central business district - texas a&m university...mason creek office center ii - three stories,...

Houston suBMarket rePortYear-end 2014

Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.

Central Business District

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The CBD had a quiet fourth quarter but a strong 2014 overall, recording 477,000 SF of absorption for the year. Class A direct vacancy is down to 5.8% from 6.7% at year-end 2013, and Class B direct vacancy dropped to 7.3% from 10.2% over the same period. Rental rates climbed throughout 2014 as competition for top tier space remained high. Asking rents for Class A and B were $42.71 per SF gross and $28.13 per SF gross, respectively. 609 Main at Texas is still looking to sign its first prelease, which became more difficult recently with the decline in oil prices. There are several proposed buildings in the submarket, but it is unlikely that any will break ground in 2015 given the uncertainty in the energy market.

inveStment SaleS

� 600 Jefferson - 449,087 SF, Class B, purchased by Stream Realty and DRA Advisors joint venture for approximately $69.0 million

l arge BlockS of Space Being marketed (100,000 Sf+)

� 2 Houston Center, Floors 4-8, 234,333 SF (Shell)

� 811 Louisiana, Floors 10-15, 188,695 SF (Shell)

� 811 Louisiana, Floors 18-22, 159,665 SF (Shell)

� Total Plaza, Floors 10-15, 145,352 SF (Hilcorp)

� 1600 Smith, Floors 9-12 & 15-16, 140,747 SF (United Airlines)

� Total Plaza, Floors 28-32, 124,069 SF (PWC)

� Wells Fargo Plaza, Floors 30-35, 114,066 SF (Gardere Wynne Sewell)

� BG Group Place, Floors 24-27, 106,005 SF (BG Group sublease)

conStrUction activit Y

� 609 Main at Texas - 47 stories, 1,057,000 SF, 4Q2016 delivery

� Hilcorp Energy Tower - 23 stories, 475,000 SF, 4Q2015 delivery, owner occupied

propoSed developmentS

� 800 Bell - 1,258,000 SF, Shorenstein redevelopment

� 6 Houston Center - 600,000 SF, Crescent development

� Capitol Tower - 750,000 SF, Skanska development

� Five Allen Center - 1,000,000 SF, Brookfield development

� One Market Square - 750,000 SF, Essex/Stream development

� 1600 Louisiana - 1,700,000 SF, Chevron campus addition

4%

6%

8%

10%

12%

2011 2012 2013 2014

Class A Overall Class A DirectClass B Overall Class B Direct

-300,000

0

300,000

600,000

900,000

1,200,000

1,500,000

2011 2012 2013 2014

CBD A CBD B

CBD A CBD B

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

2011 2012 2013 2014



SnapShot

The Energy Corridor continues to have the largest development pipeline of any submarket in Houston with over 6.0 million SF under construction at 58% preleased. Even with almost 2.5 million SF in deliveries in 2014, overall direct vacancy only edged up to 6.6%, from 4.9% at year-end 2013, a credit to the strong preleasing activity in the submarket. Leasing velocity will likely slow in 2015 as energy companies hold expansion plans in the current energy climate.

Significant leaSeS Signed

� Wood Group Mustang - 199,001 SF renewal, Ten West Corporate Center One

� CH2M Hill - 82,533 SF renewal and expansion, Ashford 5 � Skyline Executive Suites - 22,000 SF new lease, Kirkwood Tower � East West Bank - 20,316 SF prelease, Gateway at Spring Valley

inveStment SaleS

� Kirkwood Tower - 286,000 SF, Class A, purchased by Rosemont Realty for an estimated $52.7 million

� Timberway I - 92,780 SF, Class B, acquired by Banyan Street Capital and Oaktree Capital joint venture for an undisclosed price


� West Memorial Place II - 14 stories, 389,709 SF, located at 15377 Memorial Dr, 1Q2016 delivery

� Enclave Place - 11 stories, 300,760 SF, located at 1414 Enclave, 3Q2015 delivery

� Energy Center V - 18 stories, 524,000 SF, located at 915 N Eldridge Pkwy, 2Q2016 delivery

� Air Liquide Center - Two buildings, 596,200 SF, located at 9807 & 9811 Katy Frwy, 2Q2015 and 4Q2015 deliveries

� Woodbranch Plaza IV - Seven stories, 168,050 SF, located at 12120 Wickchester Ln, 04/2015 delivery

� West Memorial Place I - 12 stories, 334,147 SF, located at 15375 Memorial Dr, 1Q2015 delivery

