5718 Westheimer in Houston Signs Six Office Leases in H1 2022

CBRE has completed six office leases within 5718 Westheimer in Houston. The building’s ownership, Group RMC, in collaboration with CBRE, have leased more than 78,000 square feet since purchasing the building in October 2021, with more than 60,000 square feet leased in 2022 alone.

• Existing tenant Next Level Medical, expanded by 23,767 square feet in May to bring its footprint within the building to 29,226 square feet.
• Also in May, Fitts, Roberts, Kolkhorst & Co., P.C., relocated within the building and extended its existing 15,900-square-foot lease.
• Liberty Associates Group LLC renewed its 11,572-square-foot lease in August.
• The property negotiated three other leases totaling 9,970 square feet earlier this year.
  
  

CBRE’s Marilyn Guion, Parker Duffie, and Joel Douthit represented ownership in the office lease transactions. CBRE’s William Padon and Abby Alford represented Fitts, Roberts, Kolkhorst & Co., P.C. in its relocation and renewal and Chris Nash with Colliers represented Liberty Associates Group LLC in its lease.

“The building has seen a steady rise in leasing activity since Group RMC’s purchase of the property as they continue to improve vacancies within the building,” said Duffie. “They have a long-term vision for the building focusing on differentiating features, such as balcony opportunities and convenient first class amenities that attract existing and future tenants as well as employees as they migrate from their homes back to the office.”

The 491,092-square-foot, 22-story, Class A office tower and is located on the west side of the Galleria/ West Loop submarket and offers convenient and quick access to the Uptown District amenities, the Southwest Freeway, Westpark Tollway, I- 10, Loop 610 and Beltway 8.

The Houston office market has seen a renewed inititative by tenants to return to the office over the past year and is outpacing other markets around the Unites States. According to a recent CBRE report, there has been a 21.5% increase in leasing activity quarter-over-quarter, with Class A office recording a positive net absorption of 239,230 square feet in Q2 2022. This type of activity shifted as new leases and expansions accounted for 67% of transaction volume in Q2.

According to CBRE’s Spring Occupier Sentiment Survey, despite return-to-office plans being limited in 2021 due to COVID-19 variants, 36% of survey respondents this year indicated that a return to the office was already underway, aligning with the recent leasing activity seen in Houston. Companies’ desire to foster a culture that supports hybrid working arrangements also remains strong. Survey respondents offering this type of flexibility report that consensus at the executive level has strengthened over the past two years. As a result, more than 80% of respondents plan to provide some level of guidance to employees as they return to the office.