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Holy cow. Are new AA buildings really commanding that kind of rent downtown? In the current environment, why would anyone pay $60/ft in Houston?

On the top floors of this project, you bet.  This is going to be an incredible building, and the types of tenants that want to be here are the Kirkland Ellis's of the world - large national law firms that are used to paying these rents in SF, NYC, CHI, LA.  Also we will likely see Large Institutional Banks, Investment Banks, PE groups, and possibly your Lead Tenant energy company (although that may be a little ways off). 

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Agreed...and you'd better be strong. Houston is very strong, and continues to confound the 'wise.'

Real estate in this town is in much worse shape than I think you realize. There's over one million sq feet in the energy corridor you can get dirt cheap. And poaching one tenant from one class a building to a new under construction building isn't a sign of strength. Residential real estate is down for the first time in years. This town has some rough times coming up. It's not doom and gloom because we are much more diversified, but oil is by far the economic driver.

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Real estate in this town is in much worse shape than I think you realize. There's over one million sq feet in the energy corridor you can get dirt cheap. And poaching one tenant from one class a building to a new under construction building isn't a sign of strength. Residential real estate is down for the first time in years. This town has some rough times coming up. It's not doom and gloom because we are much more diversified, but oil is by far the economic driver.

 

You sure make it sound like doom and gloom.  ;-)

 

And fwiw, the I think the tenant being "poached" is also roughly tripling their square footage, so it actually is a bit of a sign of strength.  I know of situations in another major city whose economy is generally perceived as firing on all cylinders where all of the new construction center city class a office space is being filled by poaching, and in almost all cases the poached tenants are reducing their square footage in the moves.

 

Edited by Houston19514
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I wonder if Houston will ever see towers like Well's Fargo Plaza, Bank of America Tower or Chase tower. 609 Main is is the largest building built in the past few decades, yet it pales in comparison to those other towers. Not only are they taller they are just much bigger. I'm not knocking 609 FYI, I'm very grateful for his sleek tower. 

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I wonder if Houston will ever see towers like Well's Fargo Plaza, Bank of America Tower or Chase tower. 609 Main is is the largest building built in the past few decades, yet it pales in comparison to those other towers. Not only are they taller they are just much bigger. I'm not knocking 609 FYI, I'm very grateful for his sleek tower. 

 

The only way they are bigger is that they are taller.  The floor plates of 609 Main @ Texas are about 28,000 square feet.  Wells Fargo Plaza I think is about 25,000 sq feet.  I think 600 Travis (the former Chase Tower) is closer to 22,000 square feet.

 

And 609 Main is supposed to be only 24 feet shorter than Bank of America Center, so it doesn't exactly pale in comparison.

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Yawn. The same can be said for just about everywhere in America. Every town in this sluggish US economy has at least another year of this horrible administration to suffer, Houston and Texas included. Now, about the good news at 609 Texas at Main...

Brah.. The same cannot be said for "just about everywhere in the U.S.". Enough with the ignorance. Houston is hurting and oil is the primary reason.

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America is hurting, Houston and Texas included.

 

If it's not obvious by now, it's the rest of the US economy that is keeping us afloat. Although the GDP was likely only 2.0% this 3rd quarter, there is still solid growth in the economy. Commodities, the things that Houston and the ship channel rely on, have been doing dismally bad this year and they will into next year. I still have hope that we'll get out of this rough patch come 2017. And the economy is on topic... it will be a major factor on how successful this tower will be. Can't find the article now but several towers were sitting nearly vacant (was it Heritage Plaza?) for several years because of the oil bust.

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No that's not obvious, it's silly. Houston has several other major economic sectors, keeping it afloat. The US economy sucks (if it's not obvious by now), many people and communities are hurting across America. Healthy GDP is 4-5%, not 2. That's not solid...that's shaky, at best. I'm hopeful too that the US economy and oil both rebound, to at least 4% and $60, respectively. However, the fact that Hines, his new tenants at 609 Main, and others continue to believe in Houston and fill its towers at the highest levels, is good news for Houston...and bad news for its haters (including those masquerading on HAIF).

No offense, but do you even have anything to do with the industry..? There are a lot of people on HAIF with far more knowledge on the market than you, and you've been flat out ignoring or talking back to some of them. That "major" tenant that was announced accounts for a whooping 1/17th of the total buildings square footage. Hardly what i would call "major".. maybe a "fraction" would of been better wording. By the way, I'm far from a Houston hater. In fact I often get ragged on by my friends for liking the city too much, but I'm also a realist, and sometimes reality hurts.

