{"id":1004729870,"date":"2024-09-24T04:40:09","date_gmt":"2024-09-24T12:40:09","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004729870"},"modified":"2024-09-24T04:56:12","modified_gmt":"2024-09-24T12:56:12","slug":"skanska-inks-lease-at-sustainable-houston-tower","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/","title":{"rendered":"Skanska Inks Lease at Sustainable Houston Tower"},"content":{"rendered":"\n

Skanska has signed a 13-year lease agreement with law firm Hicks Johnson PLLC for 21,000 square feet at 1550 on the Green, a 28-story, Class A trophy tower. Considered one of Houston\u2019s greenest office buildings, the 375,000-square-foot downtown property is nearly 54 percent leased less than six months after its unveiling, a testament to the market\u2019s demand for premium space.<\/p>\n\n\n\n

\"view<\/a>
View of 1550 on the Green, one of the city’s most sustainable office buildings, from Discovery Green Park. Image courtesy of Skanska<\/em><\/figcaption><\/figure>\n\n\n\n

Hicks Johnson will begin occupancy in late 2025. It joins tenants including the building\u2019s anchor, international law firm Norton Rose Fulbright, which began moving this summer, as well as global management consulting firm Boston Consulting Group, which is slated to take occupancy during the fourth quarter of 2025.<\/p>\n\n\n\n

Located at 1550 Lamar St., 1550 on the Green features efficient floorplates, abundant natural light, a dedicated building concierge and visitor management system.<\/p>\n\n\n\n

It has earned recognition as one of Houston\u2019s most sustainable and healthiest office buildings. 1550 on the Green has achieved LEED Platinum V4, and is pursuing WELL Platinum, WiredScore Platinum and Fitwel certifications.<\/p>\n\n\n\n

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READ ALSO<\/strong>: Greater Houston\u2019s Office Market Slowly Recovers<\/a><\/p>\n\n\n\n

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Senior Director of Originations at Nuveen Green Capital Sean Ribble told Commercial Property Executive<\/em> the demand for greener buildings is not only about improving their environmental footprint, but also increasing their marketability and value, making them more attractive to tenants and investors.<\/p>\n\n\n\n

\u201cIntegrating sustainable measures helps companies reduce operating costs while meeting regulatory standards,\u201d Ribble said. \u201cAdditionally, attractive financing mechanisms like C-PACE<\/a> have become more widely available to make greener, more sustainable buildings\u2014which were once more cost-prohibitive\u2014much more cost-effective.\u201d<\/p>\n\n\n\n

Sustainability goals drive site selection<\/h2>\n\n\n\n

Brenden McEneaney, senior vice president of sustainability client solutions at JLL, told CPE<\/em> he sees increased demand for green space. However, the demand signal can be complex to discern against larger macro factors like interest rates and remote work. <\/p>\n\n\n\n

\u201cWe still see evidence of a green premium for certified green space<\/a>,\u201d McEneaney stated. \u201cHowever, we also see an increased emphasis on low-carbon performance specifically. JLL\u2019s Green Tipping Point research forecasts a large, impending supply-demand imbalance. There is not enough available low-carbon space to meet the demands of corporate tenants who have made net zero-carbon corporate commitments.\u201d<\/p>\n\n\n\n

\"The<\/a>
The lobby area of 1550 on the Green. Image courtesy of Skanska<\/em><\/figcaption><\/figure>\n\n\n\n

He also said that large organizations have increased interest in green leasing and site selection to align their space needs with sustainability goals.<\/p>\n\n\n\n

According to McEneaney, this demand exists in the context of rapidly increasing energy and carbon emissions regulations, often with potential fines. \u201cIncreasing regulations, accelerating corporate commitments and additional requirements from capital partners on carbon performance\u2014all these factors mean that sustainability, specifically carbon performance, will increasingly impact real estate values and demand,\u201d McEneaney said.<\/p>\n\n\n\n

Flight-to-quality trending<\/h2>\n\n\n\n

Michael Webb, counsel at Farrell Fritz P.C., said: \u201cThe success of 1550 on the Green may be illustrative of a larger national trend dubbed the \u2018flight-to-quality.\u2019”<\/p>\n\n\n\n

\u201cSince early 2022, the tristate region\u2019s commercial office market has been driven by companies seeking, relocating to, and concentrating within metropolitan areas. These areas offer so-called Class A buildings with \u2018green\u2019 or LEED certifications, access to prime locations and transit, coupled with high-end, on-site amenities.”<\/p>\n\n\n\n

