Office Demand Driven by Low Natural Gas Prices

Deerwood Office III’s completion is slated for August.

DEER PARK, TX—Expansion by chemical and shipping companies as well as infrastructure development by the Port of Houston is fueling increased development activity. As part of that momentum in the office sector, Deerwood Office III is currently under construction with completion of the 98,230-square-foot two-story building scheduled for August 2016. A project of Clay Development and Construction, Deerwood Office III is the third building in the office park section of Deerwood Glen Business Park , a 150-acre site acquired by Clay in 2008. Furthering activity at the business park, The Dow Chemical Company has leased 75,920 square feet at Deerwood Glen III, making it now 77% leased. A fourth office building is planned in the park, as demand requires. “Situated in Houston’s petrochemical corridor, Deerwood Office III is a full-service office location for companies serving industrial operations near the ship channel,” says Robert Clay , president of Clay Development and Construction. “This is class-A office space in a growth market, the result of expansion by chemical, shipping and retail companies as well as infrastructure development by the Port of Houston.” Deerwood Office III is located on 8.6 acres and features 50,293-square-foot floorplates. The property has a parking ratio of four per 1,000 square feet. Located at 4460 State Highway 225/Pasadena Highway, Deerwood Office III offers visibility and access to East Sam Houston Parkway/Beltway 8 and the Port of Houston. It is located in the deed-restricted Deerwood Glen Business Park . Other companies in the development include Siemens, Mustang Engineering, The Brock Group, Shell, Burrow Global, John Crane Power Transmission, Code Red Safety, Abrasive Products and Equipment, Core Laboratories, Lifting Gear Hire and Universal Plant Services . Clay tells GlobeSt.com: “Office space demand in this market is driven by low natural gas prices and the consequent petrochemical boom. Another factor is improved employee safety in locations outside plants.” Mustang Engineering is the lead tenant in the 100%-leased Deerwood Office I, located at 4400 State Highway 225, the first office building in the park. The building was sold to a private investment group in 2012. The Brock Group leased 38,000 square feet of Deerwood Office II in June 2015. That building is also 100% leased. An additional 22,310 square feet is available for lease in the building. Craig Beyer, Jeff Cutler and Kristian Nielsen of CBRE represented Dow and Charlie Christ of Clay Development and Construction represented the landlord in lease negotiations. Design and construction of Deerwood Office III is by Clay Development and Construction. Clay Development and Construction Inc. is a Houston-based commercial real estate development and construction firm specializing in industrial build-to-suit facilities for sale or lease.