Chevron Skyscraper Proposal At 1600 Louisiana St.

[Houston19514]

I have no idea what Chevron's current office space situation is. With the Hess acquisition, and IF they need more space than they currently have in the downtown Chevron buildings, I think by far the three most-likely moves would be:

• Retain leased space in Hess Tower
• Lease other vacant space in Allen Center and/or 1600 Smith
• Build 1600 Louisiana

I think retaining the space in Hess Tower is probably the least likely of the three, because it would make team integration more difficult.

My hunch is that, in the current market, leasing additional space in Allen Center and/or 1600 Smith is more likely than building 1600 Louisiana.  They should be able to get very friendly lease terms right now (and they'll still own the land on which to build later if that becomes more financially attractive down the road).

Edited October 24, 2023 by Houston19514

[downtownian]

On 10/24/2023 at 2:26 PM, Houston19514 said:

I have no idea what Chevron's current office space situation is. With the Hess acquisition, and IF they need more space than they currently have in the downtown Chevron buildings, I think by far the three most-likely moves would be:

• Retain leased space in Hess Tower
• Lease other vacant space in Allen Center and/or 1600 Smith
• Build 1600 Louisiana

I think retaining the space in Hess Tower is probably the least likely of the three, because it would make team integration more difficult.

My hunch is that, in the current market, leasing additional space in Allen Center and/or 1600 Smith is more likely than building 1600 Louisiana.  They should be able to get very friendly lease terms right now (and they'll still own the land on which to build later if that becomes more financially attractive down the road).

Least likely is building 1600 Louisiana. There is a 30% vacancy rate in downtown. I doubt they would add to supply.

[CREguy13]

7 hours ago, downtownian said:

Least likely is building 1600 Louisiana. There is a 30% vacancy rate in downtown. I doubt they would add to supply.

Respectfully, this is the wrong take.  One of the largest and most profitable companies in the US is not concerned about contributing to a downtown's vacancy.  Attraction and Retention of talent is #1 and a state-of-the-art corporate campus helps with recruiting top talent.  This is the crux of my argument for new construction.

[shasta]

According to this article, the Houston metro population is going to balloon to 31.5 million by 2100 easily passing NYC ....so we are going to need many more 58+ story tall buildings...and soon!

https://www.dailymail.co.uk/news/texas/article-12637061/Is-future-America-Texas-Dallas-Houston-Austin-poised-replace-New-York-City-Los-Angeles-Chicago-largest-cities-not-77-years.html

Edited October 26, 2023 by shasta

[downtownian]

18 hours ago, CREguy13 said:

Respectfully, this is the wrong take.  One of the largest and most profitable companies in the US is not concerned about contributing to a downtown's vacancy.  Attraction and Retention of talent is #1 and a state-of-the-art corporate campus helps with recruiting top talent.  This is the crux of my argument for new construction.

Want to place a bet on whether or not they construct a new tower? I am extremely, extremely confident they will not. There is a lot of available Class A (or A+) space downtown for cheap. 

[MidCenturyMoldy]

20 hours ago, shasta said:

According to this article, the Houston metro population is going to balloon to 31.5 million by 2100 easily passing NYC ....so we are going to need many more 58+ story tall buildings...and soon!

https://www.dailymail.co.uk/news/texas/article-12637061/Is-future-America-Texas-Dallas-Houston-Austin-poised-replace-New-York-City-Los-Angeles-Chicago-largest-cities-not-77-years.html

We old-timers have heard this kind of nonsense before. I think it was 1974 when Houston (The city of the future!) was “on track to becoming the largest city in the world” in the not-so-distant future. 🙄

Edited October 27, 2023 by MidCenturyMoldy

[CREguy13]

On 10/27/2023 at 9:55 AM, downtownian said:

Want to place a bet on whether or not they construct a new tower? I am extremely, extremely confident they will not. There is a lot of available Class A (or A+) space downtown for cheap. 

Ha sure. *IF the HQ is moved here, I'm betting they will opt for new construction opposed to leasing nearby space on a long-term basis. Short-term leases are irrelevant, as there may be an immediate desire to consolidate employees in same area, time to plan long term strategy, and/or being patient for the building market to become more favorable.

We may all be a bit longer in the tooth by this time, but my friendly wager is new construction will commence prior to mid-2026, I believe that is roughly when the current Hess lease is set to expire.

Edited October 28, 2023 by CREguy13

[Big E]

On 10/27/2023 at 9:55 AM, downtownian said:

There is a lot of available Class A (or A+) space downtown for cheap. 

