HOUSTON – (Realty News Report) – San Felipe Place, a 17-story boutique office building located in the River Oaks area of Houston, has reached 99 percent occupancy.
The 167,000-square-foot tower recently gained three new tenants totaling 8,000 SF.
The building, developed by Hines and designed by Ziegler Cooper Architects, is located at 2229 San Felipe, between Shepherd Drive and Kirby.
Recent leasing activity at the building includes a 3,744-SF lease expansion with Strategic Project Solutions, which will allow for a relocation of its office and staff from San Francisco to Houston. Additionally, Cushman & Wakefield arranged a new 2,612-SF lease with Blue, LTD, and a 1,636-SF lease expansion with an additional existing tenant.
Edward Edson of Colliers International represented Strategic Project Solutions and Aaron Howes of Savills represented Blue, LTD. Brad Beasley and Margaret Elkins of Cushman & Wakefield represented Hines, the property ownership, in the three lease transactions. Hines also manages the facility.
The tower includes nine levels of office space and eight levels of parking. The Class A, LEED-certified building was completed in 2015.
The San Felipe Place is located across the street from the River Oaks community, a mature upscale neighborhood of mansions and expensive homes of the Houston blue-chip community.
The State of Houston’s Office Market
Houston’s office space has a second quarter 21.6 percent vacancy rate, up from 19.4 percent in the second quarter of 2019, according to CBRE.
A number of commercial real estate firms report Houston’s office market experienced negative absorption around 1 million SF – a significant amount of emptied office space. Retrenchment in the energy industry along with fallout from the coronavirus pandemic formed a double-whammy to whack the Houston office market.
Additional supply is coming online, in Houston.. Some 4.7 million square feet in currently under construction led by the 47-story Texas Tower building built by Hines in downtown.
Skanska, a global firm that has financed other office developments with its internal funds has 3.5 acres near downtown’s Discovery Green for future development. Skanska just acquired the SWC of Montrose and Westheimer for a new mixed-use development that could include office space. However, the new office space has shown recent success in attracting tenants, which have shown a desire to leave Class B buildings in favor of the new Class AA properties.
Aug. 14, 2020 Realty News Report Copyright 2020
File: Office Tower Hits 99 Percent Occupancy. File (2) Hines Office Tower Hits 99 Percent Occupancy