These Were The 7 Biggest Office Leases In Houston During Q2
Houston's office sector had a tough second quarter, as the coronavirus pandemic forced many companies to halt activity and reassess their business strategies.
Direct vacancy in the office market rose to 20.8%, up from 20% during the prior quarter and its highest level since 1990, according to Madison Marquette's latest quarterly office report.
While Q2 clocked 807K SF of negative absorption, direct leasing and subleasing transactions still took place.
Here is a roundup of the seven largest commercial real estate leases done during the second quarter of 2020, according to research by Madison Marquette.
Occidental Petroleum
Size: 972K SF
Type: Restructure
Building: Five Greenway Plaza
Submarket: Greenway Plaza
Occidental Petroleum announced in July that it had executed an amendment to its 972.2K SF lease at Five and Three Greenway Plaza. The amendment extended the term of Occidental's lease through 2031. The company has had a presence at the 52-acre campus since 1987.
Harris Health System
Size: 305K SF
Type: New
Building: 4800 Fournace Place
Submarket: Bellaire
The Harris Health System leased 305.2K SF at 4800 Fournace Place in the Bellaire submarket. Harris Health confirmed that the location will be used to consolidate all of the system’s nonclinical administrative functions, as well as its school of diagnostic imaging and outpatient physical therapy program. Harris Health is consolidating five sites into the location.
The lease was completed at the beginning of April, and Harris Health will be moving into the building in phases, starting Oct. 1, with full occupancy anticipated by Jan. 1.
Universal Plant Services
Size: 81K SF
Type: Sublet
Building: Deerwood Glen Business Park Phase 3
Submarket: Gulf Freeway/Pasadena
Energy industry service provider Universal Plant Services leased 80.6K SF at Deerwood Glen Business Park in Deer Park.
U.S. General Services Administration
Size: 70K SF
Type: New
Building: CityNorth 3
Submarket: North Belt
The U.S. General Services Administration, which helps federal agencies acquire office space, leased 70K SF in the CityNorth 3 building within the greater CityNorth complex in north Houston. Landlord Lincoln Property Co. confirmed that the federal tenant is the Legal Immigration Services group within U.S. Citizenship and Immigration Services. The lease will commence in the first quarter of 2021.
Ryan LLC
Size: 67K SF
Type: New
Building: Park Towers North
Submarket: Galleria/Uptown
Global tax services provider Ryan LLC leased about 66.8K SF at Park Towers on 610 West Loop South. The location was chosen partly due to the building visibility and ease of access, according to the lease announcement in July.
Venture Global LNG LLC
Size: 59K SF
Type: Renewal/expansion
Building: 5 Houston Center
Submarket: Central Business District
Venture Global LNG extended and expanded its lease by about 29.3K SF at 5 Houston Center in Downtown Houston. The transaction brings the total lease to 58.5K SF across two full floors, according to the May announcement.
Rimkus Consulting Group
Size: 50K SF
Type: Sublet
Building: Jacob's Plaza
Submarket: Katy Freeway
Forensic engineering and consulting firm Rimkus Consulting Group sublet 50.4K SF at Jacob’s Plaza, part of the Woodbranch Park development in the Energy Corridor.
Contact Christie Moffat at christie.moffat@bisnow.com.
