Weatherford Leases North Houston Building, Market briefs

In Houston, Weatherford International plc, a global energy services company, has leased an entire distribution building in North Houston, as stated by Transwestern Real Estate Services.

Transwestern’s John Ferruzzo, Craig Bean and Nick Peterson represented the landlord, Everwood Real Estate Partners, and CBRE’s Jim Stark and Wyatt McCulloch represented the tenant in lease negotiations.

The 125,120-SF freestanding distribution building is located at 15450 Diplomatic Plaza Drive.

“Our team identified Weatherford as an active prospect in the market early on in our process and quickly determined that 15450 Diplomatic Plaza was a solid fit for their North Houston requirement,” said Bean.

The North Far Houston submarket for distribution and industrial buildings is exceptionally strong, Transwestern said.

The North Far submarket has seen nearly 3.8 million SF of absorption in the last four quarters. Additionally, due to demand, the submarket continues to add new space. As of the second quarter of 2023, North Far was one of the leading submarkets with new development in Greater Houston, with almost 4.5 million SF under construction, Transwestern reports.

Weatherford plans to consolidate several of its Houston locations into the newly renovated distribution center. The oil and gas company operates in 75 countries and has 345 locations worldwide.

“We took a calculated risk early in the life of Everwood Real Estate Partners by acquiring a completely vacant distribution building from an institutional investor,” said William Peeples, Founder and Managing Partner of Everwood. “It is thrilling that a company the caliber of Weatherford would choose our building, and we believe it is a testament to our proactive leasing strategy and hands on asset management. This early win for Everwood bolsters our conviction around infill industrial assets across the Sunbelt.”

Everwood, a commercial real estate investment and development firm formed in August 2022, purchased the vacant Diplomatic Plaza building on March 31 and recently completed exterior and interior upgrades. Weatherford plans to complete an extensive interior build-out.

The Houston industrial market has seen a considerable amount of industrial construction and leasing, including a 1 million SF lease by Tesla.