Downtown Tower Hits 94% Occupancy, Market briefs

In Houston, The 811 Main building, a 46-story tower developed by Hines in Downtown Houston, has reached 94% occupancy following a leasing spree, as stated by Transwestern.

With a design by the high-profile Pickard Chilton architecture firm, Hines developed a the 1 million-SF office tower which was called BG Group Place when it opened in 2011.

Transwestern, which handles leasing for 811 Main, just reported that 187,492 SF has been leased in the tower in seven different leases.

While overall citywide office vacancy remains high, over 25%, newer, high-quality buildings continue to attract tenants with the best amenities and contemporary workplace design. In industry jargon, the trend is called “Flight to Quality.”

Skyscrapers completed in the last decade have outstanding occupancy. Hines’ Texas Tower is 99% occupied, for example.

Transwestern calls the 811 Main building a “Class AAA” property.

“811 Main continues to attract organizations that prioritize workplace quality, long-term stability and a location that supports both employee experience and business performance,” says Transwestern’s Eric Anderson who leases the building with John Heard.

The 811 Main building opened in 2011 with BG Group Place as its anchor tenant. However, Shell, in a move to beef up its presence in liquified natural gas, purchased BG Group in 2016. It wasn’t long before BG Group vacated its offices and the building’s name was changed. BG Group’s departure created 350,000 SF of vacany.

The building, located on a block bounded by Fannin, Rusk and Walker streets, was purchased from Hines by Invesco in 2013. Having stable, well-capitalized ownership like Invesco is appealing to companies considering relocating to 811 Main, Anderson said.

What’s there to like about 811 Main?

The building is located in the center of downtown Houston at the convergence of the Metro Rail Line, directly across from Finn Hall and offers exceptional walkability with tunnel connectivity. Recently, ownership installed a new state-of-the-art Conferencing Center with a 150-person auditorium, two conference rooms and a tenant lounge, along with an upgraded fitness center with locker rooms.

Recent leasing activity at 811 Main includes: