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KBR/Halliburton Updates


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I've picked up on some industry buzz about redevelopment of the KBR/Halliburton headquarters site. Seems that now that the spinoff is complete, they're refocusing some effort on their nearly 80-acre Buffalo Bayou tract. Does anybody have information on this? Either what is planned or when they expect to see something come out of the ground?

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I wouldn't think that Halliburton would be short on cash, with the war going on, so sitting on it would seem like the smart thing to do. They used to have someone on the board of directors of the Buffalo Bayou Partnership so maybe there's some pleading from them to sell. It's a vital piece of the Master Plan as the proposed "Symphony Island" is right across from the site. If it does go to private developers, they'd likely be asked to loan bayou right of way to the Partnership anyway.

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I wouldn't think that Halliburton would be short on cash, with the war going on, so sitting on it would seem like the smart thing to do. They used to have someone on the board of directors of the Buffalo Bayou Partnership so maybe there's some pleading from them to sell. It's a vital piece of the Master Plan as the proposed "Symphony Island" is right across from the site. If it does go to private developers, they'd likely be asked to loan bayou right of way to the Partnership anyway.

Although they are flush with cash (more from providing oilfield services than from military contracting, btw), they had expressed interest several years ago in redeveloping the site around their corporate headquarters on Clinton Drive and just put it off during the spinoff process. It really doesn't have anything to do with their overall financial position. It just happens to be excess and underutilized land in a strong local real estate market, which to them constitutes an opportunity to make some money from development, increase the value of their office buildings, provide amenities to employees, and get some good publicity.

My expectation is that they'll cooperate to some extent with BBP...in fact, they've already set up a bayou overlook at the end of Bayou Street that provides an excellent view of downtown. It is open to the public and is accessible by car. Great place for a picnic. ...but Symphony Island is a pretty land-intensive concept of a bit of land that would be the most valuable of the whole site for residential uses. So I wouldn't hold my breath.

But then again, I'm the one asking for information here. I could be wrong.

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I've picked up on some industry buzz about redevelopment of the KBR/Halliburton headquarters site. Seems that now that the spinoff is complete, they're refocusing some effort on their nearly 80-acre Buffalo Bayou tract. Does anybody have information on this? Either what is planned or when they expect to see something come out of the ground?

where exactly is this? i know you say buffalo bayou, but what general area?

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how'd you do that?

Just used Google maps like normal, got to the map view I wanted, and then clicked the little Link to this Page button in the upper right hand corner. It converts the URL in the address bar of the browser to the URL of whatever you're looking at.

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  • 5 months later...
Anyone heard anything on the KBR front lately (whether they were going to sell some/all of the land on Clinton drive)?

I work at the KBR Clinton Drive facility. Since the spin off from HAL, there has been a cost cutting program in place, there have been a few layoffs and more people are leaving to work for competitors. KBR put all of its eggs in one basket (the big gas projects), and these projects have not materialized as gas prices have fallen from about $15 to $6-$8. As other projects wind down, the company does not have enough new projects coming on line to keep everyone employed.

There are rumors floating around the company that KBR is selling the Clinton Drive facility in the near future, and that employees at Clinton Drive will be moving to KBR Tower downtown. The part about everyone moving downtown does not make sense to me, from what I understand there would not be room for everyone there.

KBR is essentially debt free after the spin-off, plus they just sold their interest in a shipyard in the UK, so there is no pressing need for cash. They are even talking about returning some excess cash to the shareholders as a special dividend. There is a big push to get the stock price up, so perhaps it makes sense to sell the Clinton Drive property in its entirety and lease space elsewhere, but as far as timing, it could be this year or 10 years from now, it all depends on what a buyer would be willing to pay..........

As far as I know these are just rumors, if I hear or find out anything more substantial I will post it here.

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  • 2 weeks later...
  • 7 months later...
I work at the KBR Clinton Drive facility. Since the spin off from HAL, there has been a cost cutting program in place, there have been a few layoffs and more people are leaving to work for competitors. KBR put all of its eggs in one basket (the big gas projects), and these projects have not materialized as gas prices have fallen from about $15 to $6-$8. As other projects wind down, the company does not have enough new projects coming on line to keep everyone employed.

There are rumors floating around the company that KBR is selling the Clinton Drive facility in the near future, and that employees at Clinton Drive will be moving to KBR Tower downtown. The part about everyone moving downtown does not make sense to me, from what I understand there would not be room for everyone there.

KBR is essentially debt free after the spin-off, plus they just sold their interest in a shipyard in the UK, so there is no pressing need for cash. They are even talking about returning some excess cash to the shareholders as a special dividend. There is a big push to get the stock price up, so perhaps it makes sense to sell the Clinton Drive property in its entirety and lease space elsewhere, but as far as timing, it could be this year or 10 years from now, it all depends on what a buyer would be willing to pay..........

As far as I know these are just rumors, if I hear or find out anything more substantial I will post it here.

Anyone have an update on KBR? I know they're evaluating their options, not sure if they're leaning to selling Clinton Drive and creating a campus out west. This will be a huge deal.

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Anyone have an update on KBR? I know they're evaluating their options, not sure if they're leaning to selling Clinton Drive and creating a campus out west. This will be a huge deal.

The only thing I can add is that our director mentioned she was at a meeting a while back, one of the VPs mentioned that there were environmental liabilities due to light and medium industrial activities in the past, and that it may be in KBR's best interest to do the clean up prior to any sale to gain maximum value from the Clinton Drive property.

The rumors come and go regarding selling Clinton Drive (and possibly moving out of KBR Tower downtown) and moving out west, no idea how imminent any sale and move would be.

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The only thing I can add is that our director mentioned she was at a meeting a while back, one of the VPs mentioned that there were environmental liabilities due to light and medium industrial activities in the past, and that it may be in KBR's best interest to do the clean up prior to any sale to gain maximum value from the Clinton Drive property.

The rumors come and go regarding selling Clinton Drive (and possibly moving out of KBR Tower downtown) and moving out west, no idea how imminent any sale and move would be.

You know, the Clinton Dr. location just never made sense to me. And although it was my understanding that if they did sell the land, they would not sell the office buildings or parking for them, I wouldn't be surprised if things changed.

And then they'd have something like 110+ contiguous acres, complete with a hard corner at a major intersection and many thousands of feet of bayou frontage.

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The only thing I can add is that our director mentioned she was at a meeting a while back, one of the VPs mentioned that there were environmental liabilities due to light and medium industrial activities in the past, and that it may be in KBR's best interest to do the clean up prior to any sale to gain maximum value from the Clinton Drive property.

The rumors come and go regarding selling Clinton Drive (and possibly moving out of KBR Tower downtown) and moving out west, no idea how imminent any sale and move would be.

Thanks, Spiderman.

And yes, the environmental issue will be a big one.

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  • 2 months later...

In the print version of this week's HBJ:

The global engineering and construction firm plans to consolidate 4,500 Houston employees on 80 acres owned by Trammell Crow Co. at the southwest corner of Interstate 10 and the Grand Parkway.

A source close to the deal says the Dallas-based developer is planning to build eight low-rise buildings with 900,000 square feet of office space at a cost of roughly $225 million for publicly traded KBR.

This is big news for the Katy area. But it may be bigger news for the East End. You can put a lot of housing on 110+ acres.

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In the print version of this week's HBJ:

This is big news for the Katy area. But it may be bigger news for the East End. You can put a lot of housing on 110+ acres.

KBR CEO just sent out an email to all employees stating

"While KBR is routinely involved in conversations and assessments regarding our space needs, no plans have been finalized regarding a KBR West Houston Campus".

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KBR CEO just sent out an email to all employees stating

"While KBR is routinely involved in conversations and assessments regarding our space needs, no plans have been finalized regarding a KBR West Houston Campus".

Translation:

"We know that you've structured your lives around working in the center of the city and that a fair chunk of you live in Clear Lake, Kingwood, The Woodlands, and other places so distant relative to Katy that you'd start looking for another job immediately rather than wait for us to get our act together so that we can give you shorter-term notice to which you'd be less responsive."

"Please collectively ignore anything that might give just cause for you to think anything but positive thoughts about KBR."

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Translation:

"We know that you've structured your lives around working in the center of the city and that a fair chunk of you live in Clear Lake, Kingwood, The Woodlands, and other places so distant relative to Katy that you'd start looking for another job immediately rather than wait for us to get our act together so that we can give you shorter-term notice to which you'd be less responsive."

"Please collectively ignore anything that might give just cause for you to think anything but positive thoughts about KBR."

Niche I didn't know you were a translator on the side! :lol:

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Translation:

"We know that you've structured your lives around working in the center of the city and that a fair chunk of you live in Clear Lake, Kingwood, The Woodlands, and other places so distant relative to Katy that you'd start looking for another job immediately rather than wait for us to get our act together so that we can give you shorter-term notice to which you'd be less responsive."

"Please collectively ignore anything that might give just cause for you to think anything but positive thoughts about KBR."

Managementspeak at its finest!

Wouldn't surprise me if they announced next week that they had finalized the deal.

Sad thing is there are a lot of the old "bread and butter" Brown & Root legacy people that have been with the company for 20-30 plus years that live and have family in the "far east" places like Baytown, LaPorte, etc and work at Clinton Drive that are basically being kicked to the curb

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  • 4 weeks later...

Garrison Keillor, whose bread and butter is casting Minnesotans as lovably flawed deferential souls, takes the opportunity to build up that image by casting Texans as their anti-type when the role arises (for instance, Tommy Lee Jones' hatchet man in the Prairie Home Companion movie): unlovably flawed and heedless to the souls of things. It's a real shame KBR's CEO talks in circles and practically forces this relocation to become a metaphor for forgetting what made Brown & Root a significant "company" of people. And that's enough reason to deplore his thought and action - even without grimacing at his being the 'bad [kind of] Texan' - but, come to think of it, $225 million and .9Msf would have done nicely by the Gateway site in Allen Center on downtown's west side, not to mention that site doing well by the Clinton site's employees and their families.

Edited by strickn
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Garrison Keillor, whose bread and butter is casting Minnesotans as lovably flawed deferential souls, takes the opportunity to build up that image by casting Texans as their anti-type when the role arises (for instance, Tommy Lee Jones' hatchet man in the Prairie Home Companion movie): unlovably flawed and heedless to the souls of things. It's a real shame KBR's CEO talks in circles and practically forces this relocation to become a metaphor for forgetting what made Brown & Root a significant "company" of people. And that's enough reason to deplore his thought and action - even without grimacing at his being the 'bad [kind of] Texan' - but, come to think of it, $225 million and .9Msf would have done nicely by the Gateway site in Allen Center on downtown's west side, not to mention that site doing well by the Clinton site's employees and their families.

I'm pretty sure he's a Virginian.

But I must admit, even though this move will probably do more harm than good to me, financially, it makes me feel better about it that someone like you is so foolishly and publicly pissed off.

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Economists get to manipulate more when they bother being tactfully humane.

Although misty-eyed sentiment and beady-eyed financial priority sometimes appear to be sociologically neck and neck for total casualties incurred in making American life harder to cope with than it already would be, even people who aren't convinced that we the people have done more damage through greed than fear are generally in agreement that Houstonian society has.

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Economists get to manipulate more when they bother being tactfully humane.

Although misty-eyed sentiment and beady-eyed financial priority sometimes appear to be sociologically neck and neck for total casualties incurred in making American life harder to cope with than it already would be, even people who aren't convinced that we the people have done more damage through greed than fear are generally in agreement that Houstonian society has.

I have no intention of manipulating you. I don't know why you think I'd care so much as to bother.

The rest of it I don't understand. Talk normal, please.

Edited by TheNiche
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Every time I have driven past Clinton and Hirsch, the office buildings have made me think of the era of rust-orange and brown interiors, off-gassing materials, non-operable windows and low ceilings. Those buildings make KBR a less attractive workplace, but, independent of where the jobs and facilities go, better than to cash out would be to arrange land leases on the site and then take another look in 30 years.

