Last year’s total sales volume for office transactions declined by 30 percent from 2019 to almost $44 billion, according to CommercialEdge data. The health crisis and ensuing economic uncertainty translated into a slight shift away from gateway and stabilized markets.
As Texas is a nondisclosure state, we ranked the top sales of 2020 based on square footage, to gain a clearer image of the office transactions that closed last year. The 10 deals below, all located in metro Dallas and Houston, represent 29.1 percent of the total square footage traded in the state, with the two markets accounting for 87 percent of the 26 million square feet that changed hands throughout Texas in 2020. Meanwhile, only 1.1 million square feet of office space traded last year in Austin, and 1.2 million square feet in San Antonio. It’s no surprise that Dallas was the only Texas market to earn a spot in the top 10 markets for office transactions in 2020.
|Rank||Property Name||Square Footage||Market|
|1||Galleria Office Towers||1,429,930||Dallas|
|2||4151, 4255 & 4333 Amon Carter Blvd.||1,409,476||Dallas|
|3||609 Main at Texas||1,045,658||Houston|
|4||Dow Texas Innovation Center||664,100||Houston|
|5||Realty.com Portfolio||635,058||Dallas, Houston|
|6||Energy Center III||546,000||Houston|
|7||Chasewood Technology Park||463,969||Houston|
|8||One Westchase Center||463,825||Houston|
|9||Two Westlake Park||454,843||Houston|
10. Mockingbird Towers, Dallas
Completed in 1970 and renovated most recently in 2017 and 2020, the 448,000-square-foot Mockingbird Towers changed hands last April with the help of a $32.9 million acquisition loan from First Horizon Bank. Albany Road Real Estate Partners purchased the asset from Caddo Holdings, after purchasing three office assets totaling some 280,000 square feet in the metro in 2019. Located at 1341 W. Mockingbird Lane, Mockingbird Towers is 1 mile from Interstate 35E and 7 miles from downtown Dallas. The property is in the proximity of multiple public transportation modes, as well as dining and cafe options including IHOP, Bombshells and Starbucks.
9. Two Westlake Park, Houston
After taking ownership of the 454,800-square-foot Two Westlake Park following a foreclosure process, Wilmington Trust sold the asset to Younan Properties in late 2020. The new owner completed the transaction with the assistance of a $36.2 million loan from Calmwater Capital. This is not the first time Younan has owned the property—the company paid $79 million for Two Westlake Park in 2007 and sold the asset four years later.
The 17-story building located at 580 Westlake Park Blvd. is LEED certified to the Silver level. Completed in 1982, Two Westlake Park underwent cosmetic renovations in 2014 and features a parking ratio of 2.78 spaces per 1,000 square feet. The property is situated some 2 miles from Interstate 10 and 20 miles from downtown Houston.
8. One Westchase Center, Houston
Nitya Capital had a busy 2020 in Houston, expanding its office portfolio by more than 900,000 square feet. In a deal with Investcorp, the Houston-based company acquired the 466,000-square-foot One Westchase Center at 10777 Westheimer Road. The property includes 2,200 square feet of retail space and features floor plates ranging from 30,000 square feet to 40,000 square feet and a parking ratio of 3.47 spaces per 1,000 square feet. The 12-story building, which was delivered in 1982 and underwent cosmetic renovations in 2017, is home to EDG Consulting Engineering, Fidinam Investment Consulting and Certainty Home Loans, previously known as Starkey Mortgage.
7. Chasewood Technology Park, Houston
In a deal with GenCap Partners, Nitya Capital also acquired the four-building, 464,000-square-foot Chasewood Technology Park in Houston, bringing its portfolio to 1.3 million square feet. The portfolio included the six-story One Chasewood, the eight-story Two Chasewood, the four-story Three Chasewood and five-story Four Chasewood. The properties came online between 1983 and 2008, and are located on 10.4 acres at 20329, 20333, 20405 and 20445 State Highway 249, with easy access to public transportation and shopping options. The assets include a parking ratio of as much as 4.75 spaces per 1,000 square feet, as well as a fitness center, on-site deli and conference center.