Most of that is older office space, a lot which probably hasn't been renovated recently. Big companies like Chevron tend to build their own spaces for their workers, because they want newer, top of the line office space for their employees to draw top talent. Older buildings built in the 80s won't cut it.

[Tumbleweed_Tx]

On 10/27/2023 at 1:10 PM, MidCenturyMoldy said:

We old-timers have heard this kind of nonsense before. I think it was 1974 when Houston (The city of the future!) was “on track to becoming the largest city in the world” in the not-so-distant future. 🙄

yes, then right after they scaled back plans for the "city of tomorrow," half of the Rust Belt moved to Houston.

I used to have a bumper sticker that said, "Will the last person leaving Michigan please turn off the light?"

[mkultra25]

7 hours ago, Tumbleweed_Tx said:

yes, then right after they scaled back plans for the "city of tomorrow," half of the Rust Belt moved to Houston.

I used to have a bumper sticker that said, "Will the last person leaving Michigan please turn off the light?"

That, and the ever-popular "Drive 70 and freeze a Yankee."

[Ross]

1 hour ago, mkultra25 said:

That, and the ever-popular "Drive 70 and freeze a Yankee."

Along with "Drive 75 and freeze 'em alive"

[Triton]

 

After hearing that Chevron is moving their HQ to downtown....

🤞

[shasta]

With the HQ news, Is this project back "On The Boards"?

 

Hopefully, we can get a refreshing new design!

[HoustonIsHome]

I liked the old design.

The podium was very interesting 

[EllenOlenska]

oh, well, I like a glass box, if only it was a sinister smoky violet color glass

[CREguy13]

Building a new headquarters is the likely outcome, whether it's in Bridgeland or at their current campus. A large-scale mixed-use development on all the blocks they own near Allen Center could supercharge this side of downtown. 

[kennyc05]

46 minutes ago, CREguy13 said:

Building a new headquarters is the likely outcome, whether it's in Bridgeland or at their current campus. A large-scale mixed-use development on all the blocks they own near Allen Center could supercharge this side of downtown. 

I would think they would just stay downtown they already own the two towers.

[houstontexasjack]

1 hour ago, CREguy13 said:

Building a new headquarters is the likely outcome, whether it's in Bridgeland or at their current campus. A large-scale mixed-use development on all the blocks they own near Allen Center could supercharge this side of downtown. 

From your lips to Mike Wirth’s ears…..

[Triton]

1 hour ago, kennyc05 said:

I would think they would just stay downtown they already own the two towers.

Again, I think we've already had multiple confirmations that they are sticking to downtown. That was their commitment.

[kennyc05]

25 minutes ago, Triton said:

Again, I think we've already had multiple confirmations that they are sticking to downtown. That was their commitment.

I just hope they come with the third tower that part of downtown needs some love!

[LosFeliz]

They should throw the gauntlet down on XOM and buy the old Exxon Building, transform it into residential+ hotel to serve their campus, and reopen the Petroleum Club and lay claim to Houston.

[hbg.50]

7 hours ago, LosFeliz said:

They should throw the gauntlet down on XOM and buy the old Exxon Building, transform it into residential+ hotel to serve their campus, and reopen the Petroleum Club and lay claim to Houston.

Ha ha.  Chevron is in a big fight with Exxon right now over Hess.  The dispute likely won't be settled for another year.  If Chevron wins maybe they will stick it to Exxon.  Right now though Exxon has the upper hand (stronger Financials).

[houstontexasjack]

8 hours ago, LosFeliz said:

They should throw the gauntlet down on XOM and buy the old Exxon Building, transform it into residential+ hotel to serve their campus, and reopen the Petroleum Club and lay claim to Houston.

Exactly. 
 

Sometimes it is a big dick competition. ~ Succession (2018) http://getyarn.io/yarn-clip/b409e703-038e-42b8-908a-7dbd7f4fa944

[Houston19514]

59 minutes ago, hbg.50 said:

Ha ha.  Chevron is in a big fight with Exxon right now over Hess.  The dispute likely won't be settled for another year.  If Chevron wins maybe they will stick it to Exxon.  Right now though Exxon has the upper hand (stronger Financials).

What’s the fight over Hess ?

[hbg.50]

39 minutes ago, Houston19514 said:

What’s the fight over Hess ?

"The oil majors are fighting over an ownership interest in a particularly productive oil discovery off Guyana. In October, Chevron agreed to buy Hess, which owns a 30% non-operating stake in the Guyana project that is operated by Exxon. Exxon has argued that it has a right of first refusal to Hess' stake in the project."