HOUSTON – (Realty News Report) – Office leasing in the Memorial Villages area is revealing a clear tenant shift: companies are prioritizing proximity over dense, centralized workspaces.
Put simply, suburban offices are becoming more attractive than downtown high-rises in the COVID-19 era.
“We are closely monitoring an emerging trend in Houston whereby more and more tenants make the decision to move from high-rise office buildings in Houston’s major business centers to high-quality, right-sized office space closer to home,” says Craig McKenna, Vice President at Stream Realty Partners in Houston.
Stream Realty Partners has seen notable leasing success recently in three CapRidge Partners properties—Memorial Tower One, Memorial Tower Two and Woodway Tower—located in the Memorial/Tanglewood submarket. Roughly 80,000 square feet of space in those buildings has been leased over the past 12 months to tenants that include Greenwood King Properties, Doliver Advisors, Southern BancShares, Weinstein Tippetts & Little and Blue Sprig Pediatrics.
Leasing activity across Houston and nationwide has been affected by the pandemic, with many companies maintaining remote-work schedules. Nonetheless, demand for suburban and exurban locations has grown, mirroring residential migration patterns as employees prioritize shorter commutes and nearby amenities.
In response, CapRidge Partners is investing millions to renovate its Memorial-area office properties.
The initial renovation phase—scheduled for completion by the end of the month—features redesigned and upgraded lobbies, a new tenant lounge, a training facility and modernized common areas, restrooms and elevator cabs. Exterior improvements include a park-like green space with a programmable activity lawn, shaded seating and outdoor meeting areas, slated for delivery in the fourth quarter of 2020.
“CapRidge remains committed to delivering a revitalized, first-class office product with a boutique feel and a people-first environment to the office users in the Memorial neighborhoods,” said Dan Terpening, Director at CapRidge. “The response has been overwhelmingly positive amongst existing and prospective tenants and in the market.”
Stream Realty Partners’ Craig McKenna, Matthew Asvestas and Elliot Collie oversee leasing at the three properties.
Oct. 1, 2020 Realty News Report. Copyright 2020.
File: Pandemic Driving Companies to Suburban Offices – Stream Realty Partners; Craig McKenna; CapRidge Partners. 10-1-2020. Memorial. Pandemic Driving Companies to Suburban Offices COVID-19.
Caption: 7500 San Felipe, Memorial Tower Two lobby. Photo credit: Mabry Campbell