Real Estate
Midway's $2.5B East River Lands Orion Group's 63,500 Sq. Ft. Lease, 95% Occupied
Orion Group Holdings leases 63,500 sq ft at East River, boosting office occupancy to 95% in $2.5B development.
Key Takeaway
- Orion Group Holdings leased 63,500 sq. ft. at Midway's $2.5 billion East River development, raising office occupancy to 95%.
- Orion will consolidate its three Houston offices into the new space next year, featuring advanced tech and amenities.
- Despite Houston's 25% office vacancy rate, new developments like East River attract tenants with modern facilities and amenities.
Orion Group Holdings Moves to East River
Midway's $2.5 billion East River mixed-use development in central Houston has secured another significant tenant. Orion Group Holdings, a construction engineering firm, has leased 63,500 square feet across two buildings along the Buffalo Bayou River. This move fills the last full office floors in East River's 26-acre first phase, bringing the office occupancy rate to an impressive 95 percent. Orion Group will consolidate its three Houston offices into this new space next year, marking a strategic relocation from its current headquarters near Ellington Airport.
Details of the Lease Agreement
The lease agreement, brokered by CBRE's Collin Grimes and Bill Boyer for Orion and Amanda Nebel of Parkway for Midway, involves a comprehensive plan for Orion's new headquarters. The space will feature flexible workspaces and advanced technology infrastructure, providing access to East River's retail, dining, and recreational amenities. This move is part of Orion's broader strategy to foster innovation and collaboration within its teams, as highlighted by CEO Travis Boone.
East River's Growing Appeal
East River, a 150-acre development, has become a magnet for various companies, particularly those linked to maritime industries. Port Houston is set to move its headquarters to a 96,000-square-foot building within the development by summer 2025. Other notable tenants include Anton Paar USA, Suderman & Young, and OJB Landscape Architecture. The development's strategic location and comprehensive amenities make it an attractive hub for businesses looking to consolidate and expand their operations.
Houston's Office Market Dynamics
Houston's office market has faced challenges, with vacancy rates rising to 25 percent in the first quarter, largely due to the remote-work era. However, new or renovated office properties like East River are performing well, offering companies modern amenities that help lure employees back to the office. The high occupancy rate at East River underscores the demand for such premium office spaces, even in a market with overall high vacancy rates.
Broader Implications for Real Estate
The successful leasing of East River's office space to companies like Orion Group Holdings reflects broader trends in the real estate market. There is a growing demand for mixed-use developments that offer a blend of office, retail, and recreational spaces. This trend is driven by companies' needs to provide dynamic work environments that promote employee well-being and productivity. East River's success could serve as a model for future developments in urban areas.
