A Houston-based firm has acquired a vacant office building in the West Belt submarket, an area with one of the highest office vacancy rates in the city. U.S. Property Management purchased the 225,000-square-foot property at 4646 West Sam Houston Parkway North. JLL represented the seller, RVI Group, an insurer based in Connecticut.
The sale price was not disclosed. However, Harris County appraisal records show that the building’s taxable value dropped significantly this year to $9.7 million from $35.6 million last year.
The nine-story structure has been empty since November of last year after offshore drilling company SLB vacated its space. The building is being marketed as suitable for a headquarters operation.
Built in 2001, the property is located within Westway Park, a 150-acre business complex developed by Wolff Companies that also houses offices for General Electric Oil & Gas, Travelers and Schneider Electric.
Westway Park’s location offers access to major highways including Beltway 8, Interstate 10 and U.S. Highway 290.
Houston’s office market continues to face high vacancy rates due to older buildings becoming less desirable for tenants. According to Partners Real Estate, properties built before 2009 had an average vacancy rate of 27.5 percent at the end of the first quarter this year, compared with 14.9 percent for newer buildings (https://www.partnersrealestate.com/market-research/houston-office-market-q1-2024-report/). By the end of the second quarter, Partners reported that West Belt’s office vacancy rate stood at 31.8 percent—higher than Houston’s overall average of 26.2 percent (https://www.partnersrealestate.com/market-research/houston-office-market-q2-2024-report/).
U.S. Property Management’s portfolio includes several other properties: Lyric Tower in downtown Houston; a medical center facility; a Hilton hotel near Houston Medical Center; and a resort on Turneffe Island off Belize.
