The Energy Corridor Market is “Definitely” in Recovery Phase

 

The office market in The Energy Corridor is “definitely recovering,” said David S. Wolff, Chairman and President of Wolff Companies, in a recent interview with Realty News Report. As one of the first developers in The Energy Corridor, Wolff has played a leading role in its economic development for five decades. With his long term perspective, Wolff sees connections between the past, present and future of the region.

“I think it is definitely recovering. The factors that made it attractive during the initial phases are those that prevail today,” Wolff said. While energy companies maintain a strong presence, Wolff also noted, “There are important non-energy companies such as Sysco and Toyota with major headquarters in the area. And now the largest aggregation of healthcare facilities outside the Texas Medical Center. MD Anderson is completing its new $200 million development in our Central Park which will open in the next 90 days to join Methodist and Texas Children’s. So, The Energy Corridor is diversifying with more energy companies joined by healthcare and non-energy companies. Whether in the future it is called the Energy Corridor or the ‘Downtown of West Houston’ is not important. The attraction is still the same: accessibility, job formation, desirable new housing and attractive school districts.”

He also noted a few examples of real estate activity in The Energy Corridor, which he says are positive indicators:

• Occidental Petroleum is scheduled to close later this month on its acquisition of an expansive 62-acre campus formerly owned by ConocoPhillips which includes about 1.4 million-square-feet of space at the campus located off Interstate 10 at 600 North Dairy Ashford Road.
• ConocoPhillips relocated its headquarters from the campus to Energy Center Four, adjacent to additional space it occupies in Energy Center Three. The company now resides in 1.15 million square feet at its consolidated offices.
• Transocean Ltd., a Switzerland-based offshore drilling company, leased 300,000 square feet of office space at Enclave Place, located at 1414 Enclave Parkway, north of Briar Forest Drive.
• Schlumberger Technology Corporation signed a 10-year lease renewal and expansion for 226,000 square feet at 1430 Enclave Parkway.
• London-based BP leased 91,000 square feet in West Memorial Place II at 15375 Memorial Drive for its Lower 48 division.
• Saudi Aramco built a new 60,000 square foot research center – the company’s largest research facility in the United States – at 16300 Park Row in Wolff Companies’ Park 10.
• Air Liquide moved from Uptown to 597,000 square feet in Memorial City where they constructed a 20-story, 452,000 square-foot tower and an adjacent 145,000 square foot building, located at 9811 and 9807 Katy Freeway.

In his interview, Wolff also noted the now confirmed rumor that Marathon Oil Corporation will move from Uptown to a new 600,000 square foot tower located at the Katy Freeway and Sam Houston Tollway near CityCentre.

After the article was written, more evidence of recovery emerged with a report that Houston-based McDermott International Inc., an engineering firm that services energy companies, is in discussions to lease space in Energy Center Five, a 524,397-square-foot office tower at 915 North Eldridge Parkway.

Looking to the future, Wolff pointed out construction of the Grand Parkway has spurred continued development of quality homes within close proximity of The Energy Corridor, which companies have always valued when choosing a location.

“I have been developing in Houston for more than 50 years – I came here when the population was 1.2 million, now it is 7 million – and I tell people that Houston can be a difficult city to predict,” said Wolff. “But the strength of our city is based on it being an open society which is growth oriented and optimistic. As long as these factors continue, I share in that optimism.”

Wolff Companies’ Central Park, a 78-acre mixed-use development, is strategically located in the heart of The Energy Corridor, home to more than 300 multinational companies. Central Park is ideal for corporate office, high-density residential, institutional, hospitality and retail. As the future home of MD Anderson Cancer Center’s $169-million, 216,000-square-foot diagnostic and treatment center opening early next year, Central Park is also attractive for healthcare/medical facilities.

Wolff Companies’ Ten Oaks, at the northwest corner of Barker Cypress Road and Park Row, is adjacent to the Texas Medical Center – West Campus, which include the west campuses of Texas Children’s Hospital and Houston Methodist Hospital.

For more information about Wolff Companies, please visit www.wolffcompanies.com or call Carolyn Wolff Dorros at 713-626-8050.