� Energy Tower IV - 17 stories, 428,831 SF, located at 11750 Katy Frwy, 1Q2015 delivery

� Energy Center III - 20 stories, 546,372 SF, located at 935 N Eldridge Pkwy, 2Q2015 delivery

� Energy Center IV - 22 stories, 600,000 SF, located at 925 N Eldridge Pkwy, 4Q2016 delivery

� Park Ten Center II - Three stories, 150,000 SF project located at 16200 Park Row, 3Q2015 delivery

� Town Centre I - 10 stories, 254,489 SF, located at 700 Town & Country Blvd, 1Q2015 delivery

� CityCentre Five - 15 stories, 227,063 SF, located at 825 Town & Country Blvd, 3Q2015 delivery

� Mason Creek Office Center II - Three stories, 127,955 SF, located at 21700 Merchants Way, 2Q2015 delivery

Energy Corridor

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

0%

2%

4%

6%

8%

10%

12%

14%

2011 2012 2013 2014


-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2011 2012 2013 2014

Energy Corridor A Energy Corridor B

Energy Corridor A Energy Corridor B

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

2011 2012 2013 2014



West Loop

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The West Loop closed out 2014 strong with vacancy down and absorption and rental rates on a positive trajectory. Class A direct vacancy was 8.4% at year-end, up slightly from third quarter but down year-over-year, while Class B edged down to 9.5% from 10.1% at year-end 2013. Net absorption for Class A was -52,000 for fourth quarter but a positive 294,000 SF for the year, while Class B recorded 54,000 SF this quarter and 94,000 SF total in 2014. The development pipeline remains active with 1885 St. James Place breaking ground in fourth quarter and the new Amegy Bank headquarters, 350,000 SF, breaking ground in first quarter 2015.


� Stewart Information Services Corporation - 230,000 SF, three-year extension to 2019, Post Oak Central Two

inveStment SaleS

� 3000 Post Oak Blvd - 441,523 SF, Class A, purchased by FG Asset Management for approximately $175.0 million, 5.5% estimated cap rate

� Woodway Center - 220,583 SF, Class B, acquired by Interra Capital Group for approximately $23.6 million

� 2200 West Loop South - 201,720 SF, Class A, sold to Tenaris for approximately $47.0 million


� BHP Billiton Tower - 30 stories, 600,000 SF, located at 1500 Post Oak Blvd, 03/2016 delivery

� 1885 St James Place - 15 stories, 165,000 SF, 1Q2016 delivery

� River Oaks District - Five stories, 98,938 SF, located at 4444 Westheimer, 05/2015 delivery

cl aSS a l arge BlockS of Space Being marketed (100,000 Sf+)

� Galleria Place I, Floors 1-8, 158,084 SF

� 515 Post Oak Blvd, Floors 1-7 & 9, 144,905 SF

� Galleria Tower I, Floors 17-23, 140,618 SF

� Galleria Tower II, Floors 6-10 & 14-16, 120,723 SF

� Park Towers North, Floors 13-17, 111,250 SF

� Park Towers South, Floors 7-11, 111,250 SF

cl aSS B l arge BlockS of Space Being marketed (100,000 Sf+)

� 6330 West Loop South, Floors 1-14, 274,488 SF

� 2425 West Loop South, Floors 3-11, 211,702 SF

6%

8%

10%

12%

14%

2011 2012 2013 2014


-400,000

-200,000

0

200,000

400,000

600,000

800,000

2011 2012 2013 2014

West Loop A West Loop B

West Loop A West Loop B

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

$34.00

$38.00

2011 2012 2013 2014



SnapShot

The Westchase submarket saw a healthy level of leasing activity this quarter, which was overshadowed by 407,000 SF of deliveries at only 21% preleased. Class A direct vacancy shot up to 9.6% from 7.8% last quarter and 6.0% at year-end 2013, while Class B direct vacancy rose to 10.0% from 9.1% at third quarter and 8.8% at end of last year. There are several large blocks of space available, including Statoil’s 311,000 SF of sublease space recently put on the market due the steep decline in oil prices. The company signed a long-term lease for 581,000 SF in the fall of 2013 and had yet to even move into its new spaces. Leasing velocity may slow in 2015 as energy companies take a wait and see approach in the current environment.


