HOUSTON—The office market has recorded a marked increase in investment activity this year. Even with the continued slowdown in leasing activity and rising vacancy, investors have re-entered the market with the notion that better yields can be realized in Houston relative to other major metros. Year-to-date transaction volume is approximately $1.47 billion, a significant increase from 2016, which recorded just $330 million worth of transactions, according to JLL research.

An example of that increased investment activity is the sale of 2525 North Loop West, a 136,325-square-foot office building. 2525 Inner Loop LP purchased the property from Lykes Building Holding Associates and Smetana Texas Realty Associates. Sean Finn, the new owner, plans to implement a capital improvement program with hopes of attracting medical-office tenants. He also plans to bring retail space to the adjacent pad sites on the property.

This property complements previous investments made by Finn in the area, including 2707 and 2727 North Loop West and the 24-acre Brookhollow Campus at 4400-4550 Dacoma St. These assets amount to more than 1 million square feet of investment in the immediate area.