609 Main At Texas

[hoothrewpoo]

I'm just assuming there's demand in the CBD because developers are building (or planning on building) there. I can't think of any tenants that are looking for more than 50-60k sf in downtown, BUT, that doesn't mean there aren't any. Just means I don't know about them. 

[Houston19514]

I'm just assuming there's demand in the CBD because developers are building (or planning on building) there. I can't think of any tenants that are looking for more than 50-60k sf in downtown, BUT, that doesn't mean there aren't any. Just means I don't know about them. 

 

Lockmat is not the only one having trouble understanding all of this.  Are you saying you know of 2 Million square feet of CBD leases that are going to be signed (in big chunks) in the coming 6-12 months, but you just don't know who any of the signing tenants are?

[ClutchCity]

Pretty sure if you reread the comments hoothrewpoo is saying the the large tenants in the market for space right now would rather look in the Energy Corridor or the Woodlands instead of downtown. Since she said previously that the next 1-2 Mil Sq Ft of absorption would probably be in the EC. 

[hoothrewpoo]

Lockmat is not the only one having trouble understanding all of this.  Are you saying you know of 2 Million square feet of CBD leases that are going to be signed (in big chunks) in the coming 6-12 months, but you just don't know who any of the signing tenants are?

 

To clarify, all of the major absorption I know of is going to happen in the EC (somewhere in the neighborhood of 2M sf). I assume there is demand in the CBD, because developers have plans to build there (CBD). I can't get my head around who the possible tenants are in the CBD, because most of the major blocks of space have been earmarked for the EC.

 

any better?

Pretty sure if you reread the comments hoothrewpoo is saying the the large tenants in the market for space right now would rather look in the Energy Corridor or the Woodlands instead of downtown. Since she said previously that the next 1-2 Mil Sq Ft of absorption would probably be in the EC. 

 

Bingo.

[Houston19514]

Pretty sure if you reread the comments hoothrewpoo is saying the the large tenants in the market for space right now would rather look in the Energy Corridor or the Woodlands instead of downtown. Since she said previously that the next 1-2 Mil Sq Ft of absorption would probably be in the EC. 

 

Understood. But confusion arises when she posts, in response to a question clearly and solely about the CBD market, that "there's a ton of demand. . . . I can think of 2 million square feet of space that WILL be taken in the next 6-12 months (in big chunks). There's probably a whole lot more than that." 

 

Both the question and her response mentioned the CBD and neither the question nor the response made any mention whatsoever of the EC or any other submarket besides the CBD.

 

I am glad she has now clarified that she doesn't actually know of any potential major lessees looking in the CBD submarket or the source of any of the demand being perceived by Hines, et. al.

[lockmat]

With so much supposed demand downtown, in which it caused three new towers to be announced, you'd think someone would have secured enough tenant space to break ground...unless they all announced them very prematurely in hopes of getting ahead of one another?

 

Just seems like it is taking a long time for so much "demand."

[nativehoustonion]

They have tenants. BG Group Place had no tenants and Hines still build it now it is 96 percent leased. Just give it a few months when they announced ground breaking. Just like today Chevron got their tax rebate from the city. I wonder if Occidental Oil will stay In Los Angeles?

[hoothrewpoo]

Oxy is rumored to be in the market for 1M sf in Houston, but that rumor has been floating around for the better part of a year. 

[nativehoustonion]

Something interesting is going on within closed doors.

[swtsig]

Oxy is rumored to be in the market for 1M sf in Houston, but that rumor has been floating around for the better part of a year. 

the rumor has been floated forever. they recently expanded and extended their lease at greenway for 10 yrs i believe so i don't think they'd be actively looking right now.

[hoothrewpoo]

the rumor has been floated forever. they recently expanded and extended their lease at greenway for 10 yrs i believe so i don't think they'd be actively looking right now.

 

agreed - downtown is an unlikely destination for them. I think they'll be back in the market well before their lease is up though... they'll get a new building in Greenway Plaza someday, possibly on the site that Amegy Bank was rumored to be building a new tower on.

