HOUSTON - Teardowns in the office market are at an all-time high in Houston, making it one of the hottest locations in the country right now.
It’s commonplace in communities like West University Place, Bellaire and the Heights. A bulldozer crumbles a house and a home builder replaces it with a home that’s bigger.
Well, get ready. You will start to see teardowns in the office market, too.
“A lot of them will be scraped and replaced with new buildings,” says office leasing expert Sanford Criner, executive vice president of CBRE Group.
Many older buildings fall far short of the energy efficiency and technology infrastructure that are common in today’s new structures. So if a second-class or third-tier building is occupying a prime corner — look out — the wrecking ball may be flying.
In a new national report by the CBRE realty firm, Houston was tops — tied with Boston — as having the sharpest drops in vacancy in the second quarter of this year among major United States cities.
Houston’s prime Class A buildings in the most desirable areas are full to the brim. The prime buildings in the Energy Corridor are 99 percent occupied and The Woodlands has a 100 percent Class A occupancy rate.
Developers are responding by constructing dozens of new office towers, with a lot of the new projects concentrated in West Houston and The Woodlands.
Moody Rambin will begin construction in September on the ten-story, 250,000-sf Town Centre I, located on Town & Country Blvd. at Queensbury Ln.
The new six-story extension of the 220,000-sf Campanile complex includes office and retails space and connects to the Black Labrador pub.