The office sector has generated a string of negative headlines since the start of the COVID-19 pandemic. But that doesn’t mean that there isn’t hope for this important commercial sector. And that hope? It’s coming from developers that are bringing amenity-rich, creatively designed office spaces to the market.

One such developer? Milwaukee-based Irgens, which has worked with Milwaukee County, the City of Wauwatosa and the Milwaukee County Research Park Corporation since 1995 to develop the Milwaukee County Research Park in Wauwatosa, Wisconsin.

This park now features more than 1.4 million square feet of Class-A office and flex properties developed by Irgens at a cost of more than $248 million. Irgens has completed 10 of the 14 projects in the 175-acre research park. It is now home to more than 80 companies.

Developments like this represent hope for the office sector. It’s an example of the flight-to-quality: Companies want to locate in properties such as the Milwaukee County Research Park because of its amenities and modern construction.

The takeaway? Not every office property is struggling today.

Parkway brokered a new lease with Empyrean Benefit Solutions, Inc. at CityWestPlace, elevating the West Houston office campus’ leased space to an impressive 98%.

This milestone, alongside recent leases with Bechtel Energy (Bechtel) and Noble Corporation (Noble), underscores CityWestPlace’s dominance in the Houston market, attributed to its exceptional amenities and prime location.

Empyrean, a leader in technology-enabled benefits administration services, has secured 41,667 square feet at 2103 CityWestPlace Blvd (Building 4), planning to occupy two full floors by early 2025. Mark O’Donnell, President of Savills’ Texas region, and Senior Managing Director Jennifer Meehan facilitated the lease negotiations on behalf of Empyrean. Savills’ Corporate Managing Director Patrick Miller will handle design and construction consulting services for Empyrean.

Bechtel, a global leader in engineering, procurement, construction, and project management, has expanded its footprint by an additional 108,724 square feet at 2103 CityWestPlace Blvd (Building 4), spanning four floors, with move-in slated for the third quarter of 2024. CBRE Vice Chairman Kevin Kushner and Senior Vice President William Padon brokered this expansion. In total, Bechtel’s 394,000 square-foot Houston presence now extends across Buildings 3 and 4 at CityWestPlace.

Noble, a global offshore drilling contractor, is relocating operations from a Houston suburb into 110,250-square-feet of space at 2101 CityWestPlace Blvd (Building 1), occupying three floors by early 2025. Savills’ Mark O’Donnell, Corporate Managing Director Jim Bell, and Senior Managing Director Jennifer Meehan represented Noble in the transaction. Savills’ Corporate Managing Director Ed Bowerman will handle design and construction consulting services for Noble’s new space.

Located in Houston’s Westchase District, CityWestPlace is a 39-acre, master-planned, Class-A office campus encompassing four buildings with over 1,470,000 rentable square feet alongside extensive outdoor spaces that are recognized nationally for their landscaping. CityWestPlace offers tenants a range of amenities, including conference spaces, multiple dining options, and unrivaled indoor and outdoor recreational offerings complete with two fitness centers, trails, a jogging track, and sports fields. CityWestPlace was extensively renovated in 2020, and in 2022, Parkway was awarded The Houston Office Leasing Brokers Association’s “Deal of the Year” for Bechtel Energy’s 15-year lease at CityWestPlace 3 and 4.

Lease negotiations for the new CityWestPlace lease with Empyrean, Bechtel, and Noble were managed by JP Hutcheson and Rima Soroka, Senior Managing Directors, on behalf of Parkway.

JLL Capital Markets neogiated the sale of Richardson Heights, a 201,433-square-foot shopping center in Richardson, Texas.

JLL represented the seller, Silver Star Properties REIT, and JAH Realty acquired the asset.

Constructed in the 1950s, Richardson Heights was the city of Richardson’s first shopping center and has become a staple for the community for the past 70 years. Now, the center is 79% leased and anchored by national, high performing tenants including Alamo Draft House, TJ Maxx and Half Priced Books.

Located at 100 South Central Expressway, the property offers 175 feet of highly visible frontage on US-75 and caters to over 148,000 residents within a three-mile radius. Richardson Heights is also surrounded by affluent and educated neighborhoods, leading to significant consumer spending for the property. Moreover, its proximity to Dallas and The University of Texas at Dallas attracts a diverse mix of families and young professionals, which have had more than a 20% population growth since 2010.