[Nate99]

With so much supposed demand downtown, in which it caused three new towers to be announced, you'd think someone would have secured enough tenant space to break ground...unless they all announced them very prematurely in hopes of getting ahead of one another?

 

Just seems like it is taking a long time for so much "demand."

 

They are clearing out the innards of the Houston Club building. Of course that's a much longer critical path to building a new structure, but Skanska is spending money on it now.

[ClutchCity]

Some confusing but interesting information I found regarding Hines' new tower. They both seem to indicate that it for sure is going forward in early 2014 with PM Realty's report even going as far as to say they were going to go spec. Bisnow's information is confusing because if says, "But the CBD has been stable for the last 15 years. In that time, only four multitenant office towers were built in the submarket, and now there are none under construction and only two slated to break ground before year-end 2014. And those are already 60% pre-committed; Hines' 800k SF tower at 609 Main doesn't have a tenant yet, but Chevron's 50-story tower is owner-occupied." Since Chevron's building is owner-occupied why would they bring it up since it is not multitenant? Even if it was with some quick math, dividing Chevron's 1.7 mil sq ft of occupied space by the 2.5 mil sq ft between the 2 buildings it comes out to 68% occupancy. Unless of course they are only occupying 1.5 mil and renting out another 200k of space for amenities. There's no other way the numbers would add up because it would take both Skanska and Linbeck's projects to be fully occupied to even out Hines since its presumed spec.

http://www.bisnow.com/commercial-real-estate/houston/is-downtown-a-gateway-market/

http://downtownhouston.org/site_media/uploads/attachments/2013-08-14/2013-2Q_-_PMRG_Market_at_a_Glance.pdf

[Houston19514]

Some confusing but interesting information I found regarding Hines' new tower. They both seem to indicate that it for sure is going forward in early 2014 with PM Realty's report even going as far as to say they were going to go spec. Bisnow's information is confusing because if says, "But the CBD has been stable for the last 15 years. In that time, only four multitenant office towers were built in the submarket, and now there are none under construction and only two slated to break ground before year-end 2014. And those are already 60% pre-committed; Hines' 800k SF tower at 609 Main doesn't have a tenant yet, but Chevron's 50-story tower is owner-occupied." Since Chevron's building is owner-occupied why would they bring it up since it is not multitenant? Even if it was with some quick math, dividing Chevron's 1.7 mil sq ft of occupied space by the 2.5 mil sq ft between the 2 buildings it comes out to 68% occupancy. Unless of course they are only occupying 1.5 mil and renting out another 200k of space for amenities. There's no other way the numbers would add up because it would take both Skanska and Linbeck's projects to be fully occupied to even out Hines since its presumed spec.

http://www.bisnow.com/commercial-real-estate/houston/is-downtown-a-gateway-market/

http://downtownhouston.org/site_media/uploads/attachments/2013-08-14/2013-2Q_-_PMRG_Market_at_a_Glance.pdf

 

It was a little sloppy to be talking about multitenant buildings and then suddenly throw Chevron in there.  But that's Houston "journalism".  I think 609 Main is now expected top be 1 Million square feet, rather than 800,000.  That makes the 60% number closer to making sense (and maybe 609 Main is going to be 1.1 Million square feet).

 

[hoothrewpoo]

pretty sure Chevron is only 1.3M sf...

['Stonian]

Chevron said in their press release that it would be 1.7 million sqft.

 

"Chevron U.S.A. is planning to build a new downtown skyscraper for its growing Houston workforce

The energy giant said this morning it will build a 50-story tower with 1.7 million square feet at 1600 Louisiana St. at Pease."

Edited August 21, 2013 by HOUSTONIAN (N-ATL)

[Urbannizer]

I love this! Gorgeous!

http://www.colvilloffice.com/properties/609MainAtTexas/gallery.php#

Edited September 4, 2013 by Urbannizer

[TowerSpotter]

Wow spectacular renderings, as always great find Urbannizer. 

[Houston?]

Is there supposed to be a club/lounge?

[flatline]

Wow spectacular renderings, as always great find Urbannizer. 

 

I heartily concur.

