Commercial real estate development in the Houston Metro area is growing at a lightning fast pace. It is becoming apparent that the healthy economy in downtown Houston is increasing the level of demand for additional office space. There have been a number of recent relocations within the city itself, and a host of energy firms are relocating into the so-called ‘Energy Corridor’. The existing level of buildings simply can’t cope with the new growth, so further commercial real estate is needed in the Houston Metro region. In this update, we outline three major redevelopments in the area.
Chevron’s New Skyscraper
A 50-story building that will ultimately span 1.7 million square feet is being built at 1600 Louisiana by Chevron. It is to be built right next to the company’s 1400 Smith and 1500 Louisiana buildings. An estimated 1,700 high-paying jobs will be created where employees will be earning an average of $110,000 per annum. The land was empty green space until Chevron came along and decided to expand its stake in downtown Houston.
A $12 million grant certainly helped the company make its mind up and Governor Rick Perry was delighted with the news. He said that the Texas model is a great blueprint for job creation and praised Chevron for its contribution to the local economy in Houston. The building is expected to
be completed by the first quarter of 2016.
This multifamily investment and development company has just purchased five Houston developments which total approximately 1,132 units. The entire cost price of the acquisition was $35 million and is seen as a key move to expand beyond the company’s Florida base. Yamil Yidios Char is the CEO and President of the company and he was delighted with the move and stated that the new units were a perfect fit for the company portfolio. The Lynd Co. will be responsible for the property management of the developments, and it is hoped that YTech International will add something extra to the multifamily real estate market in Texas.
BHP Billiton Tower
The Uptown/Galleria region of Houston received a commercial real estate boost recently when work began on the 30-story BHP Billiton Tower. The Galleria skyline has barely been altered in the last 30 years so. It is an area that corporations looking to set up shop in Houston are sure to look at in the future. Already, we have seen BBVA and Skanska build towers in the area and BHP’s offering is the third such development in quick succession.
The building will comprise 600,000 square feet when it is completed and will be fully leased by BHP Billiton of Australia. Transwestern, a local real estate development and leasing firm, will be developing this new project and hope to have it completed by 2016.
As you can see, the Houston area is hot for commercial real estate due to the ever-improving economy. Even the residential housing market is growing with 28 consecutive months of home sale increases. We have had the gloom and now it seems that the next time we enjoy a boom, Houston will be at the heart of it!
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