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Downtown Commercial Vacancy Rates


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Thought there was a generic downtown thread but I guess not.

 

Below are vacancy rates of most major office buildings downtown from HAR as printed in the HBJ.  Some notable exceptions like Wells Fargo Plaza.

 

Address/Bldg name/Total space/Avail space/Vacancy rate

 

800 Bell Old Exxon 1,314,350 1,314,350 100%
Texas Tower New Hines 1,106,581 705,774 64%
1001 Fannin Old First City 1,365,801 586,811 43%
1600 Smith Old CO 1,227,182 489,881 40%
600 Travis Old Chase 1,916,394 456,600 24%
601 Travis Old Chase garage 407,912 29,877 7%
1021 Main  One City Centre 554,953 424,260 76%
700 Louisiana TC Energy Ctr 1,321,033 295,682 22%
1100 Louisiana Enterprise Plaza 1,391,152 288,812 21%
1415 Louisiana Wedge Int'l Tower 536,626 275,179 51%
811 Louisiana Old Two Shell Plaza 577,735 236,380 41%
1201 Fannin  Greenstreet 656,994 230,532 35%
1000 Main Reliant Energy Plaza 850,294 175,321 21%
808 Travis Esperson 298,513 156,839 53%
1010 Lamar  Younan Sqaure 258,776 143,727 56%
910 Louisiana One Shell Plaza 1,231,896 137,364 11%
712 Main  The Jones on Main 794,186 128,817 16%
800 Capital Bank of America Tower 754,000 93,725 12%
919 Milam Old Bank of the SW 723,130 89,550 12%
811 Main BG Group Place 973,861 80,006 8%
1001 McKinney Old City National Bank 378,101 78,997 21%
801 Travis   417,693 75,675 18%
601 Jefferson KBR Tower 1,087,974 69,888 6%
1301 Fannin Houston Data Center 766,950 65,000 8%
609 Main   1,057,658 64,109 6%
801 Louisiana Goodrich Petroleum 105,145 38,670 37%
1801 Main Amegy Bank 238,886 33,964 14%
917 Main   140,000 8,757 6%
         
711 Louisiana Pennzoil Place South 712,081 308,153 43%
700 Milam Pennzoil Place North 712,081 227,193 32%
  Total Pennzoil Place 1,424,162 535,346 38%
         
1221 McKinney LyondellBasell Tower/1 HC 1,103,424 193,009 17%
909 Fannin St 2 Houston Center 1,102,279 276,353 25%
1301 McKinney Fulbright Tower/3 HC 1,311,133 401,701 31%
1221 Lamar 4 Houston Center 1,526,323 404,282 26%
1401 McKinney 5 Houston Center 606,786 198,238 33%
  Total Houston Center 5,649,945 1,473,583 26%
         
500 Dallas One Allen Center 930,730 140,781 15%
1200 Smith Two Allen Center 1,075,210 361,621 34%
333 Clay Three Allen Center 1,282,908 207,036 16%
  Total Allen Center 3,288,848 709,438 22%
Edited by mattyt36
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Couple of things that jump out:

 

Esperson at 53% vacant is getting murdered. Doesn't say much for our Class B office market if a building that beautiful can't succeed. Maybe if the hospitality market improves this will become a hotel.

 

Pennzoil at 38% is also doing terrible. Wasn't expecting that.

 

I remember a graphic on here back in 2013 or 2014 that showed a cross section of all the Class A buildings and only a few floors were vacant in all of downtown. What a gut punch we've taken since then.

 

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17 hours ago, H-Town Man said:

Couple of things that jump out:

 

Esperson at 53% vacant is getting murdered. Doesn't say much for our Class B office market if a building that beautiful can't succeed. Maybe if the hospitality market improves this will become a hotel.

 

Pennzoil at 38% is also doing terrible. Wasn't expecting that.

 

I remember a graphic on here back in 2013 or 2014 that showed a cross section of all the Class A buildings and only a few floors were vacant in all of downtown. What a gut punch we've taken since then.

 

 

When were the last times that Pennzoil and Esperson were renovated? These are landmark buildings downtown. I would assume that with the revitalization of other buildings right now they surely we will get an interior facelift at some point.

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Esperson takes a special type of tenant.  It has really weird floor plates that are pretty narrow - as in, if you're not taking down an entire floor or at least from the elevators over to the end wall there's no room for a private hallway, particularly in the Niels.  In other words, the public hallway is less than 15 feet from the glass.

