Chevron Tower For Downtown At 1600 Louisiana St.

[wxman]

That's awesome news as we will need a big ass crane in the sky in 2016 and for the Super Bowl.

 

Doubtful. I suspect that even IF the building broke ground on Jan 1, 2016, you wouldn't have a very tall building in a year's time. What you guys think? Maybe 20 stories up by the time Super Bowl gets here? 

[Tumbleweed_Tx]

No, maybe 3 or 4 floors

[toxtethogrady]

Quit thinking it will be built like Block 334!

 

One coffee bean...two coffee beans...

[toxtethogrady]

The race is on between this and Ross Perot's tower in Dallas...

[bobert]

The hype for this tower in this current environment is incredible. Oil fell 50% not the 80s but everyone is rethinking everything. Everything.

[houstontexasjack]

Getting back to topic, I doubt we will see much above ground level by the time the Super Bowl comes around. If this gets going in 2016, I suspect it would be in the 2nd half of the year. I am ever optimistic that it will get built eventually, but Chevron can keep that lot blank to their heart's content without a significant tax or liability-risk hit.

[The Pragmatist]

Where did the 832' height number come from?  Wasn't that just an estimate based on how it looks surpassing 1600 Smith?

 

Just as a note, since someone posted the FAA filings for another building, I went and looked this one up on the website.

 

The initial HOK rendering was proposed at 859 feet in height.

 

https://oeaaa.faa.gov/oeaaa/external/searchAction.jsp?action=displayOECase&oeCaseID=202116051&row=0

 

Whether that's true anymore with potential changes as it's on hold, who knows?

[Sparrow]

Just as a note, since someone posted the FAA filings for another building, I went and looked this one up on the website.

 

The initial HOK rendering was proposed at 859 feet in height.

 

https://oeaaa.faa.gov/oeaaa/external/searchAction.jsp?action=displayOECase&oeCaseID=202116051&row=0

 

Whether that's true anymore with potential changes as it's on hold, who knows?

 

Also says 52 stories.

[Luminare]

OMG ITS NOW 52 STORIES.....it must be the FAA's doing right? RIGHT? pffffffffffft lol

[cloud713]

Looks like they have until the end of July to take action without having to refile an application? Is that what the expiration date means?

[houstontexasjack]

I thought it was 52 stories on top of a 6-story podium for a total of 58. 859 feet would be quite nice.

[H-TownChris2]

I thought it was 52 stories on top of a 6-story podium for a total of 58. 859 feet would be quite nice.I t

I thought so too, although if we look back at brijonmang, he said that it was 52 stories a top of the 6 story podium on 11/13/14, the website of the FAA was received on the 20th the same month, maybe they chaned their minds? Idk? Or maybe they forgot to mention it at the time, or maybe it was under consideration. I have no idea...

[Lospringer]

I'm pretty sure it's not going to be redesigned. It's just on hold for the time being. It's the largest project in Houston in the last 30 years, let's just be happy there will be a new addition to the skyline.

[Triton]

I'm pretty sure it's not going to be redesigned. It's just on hold for the time being. It's the largest project in Houston in the last 30 years, let's just be happy there will be a new addition to the skyline.

Economics have changed from even 2 years ago (construction cost, the market, etc.) so the design could certainly have changed. Like I said a couple of months ago, sure, they may be committed to build a tower but who knows what the end result will be. I'm hoping for the best, prepared for whatever else comes.

[Lospringer]

Economics have changed from even 2 years ago (construction cost, the market, etc.) so the design could certainly have changed. Like I said a couple of months ago, sure, they may be committed to build a tower but who knows what the end result will be. I'm hoping for the best, prepared for whatever else comes.

 

I think it will be all or nothing. They'll build the tower they originally planned or they won't build a tower at all. I don't think they'll waste that lot on a scaled down building that won't serve their future needs.

[cspwal]

I think it will be all or nothing. They'll build the tower they originally planned or they won't build a tower at all. I don't think they'll waste that lot on a scaled down building that won't serve their future needs.

I don't know - my company is looking at building a new scaled down building that won't serve our future needs. Investors/board members can sometimes be very conservative with their capital money now even with a clear savings in the next few years

[Lospringer]

I don't know - my company is looking at building a new scaled down building that won't serve our future needs. Investors/board members can sometimes be very conservative with their capital money now even with a clear savings in the next few years

 

I agree with you. I think they'll be conservative and not build the tower as opposed to a building that essentially will cost a lot and not yield enough space. If they don't build now I feel like it will be down the road a few years and it will be what they originally planned but there is plenty of office space to lease in adjacent buildings downtown until they think it's the right time to build.

[toxtethogrady]

WTI is $56 a barrel this evening. Slowly, slowly...

[Timoric]

On 4/16/2015 at 12:59 AM, toxtethogrady said:

WTI is $56 a barrel this evening. Slowly, slowly...

 

-

Edited July 8, 2019 by Timoric

[toxtethogrady]

I guess that's a concrete example of the value of a smaller, fuel-efficient car.

[Tumbleweed_Tx]

http://www.click2houston.com/news/chevron-to-cut-close-to-1000-jobs-in-houston/34404818

 

I think we can say this is on indefinite hold.

[Avossos]

http://www.click2houston.com/news/chevron-to-cut-close-to-1000-jobs-in-houston/34404818

I think we can say this is on indefinite hold.

Not directly related, but oil prices need to go up a bit to get some real estate moving

[Triton]

http://www.bizjournals.com/houston/news/2015/07/28/chevron-axes-houston-jobs.html

 

As others have stated, there's no way this tower is happening anytime soon.