� Bristow Group, Inc. - 115,000 SF new lease, CityWestPlace Bldg 4

inveStment SaleS

� 1500 CityWest - 192,313 SF, Class A, sold to Unilev Capital for an estimated $37.0 million

� 9900 Richmond North & South - 186,964 SF, Class B, purchased by Rockwell Management for an undisclosed price

� 10500 Richmond Ave - 93,785 SF, Class B, purchased by Corey Management, LLC for approximately $15.0 million


� Millennium Tower II - 22 stories, 445,000 SF, located at 10353 Richmond Ave, 1Q2016 delivery, single tenant

� Phillips 66 campus - 1.1 million SF, 14-acre corporate campus located at 2101 Citywest Blvd, mid-2016 delivery, owner occupied


� Westchase Park II, Floors 1-6, 300,000 SF

� CityWestPlace 4, Floors 7-12, 150,439 SF (Statoil sublease)

� Two BriarLake, Floors 10-13, 119,427 SF

� CityWestPlace 2, Floors 2-6, 103,018 SF (Statoil sublease)

� Two BriarLake, Floors 14-16, 79,527 SF (Samsung Engineering sublease)

� Westchase Corporate Center, Floors 3 & 6, 57,782 SF (Statoil sublease)


� Richmond Park Westchase, Floors 1-5, 99,087 SF

� 10500 Richmond Ave, Floors 1-2, 93,614 SF (Worley Parsons sublease)

� Silverstone Building, Floors 2-4, 69,454 SF

� 10555 Richmond Ave, Floors 1-4, 49,024 SF

Westchase

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

4%

6%

8%

10%

12%

2011 2012 2013 2014


-200,000

-100,000

0

100,000

200,000

300,000

400,000

500,000

2011 2012 2013 2014

Westchase A Westchase B

Westchase A Westchase B

$12.00

$16.00

$20.00

$24.00

$28.00

$32.00

$36.00

$40.00

2011 2012 2013 2014



The Woodlands

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The Woodlands continues to have the second largest development pipeline of any submarket in the Houston metro. Close to 3.1 million SF is still under construction after the delivery of the first phase of Exxon’s campus, 1.0 million SF, and Southwestern Energy’s campus, 515,000 SF in the fourth quarter. Even with over 3.0 million SF of deliveries total in 2014, direct vacancy for all classes of space only rose to 4.6%, from 4.0% at year-end 2013. Net absorption was a record 2.8 million SF for the year, due in large part to corporate campus deliveries. Class A and B rental rates are both up year-over-year, finishing 2014 at $39.56 per SF gross and $25.63 per SF gross, respectively.


� TRF Energy - 20,500 SF new lease, Wildwood Corporate Centre


� Three Hughes Landing – 12 stories, 250,000 SF, located at 1780 Hughes Landing Blvd, 4Q2015 delivery

� Hughes Landing Exxon I & II - Two buildings, 648,892 SF, located at 1725 & 1735 Hughes Landing Blvd, 2Q2016 delivery

� 2829 Technology Forest - Four stories, 81,865 SF, 1Q2015 delivery

� 3831 Technology Forest - Four stories, 95,000 SF, 1Q2015 delivery

� ExxonMobil Campus (owner occupied) – 2.0 million SF, 385-acre corporate campus, located at 23125 Interstate 45 with full occupancy in mid-2015


� Sierra Pines II, Floors 1-6, 153,810 SF

� Research Forest Lakeside 4, Floors 5-8, 93,557 SF

� 2829 Technology Forest Blvd, Floors 2-4, 45,700 SF

� Wildwood Corporate Centre, Floors 2-3, 27,582 SF


� 2001 Timberloch Place, Floors 3-5, 87,855 SF

� 128 Vision Park Blvd, Floors 2-3, 50,000 SF

� 2700 Technology Forest Dr, Floor 1, 46,310 SF

� 8401 New Trails Dr, Floor 1, 26,189 SF

0%

2%

4%

6%

8%

10%

2011 2012 2013 2014


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2011 2012 2013 2014

The Woodlands A The Woodlands B

The Woodlands A The Woodlands B

$12.00

$16.00

$20.00

$24.00

$28.00

$32.00

$36.00

$40.00

2011 2012 2013 2014



Greenway Plaza

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

Vacancy rates have been trending downward for all classes of space over the last year in the Greenway Plaza submarket. Class A direct vacancy decreased to 5.1% from 6.8% at year-end 2013, and Class B direct vacancy is down to 6.4% from 7.8% last year. Class A rental rates dipped slightly from last quarter but are up on the year at $35.04 per SF gross, while Class B rents rose to $25.34 per SF gross. Kirby Grove and 3737 Buffalo Speedway continue preleasing efforts for the significant amount of space still available in both properties. Including these projects, there are seven large blocks of space being marketed in the submarket.


