Global law firm Skadden, Arps, Slate, Meagher & Flom LLP has signed a long-term, 52,000-square-foot lease at Texas Tower, a 1 million-square-foot office building in Houston. The company will move into the two-floor space starting April 2026.
Savills brokered the deal on behalf of the tenant, while Cushman & Wakefield represented the owner, a joint venture between Hines and Ivanhoé Cambridge.
This agreement brought the high-rise’s occupancy to 99 percent. Tenants at the building also include Morgan Stanley, Hines, Clifford Chance and DLA Piper, according to CommercialEdge information.
Located at 845 Texas Ave., Texas Tower is within the metro’s central business district and adjacent to the JPMorgan Chase Tower. George Bush Intercontinental Airport is 19 miles northeast.
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The owner completed the 47-story high-rise in 2021 using funds from a $317.6 million loan originated by New York Life Insurance Co. in 2018, CommercialEdge data shows.
Last month, the joint venture refinanced the asset with a $450 million loan from Wells Fargo and Morgan Stanley. It marked the first time in two years when a multi-tenant office tower outside New York City secured financing in the CMBS single-asset, single-borrower market.
The Class A, transit-oriented building features floorplates ranging from 30,438 to 31,255 square feet. The tower is LEED Platinum certified and also has 15,000 square feet of retail space, a conference center, coworking area, tenant lounge and multiple outdoor terraces, as well as a fitness center and rooftop gardens.
Savills President Mark O’Donnell worked on behalf of the tenant. Cushman & Wakefield Executive Managing Director Michael Anderson represented the ownership.
Houston’s office leasing activity remains steady
Houston’s office vacancy rate clocked in at 22.8 percent in January, 310 basis points higher than the national average, according to the latest CommercialEdge office report. The metro’s average listing rate during the same month was $30.1, also below the $33.4 U.S. figure.
Despite lagging behind national trends, leasing activity was somewhat steady. At the beginning of the year, energy company Plains Marketing LP extended its 259,774-square-foot lease at Brookfield Properties’ Allen Center office campus in Houston. The firm first committed to the space more than 30 years ago.