The 10 Largest Office Blocks Available In Houston
The excessive amount of available office space in Houston held steady through Q2, even as the city’s economy rallied from Hurricane Harvey and the long-term effects of the oil bust. In 2017, Houston had the most Class-A office space available in the U.S.
The top 10 available blocks of office space account for 3.6M SF, or about 16% of the total 22.5M SF available in the Class-A market, according to Transwestern's Q2 Office Report. Direct vacancy remains steady over the previous quarter at 15.7%. The Energy Corridor tops the list of leasing options, with 41% available. The Downtown and Greenspoint submarkets followed.
Financially overwhelmed by negative absorption for six of the past eight quarters, Class-A assets built prior to 2000 are suffering as new construction or heavily discounted sublease offerings take precedence.
Bisnow delved into the largest direct availability office space blocks for those ready to ink a deal. (Check out our past list of largest sublease offerings.)
Energy Center V |
Available Block: 524K SF
Address: 915 North Eldridge Parkway
Submarket: Energy Corridor
Leasing Representative: CBRE
The largest office block on the market is Energy Center V. The building hasn't been occupied since its delivery in 2016, and the whole facility is available for direct lease. CBRE's Executive Vice President Steve Rocher, who is leasing the property, said it is the highest-quality suburban office complex on the market.
Houston-based ConocoPhillips will relocate its headquarters to an adjacent building — 598K SF Energy Center Four — after interior build-out is completed later this year, and it also occupies Energy Center Three.
2. CityNorth 5 |
Available block: 458K SF
Address: 17001 Northchase Drive
Submarket: Greenspoint
Landlord Representative: Lincoln Property Co.
CityNorth 5 is one of the six buildings within the CityNorth campus — the former Greenspoint Place office complex previously anchored by Exxon Mobil. The Class-A property is 10% leased.
Over the next five years, Dallas-based development company Lincoln Property Co. plans to invest more than $100M in redeveloping the exteriors, interiors, landscaping and restaurant and retail offerings at the complex.
3. 717 Texas |
Available block: 356K SF
Address: 717 Texas Ave.
Submarket: Central Business District
Landlord Representative: Colvill Office Properties
717 Texas, a 33-story, Class-A office space, remains half-filled. Last year, the 696K SF property lost tenant Freeport-McMoRan and became vacant for the first time in more than a decade. At the same time, it received a $163.5M refinancing loan from Goldman Sachs.
4. CityNorth 6 |
Available block: 343K SF
Address: 12450 Greenspoint Drive
Submarket: Greenspoint
Landlord Representative: Lincoln Property Co.
Built in 1987, the Class-A office building CityNorth 6 is also a part of the $100M redevelopment in the Greenspoint area.
5. 609 Main at Texas |
Available block: 310K SF
Address: 609 Main St.
Submarket: Central Business District
Landlord Representative: Colvill Office Properties
Touting more than 1M SF in office space, 609 Main at Texas is one of the newer downtown skyscrapers. The first tenant to move in was the property's developer, Hines, with 28K SF on the 44th floor in April 2017. Other major occupants include McKinsey & Co., United Airlines and Kirkland & Ellis. The 48-story property has 380K SF of available space including a 310K SF block.
6. Energy Center 1 |
Available block: 332K SF
Address: 585 North Dairy Ashford Road
Submarket: Energy Corridor
Landlord Representative: Transwestern
Amec Foster Wheeler is vacating 332K SF in Energy Center 1 in August. Renovations to start in Q3 include the building's lobby, cafe, coffee bar, fitness center and conference center. Spear Street Capital purchased Energy Center 1, 5 Houston Center and 515 Post Oak for $272M in 2017.
7. 2 Houston Center |
Available block: 310K SF
Address: 909 Fannin St.
Submarket: Central Business District
Landlord Representative: Transwestern
Two Houston Center, a 1M SF downtown office property, is sitting on nearly 50% vacancy. In September, Brookfield paid about $875M for a 4.2M SF, four-building portfolio that includes 2 Houston Center.
The 40-story property is poised for extensive upgrades to compete with Houston’s evolving Class-A space. It offers access to The Shops at Houston Center, The Four Seasons Hotel, the downtown skybridge and tunnel system, three-story lobby with 24/7 security and on-site conference facility.
8. Two Westlake PARK |
Available block: 306K SF
Address: 580 Westlake Park Blvd.
Submarket: Energy Corridor
Landlord Representative: Colvill Office Properties
The availability at Two WestLake Park includes 141K SF available on direct lease and 193K SF from ConocoPhillips, which is subleasing the majority of its space, available in December 2019. BP was the major tenant of the 17-story, Class-A building, occupying over 100K SF.
9. Enclave Place |
Available block: 301K SF
Address: 1414 Enclave Parkway
Submarket: Energy Corridor
Landlord Representative: Colvill Office Properties
Enclave Place delivered in 2015 and is still up for grabs. The 11-story, Class-A office building is near Interstate 10, Beltway 8, Highway 6, the Westpark Tollway and the Grand Parkway, but it hasn't filled up since its delivery.
10. 1600 Smith St |
Available block: 281K SF
Address: 1600 Smith St.
Submarket: Central Business District
Landlord Representative: JLL
Brookfield Office Properties’ office building is 69% leased with 502K SF available between direct and sublease space. Built in 1984, 1600 Smith St. offers coworking outdoor green space with free WiFi, complimentary yoga on the lawn, access to Midtown shuttle and two on-site conferencing facilities.