� Myron Steves Insurance - 35,486 SF renewal, River Oaks Green

� Decision Information Resources - 16,000 SF new lease, 3900 Essex


� Kirby Grove - 16 stories, 260,437 SF, located at 3801 Eastside Dr, 3Q2015 delivery

� 3737 Buffalo Speedway - 18 stories, 400,000 SF, 3Q2015 delivery


� 3737 Buffalo Speedway, Floors 10-18, 217,400 SF

� Three Greenway Plaza, Floors 2-10, 207,441 SF (ExxonMobil)

� Kirby Grove, Floors 15-17, 95,502 SF

� 3737 Buffalo Speedway, Floors 2-6, 84,200 SF

� Phoenix Tower, Floors 16-17, 50,568 SF (WorleyParsons)

� Nine Greenway Plaza, Floors 8-9, 36,857 SF

� 3333 Richmond, Floors 4-5, 25,388 SF (Solvay)

4%

6%

8%

10%

12%

14%

2011 2012 2013 2014


-150,000

-100,000

-50,000

0

50,000

100,000

150,000

2011 2012 2013 2014

Greenway Plaza A Greenway Plaza B

Greenway Plaza A Greenway Plaza B

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

$34.00

$38.00

2011 2012 2013 2014



Greenspoint/North Belt

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

Greenspoint/North Belt has significant opportunities for tenants looking for space, including 13 large blocks over 100,000 SF available for lease. With Exxon vacating more than 800,000 SF in 2014, the Class A market took a hit with direct vacancy rising to 19.9% from 9.5% at the end of 2014, and Class A absorption recording -568,000 SF for the year. Conversely, the Class B market fared well in 2014 with direct vacancy down to 15.0% and absorption at 101,000 SF for the year. Rental rates continued to climb for both classes, though that will likely change for Class A in 2015 as more large tenant move-outs take place.


� Nabors - 314,000 SF renewal and expansion, 515 W Greens

inveStment SaleS

� Three Northborough - 157,304 SF, Class B, acquired by 3 Northborough LLC for an estimated $13.9 million

� 13401 North Fwy - 143,410 SF, Class A, sold to Fuller Realty Partners for approximately $6.0 million

� 16676 Northchase - 101,111 SF, Class A, purchased by an undisclosed buyer for approximately $11.5 million

cl aSS a BlockS of Space Being marketed (100,000 Sf+)

� Five Greenspoint Place, 450,244 SF, vacant (ExxonMobil)

� Six Greenspoint Place, 356,468 SF, available 11/2016 (ExxonMobil)

� Two Greenspoint Place, 275,584 SF, available 11/2015 (ExxonMobil)

� Three Greenspoint Place, 253,562 SF, available 2018 (ExxonMobil)

� Four Greenspoint Place, 228,572 SF, vacant (ExxonMobil)

� Northborough Tower, 204,198 SF, available 09/2015 (Noble Energy)

� Eight Greenspoint Plaza, 202,000 SF, available 2017 (ExxonMobil)

� 13401 North Frwy, 143,410 SF, vacant (ExxonMobil)

� 2350 N Sam Houston Pkwy E, 116,746 SF, available 03/2015 (Southwestern Energy)

� 10700 N I-45, 109,470 SF, vacant

� 16676 Northchase Dr, 101,111 SF, vacant

cl aSS B BlockS of Space Being marketed (100,000 Sf+)

� 396 W Greens Rd, 186,960 SF, available 2016 (ExxonMobil)

� Three Northborough, 156,000 SF, available 2018 (Noble Energy, FMC)

2%

6%

10%

14%

18%

22%

2011 2012 2013 2014


-600,000-500,000-400,000-300,000-200,000-100,0000100,000200,000

2011 2012 2013 2014

Greenspoint/North Belt A Greenspoint/North Belt B

Greenspoint/North Belt A Greenspoint/North Belt B

$2.00

$6.00

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

2011 2012 2013 2014



FM 1960

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

FM 1960 Class A vacancy is up from third quarter, but down year-over-year, with direct at 14.1% and overall at 14.9% for 2014. Class B vacancy is up slightly on the year at 18.4% for both direct and overall. Class A net absorption was 43,000 SF for the quarter, bringing the total to 189,000 SF for the year. Class B posted 13,000 SF of absorption in the fourth quarter, for a year-end total of 61,000 SF. Rental rates for both types of space are down slightly from third quarter but up for the year at $26.56 per SF gross for Class A and $15.74 per SF gross for Class B.

