Galleria-area building owner leverages the lobby in renovation – Chron

A new seating area for tenants overlooks an outdoor plaza at Sage Plaza. The building at 5151 San Felipe in the Galleria area is managed by CBRE, which worked with architecture firm PDR on the project.

A new seating area for tenants overlooks an outdoor plaza at Sage Plaza. The building at 5151 San Felipe in the Galleria area is managed by CBRE, which worked with architecture firm PDR on the project.

Photo: Katherine Feser / Houston Chronicle

A new seating area for tenants overlooks an outdoor plaza at Sage Plaza. The building at 5151 San Felipe in the Galleria area is managed by CBRE, which worked with architecture firm PDR on the project.

A new seating area for tenants overlooks an outdoor plaza at Sage Plaza. The building at 5151 San Felipe in the Galleria area is managed by CBRE, which worked with architecture firm PDR on the project.

Galleria-area building owner leverages the lobby in renovation

Sage Plaza is wrapping up a major renovation aimed at filling the 1980s-era office building with tenants who like the option of hanging out in the lobby, with or without the laptop.

CBRE, which handles both property management and leasing on behalf of New York-based property owner BlackRock, launched the $5 million project in April. With the pending departure of some key tenants, the buildings ownership and property managers began touring renovated buildings a couple of years ago to develop a plan for the 25-story building at 5151 San Felipe.

BlackRock decided to make fundamental changes to the lobby so its no longer just a place to walk through, but a destination to run into coworkers, get a change of scene or take a coffee break.

The updated building brings in elements found in Class AA buildings that are known for attracting top tenants.

If you look at 609 Main and the Bank of America Tower, how the new buildings downtown have brought in a change of use of the lobby and activated the lobby, said Jason Presley, a senior vice president with CBRE who handles office leasing. Youre going to see more and more owners do that in suburban renovations.

Workplace architecture firm PDR handled the remodeling, which brought fresh finishes in warm, neutral colors that blend with the original Texas pink granite walls and reconfigured the layout of the lobby. Because most people enter the building from the back after parking, the lobby was designed with equally welcoming entries at the back with a new security desk and the front, where visitors are greeted with a coffee bar and various seating areas. Neutral limestone flooring sets the tone for the modern look.

We wanted to make both entrances feel like they are the main entrance, said Andrew Gorman, a senior associate at PDR.

The building, which is walking distance to restaurants at Sage Plaza retail center and BLVD Place, is the latest of a number of Galleria area office buildings to receive updates. Others include the Galleria Office Towers, Galleria Place I and II across from the Galleria, One and Three Riverway, Four Oaks Place, Post Oak Central and 1800 West Loop South.

Some office space that was previously occupied by a title company was incorporated into the first-floor amenities, which include a relocated conference and training room and a dining area overlooking a previously renovated exterior plaza, and a tenant lounge.

The revamped hotel-style lobby has multiple seating options, with surfaces for laptops and charging stations throughout. The conference room can accommodate 85 people and has a wet bar for events.

The building will soon open a full-service custom-designed coffee bar.

Annual asking rents will stay at $23.50 per square foot, plus operating expenses of $12.97 per square foot for 2020, said Nina Seyyedin, a leasing agent with CBRE.

The renovation comes as the West Loop/Galleria submarket posted an 18.2 percent vacancy rate in the third quarter. That is slightly below the overall Houston area vacancy rate of 19.3 percent, according to CBRE.

Tenants at Sage Plaza include Insgroup, OTC Global Holdings and LegalEase, among others. Goodman Global and PSC, which recently merged with Hydrochem to form HydroChemPSC, are both relocating to owned facilities elsewhere in the Houston region and will leave a combined seven floors behind. TC Energy is consolidating to downtowns TC Energy Center.

The building has 21,500-square-foot floor sizes, with an opening on the ground floor for 9,000 square feet with potential for a private outdoor plaza, according to CBRE. A fitness center with showers and an outdoor plaza were added in an earlier renovation.

katherine.feser@chron.com

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Galleria-area building owner leverages the lobby in renovation - Chron