New Hines Skyscraper Hits 94% Leased

HOUSTON – (Realty News Report) – The Texas Tower, a recently constructed 47-story downtown skyscraper, has reached 94% occupancy despite the anemic conditions that plague the current office market.

The 1 million-SF building has secured six leases totaling 182,600 SF in recent months, the Hines development firm announced

Sable Offshore Corp, Moelis & Company, Sheppard Mullin, Squarepoint Capital and two “confidential” tenants have agreed to move into the building, which is located adjacent to Houston’s Theater District.

Houston’s office occupancy rate is well over 25 percent, one of the highest in the nation, as many companies have been reducing the size of their offices in the work-from-home, post-Covid era.

Creating office towers with restaurants, fitness facilities, outdoor spaces and hotel-like lobbies and amenities is viewed as a way to lure employees back to the office on a full-time basis.

The co-developers of the Texas Tower, Hines, and the global real estate group of CDPQ, Ivanhoé Cambridge, developed the building in the work-from-home world.

“A couple years back, we started to formalize the concept of magnet office; identifying the intersection of exceptional design, location, and unparalleled amenities, attracting tenants who demand a workplace that elevates both their brand and employee experience,” said John Mooz, Senior Managing Director at Hines. “There is a clear delineation with the most discerning tenants seeking an unparalleled work environment. The unique combination of world-class amenities—including access to green space and sky atriums saturated with natural light—creates a dynamic space that better fosters collaboration and innovation.”

Hines, which has 5,000 employees in 31 countries, moved its global headquarters into the building, where construction wrapped up in the final days of 2021 in the Covid-era.

The Texas Tower, built on the site of the former Houston Chronicle, on a block bounded by Milam, Prairie, Travis and Texas Avenue. The 1,184,489-SF structure, which has two Ben Berg restaurant spots, was designed by the Pelli Clark Pelli architecture firm.

The Texas Tower “exemplifies our commitment to the future of work,” said Michael Caracciolo, Managing Director, Real Estate, United States at Ivanhoé Cambridge.

In addition to Hines’ headquarters, other occupants in the building include: Vinson and Elkins, Clifford Chance, McGuireWoods and DLA Piper law firms, along with Cheniere Energy, Chicago Title, Charter Title Company, and Morgan Stanley.

Michael Anderson of Cushman & Wakefield has represented Texas Tower’s owners in leasing the building.

Recent leases include:

Houston-based independent upstream company Sable Offshore Corp leased 46,000 SF on levels 28 and 29, with the lease beginning in the third quarter of 2025. Lease negotiations were facilitated by tenant brokers Kevin Kushner, William Padon, and Sydnee Hilburn with CBRE, alongside landlord broker Michael Anderson with Cushman and Wakefield.

Moelis & Company, a leading global independent investment bank leased 30,400 SF on level 22. The lease is set to commence in the fourth quarter of 2025. Cushman and Wakefield handled lease negotiations, with David Guion and Chris Oliver representing the tenant and Michael Anderson representing the landlord.

Sheppard Mullin, a full-service AmLaw 50 law firm with more than 1,100 attorneys in 16 offices around the globe, leased 29,800 SF on level 25 with occupancy beginning in the fourth quarter of 2025. Kevin Kushner, William Padon and Sydnee Hilburn with CBRE represented the tenant in lease negotiations, while Michael Anderson with Cushman and Wakefield acted as the landlord’s broker.

A “confidential“ tenant has secured 8,300 SF on level 39, with the lease set to commence in the fourth quarter of 2025. Kevin Saxe with CBRE represented the tenant. Michael Anderson with Cushman and Wakefield represented the landlord.

Squarepoint Capital, a privately held quantitative investment management firm, leased 8,200 SF on level 18. The lease is scheduled to start in the third quarter of 2025. Lease negotiations were facilitated by Nick Bockhorn with CBRE as the tenant’s broker, alongside landlord broker Michael Anderson with Cushman and Wakefield.

Hines developed a number of high-rise buildings, both office and residential, within a few blocks of Texas Tower, including the 75-story JP Morgan Chase Tower, which is the tallest building in Texas.

Hines was founded in Houston in 1957 by Mr. Gerald D. Hines.

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