He added that in a post-pandemic setting, companies seek spaces and environments that align with and reflect their ESG goals, support overall health and well-being initiatives. This new work environment encourages and incentivizes employees to engage in in-person collaboration.<\/p>\n\n\n\n

\"Summit<\/a>
Summit tenant space at 1550 on the Green. Image courtesy of Skanska<\/em><\/figcaption><\/figure>\n\n\n\n

Webb said the demand for green office space may be impacted by recent laws and regulations requiring building owners and operators to reduce emissions.<\/p>\n\n\n\n

For example, Local Law 97 in New York targets the city\u2019s largest buildings and requires owners to reduce their building emissions by specific dates or face monetary fines and penalties. In New York City<\/a>, the expectation is that non-compliant buildings will become less favorable and desirable assets, Webb said.<\/p>\n\n\n\n

Skanska used its Embodied Carbon in Construction Calculator, a tool for estimating and minimizing embodied carbon in building materials, to reduce climate emissions from materials used by approximately 45 percent on this project.<\/p>\n\n\n\n

Wellness-focused amenities in demand<\/h2>\n\n\n\n

Engaging with tenants about sustainability and energy efficiency is becoming a key priority in the commercial real estate sector. This reflects a broader shift toward environmental responsibility and responds to the evolving expectations of investors and tenants. Strategies for effective tenant engagement can lead to more sustainable and energy-efficient buildings, offering mutual benefits for both tenants and property owners.<\/p>\n\n\n\n

This guidance outlines practical steps for real estate managers<\/a> to enhance property appeal and operational efficiency through collaborative efforts with tenants, focusing on shared sustainability and energy management goals.<\/p>\n\n\n\n

\"Fitness<\/a>
1550 on the Green’s 7,000-square-foot fitness center has a tenant lounge, flex space for group classes or private trainers. Image courtesy of Skanska<\/em><\/figcaption><\/figure>\n\n\n\n

Skanska\u2019s 1550 on the Green offers a fitness center, a 9,400-square-foot penthouse function and conference space as part of its amenities package, along with premium ground-floor food and beverage offerings.<\/p>\n\n\n\n

Tere Blanca, founder, chairman & CEO of Blanca Commercial Real Estate stated that as companies prioritize sustainability and their employees\u2019 well-being, she has seen a significant shift in the demand for office spaces that integrate eco-friendly design and wellness-focused amenities.<\/p>\n\n\n\n

According to Blanca, office tenants today expect more than just a workspace\u2014they seek environments that align with their values, including sustainability. Green buildings offer a forward-thinking workplace solution<\/a> that reflects a company\u2019s commitment to environmental responsibility while providing employees a healthy, vibrant atmosphere.<\/p>\n","protected":false},"excerpt":{"rendered":"

A law firm will occupy space at the Class A office building starting next year. <\/p>\n","protected":false},"author":3568,"featured_media":1004729882,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21784,1589,21742,21747,32781],"tags":[37057,32779,52351,32886,36867,34732],"class_list":["post-1004729870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage","category-houston","category-latest","category-office","category-southeast","tag-fitwell","tag-leed","tag-nuveen-green-capital","tag-skanska","tag-tere-blanca","tag-wiredscore"],"acf":[],"yoast_head":"\nSkanska Inks Lease at Sustainable Houston Tower - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Skanska has signed a lease agreement with law firm Hicks Johnson PLLC at its 1550 on the Green office building in Houston.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Skanska Inks Lease at Sustainable Houston Tower\" \/>\n<meta property=\"og:description\" content=\"Skanska has signed a lease agreement with law firm Hicks Johnson PLLC at its 1550 on the Green office building in Houston.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-24T12:40:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-24T12:56:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/1550-on-the-Green-view-from-Discovery-Green-park.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/\",\"name\":\"Skanska Inks Lease at Sustainable Houston Tower - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/1550-on-the-Green-view-from-Discovery-Green-park.jpg\",\"datePublished\":\"2024-09-24T12:40:09+00:00\",\"dateModified\":\"2024-09-24T12:56:12+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/6d4c5f1b2f682b3604ad9fe73c19fed7\"},\"description\":\"Skanska has signed a lease agreement with law firm Hicks Johnson PLLC at its 1550 on the Green office building in Houston.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/skanska-inks-lease-at-sustainable-houston-tower\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/1550-on-the-Green-view-from-Discovery-Green-park.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2024\/09\/1550-on-the-Green-view-from-Discovery-Green-park.jpg\",\"width\":1200,\"height\":900,\"caption\":\"View of 1550 on the Green from Discovery Green Park. 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