The Growth of Mass Timber Office Projects in Texas | A Sustainable Shift in Commercial Real Estate

As developers and corporate tenants place increasing emphasis on sustainability, mass timber office projects are emerging as a transformative force in Texas commercial real estate. Mass timber—a category of engineered wood products that uses glued or nailed layers of lumber—offers a viable alternative to traditional steel and concrete construction. The material significantly reduces the carbon footprint of new developments while enhancing the aesthetic and wellness appeal of office environments.

From a sustainability perspective, mass timber buildings store carbon, sequestering it for the structure’s lifespan. Studies indicate that using mass timber can reduce construction emissions by 14% to 31%, making it an attractive option for environmentally conscious developers and tenants. This aligns perfectly with corporate ESG goals and regional sustainability policies.

Many publicly traded companies are turning to mass timber and other ESG-focused projects to enhance their market appeal, comply with investor expectations, and attract government-related tenants. Federal and state initiatives incentivizing ESG compliance make these developments particularly appealing to companies working extensively with government contracts and agencies. Furthermore, companies seeking to meet carbon reduction targets and sustainability benchmarks find mass timber office spaces an advantageous solution.

Beyond sustainability, prefabricated timber components allow for faster, more cost-effective construction while offering superior thermal insulation and biophilic design elements that demonstrably improve occupant well-being, boosting productivity and attracting top talent. This combination of benefits is driving strong tenant demand and contributing to the robust performance of mass timber projects.

What is Mass Timber?

Mass timber uses state-of-the-art technology to glue, nail or dowel wood products together. The results are large structural panels, posts and beams that are exceptionally strong. If the primary load-bearing structure is made of solid or engineered wood, it’s a mass timber building.

Mass Timber DataTrends in Texas

Mass timber construction is rapidly gaining traction in Texas, with at least 134 projects either completed or in progress across the state. According to industry reports, the global market for mass timber was valued at $857 million in 2021 and is projected to exceed $1.5 billion by 2031. Texas, with its vast timber resources and expanding commercial real estate market, is poised to capture a significant share of this growth.

East Texas, home to 12 million acres of timberland, plays a crucial role in the state’s mass timber supply chain. While Texas does not yet have a facility for manufacturing cross-laminated timber (CLT), developers are increasingly sourcing materials from out-of-state providers to meet growing demand. The potential for establishing a CLT production facility in Texas could further accelerate the adoption of mass timber in commercial developments.

Several mass timber office projects beyond the major metro areas have recently been completed or are underway, demonstrating the material’s versatility and appeal across different markets. In Sherman, for example, First United Bank’s 40,000-square foot mass timber regional headquarters, completed in 2020, stands as an early success story. The sector has seen increased interest in sustainable construction, with developers exploring mass timber for new office and mixed-use developments. As cities across Texas continue to embrace sustainable building materials, the momentum behind mass timber is expected to grow significantly in the coming years.

Notable Mass Timber Projects in Texas

Four significant mass timber office projects have been completed or are underway in Texas, each showcasing the unique benefits of this construction method. Below, are details on those projects in Dallas-Fort Worth, Austin, Houston and San Antonio:

DFW: The Offices at Southstone Yards (Frisco): The largest mass timber office project in Texas, The Offices at Southstone Yards (4401 Cirrus Way), represents a milestone for the industry. Developed by Crow Holdings, this seven-story, 259,756-square-foot office building is part of a larger mixed-use development in Frisco that was completed in late 2024. The use of mass timber aligns with corporate tenants’ increasing focus on sustainability and workplace wellness. Toyota Auto Finance signed a lease in early 2025 for the entire building, underscoring the project’s appeal to high-profile tenants. The development features exposed southern yellow pine, high ceilings, and ample natural light, contributing to a warm and engaging office environment. Crow Holdings has received overwhelmingly positive feedback, prompting plans for a second mass timber office tower on the site.
Austin: T3 ATX Eastside: Developed by Hines, T3 ATX Eastside is a 93,000-square-foot mass timber office project that has drawn attention from sustainability-focused tenants. Jupiter Power, a company specializing in battery energy storage systems, signed a 21,000-square-foot lease, citing the building’s eco-friendly design as a key factor in its decision. The project incorporates raised access flooring for flexibility, 20% higher fresh air intake than LEED requirements, and biophilic design principles to enhance workplace wellness. As Austin faces high office vacancy rates, mass timber developments like T3 ATX Eastside offer a differentiated product that aligns with corporate sustainability objectives and makes them attractive to ESG-conscious investors and tenants. The project was completed near the end of 2023 and is currently 43% leased (major tenants include Jupiter Power and Onyx MP).
Houston: One Bridgeland Green: One Bridgeland Green, a 49,117-square-foot office project by Howard Hughes, is Houston’s first mass timber office building. Located in Cypress, this three-story development features cross-laminated timber (CLT) and glued laminated timber (Glulam), offering a lower-carbon alternative to steel and concrete. The project integrates rainwater recycling, low-carbon concrete, and renewable energy systems, aiming for a 20% reduction in emissions. Howard Hughes will occupy a portion of the building, reinforcing its commitment to sustainability. As ESG compliance becomes increasingly critical for companies operating in regulated industries or seeking government contracts, projects like One Bridgeland Green provide an edge in the competitive office market. The office is scheduled for delivery in July 2025 and is already 80% pre-leased (major tenants include Howard Hughes and CrossCover Insurance).
San Antonio: The Soto: San Antonio’s first mass timber office building, The Soto, is a six-story, 168,000-square-foot structure that blends sustainability with architectural innovation. Developed as part of a walkable urban district, the building features a dowel-laminated timber (DLT) structure with a full-depth brick facade—one of the first projects in North America to combine these materials. The Soto’s timber structure enhances occupant comfort while reducing environmental impact. Its design incorporates an under-floor air distribution system for improved air quality and energy efficiency. The project has been well received, demonstrating the viability of mass timber in San Antonio’s commercial market, particularly among tenants looking to align with ESG initiatives and sustainable business practices. The project was completed in 2020 and is currently 91% leased (major tenants include Pabst, Argo Group, Marsh McLennan and XPEL).

