The Houston office space market just became less certain following news that one of the city's most recognizable buildings is available for sale.
Various news outlets report that Hines Real Estate Fiduciary Trust - the owner of Williams Tower - now has plans to sell the building, located in the middle of the bustling Galleria area. The building is expected to be purchased for anywhere between $400 million and $475 million, after selling for $271.5 million in 2008.
Climbing 64 stories and 909 feet into the Houston skyline, Williams Tower is the fourth-tallest building in Texas and the 25th-tallest in the nation. According to local news source CultureMap, the building, which was built in 1983, was initially avoided by executives who did not want to "appear ostentatious by having such luxurious office space." Once named Transco Tower after its largest tenant, the tower eventually reached 98 percent occupancy, which is its current rate.
With the ownership of the tower changing hands in the near future, business owners seeking Houston office space must keep in mind that leasing prices for locations in Williams Tower are expected to climb in the next few years, as many agreements made under previous ownership are set to expire.
Furthermore, the Galleria area surrounding the tower continues to see increased development. Just last week, the Houston Chronicle reported that San Diego-based developer Oliver McMillan could receive $19 million in tax incentives to help further build up the area, with its proposed apartment complex and retail locations.
The Houston office space market is currently hyper-competitive, with energy companies flocking in droves to the city to find new office spaces. Given this dearth of sufficient locations, any business owner planning an office move to Houston should partner with a local real estate listings provider.