Capital Commercial Inks 63 KSF Lease in Houston
With this deal, the property is now 74 percent occupied.
The maritime assurance and risk management firm DNV USA has signed a 62,779-square-foot lease at The Offices at Greenhouse, a 208,809-square-foot office property in Houston’s Energy Corridor submarket. The company will relocate from its current location in Katy, Texas.
The deal brought The Offices at Greenhouse to 74 percent occupancy, leaving 52,334 square feet available for lease. The tenant roster includes Patten Title Co., SPB Hospitality, Med Sales Institute and DSWi, among others, CommercialEdge shows.
Located at 19219 Katy Freeway, the property has access to Interstate 10. Downtown Houston is 23 miles away, while William P. Hobby Airport is some 34 miles southeast.
Transwestern’s Executive Managing Director Doug Little, Vice President Jack Scharnberg and Senior Vice President Kelli Gault worked on behalf of Capital Commercial Investments. JLL’s Senior Vice President Collin Grimes represented the tenant.
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Capital Commercial Investments acquired the asset last year. The company paid $17.6 million to seller KBS Realty Advisors in July, according to CommercialEdge. The property traded at $86.6 per square foot, a notable discount from the previous sale, closed in 2016 at $47 million, or at $231.4 per square foot, the same source shows.
After the acquisition, the owner commenced a capital improvement strategy at the property. Upgrades are ongoing and include the addition of EV charging stations, a fitness center and renovations of the outdoor spaces.
Built in 2014, the five-story Class A property has a LEED Silver certification and includes 40,000-square-foot floorplates, a tenant lounge, a conference center and 900 vehicle parking spots. Additionally, the building features car wash or detailing services, as well as bike storage.
In November last year, the company made another purchase in the same submarket when it picked up Energy Crossing II, a 327,404-square-foot office building, from Invesco Real Estate. At the time of the sale, the property was 30 percent leased.
Rising vacancies in Texas
The Southern region’s office markets registered high vacancies throughout 2024, with Texas markets posting some of the most notable surges of year-over-year increases, a recent CommercialEdge report shows. As of December, Houston’s office vacancy rate stood at 24.5 percent, above the 19.8 percent national average but it was the second-highest in the region, after Austin’s 27.9 percent rate.
Recent deals in Houston include Brookfield Properties’ 259,774-square-foot renewal agreement at its Allen Center office campus. Plains Marketing LP, a tenant at the property since 1992, extended its commitment through 2036.
In December, Prescott Group inked a 94,179-square-foot leasing deal with Ezee Fiber at its 567,333-square-foot building, currently undergoing upgrades. The tenant will consolidate two Houston locations into a large headquarters at the property.
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