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17 hours ago, Luminare said:

 

When were the last times that Pennzoil and Esperson were renovated? These are landmark buildings downtown. I would assume that with the revitalization of other buildings right now they surely we will get an interior facelift at some point.

 

I know Esperson's been done in the past 20 years. I don't really want Pennzoil to be renovated. It's perfect as it is, with that modernist solemnity. I get nervous when people start trying to add little splashes of new to things.

 

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17 minutes ago, H-Town Man said:

 

I know Esperson's been done in the past 20 years. I don't really want Pennzoil to be renovated. It's perfect as it is, with that modernist solemnity. I get nervous when people start trying to add little splashes of new to things.

 

 

Agree - Pennzoil is beautiful. Little disheartening to see the vacancy so high. 

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On 10/31/2019 at 5:15 PM, Luminare said:

 

When were the last times that Pennzoil and Esperson were renovated? These are landmark buildings downtown. I would assume that with the revitalization of other buildings right now they surely we will get an interior facelift at some point.

 

This. Doesn't this all funnel into the conversations in the other office space threads where we talk about how alot of these buildings are still wayyyy behind the ball when it comes to catering to the new standard of beer fridges, colliding spaces, bike racks, bike rooms, innovative floor plans, group spaces, etc. Its cool that a building looks cool, and I don't know much about who keeping up with the market rests upon (the owner of the building or the management company), but I do know alot about lease agreements and client expectations. Space is expensive. WeWorks is only sort of expensive, and offers all the "start-up energy" one could ever want. Just saying, if your space can't beat a run of the mill coworking place, then what are you doing. 

 

Law firms, many of which call Dtown home, are even jumping on the updated floorplans and startup layouts, and law firms are notorious fuddy-duddies. If these building's floorplans are more than 15 years old, then I would expect them to take the loss when a big regional or national company is looking to house their employees (of which half are potentially younger than 40, or come from companies in NY/CHI/SF/BOS where the sexy interior space revolution has happened or is happening).

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I mentioned the issues with Esperson's floor plates a day or two ago.

 

However, a lot of the lease space in Pennzoil is cleared out glass to glass, so one can build out however one wishes.  The elevator cabs are recently redone, and there is a gym in the building - about all that's really lacking is some sort of bicycle facility (if there isn't one already - I don't spend much time lurking in parking garages).

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Spring 2020 update.

 

The Pennzoil Place number shows a lot of absorption . . . I'm not sure what lease that would've been or if Fall 2019 was in error.  (Or maybe sublease excluded?)

 

