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Landlord Works with Tenants to Resolve Space Issues

HOUSTON—The landlord was able to implement a leasing strategy to provide expansion space that would accommodate SABIC's recent growth in the Houston market and immediate need at the property.

By Lisa Brown | lisabrown | | Updated on August 29, 2016
office leasing SABIC has 75,840 square feet in 2500 CityWest as of now.
HOUSTON—In a submarket where negative net absorption is the norm and vacancy is nearing the 20% mark, leasing of additional space is a welcome relief. One such lease took place at 2500 CityWest , a 578,284-square-foot office building located in Houston’s Westchase District at 2500 CityWest Blvd. Within the class-A asset, a 52,822-square-foot lease was inked to Saudi Basic Industries Corp. (SABIC). SABIC recently expanded there, taking two full floors totaling 46,063 square feet and another 6,759 square feet in the recently renovated lobby, bringing its capacity at the 25-story tower to 75,840 square feet, says Colvill Office Properties and Cushman & Wakefield . According to Win Haggard Jr. , a senior vice president at Colvill Office Properties , the landlord was able to implement a leasing strategy to provide expansion space that would accommodate SABIC’s recent growth in the Houston market and immediate need at the property. In addition, this lease transaction created a unique opportunity for the landlord to work with two existing tenants to resolve existing space requirements, while validating ownership’s overall commitment to work with its tenants, both through expansion and reduction of space needs, as the case may be, he says.  Sherra Gilbert , director of research of Colvill Office Properties, tells GlobeSt.com: “Colvill Office Properties’ market research reports the class-A Westchase submarket posted 71,000 square feet of negative net absorption during the second quarter while vacancy, including sublease space, rose 290 basis points to 17.3% during the survey period.” 2500 CityWest building has a stepped curtain wall of reflective jet-black aluminum and glass. It offers conference rooms and a deli/carry-out restaurant, among additional amenities. Efficient floor plates are 23,000 square feet. Its location offers immediate accessibility to many of Houston’s main arteries including Interstate 10, Sam Houston Tollway, Westpark Tollroad and Highway 6. The building is located within a 30-minute drive to both George Bush Intercontinental and William P. Hobby airports, and provides immediate access to many of Houston’s largest residential areas. David Guion and Tim Relyea of Cushman & Wakefield represented SABIC in the lease transaction. Haggard represented the property ownership, Crimson Real Estate Fund LP , a private equity fund sponsored by Patrinely Group and USAA Real Estate Company .    

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