[Naviguessor]

How many employees will Chevron have left in San Ramon? Anyone know?

[Montrose1100]

http://www.bizjournals.com/houston/news/2015/07/28/chevron-axes-houston-jobs.html

The article says "as early as next year".

As others have stated, there's no way this tower is happening anytime soon.

[Triton]

 

http://www.bizjournals.com/houston/news/2015/07/28/chevron-axes-houston-jobs.html

The article says "as early as next year".

As others have stated, there's no way this tower is happening anytime soon.

 

 

Of course the article says that. Again, that was in March when things were looking better. It looked like the price was improving then. Am I the only person following the staggering amount of supply? Texas is going to hit record production this year since the 70s and the demand just still isn't there. The global economy just doesn't need this amount of supply right now so the price is obviously going to go lower, thus affecting the oil industry more in this city.

 

Are lay offs and budgets cuts not obvious that this tower will not be built even close to a year from now? I still think this tower will get built but I think this forum needs to start getting more realistic. Months ago people on this forum criticized swtsig, me and others when we said it's obvious that these projects are going to get delayed. What do we see more often now? Delay after delay, with very few starts compared to 2013 and 2014. We'll still see new projects but nothing close to the rate we saw those years.

 

I'm sorry for sounding so negative. I love this city and it's future is so bright.... but I truly believe we need to be realistic here.

[Naviguessor]

It may be a sign that the HQ may move. That'd save money and may even be a reason to expand here. Perhaps not with this tower...but you have to think that this is now a more realistic possibility.

[Montrose1100]

Of course the article says that. Again, that was in March when things were looking better. It looked like the price was improving then. Am I the only person following the staggering amount of supply? Texas is going to hit record production this year since the 70s and the demand just still isn't there. The global economy just doesn't need this amount of supply right now so the price is obviously going to go lower, thus affecting the oil industry more in this city.

Are lay offs and budgets cuts not obvious that this tower will not be built even close to a year from now? I still think this tower will get built but I think this forum needs to start getting more realistic. Months ago people on this forum criticized swtsig, me and others when we said it's obvious that these projects are going to get delayed. What do we see more often now? Delay after delay, with very few starts compared to 2013 and 2014. We'll still see new projects but nothing close to the rate we saw those years.

I'm sorry for sounding so negative. I love this city and it's future is so bright.... but I truly believe we need to be realistic here.

Triton, I value your contributions to this site as much as swtsig. So let me ask you this. Would constructing this tower during the price slump, and lowered construction costs (future), not be beneficial and make more sense in the long run? I know entire industries exist off of the big oil companies. Leasing space, leasing equipment, leasing land, even leasing head counts.

What kind of numbers are we looking at? What is the current price of the space leased versus the price of owning the building? How long is the lease for? Do these companies experience less overall costs when renting? Are those savings short term or long term? Would building this tower after the market has cooled be more cost effective than renting space in an inflated, and deflated market?

Does Chevron plan to move all operations out of California and into Texas (we may not know for a while), but how much less taxes/expenses are they paying here than on the west coast? Do those numbers factor in building a new skyscraper to accommodate the necessary office space?

I know you may not have the direct answer to all, if any of those questions... But know that my curiosity comes from wanting to know facts rather than a dreamt up fantasy of wanting a shiny new tower, and short term oil prices.

[houstontexasjack]

Iranian production will be coming to the market soon with a lift of sanctions. The Saudis show no sign of slowing their oil production (and probably wouldn't want to benefit the Iranians anyways).

The HQ move has been often discussed, but current leadership at Chevron has shown no desire to move from San Ramon. With profits falling and shareholders unhappy, Chevron leadership would have a harder time justifying this project right now. Two or three years from now we might see higher prices again (hopefully in response to more robust demand). And we also just might get new decisionmakers at the top of Chevron who might be more amenable to dumping the Bay Area.

[Triton]

Triton, I value your contributions to this site as much as swtsig. So let me ask you this. Would constructing this tower during the price slump, and lowered construction costs (future), not be beneficial and make more sense in the long run? I know entire industries exist off of the big oil companies. Leasing space, leasing equipment, leasing land, even leasing head counts.

What kind of numbers are we looking at? What is the current price of the space leased versus the price of owning the building? How long is the lease for? Do these companies experience less overall costs when renting? Are those savings short term or long term? Would building this tower after the market has cooled be more cost effective than renting space in an inflated, and deflated market?

Does Chevron plan to move all operations out of California and into Texas (we may not know for a while), but how much less taxes/expenses are they paying here than on the west coast? Do those numbers factor in building a new skyscraper to accommodate the necessary office space?

I know you may not have the direct answer to all, if any of those questions... But know that my curiosity comes from wanting to know facts rather than a dreamt up fantasy of wanting a shiny new tower, and short term oil prices.

 

You raise good points. There's so many factors into what the company's next move is. Let me just say this... it doesn't make sense for them to spend billions of dollars when they are trying to save billions of dollars. Companies are like people... do most people spend a significant amount of money when there's a slump or do they wait it out until the market improves? Perhaps that all depends on how much Chevron is willing to risk in building it sooner. But anyway, the writing on the wall cannot be any clearer. Chevron was hoping the market would improve, it didn't. It had to make a tough decision and it laid off hundreds of contractors, regular employees, etc. Montrose1100, I would be absolutely glad if I was wrong and this tower started early next year. But we're talking about massive budget cuts here... there's no room for a multi-billion dollar tower.