Galleria Office Tower Sold

HOUSTON – (Realty News Report) – LandPark Advisors announced the acquisition of 2603 Augusta, a 16-story office building located in Houston’s Galleria/Uptown area. The acquisition, was completed in partnership with The Porter Law Firm.

The 244,804-SF office building is located near Westheimer Road, about a mile west of The Galleria mall.

The Porter Law Firm had engaged LandPark Advisors to help find a new location for the law firm after outgrowing its office space at 2221 S. Voss. As a result, The Porter Law Firm will be relocating to 2603 Augusta this fall. “We are thrilled to bring The Porter Law Firm to this remarkable building. The location, amenities, and recent renovations make it the perfect environment for our team and clients,” said Brad Porter, founder of The Porter Law Firm.

Since going under contract, LandPark Advisors has recently secured several new leases at 2603 Augusta.

The building has received upgrades and renovations. Future plans include the addition of a pickleball court and a golf simulator.

“With the significant capital already invested in the property and our proven ability to secure high-end, creditworthy tenants, we are confident in achieving full lease-up and maximizing the value of this exceptional asset,” said Bill McGrath, president of LandPark Advisors. Management and leasing for 2603 Augusta will be handled by LandPark Commercial.

In another recent deal in the Galleria area, an 11-story office building at 2425 West Loop South building was sold. That 284,896-SF building, a block north of Westheimer, sold for $95 per SF, CBRE reported.

As tenants have reduced their office footprints, Houston’s office market has been experiencing rising vacancy and many older buildings are considered obsolete and ready for redevelopment or demolition.

The Houston office third quarter vacancy rate rose to 23.9 percent up from a total vacancy rate of 22.7 percent a year ago in the third quarter of 2023, CBRE reported.

“The future of the Houston office market presents a mix of challenges and opportunities. Increasing vacancy rates and limited office demand, evidenced by a dearth of transactions, reflect broader economic uncertainties and cautious business sentiment. Significant relocations and downsizes have left large office blocks vacant, further contributing to higher vacancy rates,” CBRE’s report said.

The 2603 Augusta building is just south of the Tanglewood area, which has a number of significant office properties, including San Felipe Plaza, a 46-story tower that was developed by Harold Farb and the 5555 San Felipe building.

Photo Courtesy LandPark Advisors

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