HOUSTON—Investors will concentrate on value-add and seek out acquisitions in areas of lower supply competition in 2018, according to Doug Ressler of Yardi Matrix. Asian investment in trophy assets registered a drop in terms of sales volume, going from $5.6 billion in 2016 to $4.8 billion in 2017, but market share-wise, registered a two-point increase, reaching 17% of total transaction volume last year.

Two of the top acquisitions of 2017 were in the Bayou City, with Brookfield Properties spending $875 million on the 4.2 million-square-foot mixed-use Houston Center, according to Yardi. These buildings include LyondellBasell Tower at 46 stories and 1.1 million square feet, 2 Houston Center at 40 stories and 1 million square feet, Fulbright Tower at 51 stories and 1.2 million square feet, 4 Houston Center at 16 stories and 674,000 square feet, and The Shops at Houston Center at three stories and 196,000 square feet, GlobeSt.com learns. The other Houston property, the Greenway Plaza portfolio formerly owned by Parkway Properties, sold for $512 million in the first half of 2017.

To demonstrate confidence in the Houston CBD market, Jackson Walker recently leased 77,015 square feet at 5 Houston Center. The office lease is a renewal of 74,094 square feet and an expansion of 2,921 square feet at 1401 McKinney St.

“We are excited about our renewal in 5 Houston Center, a first-class building, and continuing our relationship with Spear Street Capital, a first-class owner,” said Jackson Walker's Houston office managing partner Kurt Nondorf. “5 Houston Center's top-notch amenities and location adjacent to Discovery Green make for an ideal environment for Jackson Walker and its employees to work, live, dine and enjoy their surroundings.”

Transwestern executive vice president Eric Anderson and vice president Tyler Garrett represented the landlord, Spear Street Capital. Cushman & Wakefield executive vice chairman Tim Relyea represented the tenant, Jackson Walker.

“Jackson Walker is a long-term, highly valued tenant, and its renewal and expansion is a testament to the new building ownership and upcoming renovations at the project,” said Garrett. “The building is surrounded by a host of new amenities, and the momentum around the area will only continue.”

5 Houston Center is a 580,000-square-foot class-A office tower built in 2001. The building is centrally located among new development occurring on the east side of the CBD. Located adjacent to Discovery Green, the building is surrounded by new street-level restaurants, hotels and multifamily projects. It is within walking distance of both Minute Maid Park and Toyota Center, as well as the George R. Brown Convention Center.