Mattress Firm to move headquarters to Houston’s Westchase area as it embraces hybrid work

Mattress Firm, one of the nation’s largest mattress retailers, is moving its headquarters to the Westchase area of Houston, becoming the latest area company to shrink its office footprint since hybrid work changed how companies approach their office real estate. The Houston-based bedding purveyor plans to move its headquarters to a 55,855-square-foot office to 3250 Briarpark, just east of Beltway 8, according to Transwestern Real Estate Services, which manages the building, called Reserve at Westchase. FUTURE OFFICE DESIGN: 6-story mass timber office planned near Memorial City Mattress Firm confirmed that it expects to relocate its so-called “Bedquarters” this fall, vacating a roughly 135,000-square-foot office at 10201 South Main Street south of NRG Stadium. The 23-acre site was put on the market this year, according to marketing materials by the real estate firm JLL. Attempts were unsuccessful to reach the brokers for comment on the site, owned by PR Investments, according to Harris County records. Mattress Firm’s lease at that south Houston site was expected to expire in September, prompting the retailer to search for “a new location that would better align with the needs of our employees in today’s environment,” said Katie Clark, a Mattress Firm spokesperson. Mattress Firm has a few hundred employees in the Houston area, and many corporate employees spend time working at home. Some employees work entirely remotely, while others commute to the office regularly, a spokesperson said. “We have embraced a hybrid working environment, giving our corporate associates the flexibility to work wherever they are most comfortable and productive. What we’ve seen over the last year is that many associates are continuing to work remotely, and thus the need for a space of our current size is no longer necessary,” Clark said. EARLIER: Mattress Firm withdraws bid to go public The lease represents a roughly 60 percent reduction of the company’s office space. Other Houston companies, including Invesco, Baker Hughes, Apache and Bechtel, have reduced their office space in recent years as they’ve embraced hybrid work. The Mattress Firm lease was listed among the biggest publicly known office leases signed in the first quarter, including lease renewals, according to research from CBRE and JLL. “This deal further cements West Houston/Westchase as an ideal location for companies looking to make long-term real estate commitments,” Jack Scharnberg, a broker with Transwestern, said in a statement, noting Apache and Bechtel’s recent moves to the area. “Due to the quality of the project and competitive economics, Mattress Firm was able to secure a long-term deal at a great value.” Mattress Firm could also count on relatively more affordable rental rates in Westchase, where office rents were averaging almost $25.75 per square foot in the first quarter this year. The average asking rent in the Energy Corridor is just more than $30 a square foot; about $42 downtown, and almost $35 in the Galleria, according to CBRE. Office vacancies in the Westchase area also are hovering just under 30 percent, higher than the region’s average of 23.6 percent, according to CBRE. CRE OUTLOOK: Why this Houston real estate chief isn’t too concerned about a recession CBRE declined to comment on the Mattress Firm deal, although the brokerage’s Jon Lee and Brett Blanchard represented Mattress Firm in the transaction, according to Transwestern. The landlord was represented by Transwestern’s Scharnberg, along with Kristen Baker and David Baker, who have both since left Transwestern for real estate brokerage Newmark. Mattress Firm has nearly 2,300 stores with more than 6,000 so-called sleep experts nationally. The company scrapped plans for an initial public offering amid rumors that it could be acquired by Tempur Sealy, industry trade publication Furniture Today reported. Clark, the Mattress Firm spokesperson, said the company doesn’t comment on rumors or speculation. marissa.luck@chron.com

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Mattress Firm to move headquarters to Houston’s Westchase area as it embraces hybrid work

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