Those renderings make clear it's a full block utilized - so the old building on the NE corner is a (soon-to-be) goner?

[fatesdisastr]

It seems like to me towers such as this and the International Tower will reign in a new era of Houston architecture with their fantastic sharp lines and glass facades. These two towers really do set a higher bar and standard for the downtown area. It certainly will be a beautiful building upon completion.

[cloud713]

I heartily concur.

Those renderings make clear it's a full block utilized - so the old building on the NE corner is a (soon-to-be) goner?

Yeah the old Texas Tower will have to come down. It's been empty for years though.

[Subdude]

Yeah the old Texas Tower will have to come down. It's been empty for years though.

 

Not a big loss. 

 

I'm still wondering how 609 Main will connect to the tunnels, if at all.

[flatline]

Not a big loss. 

 

I'm still wondering how 609 Main will connect to the tunnels, if at all.

 

Chase Tower garage is tunnel-connected right across Main; so that seems the logical choice.  I'm pretty sure Hines still manages the Chase Tower complex, so that may already be in the works.

 

It's inconceivable to me that Hines would build a super-premium Class A w/o tunnel access.

[ClutchCity]

 

I'm still wondering how 609 Main will connect to the tunnels, if at all.

 

From what this article said,"...The building will contain ground-floor retail space and be connected to downtown’s tunnel system through the BG Group Place building and eventually to another high-rise planned to the north of the property." I can only presume the building to the north would be this one. Is it odd that Hines would go through the new Texaco building after it's renovated to connect one of their buildings to the tunnel system? Hines is so tricky.

 

 

http://blog.chron.com/primeproperty/2013/08/old-texaco-building-getting-a-new-life/#comments

[swtsig]

Not a big loss. 

 

I'm still wondering how 609 Main will connect to the tunnels, if at all.

 

 

c'mon man... you've been around long enough where you shouldn't openly wonder this.

[Subdude]

Chase Tower garage is tunnel-connected right across Main; so that seems the logical choice.  I'm pretty sure Hines still manages the Chase Tower complex, so that may already be in the works.

 

It's inconceivable to me that Hines would build a super-premium Class A w/o tunnel access.

 

If memory serves the Chase garage tunnel runs through the west side of the block, so connecting to 609 Main might mean burrowing through their basement, which Chase might not want.  The alternaive of approaching north from BG Place would mean digging under an entire block of older structures. 

[flatline]

If memory serves the Chase garage tunnel runs through the west side of the block, so connecting to 609 Main might mean burrowing through their basement, which Chase might not want.  The alternative of approaching north from BG Place would mean digging under an entire block of older structures. 

 

That's fascinating.  A tunnel run connecting only 609 Main and BG Group (800 block) north-to-south would be a long run -- I don't see any precedent for it in the current tunnel system.  And I assume that it would have to run out in the Fannin Street ROW, since the older buildings on the 700 block (St. Germaine lofts, Houston Bar Building) would likely not be connected, and would not readily grant an easement. Using the Texaco redevelopment as a hop-scotch is a very interesting idea. 

[Houston19514]

From what this article said,"...The building will contain ground-floor retail space and be connected to downtown’s tunnel system through the BG Group Place building and eventually to another high-rise planned to the north of the property." I can only presume the building to the north would be this one. Is it odd that Hines would go through the new Texaco building after it's renovated to connect one of their buildings to the tunnel system? Hines is so tricky.

http://blog.chron.com/primeproperty/2013/08/old-texaco-building-getting-a-new-life/#comments

I think you've got it right.

[Subdude]

Two other reasons I could see for hop-scothing via the Texaco redevelopment are that

1.  It would add value to the Texaco property so those developers would be motiviated to participate, and

2.  There is (or at least was) already a small bit of tunnel connecting the Texaco block under Capitol to the parking garage immediately north.  After the old Gibraltar building was demolished one could easily see the tunnel entrance at the basement level under the street.  So if the tunnel were routed through Texaco a bit of old tunnel could be reused, although they would still have to cross back under Fannin to 609 Main. 

 

I think the new owners of the Exxon building might have similar issues trying to connect to the tunnel system.