Blvd Place rental rates highest in Galleria area
Quoted rental rates for office space in the Blvd Place mixed-use project that’s under development in the Galleria area are higher than for any other office building in the submarket and comparable with rates being quoted for new office construction in the Central Business District.
Chip Colvill of Colvill Office Properties, who has been hired to find office tenants for Blvd Place, says rates are being quoted in the low to high $30-per-square-foot range. The net rental rate does not include operating costs, such as taxes and insurance.
In comparison, premier Galleria area office buildings are quoting rental rates in the $25 net range, Colvill says.
And the downtown office tower under development by Houston-based Hines is quoting rates starting at $33 net, says Stewart Robinson of Hines.
Blvd Place is charging top dollar because office space on the third and fourth floors above high-end retail space will be very dramatic, says Colvill.
“It’s not like we’re pre-leasing a building and garage,” he says. “We’re pre-leasing a lifestyle.”
Blvd Place, which is being developed by Houston-based Wulfe & Co., plans to have a total of 350,000 square feet of office space in six buildings designed by DMJM Design of Los Angeles.
Office space will sit on top of stores and restaurants in all of the buildings. One larger office building, with nine levels, is designed to have 180,000 square feet of office.
Blvd Place’s first building, which is already under construction, will have 35,000 square feet of office space. Colvill says the project’s remaining office space will break ground in 2009 for delivery in 2010.
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