Not all deals come in big packages. And in some cases, that may point toward a competitive advantage.
Take the property at 10613 W. Sam Houston Parkway, for example. The 200,552-square-foot Class A building known as Remington Square III recently signed around 45,000 square feet in new leases, including Accudata Systems Inc. signing a 17,705-square-foot lease and Patterson-UTI Energy Inc. is expanding in the building by 11,609 square feet.
And although the new building is just 43 percent leased, it’s positioned to do well in a market where most active tenants are looking for smaller chunks of space in multitenant buildings.
“We think there’s a market for smaller tenants out there,” said Ryan Bishop, managing director of Stream’s office division. “Some of the other buildings out there aren’t built in a matter (to) accommodate smaller tenants.”
Other leases signed in Remington Square III include Bene-Fit Total Insurance Services leasing 9,609 square feet, Northern Natural Gas leasing 2,397 square feet and Liberty Mutual Insurance moving into 2,938 square feet. Bishop represented the landlord in the deals.
Bishop said he’s been able to backfill most vacated spaces under 10,000 square feet within six months. Multitenant buildings like Remington Square III, should they actively target smaller tenants, don’t directly compete with buildings that have large chunks of space from an energy company. Often, those multifloor chunks of sublease space have been outfitted for one or two large users.
By: Cara Smith
SOURCE: Houston Business Journal