Houston Office Space

Houston Office Space Location, Negotiation, Consulting, and More...

Houston Office Space for Rent or Purchase

Houston Realty Advisors represents businesses, large and small locating the office that is right for them.

We have the experience, the relationships, as well as the customer’s best interest in mind at all times. When it comes to locating and negotiating Houston office space for our clients, we provide the following services:

• Clarify and negotiate specific terms of the lease
• Determine time schedule
• Coordinate all negotiations regarding businesses and legal terms of the lease, including, but not limited to:
  • Rate
  • Term
  • Space planning and interior design allowances
  • Maintenance and repair
  • Concessions (free rent, above-standard tenant finish, etc.)
  • Amortization of tenant improvements
  • Leasehold improvement allowances
  • Future renovation allowance
  • Takeover of existing lease (if necessary)
  • Non-disturbance agreement
  • Use clause
  • Cleaning and maintenance specifications
  • Renewal rights
  • Escalation clauses
  • Parking
  • Occupancy date
  • Indemnity
  • Condemnation
  • Default
  • Waiver of claims
  • Fire and casualty
  • Insurance
  • Sublease provision

Types of Office Space

The office space rental market is generally defined by the quality of the office building and ranked accordingly. According to the Urban Land Institute, the classes are defined as:

Class A office space listings are the highest quality office space or buildings available for lease typically characterized as buildings that have excellent location and access, attract high quality tenants, and are managed professionally. Most Class A office buildings provide office space for lease and have tenants in various sized office suites. Building materials are high quality and rents are competitive with other new buildings.

Generally speaking, offices in downtown Houston, The Galleria, and Greenway Plaza with huge, expensive lobbies are examples of Class A office space. Typically occupied by upper end businesses, such as law firms, financial firms, and oil companies, they exude a level of financial success.  

Class A buildings are typically more expensive than Class B.

Class B office space listings are the second highest quality of buildings available in the office space rental market. These buildings also offer office space for rent suite by suite. Class B buildings have good (versus excellent) locations, management, and construction, and tenant standards are high. Buildings should have very little functional obsolescence and deterioration.

In practical terms, Class B buildings would be located near the high-end, Class A buildings. They are generally smaller and a bit older.

Class B buildings are typically more expensive than Class C buildings.

Class C buildings are typically 15 to 25 years old, but maintain steady occupancy. A fair number of the Class C office spaces in the inventory are not truly office buildings but rather walk-up office spaces above retail or service businesses.

Types of Office Leases

There are many variations of types of office leases. The most common are as follows:

Full Service Lease is also known as a Gross Lease. This is a type of lease, where the property owner/landlord is responsible for all building expenses. This type of lease is typically more favorable to the tenant.

Net Lease: The tenant pays the rent plus a portion of the maintenance fees, insurance premiums and other operating expenses.

Triple Net Lease: A lease in which the lessee pays rent to the lessor, as well as all taxes, insurance, and maintenance expenses that arise from the use of the property.

Gross Lease: The tenant pays a set amount of rent and the landlord is responsible for payment of taxes, insurance and other costs associated with owning the property.

Shopping Center Leases: The tenant pays a base rate in conjunction with the square footage of the retail facility. Typically, the tenant will also pay some common charges and frequently a certain percentage of the gross sales. The tenant may also be assessed part of the property taxes. A shopping mall lease will often include terms about signage, hours of operations, common areas and deliveries. The landlord may also have the right to relocate the tenant.

Land or Ground Lease: The tenant leases the grounds and builds on the property. Typically, with a land or ground lease, all improvements on the property, including any building or buildings revert back to the landowner at the end of the lease period.

Office Space Planning

HRA, Inc. will work with you to design your office space for minimal cost by having the landlord employ the space planner. They will design your office space to you specific requirement and help minimize any unuseful square footage. This will hold down the cost of the office space over the long term of the lease obligation and give you the highest use of NRA (net rentable area) for the office space functionality.