McCarthy Building Co. Relocates Houston Office

McCarthy Building Cos. has signed a 38,230-square-foot lease at 2200 Post Oak, a 22-story Class A office building in Houston’s Galleria submarket. The tenant will relocate from Greenway Plaza and will move into the new space next year.

Stream Realty Partners represented the landlord, Masaveu Real Estate, while JLL negotiated on behalf of the tenant.

Masaveu purchased the mid-rise office building in 2015, from the joint venture of TRC Capital Partners, L&B Realty Advisors and Stream Realty Partners. PNC Bank provided a $92 million loan for the acquisition, with a maturity date set for late 2025, CommercialEdge data shows.

Also known as BBVA Compass Plaza, 2200 Post Oak is a 326,200-square-foot office building that features 25,476-square-foot floorplates, nine passenger elevators, 943 parking spots spread across six levels of parking and 12,000 square feet of first-floor retail space, according to CommercialEdge. Amenities include on-site access to two restaurants, dining and retail options, dry cleaning services and an upcoming fitness center, scheduled for delivery in 2025.

The 2013-built building has received both LEED Gold and Energy Star certifications. Notable tenants at 2200 Post Oak include Firmspace, Insight Global, Nan and Co. Properties and The WindAcre Partnership.

The approximately 3-acre property at 2200 Post Oak Blvd. is close to Loop 610 and Interstate 10, in an area with multiple bus stops. The property is some 8 miles from downtown Houston, 16 miles from William P. Hobby Airport and 27 miles from George Bush Intercontinental Airport.

Stream Realty Partners Senior Vice President Brad Fricks and Vice President Adam Ross worked on behalf of the landlord, while McCarthy Building Cos. was represented by JLL Executive Vice Presidents Scott Wetzel and Beau Bellow.

Houston’s vacancy rates on the rise

Houston’s office vacancy clocked in at 23.5 percent in March, up 10 basis points year-over-year, a recent CommercialEdge report shows. The metro came in third in the U.S. after San Francisco (24.2 percent) and Detroit (32.1 percent).

Some recently inked office deals in the market include Lionstone Investments’ 41,114-square-foot lease with SouthWest Water Co., in Sugar Land, Texas. The tenant made a 15-year commitment in December at The Minute Maid Building.

During the same period, Agellan Commercial REIT secured two leases totaling 66,000 square feet at Beltway 8 Corporate Center, a 363,452-square-foot office complex. Its buildings came online between 2003 and 2006.