HOUSTON-Beacon Investment Properties has hired Stream Realty Partners to handle the leasing for a six-story office building at 1717 St. James Pl. in the Galleria submarket here. Beacon bought the 110,212-square-foot building last year.
The building is 94% leased, with another 5,000 square feet of deals being worked on now, says Adam Jackson with Stream. “It’s really about maintaining the building, and working the mix of tenants getting ready to expire in the next couple years,” Jackson tells GlobeSt.com. Beacon is also launching a lobby redevelopment project, he says.
The biggest tenant is Regents Bank with 16,500 square feet. An average rent for the area is in the $20 to $22 per square foot, gross, range, Jackson says.
Unlike other energy-driven markets in Texas, Jackson says the Galleria market was hit hard during the economic downturn, as the area is more diversified with finance, technology and law firms. “We had four straight quarters of negative absorption, and tenants such as Stanford Financial and Wachovia either downsizing or moving out, almost 200,000 square feet left the market,” he says. The area has stabilized in Q1, and the 1717 St. James building stayed well occupied, Jackson says.
“This B-plus building is one of the most positioned in its class in this submarket,” he says. “You’re in the back door of the Galleria market, with a very affluent residential community around the building.”
Beacon has been busy in the Houston market, also acquiring Oak Park 10, Timberway Two and 8866 Gulf Fwy. The firm also is currently under contract on another building in the Energy Corridor.
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