Address Bldg name Total space Avail space-Fall 2019 Vacancy-Fall 2019 Avail space-Spring 2020 Absorption Vacancy-Spring 2020
800 Bell Old Exxon 1,314,350 1,314,350 100% 1,314,350 0 100%
Texas Tower New Hines 1,106,581 705,774 64% 673,142 32,632 61%
1001 Fannin Old First City 1,365,801 586,811 43% 552,336 34,475 40%
1600 Smith Old CO 1,227,182 489,881 40% 486,453 3,428 40%
600 Travis Old Chase 1,916,394 456,600 24% 459,828 -3,228 24%
601 Travis Old Chase garage 407,912 29,877 7% 26,817 3,060 7%
1021 Main  One City Centre 554,953 424,260 76% 356,391 67,869 64%
700 Louisiana TC Energy Ctr 1,321,033 295,682 22% 303,390 -7,708 23%
1100 Louisiana Enterprise Plaza 1,391,152 288,812 21% 267,344 21,468 19%
1415 Louisiana Wedge Int'l Tower 536,626 275,179 51%   275,179 0%
811 Louisiana Old Two Shell Plaza 577,735 236,380 41% 239,201 -2,821 41%
1201 Fannin  Greenstreet 656,994 230,532 35% 230,532 0 35%
1000 Main Reliant Energy Plaza 850,294 175,321 21% 175,321 0 21%
808 Travis Esperson 298,513 156,839 53% 236,518 -79,679 79%
1010 Lamar  Younan Sqaure 258,776 143,727 56% 132,045 11,682 51%
910 Louisiana One Shell Plaza 1,231,896 137,364 11% 130,883 6,481 11%
712 Main  The Jones on Main 794,186 128,817 16% 128,817 0 16%
800 Capital Bank of America Tower 754,000 93,725 12% 93,725 0 12%
919 Milam Old Bank of the SW 723,130 89,550 12% 111,360 -21,810 15%
811 Main BG Group Place 973,861 80,006 8% 67,349 12,657 7%
1001 McKinney Old City National Bank 378,101 78,997 21% 78,997 0 21%
801 Travis   417,693 75,675 18% 75,675 0 18%
601 Jefferson KBR Tower 1,087,974 69,888 6% 81,212 -11,324 7%
1301 Fannin Houston Data Center 766,950 65,000 8% 60,000 5,000 8%
609 Main   1,057,658 64,109 6% 58,611 5,498 6%
801 Louisiana Goodrich Petroleum 105,145 38,670 37% 38,679 -9 37%
1801 Main Amegy Bank 238,886 33,964 14% 33,964 0 14%
917 Main   140,000 8,757 6% 8,757 0 6%
Pennzoil Place Pennzoil Place South 1,424,162 535,346 43% 91,941 443,405 6%
1221 McKinney LyondellBasell Tower/1 HC 1,103,424 193,009 17% 212,675 -19,666 19%
909 Fannin St 2 Houston Center 1,102,279 276,353 25% 215,859 60,494 20%
1301 McKinney Fulbright Tower/3 HC 1,311,133 401,701 31% 346,045 55,656 26%
1221 Lamar 4 Houston Center 1,526,323 404,282 26% 419,538 -15,256 27%
1401 McKinney 5 Houston Center 606,786 198,238 33% 190,089 8,149 31%
  Total Houston Center 5,649,945 1,473,583 26% 1,384,206 89,377 24%
500 Dallas One Allen Center 930,730 140,781 15% 150,323 -9,542 16%
1200 Smith Two Allen Center 1,075,210 361,621 34% 361,621 0 34%
333 Clay Three Allen Center 1,282,908 207,036 16% 166,058 40,978 13%
  Total Allen Center 3,288,848 709,438 22% 678,002 31,436 21%


These were not shown in the Fall 2019 numbers so I don't have a comparison.

 

Address Bldg name Total space   Avail space-Spring 2020 Vacancy-Spring 2020
717 Texas  Old Calpine 705,885     303,126   43%
1315 St. Joseph Medical Place One 207,388     58,096   28%
917 Franklin  Commercial Bank 47,704     12,679   27%
440 Louisiana Lyric Centre 402,559     8,890   2%
1018 Preston Republic 22,204     4,982   22%
110 Bagby   33,124     3,067   9%
412 Main State Nat'l Bank 55,844     2,000   4%

 

 

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18 hours ago, mattyt36 said:

Spring 2020 update.

 

The Pennzoil Place number shows a lot of absorption . . . I'm not sure what lease that would've been or if Fall 2019 was in error.  (Or maybe sublease excluded?)

 