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Every time I have driven past Clinton and Hirsch, the office buildings have made me think of the era of rust-orange and brown interiors, off-gassing materials, non-operable windows and low ceilings. Those buildings make KBR a less attractive workplace, but, independent of where the jobs and facilities go, better than to cash out would be to arrange land leases on the site and then take another look in 30 years.

Your recent lessons in English have apparently been paying dividends.

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  • 8 months later...

Just saw this in the Chronicle - looks like KBR will be staying at the Clinton Dr facility in the near future...

'KBR

The weak economy and troubled credit markets scuttled plans for a new office complex planned near Katy for Houston-based KBR, the company saidlast month. The campus was designed to include more than 910,000 square feet of space at the southwest corner of Interstate 10 and Grand Parkway.'

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Just saw this in the Chronicle - looks like KBR will be staying at the Clinton Dr facility in the near future...

'KBR

The weak economy and troubled credit markets scuttled plans for a new office complex planned near Katy for Houston-based KBR, the company saidlast month. The campus was designed to include more than 910,000 square feet of space at the southwest corner of Interstate 10 and Grand Parkway.'

This is definitely good news.

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It seems to me it will keep more jobs in the area, reduce westward sprawl, and save the company money.

Most of the employees live on the outskirts anyway...selling/moving would give an oppportunity for future development (housing, retail, green space, commercial)..something that is much needed in the area...KBR moving would benefit both sides...imo

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Most of the employees live on the outskirts anyway...selling/moving would give an oppportunity for future development (housing, retail, green space, commercial)..something that is much needed in the area...KBR moving would benefit both sides...imo

Hrm... I'm doubtful of this.

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Hrm... I'm doubtful of this.

As a short-term consideration, you have good reason to be doubtful. Redevelopment of that site for any alternative purpose would be very difficult in the current business environment. The site may be underutilized for at least the next couple of years, and I agree that it is better to have KBR there than nobody.

It is unfortunate that they were unable to act on the move more quickly. Then we might have seen something impressive already under way there. I know that they were delayed significantly as a result of the split-up of KBR and Halliburton.

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That whole area around the Clinton Drive KBR building is a craphole!

I have never before been so struck by such masterful eloquence as yours. Your language flows like the prose of a poet. And your descriptions paint such a vivid picture in the mind's eye, conveying an omniscient depth of understanding not only of the subject but of the universe that gave rise to it.

Longhornguy shall forever be revered by HAIF literary snobs as nothing short of a god.

And I must profusely thank you for adding so much to this conversation.

Edited by TheNiche
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I have never before been so struck by such masterful eloquence as yours. Your language flows like the prose of a poet. And your descriptions paint such a vivid picture in the mind's eye, conveying an omniscient depth of understanding not only of the subject but of the universe that gave rise to it.

Longhornguy shall forever be revered by HAIF literary snobs as nothing short of a god.

And I must profusely thank you for adding so much to this conversation.

Maybe he wasn't eloquent but he was right.

I work for a competitor of KBR. When we heard that they were thinking of moving West everyone was very excited. It is correct that most of the people who work in the petrochem engineering business live on the West side of town. That's why it's called the energy corridor. Having an office on the West side would have helped them with recruiting. Now that there are no problems with recruiting anymore they don't need it.

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Maybe he wasn't eloquent but he was right.

I work for a competitor of KBR. When we heard that they were thinking of moving West everyone was very excited. It is correct that most of the people who work in the petrochem engineering business live on the West side of town. That's why it's called the energy corridor. Having an office on the West side would have helped them with recruiting. Now that there are no problems with recruiting anymore they don't need it.

That's not why it's called the energy corridor, jgriff.

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Maybe he wasn't eloquent but he was right.

I work for a competitor of KBR. When we heard that they were thinking of moving West everyone was very excited. It is correct that most of the people who work in the petrochem engineering business live on the West side of town. That's why it's called the energy corridor. Having an office on the West side would have helped them with recruiting. Now that there are no problems with recruiting anymore they don't need it.

Oh, I'm fully aware of the Energy Corridor rationale. Frankly I think the move still makes sense, because by the time that the new campus would be up and running, oil prices will probably have substantially recovered.

