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Brookfield Expanding in Downtown


jt16

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While the speculation may have been true, I would doubt this 50 story bldg would only contain 700,000 square feet. That would result in 14,000 square foot floor plates and that would never fly in today's CLASS A market. This is why I am assuming the two Brookfield projects have merged into one and that their website hasn't been updated (but potential leasors have).

Potential leasers have been updated? Is this personal knowledge? It looked like you were talking about the website being updated with this info, but I don't see anything and I'd doubt they'd even post something like that.

1500 Smith is a different project. The one they are apparently concentrating on, and that we are discussing in this thread is their "Gateway" site.

gotcha, my bad. I was bein lazy.

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Potential leasers have been updated? Is this personal knowledge? It looked like you were talking about the website being updated with this info, but I don't see anything and I'd doubt they'd even post something like that.

No insider knowledge at all. Just trying to use some common sense since their website hasn't been updated. I am totally guessing that they are now focusing their attention on the trophy site (gateway) but are making the building much larger and scrapping plans to try and market 2 buildings simultaneously. Brookfield was the first to "announce" but have now fallen behind Hines (Main Place), Crescent (6 Houston), and Trammell Crow (Discovery). They were the only developers of the 4 who said they wouldn't start without pre-leasing. That means they've been shopping something to prospective tenants and I would imagine that there is a rendering out there showing a 50 story, glass enclosed, LEED Certification seeking tower in one of the last, most visible plots of land in downtown.

The one ace they seem to hold is Devon Energy. That company currently leases in one of Brookfield's Allen Center towers. It's widely known in real estate circles that Devon is looking for more space. I would imagine that a trophy tower that would make a significant impact on the skyline and could "NEVER" be blocked from the Western view would be appealing to Devon. It would also likely be appealing since their employees know the area and they know the landlord. Of course, what we don't know is if Hines, T-C, and Crescent have made plays to land Devon. If any of them have and they're able to land Devon in their new towers, it is likely that the 50 floorer wont ever make it out of the ground.

Edited by KinkaidAlum
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No insider knowledge at all. Just trying to use some common sense since their website hasn't been updated. I am totally guessing that they are now focusing their attention on the trophy site (gateway) but are making the building much larger and scrapping plans to try and market 2 buildings simultaneously. Brookfield was the first to "announce" but have now fallen behind Hines (Main Place), Crescent (6 Houston), and Trammell Crow (Discovery). They were the only developers of the 4 who said they wouldn't start without pre-leasing. That means they've been shopping something to prospective tenants and I would imagine that there is a rendering out there showing a 50 story, glass enclosed, LEED Certification seeking tower in one of the last, most visible plots of land in downtown.

The one ace they seem to hold is Devon Energy. That company currently leases in one of Brookfield's Allen Center towers. It's widely known in real estate circles that Devon is looking for more space. I would imagine that a trophy tower that would make a significant impact on the skyline and could "NEVER" be blocked from the Western view would be appealing to Devon. It would also likely be appealing since their employees know the area and they know the landlord. Of course, what we don't know is if Hines, T-C, and Crescent have made plays to land Devon. If any of them have and they're able to land Devon in their new towers, it is likely that the 50 floorer wont ever make it out of the ground.

You are almost certainly correct about their likely having renderings they are marketing to potential tenants. And I think we can safely presume that all of Hines, T-C, and Crescent have or are making plays to Devon.

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We received a call a few months ago asking if we were interested in moving into 6 Houston. Crescent is our client and they use to be our building management until they sold 5 Houston to Wells Reit (I will hold my tongue about their management style...as they are our client as well)

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If they got Devon to sign, that alone would cover the 50% needed for construction to start, I would think.

Perhaps. But to consider... how much space does Devon have in total in the downtown or other submarkets in the region? Would they consolidate? Or just increase their workspace?

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No insider knowledge at all. Just trying to use some common sense since their website hasn't been updated. I am totally guessing that they are now focusing their attention on the trophy site (gateway) but are making the building much larger and scrapping plans to try and market 2 buildings simultaneously. Brookfield was the first to "announce" but have now fallen behind Hines (Main Place), Crescent (6 Houston), and Trammell Crow (Discovery). They were the only developers of the 4 who said they wouldn't start without pre-leasing. That means they've been shopping something to prospective tenants and I would imagine that there is a rendering out there showing a 50 story, glass enclosed, LEED Certification seeking tower in one of the last, most visible plots of land in downtown.

The one ace they seem to hold is Devon Energy. That company currently leases in one of Brookfield's Allen Center towers. It's widely known in real estate circles that Devon is looking for more space. I would imagine that a trophy tower that would make a significant impact on the skyline and could "NEVER" be blocked from the Western view would be appealing to Devon. It would also likely be appealing since their employees know the area and they know the landlord. Of course, what we don't know is if Hines, T-C, and Crescent have made plays to land Devon. If any of them have and they're able to land Devon in their new towers, it is likely that the 50 floorer wont ever make it out of the ground.

you sound very well informed.

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  • 3 months later...
  • 2 months later...
Still, stocks of companies that own Manhattan real estate were hammered. Merrill's biggest landlord in New York, Brookfield Properties Corp., saw its stock plummet 18% to $17.40 Monday as of 4 p.m. New York Stock Exchange composite trading.

http://online.wsj.com/article/SB1221511123...pecial_coverage

I wonder if this will affect any Houston properties.

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  • 2 years later...

I was listening to this investors conference call from Brookfield and they mention that next year they plan to get started on five projects and he then went on to list them. Houston was not one of them. Although many times they mentioned how great a place Houston is for leasing and they plan to purchase more, just not build I guess.

http://reitstream.com/reitweek2011/brookfield

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I was listening to this investors conference call from Brookfield and they mention that next year they plan to get started on five projects and he then went on to list them. Houston was not one of them. Although many times they mentioned how great a place Houston is for leasing and they plan to purchase more, just not build I guess.

http://reitstream.co...2011/brookfield

brookfield won't do anything soon. devon is still unloading 400K RSF between two and three allen, hess is vacating 500K RSF at one allen, continental is vacating 250K+ RSF and chevron may vacate a chunk at 1600 smith.

the next tower to go up will be hines and that's probably a couple years away.

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brookfield won't do anything soon. devon is still unloading 400K RSF between two and three allen, hess is vacating 500K RSF at one allen, continental is vacating 250K+ RSF and chevron may vacate a chunk at 1600 smith.

the next tower to go up will be hines and that's probably a couple years away.

Mister X gave a minus to these comments...why?

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brookfield won't do anything soon. devon is still unloading 400K RSF between two and three allen, hess is vacating 500K RSF at one allen, continental is vacating 250K+ RSF and chevron may vacate a chunk at 1600 smith.

the next tower to go up will be hines and that's probably a couple years away.

All of that is true, but not necessarily dispositive. You are probably right that Brookfield won't do anything soon; however, if they come across a strong anchor or anchors that want space in a new tower, they will not hesitate to build, regardless of the vacancies in their existing buildings.

FWIW: Chevron just extended their lease in Continental Center 1 or whatever it is called now for 311,000 square feet, so presumably they are vacating or already have vacated 150,000 sq feet.

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  • 3 weeks later...

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