Occidental Petroleum Putting Greenway Plaza Space Up for Sublease, to Move West

 

By OLIVIA PULSINELLI

HOUSTON – Houston-based Occidental Petroleum Corp. (NYSE: OXY) is adding more than 800,000 square feet of space in Greenway Plaza to the sublease market.

According to the latest NAI Partners Sublease Index, Oxy put 746,070 square feet in 5 Greenway Plaza and 67,525 square feet in 3 Greenway Plaza up for sublease in June. CBRE Group Inc.’s (NYSE: CBRE) Houston Office Marketview for the second quarter of 2018 also says Oxy will sublease its Greenway Plaza space and “move to a newly constructed, owned property to the west.”

The move pushes Greenway Plaza’s total Class A space available for sublease to nearly 875,000 square feet, per CBRE’s Marketview report.

Brandon Clarke with CBRE is the lead listing agent on Oxy’s sublease space.

Earlier this year, Oxy and Houston-based ConocoPhillips (NYSE: COP) confirmed to the Houston Business Journal that they were in talks for a commercial real estate deal. In March, an internal memo from ConocoPhillips said the company was in “agreement” to sell the main campus to Oxy subject to completion of all due diligence and other terms of the agreement. The deal was expected to close after ConocoPhillips moves into its new headquarters, Energy Center 4, at 925 North Eldridge Parkway. ConocoPhillips’ move was announced in November 2016 and expected to begin in the third quarter.

On March 27, Oxy told its employees in an internal memo it was “evaluating” the acquisition of ConocoPhillips’ former campus at 600 N. Dairy Ashford in the Energy Corridor. The campus contains 1.4 million square feet of space and sits on around 62 acres.

Oxy announced in 2014 that it was relocating its headquarters from Los Angeles to Houston, but its local office has been in Greenway Plaza since 1987. The company leases approximately 961,000 square feet in 3 Greenway and 5 Greenway, according to PMRG research, and its lease expires in December 2026.

ConocoPhillips is No. 6 on HBJ’s 2018 Largest Houston-Based Public Companies List, based on its 2017 revenue of $29.11 billion. Oxy is No. 12 with 2017 revenue of $12.51 billion.

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