News | Stonelake starts work on luxury Houston office tower without any tenants
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. Houston transaction velocity has been concentrated in industrial and Class A multifamily in the energy corridor and inner loop. Office remains a basis play. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 20th Houston story tracked on the wire in October 2026. All Houston coverage →
- Disclosed office deal value tracked in October 2026: $2.4B across 9 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
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