Memorial City

Landlords modify offices to meet companies’ changing needs

Landlords are creating new products and improving existing spaces in anticipation of more employees returning to the office in the second half of 2021.

Dallas-based Granite Properties unveiled a series of options under a program called “Evolve” to meet companies’ changing space requirements because of COVID-19.

“People are trying to figure out how and in what ways they can come back to work and what kind of flexibility can they have,” said Scott Martin, executive managing director for Granite in Houston. “We’re trying to create products that respond to that desire and that need.”

Granite and a host of other landlords are rethinking what officing will mean in in the near- and long terms. That means creating more outdoor spaces, adjusting to various work from home policies of the tenants and maintaining adequate social distancing within the buildings.

Across its 10 million-square-foot portfolio, Granite is spending $7 million on the Evolve program, which offers on-demand, move-in-ready, short-term, conventional and coworking space. Customers can choose the lease terms, size, location and amenities. Its Houston buildings total 2.3 million-square-feet at six properties.

The Evolve program consists of three sections, with many options within each. Create: traditional custom workspaces with terms from one to 10 years or more with access to all amenities. Ready: move-in ready workspaces, either furnished or unfurnished, with monthly to yearly lease terms. On-Demand: Customers have access to space as they need it at designated Granite buildings nationwide and can also access offices at coworking firms such as Industrious and Common Desk at preferred rates through partnerships with Granite.

Granite selected one building in each market to introduce its On-Demand suites. In west Houston, its Eldridge campus offers furnished suites, conference facilities, a shared lounge, cafe, fitness and outdoor spaces. The suites can be used as a satellite office by Granite tenants who have their primary office in another building.

Martin envisions a future where companies lease 80 percent of their offices as long-term space and 20 percent on a flexible basis.

“It’s possible at the end of the day, it would cost them as much or more than long-term space, but they have the flexibility to drop it immediately if they don’t need it,” Martin said.

In downtown Houston, Lionstone Investments and Midway Cos. have been making changes to promote health and wellness at the Jones on Main, a historic building at 712 Main.

The multi-tenant property earned the Fitwel designation, a healthy building certification system operated by the Center for Active Design.

This fall, a rooftop patio and garden will create new outdoor spaces for tenants. Finn Hall, a food hall on the street level, will open a block of outdoor dining space this spring. A dedicated lactation room for tenants and green purchasing policy factored into the designation.

“Making these investments now, especially as companies are making plans to reopen offices following the COVID-19 pandemic, will help improve the health and well-being of our occupants,” Hunain Dada, senior director of real estate portfolio management for Lionstone, said in an announcement.

In west Houston, MetroNational was recognized for COVID prevention efforts at its 3.8-million-square-foot Memorial City office portfolio by the International WELL Building Institute.

The company received the WELL Health-Safety Rating for its 11-building campus near Gessner and Interstate 10. The properties were measured based on factors such as cleaning procedures, health service resources and air and water quality management.

While the way people work and where they work will change as companies adopt remote work into their permanent plans, it won’t be immediate.

Patrick Jankowski, economist with the Greater Houston Partnership, said that whatever changes to the office environment happen will occur over time, as leases generally run in five- and 10-year increments and tenants may not seek space until their current leases expire.

katherine.feser@chron.com

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