JMB Realty Inks HQ Renewal in Houston
The LEED Gold-certified office tower was recently renovated.
JMB Realty has signed a renewal agreement for 55,082 square feet at 1001 Fannin, an office high-rise in downtown Houston. Black Stone Minerals, an oil and gas company which has been at the property for more than three decades, will continue to use the space as its headquarters.
Partners Real Estate worked on behalf of the ownership, while Cushman & Wakefield represented the tenant, which previously signed a lease here two years ago.
The 49-story building totals 1.3 million square feet and has LEED Gold certification. It came online in 1980 and is within Houston’s central business district. With multiple bus and light rail stations nearby, 1001 Fannin allows easy access across metro Houston, while William P. Hobby Airport is 10 miles away and George Bush Intercontinental Airport within 18 miles from the property.
Cushman & Wakefield Vice Chairman Trey Strake and Executive Managing Director David Guion negotiated for Black Stone Minerals. Partner Chip Colvill and Senior Vice President Brad Beasley with Partners Real Estate represented the ownership.
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In 2014 it became subject to a $275 million loan held by TIAA, with a maturity date expected for 2027, CommercialEdge information shows. Other tenants here include Cosco Capital Management, FGS Global, Elkins Foundation, Chord Energy and Liskow & Lewis, among others, according to the same source.
Previously known as First City Tower, the office property includes 28,014 square feet of first-floor retail space and 1,304 parking spots. Upgraded recently, new amenities and features include a 8,000-square-foot fitness center, an outdoor patio, tenant lounge space, with plans including an upcoming conference center and a full floor of spec suites, scheduled to start construction this summer.
Deals keep Houston’s leasing activity balanced
Houston’s office vacancy rate clocked in at 22.8 percent as of March, marking a 70-basis-point decrease, according to a recent CommercialEdge report. The metro’s rate was below the national average of 19.9 percent and among the highest in the nation. Houston’s average listing rate during the same period stood at $29.40 per square foot, below the national average of $33.42.
Recently leasing agreements that closed in the area include a 50,498-square-foot deal signed by McDermott International at Westgate II, a 186,288-square-foot office property in the metro’s Energy Corridor.
A joint venture between Hines and Ivanhoé Cambridge also inked a long-term deal at Texas Tower, a 1 million-square-foot high-rise. The tenant is law firm Skadden, Arps, Slate, Meagher & Flom LLP, that will occupy 52,000 square feet across two floors, with move-in scheduled for April next year.
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