Energy Corridor Real Estate Makes First Quarter Gains
As one of Houston’s historically strong office markets with over 26 million square feet of office space, the Energy Corridor on the west side of town boasts big names in energy sector companies and proximity to suburban housing developments. In Q1 of 2019, the area saw several major acquisitions that hint at a trend of upward growth in the area, as well as accelerated investor interest.
Switzerland-based offshore drilling company Transocean Ltd. announced the lease of all 300,000SF of Enclave Place, located at 1414 Enclave Parkway, vacating their space at 4 Greenway Plaza. The Energy Corridor building, located on a 4.7-acre site in the Enclave Business Park, had been vacant since its construction in 2015. Meanwhile, another Greenway Plaza tenant, Occidental Petroleum, is also vacating its space to relocate to the 62-acre campus on North Dairy Ashford that was previously occupied by ConocoPhillips. The engineering and construction firm McDermott International is expected to consolidate five of its Houston-area offices into Energy Center Five, an 18-story tower on North Eldridge Parkway. The company will begin working in the building in the third quarter of 2019.
In February of 2019, Belvoir Real Estate Group and The Mission Companies purchased 15810 Park Ten Place, located in the Energy Corridor, in a joint venture. While Belvoir initiated its successful leasing efforts while under contract – securing an 18,000SF lease with SLI Group – a recent series of leasing transactions has taken the occupancy from 60% to 90% in just 60 days. This development reflects the continued growth of Houston’s real estate market, as well as in the Energy Corridor itself.
As the second-largest employment center in the region, Houston’s Energy Corridor continues to expand its real estate offerings. Its growth in the first quarter of 2019 is a solid projection for what’s to come for the rest of the year.