Address Bldg name Total space Avail space-Fall 2019 Vacancy-Fall 2019 Avail space-Spring 2020 Absorption Vacancy-Spring 2020
800 Bell Old Exxon 1,314,350 1,314,350 100% 1,314,350 0 100%
Texas Tower New Hines 1,106,581 705,774 64% 673,142 32,632 61%
1001 Fannin Old First City 1,365,801 586,811 43% 552,336 34,475 40%
1600 Smith Old CO 1,227,182 489,881 40% 486,453 3,428 40%
600 Travis Old Chase 1,916,394 456,600 24% 459,828 -3,228 24%
601 Travis Old Chase garage 407,912 29,877 7% 26,817 3,060 7%
1021 Main  One City Centre 554,953 424,260 76% 356,391 67,869 64%
700 Louisiana TC Energy Ctr 1,321,033 295,682 22% 303,390 -7,708 23%
1100 Louisiana Enterprise Plaza 1,391,152 288,812 21% 267,344 21,468 19%
1415 Louisiana Wedge Int'l Tower 536,626 275,179 51%   275,179 0%
811 Louisiana Old Two Shell Plaza 577,735 236,380 41% 239,201 -2,821 41%
1201 Fannin  Greenstreet 656,994 230,532 35% 230,532 0 35%
1000 Main Reliant Energy Plaza 850,294 175,321 21% 175,321 0 21%
808 Travis Esperson 298,513 156,839 53% 236,518 -79,679 79%
1010 Lamar  Younan Sqaure 258,776 143,727 56% 132,045 11,682 51%
910 Louisiana One Shell Plaza 1,231,896 137,364 11% 130,883 6,481 11%
712 Main  The Jones on Main 794,186 128,817 16% 128,817 0 16%
800 Capital Bank of America Tower 754,000 93,725 12% 93,725 0 12%
919 Milam Old Bank of the SW 723,130 89,550 12% 111,360 -21,810 15%
811 Main BG Group Place 973,861 80,006 8% 67,349 12,657 7%
1001 McKinney Old City National Bank 378,101 78,997 21% 78,997 0 21%
801 Travis   417,693 75,675 18% 75,675 0 18%
601 Jefferson KBR Tower 1,087,974 69,888 6% 81,212 -11,324 7%
1301 Fannin Houston Data Center 766,950 65,000 8% 60,000 5,000 8%
609 Main   1,057,658 64,109 6% 58,611 5,498 6%
801 Louisiana Goodrich Petroleum 105,145 38,670 37% 38,679 -9 37%
1801 Main Amegy Bank 238,886 33,964 14% 33,964 0 14%
917 Main   140,000 8,757 6% 8,757 0 6%
Pennzoil Place Pennzoil Place South 1,424,162 535,346 43% 91,941 443,405 6%
1221 McKinney LyondellBasell Tower/1 HC 1,103,424 193,009 17% 212,675 -19,666 19%
909 Fannin St 2 Houston Center 1,102,279 276,353 25% 215,859 60,494 20%
1301 McKinney Fulbright Tower/3 HC 1,311,133 401,701 31% 346,045 55,656 26%
1221 Lamar 4 Houston Center 1,526,323 404,282 26% 419,538 -15,256 27%
1401 McKinney 5 Houston Center 606,786 198,238 33% 190,089 8,149 31%
  Total Houston Center 5,649,945 1,473,583 26% 1,384,206 89,377 24%
500 Dallas One Allen Center 930,730 140,781 15% 150,323 -9,542 16%
1200 Smith Two Allen Center 1,075,210 361,621 34% 361,621 0 34%
333 Clay Three Allen Center 1,282,908 207,036 16% 166,058 40,978 13%
  Total Allen Center 3,288,848 709,438 22% 678,002 31,436 21%


These were not shown in the Fall 2019 numbers so I don't have a comparison.

 

Address Bldg name Total space   Avail space-Spring 2020 Vacancy-Spring 2020
717 Texas  Old Calpine 705,885     303,126   43%
1315 St. Joseph Medical Place One 207,388     58,096   28%
917 Franklin  Commercial Bank 47,704     12,679   27%
440 Louisiana Lyric Centre 402,559     8,890   2%
1018 Preston Republic 22,204     4,982   22%
110 Bagby   33,124     3,067   9%
412 Main State Nat'l Bank 55,844     2,000   4%

 

 

 

Some brutal numbers in there. Looks like 80% occupancy is pretty much the yardstick for 1980's-era Class A... and that's before the effects of the current oil bust hit. The Gulf Building (excuse me, The Jones on Main) is a big success story with 84% occupancy. Its neighbor the Esperson buildings are in a tailspin with 21% occupancy. Are they letting leases expire for a hotel or residential conversion? And the latest crop of buildings (built 2008-) are in a class of their own, as though no oil decline had ever happened.

 

800 Bell is starting to look like a seriously bad investment for Shorenstein. Maybe it can go residential? Or government? I don't think regular office is in the cards there. Not with millions of square feet of empty space on the tunnel system.

 

Hate to think what this could look like in a year. Hopefully something good happens.

 

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I just hope Houston doesn't lose any tall buildings. Dallas demoed a couple of dead midcentury towers as I understand it, though nothing really big on the skyline. But then lots of great residential conversions happened to some of its worst vacant towers about a decade ago(the atmos buildings, the statler, elm tower, etc).

 

On the bright side, if some of these old office towers turn into apartments/condos it would really increase the liveliness of downtown after hours.

 

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On 4/20/2020 at 8:59 AM, Houston19514 said:

Vary interesting.  Thanks for posting.
 

The entry labeled as Pennzoil Place south, is actually for the total of both towers of Pennzoil Place, correct?

 

Yes, my apologies.  The fall numbers reported them separately and the spring numbers reported them together.  I just don't think the absorption number is reliable because I think we would have heard of it.

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