5 Office Buildings Quoting Over $50/SF Gross

That’s right, over $50. Houston’s never seen stats like that before, but more than one office tower has broken the barrier lately. Surprise: They’re not just Downtown.

Hines’ 609 Main at Texas broke ground this year, pouring its concrete mat back in August. It won’t deliver for tenants until December 2016, and anyone hoping to take down some of its 1M SF might want to start saving loose change now—Hines is asking for $36 NNN. With opex creeping up towards $20, gross rates are topping $55.

The last office building to deliver Downtown is also asking for $36 NNN and earning almost $57 gross. Hines brought the 973k SF tower online back in 2011, and sold it to Invesco last year. There's not much space available there--the property hit the market at 61% occupied, and now is nearly 97% full with only 34k SF open.

Move over, whippersnappers—31-year-old Wells Fargo Plaza is nabbing some of the top rents in town. The 1.7M SF property has kept up with the times, especially on the sustainability front—it’s won Houston BOMA’s TOBY award twice, and was certified LEED-EB Gold last year. The breakdown: $35.50 NNN with $19.70 2015 estimated opex.

Bank of America Center is another 80’s-era property earning top tier rates. The 1.3M SF iconic building has 77k SF available, including the full 44th floor (16k SF). But you’ll have to find $52.28/SF first. (Try the couch cushions.)

Proving the CBD isn’t the only core market in town, 2200 Post Oak (BBVA Compass Plaza) is asking for $34 NNN and $16.30 opex for total $50.30/SF. The 326k SF tower opened in 2013, the first office property to deliver in the Galleria in three decades, and the first office development announced in Texas after the recession. 2200 Post Oak is about 80% leased (68k SF is available), and Stream’s website says it expects to sell the property for about $500/SF in the next 12 months.

Many thanks to Savills Studley’s Tim Wingfield for providing us with data!