R.G. Miller DCCM inks headquarters lease in Houston’s Energy Corridor
In another example of flight to quality in the office market, civil engineering firm R.G. Miller is moving to a newly renovated office tower in the Energy Corridor.
The firm, which was acquired by Houston-based design and construction management company DCCM in 2021, signed a long-term lease for 28,791 square feet at Eldridge Oaks, a 14-story office tower at 1080 Eldridge Parkway.
Avison Young Principals Anthony Squillante and Drew Coupe represented the tenant. Brad Fricks and Matt Asvestas of Stream Realty Partners represented the landlord, an affiliate of Broadshore Capital Partners.
R.G. Miller DCCM plans to move into the new office, which takes up one entire floor plus part of another, in the third quarter of this year. It has tapped Houston-based Byrd Interior Construction for the build-out.
For the past decade, R.G. Miller has been headquartered in a 26,976-square-foot office in the Atrium at Park Ten building at 16340 Park Ten Place, just over 4 miles from Eldridge Oaks.
The move from the 42-year-old, three-story building resulted from a desire to upgrade, Squillante said.
“(Atrium at Park Ten) served its purpose, but it was just time for a change,” he said.
In the more modern and better situated building, R.G. Miller DCCM hopes to attract and retain more talent. The property is located next to running and walking trails that lead to Terry Hershey Park, plus restaurants and retail within walking distance.
R.G. Miller DCCM plans to hire more employees when it moves into the new space, Squillante said.
Los Angeles-based Broadshore purchased the 15-year-old Eldridge Oaks, which previously housed Houston-based KBR Inc. (NYSE: KBR), in 2021 and partnered with Dallas-based Stream, San Francisco-based IA Interior Architects and Houston-based landscape architect OJB to create a multimillion-dollar improvement plan.
Renovations, done by Houston-based O’Donnell/Snider Construction, were slated to finish last year. Upgrades include a new fitness center, conference center, food services and tenant lounge as well as an outdoor fitness deck where yoga classes will be offered. The first- and second-floor lobbies were also renovated.
Stream signed several new tenants last year, including global engineering firm Gulf Cos., which plans to move in this May.
Before that, the 350,000-square-foot building had only one tenant for a while: England-based software company GeoTeric, which is leasing 1,580 square feet.
Other recent Energy Corridor office moves
Meanwhile, R.G. Miller DCCM just is the latest company to move offices within the Energy Corridor.
Other recent examples include Diamond Offshore Drilling Inc. (NYSE: DO), which moved its headquarters to 62,584 square feet in Granite Properties’ One Eldridge at 777 N. Eldridge Parkway – half a mile north of Eldridge Oaks. The company cited amenities and the recently renovated building’s collaborative workspace as reasons to move from its offices of 33 years, at 15415 Katy Freeway.
Most of the space Diamond Offshore is vacating has since been leased to Hargrove Engineers & Constructors, which itself will be moving from less than a mile away on the other side of Interstate 45, at 16300 and 16290 Katy Freeway.
Last April, Paris-based Technip Energies signed a six-floor lease in Fuller Realty’s West Memorial Place II at 15377 Memorial Drive for its U.S. headquarters. The company is downsizing from its current offices in Energy Tower II at 11720 Katy Freeway.
The leases are indicative of the strong Energy Corridor and adjacent submarkets, which accounted for about half of Houston’s office leasing activity in several recent quarters, according to JLL.
In the fourth quarter of 2023, total office vacancy in the Energy Corridor was 23.5%, below Houston’s overall rate of 25.5%.
As the flight to quality continues, the Energy Corridor is benefiting from having about 10 million square feet of high-quality office buildings that were built during the fracking boom.
“The corridor from Echo Lane to Highway 6 along (Interstate) 10 have seen substantial absorption to the point where there’s very (few) large blocks of quality space left,” Squillante said. “It’s a very popular area, and people want to be there.”
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