Houston Developer Announces New Office Park Near North Post Oak
Houston-based Clay Development and Construction, led by Robert Clay, has revealed plans for a new 150,000-square-foot office project on North Post Oak Road near the former Northwest Mall site. The development, named Offices @ North Post Oak, will be built on a 7.5-acre parcel just west of Loop 610 and is targeted at owner-occupant companies looking for a close-in location at a reasonable price.
The project will consist of seven speculation office buildings constructed in multiple phases so the overall impact on Houston’s already soft office market should be limited. The initial phase includes two two-story buildings of about 16,000 square feet each. Those first buildings are planned to break ground later this year and be completed in early 2019.
Jim Foreman of Cushman & Wakefield has been retained to market the buildings, which will be available for sale or lease. The campus will also include retail space, with leasing handled by Chris Dray of NewQuest Properties. Designed by Tim Cisneros of Cisneros Design Studio and financed by Frost Bank, the development aims to provide a practical ownership alternative for businesses that can no longer afford space in the Galleria and Inside Loop submarkets.
“With immediate access to the Galleria/Post Oak area and the residential neighborhoods of Memorial and River Oaks, these office buildings are designed for owner-occupant companies,” said Robert Clay. “These users have been priced out of the Galleria and Inside Loop markets. Offices @ North Post Oak will offer them an equity position in a prime location at a reasonable price.”
The project site sits on Twelfth Street, north of the Katy Freeway, in a mixed-use corridor that includes warehouses, office and service centers, and some multifamily developments. Clay Development has spent the last two decades focusing primarily on industrial projects, developing more than 1,000 acres into 23 industrial parks. While the firm has built the occasional office building, Offices @ North Post Oak represents its first dedicated office park.
Although Houston’s office vacancy rate is at its highest level in more than 20 years, the Offices @ North Post Oak development targets a specific niche: owner-occupiers who seek proximity to central neighborhoods and business districts without the premium pricing of core submarkets. By offering ownership opportunities in a strategically located but more affordable setting, the project presents a clear investment narrative for companies looking to establish a long-term presence close to the city’s major employment and residential areas.
The phased approach, modest scale relative to larger speculative developments, and inclusion of retail amenities are intended to make the campus attractive to small and mid-sized businesses considering ownership rather than continued leasing in tighter, more expensive markets. Marketing and leasing efforts are already underway to position the campus as a practical option for companies seeking stability, equity and convenience in one of Houston’s established inner-loop neighborhoods.
April 16, 2018 Realty News Report Copyright 2018