Bob Wheless, Panattoni's managing partner in Houston, tells GlobeSt.com that ground could break in the fall, with delivery coming seven months later. The team already is courting lead tenant prospects.
Wheless says the under-design, two-story building with an open-floor concept will be much like the existing set of 102,500-sf twins. He says the development cost is "less than projects of comparable quality in that market," where the average to build class A space runs from $125 per sf to $130 per sf.
The steady flow of deal-making has one building at 5300 W. Sam Houston Parkway fully leased and the twin at 11000 Corporate Centre Dr. sitting at 75% occupancy. The latest signing is a mid-term lease for 13,402 sf by Principal Management Group, a homeowner association management firm represented by Grubb & Ellis Co.'s Keith Lloyd. The group will move into the office in early summer.
According to Wheless, talks are under way to fill the remainder of the existing class A space which is on the market for $20 per sf gross. He believes the buildings, which delivered in the last three years, filled relatively quickly because their positioning near the suburbs and Beltway 8 offer reduced commute time for tenants and employees. Plus, he says the low-slung, efficient design is appealing because it provides more contiguous and usable space than most floor plates in mid- and high-rise buildings. Leasing is handled by John Pruitt, senior vice president, and Dena Wren, vice president, with CB Richard Ellis Inc. in Houston.
Panattoni carved out a 10-acre site for the proposed project, being designed by Morris Architects of Houston and to be built by Panattoni Construction Inc. The Sacramento-based developer will have about 90 acres left for future development in the park, which at build-out could contain 1.3 million sf.
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