HOUSTON – (Realty News Report) – San Felipe Place, a 17-story boutique office tower in Houston’s River Oaks area, has reached 99 percent occupancy.
The 167,000-square-foot building recently added three tenants that together occupy approximately 8,000 square feet.
Developed by Hines and designed by Ziegler Cooper Architects, San Felipe Place is located at 2229 San Felipe, between Shepherd Drive and Kirby.
Recent leasing activity includes a 3,744-square-foot expansion by Strategic Project Solutions, which will relocate its office and staff from San Francisco to Houston. Cushman & Wakefield also arranged a new 2,612-square-foot lease with Blue, LTD, and a 1,636-square-foot expansion for 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 building owner. Hines also manages the property.
The tower provides nine levels of office space above eight levels of parking. The Class A, LEED-certified building was completed in 2015.
San Felipe Place sits directly across from the River Oaks neighborhood, a long-established, upscale residential community known for its large homes and high-end properties.
The State of Houston’s Office Market
According to CBRE, Houston’s office vacancy rate stood at 21.6 percent in the second quarter, up from 19.4 percent in the same quarter of 2019.
Commercial real estate firms report that Houston experienced roughly negative 1 million square feet of office absorption, a substantial amount of space that has been vacated. Contractions in the energy sector combined with economic impacts from the COVID-19 pandemic have significantly affected demand for office space.
New supply is also coming online in the market. Approximately 4.7 million square feet are currently under construction, including the 47-story Texas Tower project led by Hines in downtown Houston.
Global developer Skanska holds 3.5 acres near downtown’s Discovery Green for potential future development and recently acquired the southwest corner of Montrose and Westheimer for a new mixed-use project that could include office space. Newer, higher-quality office developments have been more successful at attracting tenants, who increasingly prefer Class AA properties over older Class B buildings.
Aug. 14, 2020 Realty News Report Copyright 2020
File: Office Tower Hits 99 Percent Occupancy. File (2) Hines Office Tower Hits 99 Percent Occupancy