The Future of Mass Timber

Swinerton (East Austin): In October 2024, Swinerton broke ground on Workbench, a 48,000-square foot mixed-use mass timber office building located at 2422 East 7th Street in East Austin. Designed to showcase sustainable design, the building features cross-laminated timber (CLT) produced by Swinerton’s affiliate, Timberlab. The project is expected to store approximately 500 metric tons of carbon dioxide, equivalent to taking 300 cars off the road for a year. The project is 73% pre-leased to Dick Clark Associates, Swinerton and some other tenants, with construction estimated to be completed in January 2026.
Framework @ Block 10 (Houston): Meanwhile, in Houston, the momentum for mass timber office projects continues to grow. Hicks Ventures has announced plans for Framework @ Block 10, a proposed 264,000-square-foot, six-story mass timber office building in West Houston. Located at 10496 Old Katy Road, across from CityCentre and Memorial City, the development aims to be a model
for sustainable office design. Framework @ Block 10 will replace traditional steel and concrete with a fully mass timber structure, using only steel for the elevator core. Designed to achieve net-zero carbon emissions, the building will incorporate renewable energy sources such as rooftop solar panels and additional off-site renewable energy. Additional sustainability features include a rainwater harvesting system that will cut municipal water consumption in half.
Autry Park (Houston): Adding to Houston’s emerging mass timber market, part of the proposed Autry Park will introduce a cross-laminated timber office building as part of a premier mixed-use development along Buffalo Bayou. Spanning 14 acres, Autry Park will feature three Class A office buildings, including a boutique CLT-constructed office space totaling 121,000 square feet. Designed for sustainability and wellness, this office will feature open floor plates, 14-foot ceilings, and a rooftop terrace, creating a distinctive workplace environment. The larger development also includes 95,000 square feet of retail, 1,450 luxury multifamily units, and a boutique hotel, positioning Autry Park as a vibrant urban hub that integrates high-end living, working, and dining in one of Houston’s most desirable districts. The emergence of these projects signals growing interest in mass timber office developments across Texas. With corporate tenants prioritizing sustainability and wellness, and demonstrating a willingness to pay a premium for these features, developers are increasingly willing to invest in this innovative construction method. While challenges such as supply chain constraints and regulatory hurdles remain, the momentum behind mass timber is undeniable. As demand for eco-friendly and high-performing office space continues to rise, mass timber’s benefits— ranging from carbon sequestration and enhanced design flexibility to strong tenant demand and robust lease rates—position it as a compelling alternative to traditional construction materials. Texas’ vast timber resources and growing expertise in engineered wood manufacturing further support the case for broaderadoption. With ESG compliance playing a more significant role in corporate decision-making, mass timber office spaces offer a strategic advantage to tenants and developers looking to meet sustainability targets and capitalize on government incentives. In the coming years, mass timber is poised to become a defining feature of next-generation office projects in the Lone Star State, driving both environmental sustainability and strong financial performance.

Mass Timber Expanding Beyond Office Projects

While mass timber is making a significant impact on office development in Texas, its use is not limited to traditional workplace environments.

The Southfield Park 35 Building 4 project completed in Dallas demonstrates how mass timber is now entering the industrial real estate sector. Located at 9039 Old Hickory Trail in South Dallas, this 160,475-square-foot warehouse is North America’s first large-scale industrial facility constructed with cross-laminated timber (CLT) and MegaSlab technology. Developed by Seefried Properties and Affinius Capital (formerly USAA), this pioneering project reduces the building’s carbon footprint by over 43% while maintaining the functionality and durability required for modern industrial users. The project was completed in 2022 and is 100% leased to Serta.

The success of Southfield Park 35 Building 4 signals that mass timber construction is not just a niche office trend but a viable, scalable solution for industrial and logistics spaces. As developers and occupiers increasingly prioritize sustainability and operational efficiency, mass timber could become a key material in shaping the next generation of warehouses, distribution centers, and manufacturing facilities across Texas and beyond.

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Steve Triolet
Senior Vice President of Research and Market Forecasting
[email protected]
tel 214 223 4008