Work Begins on 700,000SF Houston Office Project

Regions Southwest | Houston
Work Begins on 700,000SF Houston Office Project
April 3, 2008
By: Barbra Murray, Contributing Editor

Construction of Eldridge Oaks, a 700,000-square-foot office development in Houston's thriving Energy Corridor, has just gotten underway. Developer Transwestern plans to complete the first phase of the environmentally-friendly Class A project in September of next year.

Eldridge Oaks (pictured) sits on a 21-acre site on Eldridge Parkway, just one mile from I-10. The initial phase of the project involves a 14-story tower featuring 350,000 square feet. Phase II, for which no construction start date has yet been set, will also consist of 350,000 square feet of space for multiple tenants or for build-to-suit use. Additionally, both buildings will be designed to meet LEED certification standards. "It's going to be a great corporate environment with a greenbelt area around it, abutting Terry Hershey Park," David Baker, an executive vice president with Transwestern, told CPN today. Baker and colleagues Eric Anderson and Paul Wittorf are overseeing leasing for the spec project.

Given the state of Houston's Energy Corridor, it appears that Eldridge Oaks will certainly attract a great deal of attention from potential tenants. The submarket--home to such leading energy companies as BP America, Shell, Sysco,  ExxonMobil, as well as a bevy of engineering businesses--is buzzing with activity. "The Class A vacancy rate is less than 4 percent in the Energy Corridor," Baker noted. "There is still strong absorption in the market; there was 840,000 square feet of absorption in the first quarter. Virtually all new construction projects in the submarket have been substantially leased before they're finished."

This demand for premier office space is bringing new developments at every turn. Last month, Behringer Harvard revealed plans to develop the 300,000-square-foot Three Eldridge Place next to One and Two Eldridge Place buildings, which are both presently 99 percent leased. In January, Opus West broke ground on Energy Crossing I & II, two six-story towers that will offer 240,000 square feet, each. "The timing is fabulous," Baker said, "and given the lack of space, I think the trend is going to continue."

 
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