LM & Associates Buys Office Building in Houston Energy Corridor

11 February 2025

LM & Associates has expanded its Houston office holdings by acquiring a three-story building in the bustling Energy Corridor.

The local firm, led by Lewis Marks, acquired Timberway One, a 93,500-square-foot property at 15990 North Barkers Landing Road, the Houston Business Journal reported. The seller was Miami-based Banyan Street Capital, which acquired it from Parkway Properties in 2014 as part of a multi-property deal totalling 2.2 million square feet.

The sale price was not disclosed, but Harris Central Appraisal District appraised the property at $8 million last year, which breaks down to about $85 per square foot. JLL Capital Markets managed the sale, with Marty Hogan leading negotiations.

Timberway One is 92 percent leased, with major tenants including German engineering firm Thyssenkrupp, 2H Offshore and Medical Care Center.

LM & Associates has been active in Houston’s office sector. The company acquired a 105,000-square-foot office property at 1300 West Sam Houston Parkway in 2023.

That four-story property, known as Briar Forest Crossing, was sold by Austin-based CapRidge Partners in an off-market deal. HCAD valued the property at $11.8 million, or about $112 per square foot at the time of purchase.

Companies are flocking to the Energy Corridor seeking to be closer to Houston’s population center. The submarket absorbed 530,000 square feet of office space last year.

The Energy Corridor benefits from one of the area’s lowest vacancy rates, at 22.9 percent. The rate in downtown Houston is more like 26 percent, according to Partners Real Estate.

The average gross asking rent during the fourth quarter was $26.19 per square foot.

There have been several notable office leases in the Energy Corridor in recent months. Kansas-based engineering firm Black & Veatch inked a deal in January for almost 41,000 square feet at Energy Tower II, at 11720 Katy Freeway. That same month, DNV USA signed a lease for 62,800 square feet in the Offices at Greenhouse, a 203,000-square-foot Class A office building at 19219 Katy Freeway.

— Andrew Terrell