, New Zion Christian Church. Pam Guillote of America Commercial Real Estate represented the tenant.

    RETAIL: CrossFit Elevate has leased 1,920 square feet in Mason’s Place Shopping Center at 3750 S. Mason Rd. Charlotte Blocker Farshchi of The Winzor Group represented the landlord, Mason’s Place Ltd., and the tenant, Gardner Roberts Group.

    RETAIL: Cypress Oral Surgery has leased 2,308 square feet at The Shoppes at Fry Road at U.S. 290 and Fry Road. Heather Nguyen and Rebecca Le represented NewQuest Properties. John Phelps of Phelps Commercial represented the tenant.

    RETAIL: Little Caesars has leased 1,400 square feet in Sam Houston Town Center at Interstate 45 and FM 1097 in Willis. Heather Nguyen and Rebecca Le represented the landlord, NewQuest Properties.

    RETAIL: Natural Nails has leased 2,000 square feet in Westheimer Market Place at Westheimer and Dairy Ashford. Bob Conwell and David Meyers represented the landlord, NewQuest Properties.

    OFFICE: Plastic and Paper Investments (St. Christopher Holdings) has leased 3,840 square feet at 101 Parklane Blvd., Sugar Land. The landlord, APAAR-Sugar Creek LP, was represented by John Novak and Kolbe Curtice of Colliers International. Acho Azuike of Mint Real Estate represented the tenant.

    OFFICE/WAREHOUSE: McQuay Air Conditioning has leased 5,249 square feet at 14850 Woodham from Brummett & Co. Robin Moore of Proximity Real Estate Advisors represented the tenant. Tom Brummett represented the landlord.

    RETAIL: Wellspring Asian Massage & Skin Care has leased 983 square feet at 9001 Forest Crossing in The Woodlands. Cheri Heck of Coldwell Banker Commercial United, Realtors, represented the tenant. Jay Procter represented the landlord, Forest Crossing Associates V.

    RETAIL: Jefferson Dental Clinic has leased 6,481 square feet at the Bellaire Development Shopping Center at 8702 Bellaire. Stuart Shapiro of United Equities represented the landlord, Bellaire Development Co. Larry Jordan with Transwestern represented the tenant.

    OFFICE: Greater Houston Radiology Associates has renewed its lease for 2,185 square feet at 3120 Southwest Freeway. Jeffery Peltier of Gibson & Granello Realty Partners represented the tenant. Louann Pereira of CB Richard Ellis represented the landlord.

    OFFICE: LB Walker has renewed its lease for 6,627 square feet at 13111 Northwest Freeway. André Granello and Jeffery Peltier of Gibson & Granello Realty Partners represented the tenant. Louis Rosenthal with Jones Lang LaSalle represented the landlord.

    OFFICE: Menard Financial Group has leased 2,530 square feet at 2603 Augusta. Granello CCIM, SIOR and Jeffery Peltier of Gibson & Granello Realty Partners represented the tenant. Michele Ellis-Felder with Transwestern represented the landlord.

    OFFICE: Sadler Law Firm has doubled its space in the 3/D International Tower at 1900 West Loop South, where it now leases 32,052 square feet. William Wolff, Thomas McKenzie and Cathy Duong of UGL Services represented the tenant. Brad Sinclair and Greg Tilton of Transwestern Commercial Services represented the owner, Transwestern 3 D/1.

    RETAIL: Just In Fashion has leased 24,500 square feet in Westside Plaza, 9600 Westheimer. Neal Wade of AmReit represented the landlord, AmREIT Westside Plaza.

    OFFICE: Energy Waterproofing & Roofing Systems has leased 6,000 square feet of office/warehouse space at 7115 Begold. Gloria Parrino of Betz Commercial Brokerage represented the landlord, Rodfam.

    RETAIL: Acceso Auto Insurance has leased 1,500 square feet at 6225 Bissonnet. Matt Keener and Russell Janicek of CB Richard Ellis represented the tenant.

    Interesting Article From the Houston Chronicle:
    Houston Site Acquisitions specializes in Houston Commercial Real Estate including , Houston Industrial Space, Houston Warehouse Space, and industrial investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com

  3. HSACQ
    HSACQ says:

    Cornerstone Mortgage Expands Galleria HQ to 49,574 SF
    By Jennifer Duell Popovec : http://www.globest.com/news/1954_1954/houston/312007-1.html

    HOUSTON-After an 18-month market evaluation and negotiation period, Cornerstone Mortgage Company has signed a long-term renewal and expansion lease for 49,574 square feet at 1177 West Loop South. The company has been a tenant in the class A building for 12 years and uses the space for its corporate headquarters.

    Cornerstone Mortgage’s lease at the 341,947-square-foot building was set to expire in December 2011. The company initially considered purchasing its own property, but decided to against it because the cost was prohibitive and concerns about lack of flexibility, according to Marshall Clinkscales of Colliers International’s local office.

    Clinkscales represented the mortgage company in lease negotiations. The landlord, Houston-based Griffin Partners, was represented internally by Chris Lewis.

    Once Cornerstone Mortgage decided against buying a building, Clinkscales conducted an exhaustive search of the Galleria submarket. He tells GlobeSt.com that the company had several items on its checklist including: total occupancy cost; covered parking; the ability to expand; and quality of the landlord.

    “Griffin Partners is an outstanding landlord, and they were able to structure a deal that made sense for Cornerstone Mortgage to stay in the building,” Clinkscales explains.

    Cornerstone Mortgage expanded its footprint in the 18-story building by about 5,000 square feet. As part of the new lease, the company received an allowance that will allow it to refurbish its existing space on floors two, three, four, five and eight, as well as build out new space.

    With the Cornerstone Mortgage renewal and expansion, 1177 West Loop is nearly 90% leased.

    Houston Site Acquisitions specializes in Houston Commercial Real Estate including , Houston Industrial Space, Houston Warehouse Space, and industrial investment property. For commercial real estate assistance please contact us at 713-789-8700 or fill out the easy to fill out form located at the top right hand corner of this page. http://www.hsacq.com

  4. HOUSTON SITE ACQUISITIONS
    HOUSTON SITE ACQUISITIONS says:

    Jun 24, 2019, 03:40pm
    How The Gig Economy Is Shaping The Commercial Real Estate Sector
    https://www.forbes.com/sites/abdullahimuhammed/2019/06/24/how-the-gig-economy-is-shaping-the-commercial-real-estate-sector/#186f6e463749

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