Piedmont Sells Enclave Place for $81.8 Million
Atlanta-based Piedmont Realty Trust is set to sell the fully leased Energy Corridor office building and plans to exit the Houston market.
Updated on Nov. 4, 2026 in Commercial
Piedmont Realty Trust is under contract to sell Enclave Place, a fully leased 301K SF building in Houston's Energy Corridor, for $81.8 million. The sale is set to close by the end of 2026, and Piedmont plans to exit the Houston market altogether.
Why it matters
The sale signals that Piedmont no longer considers its Houston presence significant and does not expect further investment in the market. For Houston's commercial real estate landscape, the transaction moves a fully leased Energy Corridor asset to a new owner.
Enclave Place is a 301K SF building that was vacant from its 2015 completion until October 2018, when Transocean signed a 17-year full-building lease. Piedmont's Houston properties did not meet its definition of a reportable segment as of December 2023.
The players
Piedmont Realty Trust
An Atlanta-based real estate investment trust that owns Houston and Dallas office properties and is now exiting the Houston market.
Christopher Kollme
Piedmont executive vice president who announced the Enclave Place contract during the company's third-quarter earnings call.
Transocean
An offshore drilling contractor that signed a 17-year, full-building lease at Enclave Place in October 2018.
Schlumberger Technology Corp.
An oilfield services company that occupies 226K SF at 1430 Enclave Parkway through 2028.
The details
Piedmont executive vice president Christopher Kollme announced the Enclave Place contract during the company's third-quarter earnings call. Piedmont's only other Houston property is 1430 Enclave Parkway, a 1993-built 313K SF office building, and the company also sold an 11-acre Royal Lane parcel in Dallas for $12 million, generating a $9 million gain.
Timeline
December 2023: Piedmont reported its Houston properties did not meet the definition of a reportable segment.
October 2018: Transocean signed a 17-year, full-building lease at Enclave Place.
Third quarter 2026: Piedmont announced the Enclave Place sale on its earnings call.
End of 2026: The Enclave Place sale is scheduled to close.
Market Landscape
Piedmont's exit from Houston contrasts with its Dallas strategy, where asking rents rose 20% to 30% over the past 12 months. The Energy Corridor's anchor tenants, including Transocean and Schlumberger, hold long-term leases that keep these office buildings occupied.
For Houston tenants and brokers, the exit of a major landlord from the Energy Corridor may change leasing options and negotiation leverage in that submarket. Office tenants in the area should track whether the new owner of Enclave Place adjusts occupancy or leasing terms after closing.
The takeaway
Piedmont's decision to leave Houston while expanding its Dallas holdings shows how landlords are concentrating capital in markets with stronger rent growth. Tenants and investors tracking Houston office space should watch how the Energy Corridor absorbs the transition.
What happens next
The Enclave Place sale is scheduled to close by the end of 2026.
Further reading
For broader context on office and industrial property trends, explore Commercial listings and analysis.
Source note: This article includes information reported by Bisnow.
