The Galleria and Greenway Plaza submarkets have 1.8M SF of development underway, which is 48% pre-leased. With help from JLL research manager Graham Hildebrand, we broke down the seven office buildings in the dirt.
1. BHP Billiton Tower
Size: 600k SF
Developer: Transwestern Development Co
Architects: Pickard Chilton and Kendall Heaton
TIAA-CREF will own this build-to-suit for BHP Billiton in Four Oaks Place. It’s the only development this fund, which is geared to core office and industrial acquisitions, has ever done. It broke ground in October 2013 and will deliver in Q1 ’16. The building will connect via skybridge to BHP's existing facility in Four Oaks, and will bring the complex to 2.3M SF.
2. 3737 Buffalo Speedway
Size: 400k SF
Developer: PMRG
Architects: Kendall/Heaton Associates and Elkus Manfredi Architects
PMRG broke ground on 3737 Buffalo Speedway in fall 2013, the first major office groundbreaking in Greenway Plaza in 25 years. It’s 23% pre-leased (including a big lease to Solvay America) and is asking $28 NNN. It’ll deliver in Q3 ’15, and then PM will demolish the first tower and replace it with a hotel/mixed-use project.
3. One Grove Street
Size: 248k SF
Developer: Midway Cos
Architects: Muñoz + Albin and Kirksey
The office building is one of many components in Midway’s Kirby Grove, an 11-acre mixed-use project. It's 53% pre-leased to Vitol and will have about 25k SF of retail/restaurant space. Midway’s asking for $32.50 NNN there. Other projects in Kirby Grove include updating Levy Park (opening this spring) and building Avenue Grove (the 270-unit multifamily community will start leasing this fall).
4. 3773 Richmond
Size: 183k SF
Developer: TRC Capital/Hansen Partners/Barbour Investments
Architects: STG Design and Philip Ewald Architecture
The spec project in the Greenway Plaza area is targeting small/midsized tenants (it’s similar to Redstone’s Campanile building in Montrose), and is 35% pre-leased. The team is asking for $29 NNN. The building includes 15k SF of retail and is scheduled to complete in Q2 '16.
5. San Felipe Place
Size: 168k SF
Developer: Hines
Architects: HKS and Ziegler Cooper
Hines’ property at 2229 San Felipe is topping out this month and opening this summer. The team’s had a tough go of it—residents in the area have vehemently opposed it, filing two lawsuits last year to stop development and/or receive compensation for nuisances. The spec building is 17% pre-leased to Cadence and Kinder. The leasing team (Colvill) is asking for $34 NNN.
6. 1885 St. James
Size: 165k SF
Developer: Nelson Murphree Legacy Partners
Architect: Jackson & Ryan
Nelson Murphree demolished the iconic St. James Courtyard in February of last year to make room for its 165k SF office building. It’s the first development Nelson Murphree has done since the late ‘80s. The property broke ground in October and is still more than a year from delivery. (The team is aiming for March 2016 occupancy.) It doesn’t have any tenants yet and is asking for $29.50 NNN.
7. 4444 Westheimer
Size: 92k SF
Developer: OliverMcMillan
Architect: Gensler
The River Oaks District is mostly getting buzz for its huge retail component, but the office building is preparing to deliver in May. The 92k SF property is asking for $32 NNN and just announced its first tenant yesterday—US Capital Advisors is taking 34k SF and signage rights. (As the Houston Business Journal points out, it’s fitting for a wealth management firm to take up office in an ultra-luxury development.) Gensler designed the building (and the River Oaks District master plan), and Transwestern’s Paul Wittorf is handling leasing.
