HOUSTON-It should probably comes as little surprise that more speculative office developing is occurring in the Houston area. Within the past couple of years, submarkets such as the far west Energy Corridor and The Woodlands in the far north have seen huge demand for product.
So, it seems, has the Northwest Far submarket. That demand, in fact, prompted Radler Enterprises to add two more speculative office buildings, totaling 540,000 square feet, to Beltway Lakes, its 46-acre, master-planned project.
The Houston company has begun construction on Phases III and IV of the development; the third phase is scheduled for an August 2014 completion, while Phase IV will be delivered in March 2015. According to Tom Radom, Radler Enterprises' vice president and principal, the successful lease-up of Beltway Lakes' first two phases paved the way for the current construction.
"Our existing buildings are 100% leased," he tells GlobeSt.com. "This submarket isn't flooded with new inventory like West Houston and The Woodlands, so there is still significant demand from tenants." Furthermore, he adds, the existing tenants at Beltway Lakes have expansion and growth requirements along with the strong interest from new tenants.
Third-quarter office leasing figures support Radom's assertions. According to Jones Lang LaSalle's statistics for Q3, the northwest submarket has approximately 386,000 square feet of new construction underway, compared to 3.7 million square feet under construction in the Energy Corridor and 1.7 million square feet going north in The Woodlands. Furthermore, other submarkets surrounding Beltway Lakes – such as Greenspoint/North Belt and Champion – have little or no new product coming online.
Radom says Beltway Lakes has plenty of room for expansion, as the four office buildings take up only 17 acres on the master plan. "The Beltway Lakes master plan includes several million square feet of office, and a hotel," he adds.
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