HOUSTON – The Energy Corridor office market in west Houston has struggled in recent years, following a decline in energy prices and industry layoffs. Vacancy is high and the supply of sublease space has soared.
The softness in the office market has a silver lining for tenant companies. It’s a chance to lock-in affordable rent. Other companies are electing to upgrade to prime Class A space.
Lee & Associates – Houston recently represented Entech Civil Engineers in a 15,346-SF lease in an Energy Corridor office building.
With this move to the 15021 Katy Freeway building, the company is tripling its local footprint and upgrading to a Class A building, a strategic move at a time when office vacancies are nearing record highs in the Energy Corridor, Lee & Associates – Houston reports.
“Entech’s decision to relocate was a logical one,” said Rob Johnson, director at Lee & Associates – Houston. “The increased size will accommodate the company’s growth requirements, while the upgraded office space and building amenities will help attract and retain talent. The ability to remain within the Energy Corridor keeps Entech within Houston city limits, but is far enough west for team members that live in the Katy area.”
Due to a lull in office leasing activity and office lease transactions of this size, companies like Entech are taking advantage of current market conditions. “This is a tenant’s market,” continued Johnson. “Companies currently occupying Class B buildings have an opportunity to upgrade to Class A offices at a reduced cost. It’s a great opportunity for companies like Entech and I anticipate we’ll see more activity like this in the near future.”
Rob Johnson represented the tenant, and Kevin Wyatt of Lincoln Property Company represented the landlord, Invesco.