HOUSTON – (Realty News Report) – Ten leases have been signed at 1001 McKinney, a historic office building in downtown Houston, marking renewed tenant interest in the competitive downtown office market.
CBRE has completed 10 leases totaling 64,991 square feet at 1001 McKinney, a 23-story tower completed in 1947.
These leasing successes followed a $4.3 million renovation program that transformed the lobby with a boutique Art Moderne hotel aesthetic, upgraded elevator systems, and added a tenant lounge and a fitness center.
Owners of older office buildings have been investing heavily to remain competitive with newer developments as tenants increasingly pursue higher-quality Class AA space in a “flight to quality.” Upgrades and amenity improvements help historic buildings retain and attract tenants despite strong competition.
Designed by famed architect Alfred Finn
The 375,400-square-foot art deco 1001 McKinney, designed by noted architect Alfred Finn, was one of Houston’s early skyscrapers and was originally built to house the offices of City National Bank.
In 2018, TRC Capital Partners, led by CEO Steve Lerner, acquired the property from a partnership of Cameron Management and Silverpeak Real Estate Partners. (TRC was formerly known as The Redstone Companies.)
The downtown office market in Houston has softened, with availability rates approaching 30 percent. Nevertheless, new construction continues to bring additional supply to the district. Hines is developing the 1.1 million-square-foot Texas Tower, scheduled to open in the fourth quarter, while Lovett Commercial’s redevelopment of the former Post Office on Franklin Street will add roughly 150,000 square feet of space.
CBRE Econometric Advisors indicates a short-term forecast for growth in the number of office workers through year-end 2022. With increased touring and rising confidence, leasing activity is expected to pick up in the coming months as more firms resume office occupancy in Houston.
The recent leasing at 1001 McKinney was negotiated by CBRE veteran Jason Presley, who represented the landlord—an affiliate of TRC Capital Partners.
“1001 McKinney is an ideal choice for tenants seeking a historic office setting combined with the technology and amenities of newer buildings,” said Presley, a Senior Vice President at CBRE. “The recent upgrades were essential in attracting and retaining tenants during a challenging period.”
The leases include:
- Perkins + Will: 19,968 SF lease renewal
- ConnectGEN Management: 11,397 SF expansion and lease renewal
- Monroe VOS Consulting Group: 7,420 SF lease renewal
- Schaffer, Carter & Associates: 7,869 SF new lease
- Kinetica Partners: 7,267 SF lease renewal
- International Bank of Commerce: 2,603 SF lease renewal
- Stinnett & Associates: 2,486 SF lease renewal
- TRC Capital Partners: 2,473 SF new lease
- Charles Weber: 1,934 SF lease renewal
- Androvett Legal Media & Marketing: 1,574 SF lease renewal
The building offers direct lobby access to Morton’s Steakhouse and connections to the Central Tunnel Loop amenities, and it is conveniently close to MetroRail service.
Earlier this year, a TRC Capital affiliate acquired Galaxy II, a 106,000-square-foot office property at 455 East Medical Center Boulevard near NASA’s Johnson Space Center.
July 12, 2021 – Realty News Report. Copyright 2021.
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Photo: Courtesy CBRE
File: Leasing Spree at Historic Building