inveStment SaleS

� One Northchase Park – 85,213 SF, Class B, sold to Fred Schiller for an undisclosed price


� Noble Energy Center II – 20 stories, 456,000 SF, located at SH 249 and Louetta Rd, 06/2015 delivery, single tenant

� Chasewood Crossing Three – Six stories, 156,000 SF, located at 19350 SH 249, 12/2015 delivery


� Willowchase Office Bldg, Floors 1-2, 62,001 SF

� Northgate Tower, Floors 1-5, 55,970 SF

� Torrey Chase 2, Floors 1-4, 42,109 SF

� Mill Creek Building, Floors 1-2, 39,956 SF

� 2 Kuykendahl Place, Floors 1-3, 35,893 SF

10%

15%

20%

25%

30%

35%

40%

45%

2011 2012 2013 2014


-100,0000100,000200,000300,000400,000500,000600,000700,000800,000

2011 2012 2013 2014

FM 1960 A FM 1960 B

FM 1960 A FM 1960 B

$2.00

$6.00

$10.00

$14.00

$18.00

$22.00

$26.00

$30.00

2011 2012 2013 2014



Northwest

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The Northwest submarket had a quiet fourth quarter with Class A vacancy up to 20.8% for direct and 23.2% for overall. The large year-over-year vacancy increase is largely due to the loss of properties along the Beltway to the new West Belt submarket. Class B vacancy edged up to 15.1% for direct and 15.3% overall at fourth quarter. Rental rates were on the rise at year-end with Class A at $23.67 per SF gross, and Class B at $18.50 per SF gross. Class A net absorption was 7,000 SF for the quarter and 38,000 SF total on the year, while Class B had -36,000 for the quarter and was negative on the year as well at -35,000 SF total.

BUildingS on the market

� 2707 North Loop W - 181,586 SF, Class B

� Park One on the Bayou - 152,250 SF, Class B




� Brookhollow Central I, Floors 1-8 & 10, 147,183 SF

� 13430 Northwest Frwy, Floors 6-8, 47,907 SF

� Northwest Crossing III, Floor 4, 28,130 SF (Solar Turbines)

� Northwest Crossing III, Floor 10, 26,594 SF (Solar Turbines)


� 2707 North Loop W, Floors 1-10, 181,586 SF (Christus Health)

� 2727 North Loop W, Floors 1-7, 123,103 SF

� 6677 N Gessner Dr, Floors 1-2, 96,000 SF

� Northwest Central Plaza, Floors 1-4, 54,602 SF

� 2600 North Loop W, Floor 6, 21,268 SF

8%10%12%14%16%18%20%22%24%

2011 2012 2013 2014


-50,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2011 2012 2013 2014

Northwest A Northwest B

Northwest A Northwest B

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

2011 2012 2013 2014



E Ft Bend Co/Sugar Land

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The Sugar Land office market had a busy fourth quarter with a major lease signed and two building sales recorded. Class A vacancy continued trending downward, hitting 10.6% for direct and 11.1% for overall, while Class B vacancy increased substantially to 13.9% for direct and 18.2% for overall. Both classes recorded positive absorption for the year with Class A at 231,000 SF and Class B with 27,000 SF. Asking rents reversed their downward slide in progress since 2011 and rose for both classes of space. Class A rates hit $27.09 per SF gross, and Class B hit $21.60 per SF gross.


� SABIC Americas - 25,986 SF new lease, Sugar Creek Place I

inveStment SaleS

� Commerce Green One – 110,036 SF, Class A, sold to Tanglewood Property Group for an undisclosed price

� Sugar Creek Place I - 151,436 SF, Class B, acquired by HighBrook Investment Management LP for an undisclosed price


� Nalco Champion HQ - 133,000 SF, delivering 08/2015, owner occupied


� 11929 W Airport Blvd, Floors 4-6 & 7-9, 122,545 SF

� Sugar Creek Place I, Floors 3-5, 104,391 SF

� Parc Plaza Business Park, Floors 1-2, 79,566 SF (sublet)

� Sugar Creek on the Lake, Floor 4, 62,457 SF

� Three Sugar Creek Center, Floor 6, 25,874 SF

� Sugar Creek II, Floor 8, 25,289 SF

5%

10%

15%

20%

25%

30%

2011 2012 2013 2014


-100,000

0

100,000

200,000

300,000

400,000

2011 2012 2013 2014

E Ft Bend Co/Sugar Land A E Ft Bend Co/Sugar Land B

E Ft Bend Co/Sugar Land A E Ft Bend Co/Sugar Land B

$14.00

$16.00

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

2011 2012 2013 2014



West Belt

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The newly created West Belt submarket extends up Beltway 8 from Clay Rd to just east of Highway 249. This is a growing and very active submarket with over 1.4 million SF of space under construction, all of which is currently expected to deliver in 2015. Class A vacancy was the lowest of any submarket in the fourth quarter at 0.5% for direct and 1.6% for overall. Class B was on the lower end as well at 4.3% for direct and 8.2% overall. Fourth quarter net absorption for Class A was 4,000 SF, while Class B was -23,000 SF. Asking rents have climbed steadily since 2011 with Class A rates at $31.42 per SF gross and Class B rates at $23.83 per SF gross.


� General Electric - 72,177 SF preleased for 242,177 SF total, Westway Plaza

inveStment SaleS

� Sam Houston Crossing I - 159,175 SF, Class A, purchased by Fuller Realty Partners for approximately $26.2 million


� Westway Plaza - Five stories, 312,000 SF, located at 11330 Clay Rd, 04/2015 delivery

� Offices at Sam Houston - Four stories, 108,633 SF, located at 10203 W Sam Houston Dr, 3Q2015 delivery

� Legacy at Fallbrook - Five stories, 206,754 SF, located at 10720 W Sam Houston Pkwy N, 1Q2015 delivery

� Beltway Lakes III – Nine stories, 271,384 SF, located at 5775 N Sam Houston Pkwy N, 1Q2015 delivery

� Beltway 8 Corporate Center – Three stories, 130,451 SF, located at 5060 Westway Park Blvd, 1Q2015 delivery

� Remington Square II - Eight stories, 200,000 SF, located at 10713 W Sam Houston Pkwy, 4Q2015 delivery


� Sam Houston Crossing I, Floor 2, 35,454 SF

� 10740 N Gessner, Floors 2-4, 28,232 SF


� 10900 Corporate Center, Floor 2, 32,589 SF (sublet)

� 10235 W Little York, Floor 3, 30,767 SF

� 4700 W Sam Houston Pkwy N, Floor 1, 30,470 SF

0%

5%

10%

15%

20%

2011 2012 2013 2014


-100,000

0

100,000

200,000

300,000

400,000

500,000

600,000

2011 2012 2013 2014

West Belt A West Belt B

West Belt A West Belt B

$18.00

$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

$32.00

2011 2012 2013 2014



Katy

VACANCY RATES

NET ABSORPTION

RENTAL RATES (FSG)

SnapShot

The newly created Katy submarket extends west from Mason Rd to FM 1463 and is bounded by Clay Rd to the north and S Fry Rd to the south. The submarket has seen significant growth over the last few years as developers and companies have pushed further and further west for space. Class A vacancy closed the year at 13.1% for both direct and overall, while Class B was 0.8% vacancy for both direct and overall. Rental rates for Class A space were $32.26 per SF gross while Class B was at $23.71 per SF gross. The submarket had one delivery in 2014 and currently has two projects expected to deliver in 2015.


� Grandway West I, Floors 1-2, 37,612 SF

� LaCenterra at Cinco Ranch III, Floor 2, 15,405 SF


� Grandway West I - Two stories, 86,800 SF, located at Grand Pkwy & Franz Rd, 1Q2015 delivery

� Katy Ranch Crossing I - Six stories, 151,187 SF, located at 27245 Katy Frwy, 1Q2015 delivery

propoSed developmentS

� Grandway West II, III, IV, V - 590,400 SF total, Insite Realty & Urban Cos development

� Grand Crossing I & II - 344,000 SF total, Trammell Crow development

� Katy Ranch Crossing II - 156,330 SF, Freeway Properties development

� LaCenterra at Cinco Ranch IV - 150,000 SF, Vista Cos & Amstar development

� Katy Grand Crossing - 139,000 SF, NewQuest Properties development

0%

2%

4%

6%

8%

10%

12%

14%

2011 2012 2013 2014


-20,000

0

20,000

40,000

60,000

80,000

100,000

120,000

2011 2012 2013 2014

Katy A Katy B

Katy A Katy B

$20.00

$22.00

$24.00

$26.00

$28.00

$30.00

$32.00

$34.00

2011 2012 2013 2014

central business district - texas a&m university...mason creek office center ii - three stories,...

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