Despite Oil Price Impact, Demand Continues for Office

Class-A office space continues to be in demand.

HOUSTON—Despite the impact of lower oil prices on the citywide office market, CITYCENTRE ‘s mixed-use environment continues to be a tenant draw. Midway Companies is experiencing leasing activity at CITYCENTRE’s first four office buildings, which are currently at 98 to 100% occupancy. Jonathan Brinsden , CEO of Midway Companies tells GlobeSt.com: “CITYCENTRE is resilient in an otherwise slower market due to its thoughtful scale of office and curated mix of amenities. It creates a walkable environment for employees in support of business growth and retention.” Construction crews are putting the finishing touches on CITYCENTRE’s newest and tallest mixed-use tower to date. CITYCENTRE FIVE adds 192,357 square feet of class-A office space, 8,216 square feet of ground floor retail/restaurant space, as well as 690 parking spots to the pedestrian-oriented district, which attracts nearly 15,000 visitors a day. Located at 825 Town & Country Way, the 15-story building was designed by Houston-based Kirksey Architecture and Munoz + Albin . Linbeck served as the general contractor. Highlights include three floors of two-story loft offices with 20-foot ceilings surrounded by a masonry and glass façade. Steps from Town & Country Blvd., CITYCENTRE’s central north/south artery, CITYCENTRE FIVE provides access to two hotels, two meeting and event facilities, a 140,000-square-foot fitness club, a boutique movie theater, a myriad of dining and retail choices, and multiple residential options. In addition to a central plaza, CITYCENTRE is also a short walk or bike ride from popular Terry Hershey Park . Tenants already committed to the space include Ascot Underwriting , a Lloyd’s of London syndicate and leading global specialty insurance underwriter; Relevant Solutions , a provider of business service solutions; and University Lands , which is responsible for managing the permanent university fund lands and trust minerals. Colvill Office Properties is overseeing leasing. “CITYCENTRE FIVE further enhances the diversity of our office roster, which includes banks, financial and legal services firms, energy and real estate development companies, plus graduate educational institutions. The project not only provides vertical interest to our growing skyline, but also features an in-building garage–a convenience element for tower tenants that will accommodate parking demand for the CITYCENTRE district during peak periods,” said Suzanne Weatherall , vice president, asset management with Midway. Given the success of the first buildings, Midway is now marketing two new office towers, totaling approximately 750,000 square feet, for pre-leasing at the site. These future buildings will be located just north of CITYCENTRE FIVE and adjacent to Interstate 10, which will provide freeway exposure for major tenants. “While millions of square feet of premium office space have been developed in Greater Houston in recent years, tenants are consistently drawn to CITYCENTRE as a result of supporting amenities that create an urban campus, in addition to the lifestyle benefits and conveniences the district provides their employees,” said Brinsden. “We are continually advised by new and prospective tenants that the CITYCENTRE location and its amenity-rich atmosphere aids in the recruitment and retention of staff, especially young professionals, who appreciate the opportunity to live and work in a pedestrian-friendly environment.”