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Downtown Office Market


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Shell Oil Company 5,744

Harris County 4,750

Exxon Mobil Corporation 4,420

City of Houston 4,000

JPMorgan Chase 3,000

Continental Airlines 2,824

Foley's 2,500

US Post Office 2,314

CenterPoint Energy 2,199

US Government 2,100

Christus St. Joseph Hospital 1,869

Bank of America 1,812

Halliburton 1,796

Reliant 1,760

ChevronTexaco * 1,700

Bank One Texas 1,200

Waste Management, Inc 1,200

Houston Chronicle 1,100

Deloitte & Touche L.L.P 980

Vinson & Elkins, LLP 903

PricewaterhouseCoopers, L.L.P. 893

Devon 875

Fulbright & Jaworski LLP 843

El Paso Corporation ** 800

Lyondell Petrochemical Co 788

Ernst & Young 771

Dynegy 700

Baker & Botts 692

University of Houston-Downtown 655

Southwest Bank of Texas 646

Kinder Morgan 600

Metropolitan Transit Authority 544

KPMG Peat Marwick 506

Amerada Hess Corporation 500

Calpine 500

*ChevronTexaco is relocating employees to downtown, after which it expects to employ 4,100 in downtown by the summer of 2005.

**El Paso is relocating employees to downtown, and expects to employ 2,900 in downtown by the end of 2004.


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Does anybody know roughly, how many people work downtown? With numbers like these, surely we could support a lot more residential downtown that we have now. Just a small percentage of 100,000 wanting to live near work would make a attractive downtown residential market.

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In an attempt to be as least productive as possible today I broke down that list into:

oil 15,035

public 13,708

financial 9,808

energy 6,559

travel 2,824

retail 2,500

law 2,438

hospital 1,869

waste 1,200

media 1,100

chemical 788

education 655

total 58,484

there is some grey area. fine line on some energy/oil and some financial/law.

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Even though May owns Foley's and is based in St. Louis, May operates each department store brand under its umbrella pretty independently. Almost all of the buyers, HR, finanical, and promotions work for Foley's comes out of their office, which is above the store downtown.

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  • 3 weeks later...

Feb. 27, 2005, 7:20PM

Report: Federated to buy May for $10.4 billion

Associated Press


CINCINNATI -- Federated Department Stores Inc., operator of Macy's and Bloomingdale's, has reached a deal to buy rival May Department Stores Inc., owner of Foley's in Houston, for $10.4 billion, according to a published report.

The boards of the two companies approved the deal over the weekend, according to the Washington Post, which cited anonymous sources close to the deal. Exact details of the deal could not be determined, but the Post reported that Federated will pay about $35.50 in cash and stock for each May share.

The deal would bring together Cincinnati-based Federated with the company known for its Marshall Field's and Lord & Taylor chains, creating a company with 1,000 stores and $30 billion in annual sales.

The merger comes as retailers look to consolidate in order to reduce advertising and other costs while gaining bargaining power with suppliers. Just last November, Kmart Holding Corp. agreed to buy Sears, Roebuck & Co. for $11.5 billion.

Federated and St. Louis-based May have discussed a possible merger on and off for a couple of years, but speculation heated up when May Chief Executive and Chairman Gene Kahn abruptly left in January. That cleared the way for Federated Chairman and CEO Terry Lundgren to head the combined entity.

May stock has been rising in recent weeks in anticipation of a deal, including a 4 percent jump, or $1.50 a share, to close at $35.35 in trading Friday on the New York Stock Exchange. The stock has ranged in price from $23.04 to $36.48.

Federated shares closed at $56.79 on Friday, near the upper end of its 52-week range of $42.80 to $59.91.

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  • 4 months later...

This is a press release we received today from Crescent Real Estate, a company which owns a number of buildings in Houston including Greenway Plaza and Houston Center.


Crescent Announces Lease Termination Agreement with El Paso Corporation

FORT WORTH, Texas, Jul 18, 2005 (BUSINESS WIRE) -- Crescent Real Estate Equities Company (NYSE: CEI) announced today that its subsidiaries, Crescent Real Estate Funding III, L.P., and Crescent Real Estate Funding V, L.P., have signed an agreement with Crescent's largest office customer, El Paso Corporation ("El Paso"), which will terminate El Paso's leases effective December 31, 2007. Under the agreement, El Paso is required to pay in cash to Crescent:

-- $65 million in termination fees in periodic installments through December 31, 2007; and

-- $62 million in rent according to original contractual lease terms from July 1, 2005, through December 31, 2007.

Crescent plans to immediately begin re-marketing all space not currently subleased. Crescent can collect rent simultaneous with El Paso's rent if the vacant space of approximately 762,000 square feet is re-leased before 2007.

In May 2004, El Paso notified Crescent that, as part of its long-range plan to reposition the company, it was consolidating its personnel from Crescent's Greenway Plaza to a building El Paso owns in downtown Houston. At the time, El Paso was under lease obligations for 912,000 square feet in Greenway Plaza, a 4.3 million square-foot, mixed-use, Class A complex located in one of Houston's premier submarkets. Since then, 24,000 square feet of the original lease have expired, leaving El Paso contractually responsible for 888,000 square feet. El Paso is current on all rental obligations, and, under the termination agreement, will continue paying rent through 2007. Original expirations for the space ranged from 2007 through 2014.

John C. Goff, Crescent's vice chairman and chief executive officer, commented, "We have been working with El Paso for some time now on an agreement that satisfies both Crescent's and El Paso's two very distinct goals. Crescent's desire was to arrive at an appropriate termination fee while having the time and the opportunity to re-lease El Paso's space prior to termination. El Paso, on the other hand, wanted to consolidate its Houston-based workforce to one location. We believe that we reached an agreement that works well for both parties."

Regarding Crescent's plans to re-lease the El Paso space, Goff added, "We are bullish about the Houston office market and, specifically, the attractiveness of Greenway Plaza as an office location. We believe that it is realistic to re-lease this space by the end of 2007."

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good and bad news. Good news for downtown. Bad for Greenway.

A positive lining? Downtown will get more workers. Also, office space in Greenway which I assume is cheaper than downtown is now on the market for some smaller businesses to rent out.

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A positive lining?  Downtown will get more workers.  Also, office space in Greenway which I assume is cheaper than downtown is now on the market for some smaller businesses to rent out.

ElPaso moved out a while back.

Our company just subleased one of the top floors in Greenway #9....it is a much better deal than the terrible little dump we left behind.

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There's one major flaw about Greenway:

Mass transit. The only bus that goes by here from a commuter's standpoint is Northwest Transit Center. So, if I were coming from Katy, I'd have to go to Addicks, get the bus to NWTC, which then winds its way down 610 and eventually over to Greenway. If you ask me, that's just way too much bus switching for one person in the morning.

Most of the companies here, like Direct Energy, have MetroVans that employees started up. But most of them are already full. I can't imagine coming in from, say, Spring to Greenway. :shudder:

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The woodlands have a express bus service to Greenway and Downtown.

The WestPark Tollway and Fort Bend Parkway will help commuters alot to Greenway, but Katy still has problems getting in there.

I guess with the BRT from the NWTC to the proposed East-West LRT line would give them a way to get there without having to get on I-610.

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Perhaps they could start leasing the downtown buildings out to medical professionals(since there is an extreme shortage of space for doctors, dentists, etc.). If this was done, then I'm sure a big chunk of that vacancy would be taken up.

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