HOUSTON—Speculative office development, Legacy at Fallbrook has broken ground in northwest Houston. Liberty Property Trust is moving forward with Phase I of the three-building project slated for completion in the first quarter of 2015.

Legacy at Fallbrook, a five-story, 208,000-square-foot office building, will be located along Beltway 8 just south of Fallbrook Drive on a 20-acre site. The tilt-wall building while efficient will also feature 10-foot ceilings and high end finishes as well as a possible fitness center or conferencing facility as tenant demand dictates.

Adam Jackson and Stewart Lyman of Stream Realty Partners will handle the leasing of the project.

"Liberty Property Trust has a proven track record of developing first class real estate across the globe," says Lyman, vice president at Stream Realty. "We are confident that their decision to go spec and beat competing proposed developments out of the ground will prove successful as we are able to capture demand that outweighs current supply in the submarket."

Northwest Houston has evolved over the last two years with an increase of office demand from engineering firms and oil and gas service companies. According to Stream, class A vacancy in the Northwest submarket has dropped below 5% with few large blocks of space currently available.

"We've seen a lot of demand with very little supply, and the supply that has been delivered to the market has filled up extremely quickly," Lyman tells GlobeSt.com. "This market is going to see a lot of tenants that either want to be on Northbelt or can't find space in the Energy Corridor, Westway and Westchase. There is a lot of demand to be on the north side of town."

Duke Realty delivered speculative building, Sam Houston Crossing II, fully leased in 2013 and CORE Real Estate completed speculative project, 8 West Centre, last year which was also fully leased at the time of delivery. Both northwest Houston buildings' have energy companies as anchor tenants.