Law firm stays put

Porter Hedges signs a 13-year lease for a big chunk of space in 1000 Main tower

Houston Chronicle Sunday - - BUSINESS - By Kather­ine Feser kather­ine.feser@chron.com twitter.com/kfeser

Porter Hedges signs a long-term lease for its down­town of­fices at 1000 Main.

“It’s al­ways been able to lease very quickly. We would hope that would con­tinue to be the case.” Wade Bowlin, PM Realty Group

Hous­ton-based law firm Porter Hedges has locked in a long-term lease for 105,026 square feet at its down­town of­fices at 1000 Main.

The firm, which has been sub­leas­ing the pent­house space from Re­liant-NRG since 2005, signed a 13-year lease plus re­newal op­tions, ac­cord­ing to CBRE.

Porter Hedges is Hous­ton’s sev­enth-largest law firm based on num­ber of at­tor­neys, ac­cord­ing to a Chron­i­cle 100 sur­vey in April. The firm has about 110 lo­cal at­tor­neys.

Charles Gor­don, Bran­don Clarke, Paul Pen­land and Ryan Roth of CBRE rep­re­sented Porter Hedges in the lease. Wade Bowlin with PM Realty Group rep­re­sented the land­lord, 1000 Main LLC, an af­fil­i­ate of Ger­man realty fund Union In­vest­ment.

“It was im­per­a­tive for us to cre­ate a so­lu­tion that would help Porter Hedges con­tinue its rep­u­ta­tion as one of Hous­ton’s lead­ing law firms,” Gor­don said in an an­nounce­ment.

“Af­ter a thor­ough eval­u­a­tion of their needs and how they could con­tinue to best serve their clients, they de­ter­mined that stay­ing down­town would suit them best, and from there, our team worked with the land­lord to struc­ture a lease that met the in­ter­ests of all par­ties in­volved.”

Porter Hedges re­ceived mar­ket con­ces­sions for a Class AA build­ing, ac­cord­ing to CBRE. The com­pany also took a lit­tle less space due to a re­duc­tion in file stor­age and sup­port ar­eas.

Law firms in Hous­ton have typ­i­cally se­cured con­ces­sions for 12 months free rent on a 12-year lease in new de­vel­op­ments, and six months on a 10year re­newal, ac­cord­ing JLL.

The firm oc­cu­pies 12.5 per­cent of the 36-story tower. Other ten­ants are Shell Oil Co., Sanchez En­ergy, UBS and NRG En­ergy, ac­cord­ing to CBRE.

The 837,161-square-foot build­ing, de­vel­oped by Cen­tury De­vel­op­ment on the Main Street Square rail stop, has his­tor­i­cally re­mained welloc­cu­pied, ac­cord­ing to Bowlin of PM Realty Group.

When Marsh/Mercer va­cated in 2012, Sanchez En­ergy took over the space and has since ex­panded to 120,000 square feet, Bowlin said.

Re­liant put the top four floors of its space at 1000 Main on the mar­ket for sub­lease as part of cost-cut­ting mea­sures in 2004. The build­ing, known as Re­liant En­ergy Plaza when it opened in 2003, is 99.9 per­cent leased, ac­cord­ing to PMRG.

NRG En­ergy, which has dual head­quar­ters in Prince­ton, N.J., and Hous­ton, an­nounced it will be­gin con­sol­i­dat­ing its Hous­ton of­fices to One Shell Plaza next spring.

“It’s al­ways been able to lease very quickly,” Bowlin said. “We would hope that would con­tinue to be the case.”

Founded in 1981, Porter Hedges han­dles en­ergy trans­ac­tions, cor­po­rate merg­ers and ac­qui­si­tions, com­mer­cial lit­i­ga­tion, banking and fi­nance, bank­ruptcy and con­struc­tion law. It also has an of­fice in Ok­la­homa City.

Be­sides Porter Hedges, other ten­ants at 1000 Main are Shell Oil Co., Sanchez En­ergy, UBS and NRG En­ergy.

CBRE

Hous­ton-based law firm Porter Hedges holds 12.5 per­cent of the space at the 36-story 1000 Main build­ing.

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