Headline News from the Houston Office Market
Hines Secures BG Group Relocation to MainPlace
Hines has secured a major tenant for MainPlace signing BG Group plc to a 164,000 square foot lease for its new downtown Houston office tower. The 46-story, 972,474-square-foot, Class A office building is currently under construction with completion scheduled for February. BG Group’s new space will served as the British natural gas firm’s U.S.-based headquarters. The building will be renamed BG Group Place and the company will relocate from it Galleria office location in mid to late 2011. KPMG, the accounting firm, previously leased 100,000 square feet in the new project.
The building is owned by the HC Green Development Fund, a partnership of the California Public Employees’ Retirement System (CalPERS), the nation’s largest public pension fund with assets totaling $218.5 billion, and Hines. The fund focuses on developing sustainable office buildings throughout the United . Recently, the building attained LEED Platinum pre-certification. Hines has developed 23 projects in downtown Houston totaling approximately 17 million square feet.
West Loop Office Buildings Change Hands
Fuller Realty Partners L.L.C and PCCP L.L.C. have teamed to acquire a distressed 503,930 square foot office portfolio in Houston’s Galleria submarket. The properties include the 281,590 square-foot 2425 West Loop and the 222,340 square foot 1001 West Loop. They were built in 1980 and 1978, respectively, and are located a mile apart along Loop 610. Fuller was the owner of 2425 West Loop from 1997 to 2007 and owned 1001 West Loop from 2003 to 2007. The former is 58.5 percent occupied, while the latter is 43.4 percent occupied.
Developer Announces Speculative Office Project in The Woodlands
Real Estate Developer Warmack Investments, the owner of 76 acres along Lake Woodlands has announced plans for 1.4 million square feet of office space in a new development that includes two office buildings currently leased to Hewitt Associates. Including the Hewitt Buildings, Research Forest Lakeside consists of ten office buildings and convenience retail totaling over 1,798,398 square feet. The first building will be developed on a speculative basis and contain 66,000 square feet in three stories when it projects to open approximately a year from now.