The JLL Investment Sales and Advisory team was led by Senior Managing Directors Adam Howells and Chris Gerard along with Associate Ben Esterer and Analyst Keenan Ryan.

GREA brokered the sale of Aspire and Lana Apartments, a 248-unit apartment community at 201 Coronado Drive and 521 E Windsor Drive in Denton, Texas.

Aspire and Lana Apartments are strategically located near Denton’s University District, providing residents with convenient access to top-tier education, employment, and entertainment options in the heart of Denton. This prime positioning enhances the appeal of these communities, making them highly desirable for residents seeking both comfort and convenience.

The local Seller, Legacy REI, sold to Dallas-based SPI Advisory.

The marketing process for Aspire and Lana Apartments was highly competitive, generating 44 formal offers from potential buyers across 12 states. Notably, 71% of these offers were procured from out-of-state buyers, highlighting the wide-reaching appeal of workforce housing in Denton.

The transaction moved swiftly from contract to close in just 47 days.

Fritz Waldvogel with Colliers arranged Fannie Mae acquisition financing for the property.

Rosewood Property Company and equity partner MetLife Investment Management launched development on their second multifamily property at the mixed-use Heritage Creekside development in Plano, Texas.

The 338-apartment home The Buckley is on 4.8 acres near Custer Road and President George Bush Turnpike. The estimated completion date is summer 2026, with move-in anticipated later in the year.

Apartment homes range from studios (averaging 612 square feet) to three bedrooms (averaging 1,562 square feet), all featuring designer finishes with high-end appliances and fixtures. The highly amenitized property offers multiple lounge areas, a club and card room, a fitness center, co-working areas, a dog park and activated courtyards. The expansive resort-style pool blends seamlessly into indoor lounge spaces, generating a refined environment for residents.

Hensley, Lamkin, Rachel Inc. serves as the architect, while LandDesign (landscape design), B2 Architecture + Design (interior decorator), KFM (civil engineer) and Provident General Contractors (general contractor) are also involved once again. Broadway Bank is the lender of record.

Developed and owned by Rosewood, Heritage Creekside is a 156-acre mixed-use development that includes several restaurants such as Taco Joint, Pax & Beneficia, Flying Fish and Rodeo Goat, with Crossroads Diner planned to open later this year. OrangeTheory Fitness also has a location at Heritage Creekside. To complete the vibrant neighborhood, this multifamily community joins single-family homes, townhomes and additional apartment communities.

In a bit of good news for the Chicago industrial sector, the amount of new construction of warehouse and manufacturing space rose during the second quarter, according to the latest research from Colliers.

According to Colliers’ second-quarter Chicago industrial report, construction was ongoing for 43 buildings as of the end of June, totaling 13.6 million square feet.

That might not sound like a lot when compared to this sector’s recent boom times. But it does represent the first increase to the Chicago-area construction pipeline since the second quarter of 2023.

Colliers said that construction starts totaled 4 million square feet across 11 projects, nearly doubling the 2.1 million square feet of industrial construction observed in the market during the first quarter of the year. As in most markets, the majority of new industrial construction in the Chicago market was build-to-suit, with eight of these projects falling in that category.

There was a notable increase in build-to-suit projects under construction, reaching 8.6 million square feet by the end of the second quarter, a 29% rise from the firsdt quarter and the highest level of build-to-suit activity since the third quarter of 2022.

Speculative construction is down, though, as it is in most markets. Colliers reported that speculative construction in the Chicago industrial market totaled only 5 million square feet at the end of June, marking its lowest level since the first quarter of 2018.

New construction deliveries were limited in the second quarter, with 10 new industrial buildings totaling 2.9 million square feet completed. Speculative completions amounted to only 1.1 million square feet, according to Colliers’ report, marking the lowest spec figure recorded since the second quarter of 2021.

The limited delivery of speculative space, coupled with increased tenant demand, contributed to the Chicago industrial vacancy rate falling to 4.84%. This is a dip of 45 basis points from the first quarter’s rate of 5.29%.