Morgan Stanley Inks 38 KSF Lease in Houston

Texas Tower is LEED Platinum certified. Image courtesy of CommercialEdge

A joint venture between Hines and Ivanhoé Cambridge secured a lease with Morgan Stanley spanning 37,600 square feet at Texas Tower in Houston. The ownership was represented by Cushman and Wakefield in the transaction, while JLL worked on behalf of the tenant.

Completed in 2019 by the current owners, the building rises 47 stories and spans 1,131,856 square feet, featuring 31,255-square-foot floor plates and including 15,000 square feet of retail space. It encompasses amenities such as an 8,000-square-foot fitness center, rooftop gardens and a high-tech conference center. In 2018, it became subject to a $317.6 million loan from New York Life Insurance Co, according to CommercialEdge data. The building also recently achieved LEED and WELL Platinum certifications.

Following the deal, Texas Tower achieved 80 percent occupancy, housing tenants such as Vinson, Chicago Title and Charter Title Co. Recently, global law firm Clifford Chance also inked a 60,400-square-foot lease at the property, for two full floors. The tenant previously operated from The Square at Texas Tower, Hines’ coworking platform.

Located at 845 Texas Ave., the property is within downtown Houston, in proximity of access points for interstates 10 and 45. It is also within walking distance of Houston City Hall, as well as near multiple light rail stations.

Houston registers high vacancy rates

JLL Executive Vice President John Burke represented Morgan Stanley in the transaction. Ownership was represented by Cushman & Wakefield Executive Managing Director Michael Anderson.

As of September, Houston registered the highest vacancy rate in the U.S. at 24.9 percent, marking a 30-basis-point increase year-over-year, placing it significantly above the national average of 17.8 percent, according to a recent CommercialEdge report. Average asking rates in the metro clocked in at $30.66, representing a 2.7 percent increase over 12 months and exceeding the 0.3 percent national average growth rate, the same source shows.