Azrieli Group Inks 71 KSF Office Lease in Houston

8 West Centre will serve as the tenant’s new headquarters. Image courtesy of CommercialEdge

Audubon Engineering Co. has signed a 71,879-square-foot office lease at 8 West Centre, a Class A, 227,045-square-foot office building in Houston. Newmark worked on behalf of the tenant, while CBRE negotiated on behalf of the landlord, Tel Aviv-based Azrieli Group.

The engineering, procurement and construction services company will relocate to and use the new space as its primary corporate office. Azrieli Group picked up the asset in 2014 for $76 million from PGIM Real Estate, according to CommercialEdge data.

READ ALSO: Remote Work Shapes Office Sector

CBRE Executive Vice Presidents Russell Hodges and Bubba Harkins worked on behalf of the landlord. Newmark’s Vice Chairman Reggie Beavan, Managing Director Joshua Brown, together with Associate Director Audrey Selber represented the tenant.

The office building is at 3505 W. Sam Houston Parkway N. and includes 1,614 square feet of retail space, 59,000-square-foot floor plates, four passenger elevators and 1027 vehicle parking spots, CommercialEdge data shows. The four-story building includes amenities such as a fitness center, floor-to-ceiling windows, an outdoor courtyard and a full-service cafe. Other tenants at the property include Helix Energy Solutions Group, Inc. and Cameron International, according to the same data provider.

Built in 2013, the 9-acre property is close to Interstate 10 and to the Houston Energy Corridor, 17 miles from downtown Houston and from Sugar Land, Texas, 24 miles from George Bush Intercontinental Airport and within 33 miles of The Woodlands, Texas.

Houston vacancy among the highest

As of September, Houston’s office vacancy rate reached 24.9 percent, a massive 710-basis-point difference from the national average of 17.8 percent, according to the latest CommercialEdge office report. The metro had one of the highest vacancies in the nation, but the average full-service equivalent listing rate rose 2.8 percent year-over-year, to $30.66, the same source shows.

Recent office leases in the metro included NRG Energy’s 245,000-square-foot commitment at Brookfield Properties’ 51-story office tower in downtown Houston. Additionally, Lime Rock Management signed a 57,000-square-foot renewal at Heritage Plaza earlier this year. AEW Capital Management is a majority owner in that building, while Brookfield Properties acts as manager and leasing agent.