But in the same way that I'm viewing their new location through forward-looking eyes (looking at what will be, not necessarily what is) I am also applying that reasoning to their Clinton Dr. site. It is unattractive right now, but then most post-industrial vacant land is. The site has an enormous amount of frontage along two major thoroughfares as well as the Buffalo Bayou where the bayou really should qualify as a river as wide as it is. A major new park has been developed recently just across the bayou, and jogging trails along the south side of the bayou are in place. An urban master planned community will go here one day and will transform the way that people view that immediate area.

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The site has an enormous amount of frontage along two major thoroughfares as well as the Buffalo Bayou where the bayou really should qualify as a river as wide as it is. A major new park has been developed recently just across the bayou, and jogging trails along the south side of the bayou are in place. An urban master planned community will go here one day and will transform the way that people view that immediate area.

Hrm... A mixed use project would be nice. Maybe they could snuggle into a new 47 floor tower at that location.

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I have never before been so struck by such masterful eloquence as yours. Your language flows like the prose of a poet. And your descriptions paint such a vivid picture in the mind's eye, conveying an omniscient depth of understanding not only of the subject but of the universe that gave rise to it.

Longhornguy shall forever be revered by HAIF literary snobs as nothing short of a god.

And I must profusely thank you for adding so much to this conversation.

No problem, anytime...I love your defensive sarcasm as well. :)

Btw, I used to work for KBR and the division that is in the Clinton Dr building has very little to do with the Energy business. All of that work comes out of the Kellogg Tower downtown (Energy & Chemicals Division).

Clinton Dr building houses KBR's Government & Infrastructure division and a majority of the work there is related to the Iraq/Afghanistan/Kosovo/Djibouti/Kuwait Government contracts.

I'll call a bird a bird when I see one and Clinton Dr area is a craphole. That is, and always was, meant to be an industrial area of Houston. There is no liquidity left for development in the next Ten years and any bank would be crazy to loan money to develop land next to the Ship Channel.

Just my two cents. (Since I'm revered as an HAIF God, maybe that should be: "My two dollars?")

:)

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I'll call a bird a bird when I see one and Clinton Dr area is a craphole. That is, and always was, meant to be an industrial area of Houston. There is no liquidity left for development in the next Ten years and any bank would be crazy to loan money to develop land next to the Ship Channel.

For the record, that site is 2.7 miles away from the terminus of the Houston Ship Channel. Also for the record, bulk land is selling in that area for upwards of $4 per square foot as of a couple years ago (the last time I checked pricing) and is probably even more expensive now. A decade ago it sold for a tenth of that. Somebody is lending money on it.

And I have a project on which I--myself--have a construction loan which was lined up only a couple months back, and it is a site within walking distance of the bayou waters in that general area. I'm actually closer to the water than are parts of the KBR site.

Just my two cents. (Since I'm revered as an HAIF God, maybe that should be: "My two dollars?")

:)

Approximately 79% of my net assets are invested in Houston's East End, and they're nearly all backed up by significant loans from banks that were actively seeking to enter that market. I won't tell you how many dollars that is exactly, but taking the exchange rate into account, it's more than your couple of measly HAIF dollars.

So there. B)

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  • 2 months later...

Halliburton to leave downtown in favor of suburban campuses

Houston Business Journal - by Mary Ann Azevedo

Following in the footsteps of many energy-related companies before it, Halliburton Co. is moving its corporate headquarters out of downtown Houston as part of a consolidation effort that will affect about 5,200 employees.

>>Full Article<< http://houston.bizjournals.com/houston/sto...7.html?ana=e_ph

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Halliburton to leave downtown in favor of suburban campuses

Houston Business Journal - by Mary Ann Azevedo

Following in the footsteps of many energy-related companies before it, Halliburton Co. is moving its corporate headquarters out of downtown Houston as part of a consolidation effort that will affect about 5,200 employees.

>>Full Article<< http://houston.bizjournals.com/houston/sto...7.html?ana=e_ph

Halliburton's consolidation has no effect on this land. Since the breakup of Halliburton and KBR, only KBR has employees on this site. And their plans for a west Houston campus have been put on hold.

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