6. Energy Center III, Houston
Sumitomo Mitsui Banking Corp. purchased the 546,000-square-foot Energy Center III in Houston from Wells Fargo Bank. The 20-story property, located at 935 N. Eldridge Parkway, reached completion in 2015 after securing a $102.3 million construction loan in late 2012. The LEED Gold-certified tower serves as ConocoPhillips’ world headquarters. Located in the Energy Corridor District, just off Interstate 10, Energy Center III is some 17 miles from downtown Houston. The new owner is also working on the 445,000-square-foot Marathon Oil Headquarters, one of Houston’s largest office projects underway.
5. Realty.com Portfolio
Realty.com closed two deals in Texas last year, totaling more than 1 million square feet. In the largest of the two, the company purchased seven properties in Dallas and Houston totaling 635,100 square feet from Oxley Leasing. The portfolio included 531,000 square feet in Houston and 105,100 square feet in Dallas.
The Dallas assets—One and Two West Hills—came online in 1977 and 1983, respectively, and are located next to each other at 5787 S Hampton Road and 5801 Marvin D. Love Freeway, some 5 miles from interstates 20 and 35E. The Houston properties—located at 8303, 8313 and 8323 Southwest Freeway, 2646 South Loop W. in Houston and 213 W. Southmore Ave. in Pasadena, Texas—were delivered between 1976 and 1982.
4. Dow Texas Innovation Center, Houston
Brixton Capital entered the Houston office market last year with the acquisition of the 664,100-square-foot Dow Texas Innovation Center from Lexington Realty Trust. In the transaction, Brixton Capital assumed the $179 million outstanding balance of a $197.2 million loan from Wells Fargo Bank. The four-building property is situated at 270 Abner Jackson Parkway in Lake Jackson, Texas, next to Texas State highways 288 and 332. The LEED Gold-certified asset, which came online in 2016, is fully leased to Dow and includes more than 100 laboratories, as well as technical expertise centers and a fitness facility.
3. 609 Main at Texas, Houston
KB Financial Group purchased the 1.1 million square feet 609 Main at Texas in Houston from Hines. The 48-story building is located in the city’s CBD and in an Opportunity Zone. The property reached completion in 2017 and includes 12,000 square feet of retail space, on-site showers, locker rooms, a conference center and a rooftop garden. Additionally, 609 Main at Texas features a parking ratio of 1.43 spaces per 1,000 square feet.
The LEED Platinum-certified high-rise is home to Goldman Sachs, EnVen and McKinsey & Co., among others. The property provides easy access to public transportation options, as well as an array of hotels including Hyatt Place Houston/Downtown and Magnolia Hotel Houston.
2. 4151, 4255 & 4333 Amon Carter Blvd., Dallas
Capital Commercial Investments grew its Dallas footprint in 2020 with the purchase of American Airlines’ former headquarters in Fort Worth. The 1.4 million-square-foot portfolio changed hands with the help of a $59.2 million acquisition loan from Boxer Property. The assets are located on Amon Carter Boulevard, some 2 miles from Texas State highways 183 and 360, and roughly 6 miles from Dallas/Fort Worth International Airport. The campus, which came online between 1989 and 2001, includes a parking ratio of as much as 4 spaces per 1,000 square feet. In late 2020, Bell Textron Inc. signed a full-building lease at 4151 Amon Carter Blvd.
1. Galleria Office Towers, Dallas
Piedmont Office Realty Trust acquired the three-building Galleria Office Towers in Dallas, totaling 1.4 million square feet, from CBRE Global Investors for nearly $396 million, according to Piedmont’s SEC filings. With this deal, the buyer’s footprint in the metro increased to more than 3.5 million square feet.
The three buildings were delivered between 1981 and 1990 and are located at 13155, 13355 and 13455 Noel Road, just off Interstate 635 and some 13 miles from downtown Dallas. In 2017, the buildings underwent a $16 million cosmetic renovation. Amenities include a fitness center and multiple conference facilities. Amazon and WorkSuites are among Galleria Office Towers’ tenants.