HOUSTON – Insite Realty and Urban Cos. have started construction on an office building west of Houston, not far from the Energy Corridor, where office vacancy has been rising.
The 124,000 square-foot project will be ready for occupancy in March 2016. The building is Phase II of Grandway West office development near the Grand Parkway.
Transwestern paved the way for the building by securing a prelease commitment for 21,066 square feet from Severn Trent Services Inc.
Transwestern’s Senior Vice President Paul Wittorf, Executive Vice President Eric Anderson and Associate Parker Burkett are providing leasing services on behalf of a partnership between InSite Realty Partners and Urban Cos.
In 2011 and 2012, the Class A office market in Katy was tight with vacancy in the 4.5 to 6.5 percent range. From 2013 through mid-year 2015, Class A vacancy rose to the high-11 percent range as an increase in construction activity brought new supply to the area, creating a more balanced market.
“The location, access and visibility proved to be the key features contributing to the leasing success of Building I which delivered in January 2015”, commented Wittorf. “In addition to the outstanding geographical attributes, Grandway West offers a compelling price point for new construction which is particularly appealing in the current market dynamic. The Grand Parkway has injected strong momentum into the Katy office market and Grandway West is well positioned to capitalize.”
Grandway West is a five-building office project that will total 780,000 square feet when complete.
Grandway West is a 56-acre office development located 1 mile north of Interstate 10 with frontage on the Grand Parkway. The development has premium visibility and easy access to all major highway systems. Phase I, totaling 83,912 square feet, is 90 percent leased. Phase II has 109,179 square feet available for prelease following the Severn Trent Services transaction.