Transwestern to Lease 1.5 MSF Office Park in Houston to Signorelli
- Oct 16, 2014
Transwestern will be the exclusive leasing agent for Valley Ranch Commerce District, a new office park to be developed in the Houston area, at the Grand Parkway and U.S. 59, immediately north of Kingwood, Texas, Transwestern announced Wednesday.
The 70-acre, master-planned office park is a project of The Signorelli Co., which plans to build up to 1.5 million square feet of office space, a full-service hotel and conference facilities at the park.
Transwestern vice president Greg Tilton will lead the leasing efforts on behalf of Signorelli.
Transwestern’s “experience with large-scale, mixed-use developments and global network will bring us the exposure we need to get this project off to a great start,” Signorelli president & CEO Daniel Signorelli said in a release.
The Commerce District reportedly will offer a campus-style setting with natural water features and jogging trails. Along with planned medical, residential, retail and entertainment components, it’s part of the 1,400-acre Valley Ranch master-planned community.
“Though the development of the Commerce District will greatly alter the dynamics of the Kingwood area office market, we don’t see it as a problem of absorbing space,” Tilton told Commercial Property Executive. “We are looking to draw new tenants from outside the Houston market or from other submarkets, such as The Woodlands, since the project is a great alternative to the higher-priced Woodlands office choices. We also expect to have significant interest from companies in submarkets like the Central Business District or Galleria that are looking for a campus setting, outside of town, a trend that’s occurring across Houston.”
Directly across the Grand Parkway (Hwy. 99), and within walking distance, from the Commerce District will be the Market District, a 240-acre mixed-use development by Signorelli with a grocery-anchored retail center, a movie theater and other retail tenants, including restaurants.
The retail portion is expected to be fully leased by late 2015 or early 2016, said Tilton, who added that Transwestern does not lease the retail portion.
The Kingwood/Humble office submarket that encompasses the Valley Ranch Commerce District is smaller than some of the other suburban Houston markets, with just nine buildings of 50,000 square feet or more rentable area, totaling almost 900,000 square feet of office space, according to Tilton. The current (direct and overall) vacancy for all classes of space there is 6.9 percent, he said.