Exeter Lists Fully Leased Northwest Houston Office Building

Exeter Property Group’s Legacy at Fallbrook, a prime office building located in northwest Houston, is for sale, according to JLL Capital Markets.

The highly amenitized office building, located at 10720 W Sam Houston Parkway North between highways 290 and 249, spans 207,000 square feet of rentable space. The Harris County Appraisal Districts classifies it as “Class A+” and values it at over $43 million.

Completed in 2015, it was Liberty Property Trust’s first Houston office project before the company was bought out by Prologis in 2020 via a $13 billion acquisition.

Pennsylvania-based Exeter acquired it in January 2022 under the LLC Exeter 10720 Sam Houston. Legacy at Fallbrook boasts LEED Gold certification, a full-service deli and a gym with separate locker rooms and showers, which were all added in 2019.

Current tenants include local homebuilders M/I Homes and electronics company Asurion. The offering, which doesn’t list a price, also includes a nearly 13-acre development tract that could be converted into more office space or infill industrial. JLL brokers Kevin McConn and Martin Hogan are the listing agents.

The northwest submarket is home to 270,000 residents and is known for its occupational diversity, with an average household income of $98,000, which is more than 60 percent higher than the median household income in Greater Houston, according to the U.S. Census Bureau.

The Kinder Institute for Urban Research found last year that Harris County’s population center continues to move northwest. Northwest Houston has a lower than average office vacancy rate, hovering around 20 percent, according to real estate research firm Avison Young. Meanwhile, the larger metro has a vacancy rate exceeding 25 percent.

While a slew of Class B and lower office properties have hit the market in recent months due to increased vacancy rates, the Legacy at Fallbrook offers a different example. It’s 100 percent leased and a success story in Houston’s struggling office market.

All of Greater Houston’s supply of offices under construction are trophy or class A, following the reported flight-to-quality trend. However, no new office projects are under development in the northwest submarket, according to first quarter reports.