Franklin Street Properties Corp. has retained international real estate firm Hines to manage its three-building office portfolio in the West Houston Energy Corridor.
The multi-tenant office portfolio comprises Energy Tower I—a 326,000-square-foot, 14-story building located at 11700 Katy Freeway; Phase I of The Offices at Park 10, a six-story building at 16285 Park Ten Place, with 157,000 square feet of space; and neighboring Phase II of The Offices at Park 10, located at 16290 Katy Freeway and totaling 157,000 square feet.
“Hines has enjoyed its relationship with Franklin Street Properties, managing buildings for FSP in Atlanta, Chicago, Dallas and Kansas City. Following our firm’s recent success with FSP at Phoenix Tower in Houston, we look forward to achieving our owner’s asset objectives through Hines’ property management expertise,” said General Property Manager Don Emerson, who will oversee Hines’ on-site management staff at each property.
The three-building portfolio is 100 percent leased, with Technip USA Holdings Inc. and Murphy Exploration and Production Co. occupying substantial portions of Energy Tower I and the Offices at Park 10, respectively.
According to Marcus & Millichap, Houston continues to rank among the tightest office markets in the nation. With above-average job creation, limited new supply and a highly active energy industry, investor demand for Houston properties will most likely rise over the next year alongside occupancy and rents. In high-demand areas such as the Energy Corridor and CBD, availability of large blocks of space has dwindled, and soon-to-be-vacated space should be met with healthy demand.
Image: Energy Tower I courtesy of Hines