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Yes I am in the industry. And no offense, but there's always someone more knowledgeable, and not as knowledgeable, than each of us...just be smarter. And yes, Hines' new 609 Main client is a fraction of total square footage, but it's 'major' because it's a coup to have landed them to a spec building in a slowdown-- OVER A YEAR BEFORE COMPLETION! That's 'major!' And it's good you say you're not a Houston hater, although they do lurk about HAIF.

Well HTXUSA, I really enjoy your optimism then.  I am in the commercial office market, and the last 12 months have been rough and 2016 will be worse from a transaction standpoint.  Keep up the great attitude!  

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^^^ hey my good pal HTXUSA, i cannot help but ask if whether or not if you are hearing anything regarding our new and forthcoming luxury hotels??  i just cannot wait to feast my eyes upon the newly prospective renderings of the RITZ CARLTON projected towards ROD.  i am praying that this happens...  

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People please. If you can't find something negative, pessimistic, whiny or b*tchy to say about Houston at HAIF, please post elsewhere. If there is one thing we don't need around here, it is any of those 'glass half full' types. ;)  

 

HTXUSA and Slick Vik seem to represent two extremes. I don't particularly care for the excessively negative outlook of some posters, such as SV, who get a thrill out of posting gloom and doom with regularity. I do, however, ask that you be realistic when evaluating the local economy. Don't try to portray it as an unassailable paragon of economic fortune and then deride anyone who points out that the economy may have some short-to-mid-term issues by calling them "Houston haters" or concocting a fantastical situation in which said haters are conspiring to bring down Greater Houston. Houston will have its share of struggles in this depressed-price environment for commodities. That cannot be overlooked or ignored. However, the region should continue to grow during the downturn (though at a reduced pace) and will most definitely accelerate when things pick back up again in the energy sector. 

 

As for 609 Main, I am glad to see its progress. I cannot wait to see the finished product as it will be a stunning addition to the downtown skyline.

Edited by The Pragmatist
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You sure make it sound like doom and gloom. ;-)

And fwiw, the I think the tenant being "poached" is also roughly tripling their square footage, so it actually is a bit of a sign of strength. I know of situations in another major city whose economy is generally perceived as firing on all cylinders where all of the new construction center city class a office space is being filled by poaching, and in almost all cases the poached tenants are reducing their square footage in the moves.

Interesting. Dallas?

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The only way they are bigger is that they are taller. The floor plates of 609 Main @ Texas are about 28,000 square feet. Wells Fargo Plaza I think is about 25,000 sq feet. I think 600 Travis (the former Chase Tower) is closer to 22,000 square feet.

And 609 Main is supposed to be only 24 feet shorter than Bank of America Center, so it doesn't exactly pale in comparison.

Ummm, isn't total building square footage a bit more relevant?

JPMorgan Chase Tower - 1.98 million SF

Wells Fargo Plaza - 1.83 million SF

609 Main - 1.05 million SF

The fact that taller buildings had smaller floor plates actually indicates more boldness, since the smaller floor/greater height trade off is less economical in high rise design (but looks more architecturally dramatic).

Edited by H-Town Man
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I do know from my contacts in NY that Brioni is having second thoughts about missing out on ROD and is reconsidering, and that Stefano Ricci is thinking about ROD, as well.

^^^ well just FYI, ST. BERNARD SPORTS out of dallas is coming on down to ROD.  we are talking about HIGH END sports and ski apparel / shoes / accessories.  yes, they are coming... 12,442SQft of store space.  logo.png

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Ummm, isn't total building square footage a bit more relevant?

JPMorgan Chase Tower - 1.98 million SF

Wells Fargo Plaza - 1.83 million SF

609 Main - 1.05 million SF

The fact that taller buildings had smaller floor plates actually indicates more boldness, since the smaller floor/greater height trade off is less economical in high rise design (but looks more architecturally dramatic).

Ummmm, square footage is just a result of height, width and depth. The post to which I was responding stated that the older towers were not just taller, but bigger as well. Since height was already mentioned, it seemed he had to have been talking about the other two dimensions. I just pointed out that in fact the only sense in which they are bigger is height. That's all.

But thanks for providing the square footage information.

Edited by Houston19514
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Slipping off topic again, but Thirteen Pies, de Boulle Jeweler's, American Food + Drink, Toulouse and soon St. Bernard. However, to make it relevant, some of these could make good gfr for 609...especially the restaurants and a high end jeweler.

 

Oh, restaurants. I thought the topic was stores (not restaurants).  did not realize de Boulle was from Dallas.

 

Speaking of the restaurants, it will be interesting to see how they fare.  Historically, Dallas-based restaurants have not tended to fare very well in Houston.

Edited by Houston19514
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  • The title was changed to 609 Main at Texas
  • The title was changed to 609 Main At Texas

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