Technip Energies signs major lease for relocation of U.S. headquarters to one of Energy Corridor’s greenest buildings

“We want an environment that is conducive to performance, well-being and quality of life at work,” Katherine Cao, head of real estate, Americas, for Technip Energies, said in an email.

The company occupies about 375,000 square feet at Energy Tower II, according to Mark Reilly, vice president, tenant representation at commercial real estate brokerage JLL.

“It’s a downsizing, but it’s also an opportunity for them to implement the new-age workplace,” Reilly said. “This was an opportunity to get them not only into a higher-quality building, but into a building that aligns with their sustainability initiatives.”

Cao added, “A key feature of the new building will be our efforts to reduce our carbon footprint.”

Newer buildings such as West Memorial Place, however, are outperforming older ones. As companies continued to trade up to nicer space, buildings built since 2014 saw their vacancy rate drop to 13.4 percent in the first quarter, according to JLL.

As part of its lease, Technip will get its name atop the West Memorial Place II building, where it will occupy the top six floors, according to Houston-based Fuller Realty. The space has never been occupied since the building was completed in 2016.

West Memorial Place, a two-building, 715,000-square-foot campus on Memorial Drive, was developed by Skanska to Leadership in Energy and Environmental Design Platinum standards, a green building rating system. It is one of the few LEED Platinum office campuses in west Houston, giving Fuller an edge in attracting tenants.

The West Memorial Place campus offers a gym and locker room in each building, a full-service deli, a restaurant and bar open seven days a week, a conference center and bocce ball court. Fuller plans to add several food truck options.

West Memorial Place I recently signed Modec, a global supplier and operator of offshore production systems, to a 116,161-square-foot lease. The two recent transactions, among the largest in Houston over the past year, are a big score for Fuller, which will lift occupancy of the campus from 65 percent at the time of purchase in early 2022 to nearly 90 percent next year. Technip Energies will be the largest tenant at the campus, which also houses BP’s U.S. onshore business BPX Energy, marine geophysics company PGS, and financial companies Raymond James and Merrill Lynch.

“The headlines read how Houston office has been struggling, but some markets are excelling,” said Johnny Kight, a principal at Fuller Realty. “If you look across all west Houston in the true Class A, newer generation buildings, direct space in large contiguous blocks is tightening up at an incredible rate.”

Several recent west Houston deals represent space reductions as companies adjust to hybrid work. Apache has announced plans to consolidate its Houston employees next year in 328,000 square feet in Briarlake Plaza in Westchase. Mattress Firm said it was moving to a smaller headquarters with 55,855 square feet at 3250 Briarpark in Westchase. And Baker Hughes is consolidating to 130,000 square feet at 575 Dairy Ashford Road.

Graham Horton and Mark Reilly of JLL represented Technip Energies in the lease. Johnny Kight, Stewart Smith and Aaron Ander of Fuller Realty represented the landlord.