HOUSTON — The Energy Corridor office market in west Houston has faced challenges in recent years as lower energy prices and industry layoffs increased vacancy rates and pushed up the amount of available sublease space. However, the market softness is creating opportunities for tenant companies: many can now secure favorable leases, and some are choosing to move into higher-quality Class A office space.
Lee & Associates – Houston recently represented Entech Civil Engineers in a 15,346-square-foot lease at the 15021 Katy Freeway building in the Energy Corridor. With this relocation, Entech is tripling its local footprint and upgrading its workplace to a Class A building—an intentional strategic decision amid near-record vacancy levels in the submarket.
“Entech’s decision to relocate was a logical one,” said Rob Johnson, director at Lee & Associates – Houston. “The increased space will accommodate the company’s growth, while the upgraded office and building amenities will help attract and retain talent. Remaining in the Energy Corridor keeps Entech within Houston city limits while positioning the office conveniently for team members living in the Katy area.”
Market conditions have made transactions like this more attractive. With leasing activity subdued and larger lease deals less common, many tenants currently in Class B buildings can take advantage of lower rents and incentives to move into Class A properties. “This is a tenant’s market,” Johnson added. “Companies occupying older or smaller offices now have an opportunity to upgrade to better space at a reduced cost. It’s a great time for firms like Entech, and I expect we’ll see similar moves in the near term.”
The lease was negotiated with Rob Johnson representing the tenant and Kevin Wyatt of Lincoln Property Company representing the landlord, Invesco.