Houston CORE developments thread (Baytown, Pearland: option to buy, contractor, to move)

[SanJac]

Originally Posted by ParaguaneroSwag

LyondellBassell will be transferring an estimated 1,300 employees from their downtown office at 1 Houston Center to the Williams Tower in Uptown.

https://www.houstonchronicle.com/bus...nd%20expansion

Bigger loss for Downtown or win for Uptown?

Much bigger loss for downtown, especially since LyondellBassell literally just completed a renovation of their downtown offices.

[Mr. Clutch]

Originally Posted by SanJac

Much bigger loss for downtown, especially since LyondellBassell literally just completed a renovation of their downtown offices.

Agreed. The trickle of companies from Downtown westward continues...

[ParaguaneroSwag]

Originally Posted by Mr. Clutch

Agreed. The trickle of companies from Downtown westward continues...

Right. The only 2 major expansions/relocations downtown I can think of since the pandemic are JPMorgan Chase (expansions) and Hines (relocations). Hines and LyondellBasell traded hoods thought Hines has less than half of Lyondell’s footprint.

The next major question will be Chevron. They acquired that land in Bridgeland, I wouldn’t be surprised if they make the move North just like ExxonMobil. Chevron eill be a harder building to convert to residential than ExxonMobil

[LocalPlanner]

Originally Posted by ParaguaneroSwag

Right. The only 2 major expansions/relocations downtown I can think of since the pandemic are JPMorgan Chase (expansions) and Hines (relocations). Hines and LyondellBasell traded hoods thought Hines has less than half of Lyondell’s footprint.

The next major question will be Chevron. They acquired that land in Bridgeland, I wouldn’t be surprised if they make the move North just like ExxonMobil. Chevron eill be a harder building to convert to residential than ExxonMobil

In general, I expect firms that aren't in the legal or finance sectors to migrate westward or northward out of Downtown and Greenway (the latter was *really* lucky Oxy stayed there). Uptown may receive some of this migration, but it's only a partial replacement for non-legal or finance firms that have already migrated west like Apache and Bechtel.

The big problem is that so much of the professional workforce outside of legal and finance seems to want to live in the outermost suburbs, not the inner or middle suburbs. It was easier for firms to locate in Downtown, Greenway and Uptown when its workforce mostly lived inside SH 6 / south of Spring Cypress Rd. Now lots of their folks live outside the Grand Parkway.

[ParaguaneroSwag]

Originally Posted by LocalPlanner

In general, I expect firms that aren't in the legal or finance sectors to migrate westward or northward out of Downtown and Greenway (the latter was *really* lucky Oxy stayed there). Uptown may receive some of this migration, but it's only a partial replacement for non-legal or finance firms that have already migrated west like Apache and Bechtel.

The big problem is that so much of the professional workforce outside of legal and finance seems to want to live in the outermost suburbs, not the inner or middle suburbs. It was easier for firms to locate in Downtown, Greenway and Uptown when its workforce mostly lived inside SH 6 / south of Spring Cypress Rd. Now lots of their folks live outside the Grand Parkway.

JPMorgan has a big internship program right there. I doubt thats reason stay there but they certainly take advantage of their proximity to UH and Rice. But even in finance there’s been relocations to Uptown. You’re right that law is another notable one that’s skewed downtown. And of course city services will probably stay downtown for a very long time.

But like I said, all eyes are on Chevron. That will be the next game changing potential move. At least JPMorgan, KBR, Centerpoint, Accenture, United and Enterprise are probably staying put for a while.

[LocalPlanner]

Originally Posted by ParaguaneroSwag

JPMorgan has a big internship program right there. I doubt thats reason stay there but they certainly take advantage of their proximity to UH and Rice. But even in finance there’s been relocations to Uptown. You’re right that law is another notable one that’s skewed downtown. And of course city services will probably stay downtown for a very long time.

But like I said, all eyes are on Chevron. That will be the next game changing potential move. At least JPMorgan, KBR, Centerpoint, Accenture, United and Enterprise are probably staying put for a while.

Yeah Chevron is one to watch. However, they own their Downtown properties, not a lease. Not a good time to sell legacy office buildings these days, so financially it would be a hit for them (of course I don't know how much they might have written down the property value already on their books), if that matters. They may care more about keeping employees happy, and you can bet a whole lot of them live in the Katy / Cypress areas.

[ParaguaneroSwag]

Originally Posted by LocalPlanner

Yeah Chevron is one to watch. However, they own their Downtown properties, not a lease. Not a good time to sell legacy office buildings these days, so financially it would be a hit for them (of course I don't know how much they might have written down the property value already on their books), if that matters. They may care more about keeping employees happy, and you can bet a whole lot of them live in the Katy / Cypress areas.

Well what Chevron would make in a sale of that building would be negligible to their profit in their business particularly in the past 4 years. I would certainly think that from a business perspective, keeping employees happy pays off more in the long run.m. Besides, they have the option to keep the building and try to lease it out while holding on to that asset as well

[WRM20]

Originally Posted by ParaguaneroSwag

Well what Chevron would make in a sale of that building would be negligible to their profit in their business particularly in the past 4 years. I would certainly think that from a business perspective, keeping employees happy pays off more in the long run.m. Besides, they have the option to keep the building and try to lease it out while holding on to that asset as well

Chevron owns two towers in Downtown plus the old YMCA property and the 1900 block of Milam where the Houston Press was located. They are not moving anytime soon.

[ParaguaneroSwag]

Originally Posted by WRM20

Chevron owns two towers in Downtown plus the old YMCA property and the 1900 block of Milam where the Houston Press was located. They are not moving anytime soon.

Chevron is a $300 billion company. They could move if they wanted to despite the downtown assets. I don’t believe they purchased the land in Bridgeland for nothing. The potential to move is there

[Mr. Clutch]

Originally Posted by ParaguaneroSwag

Chevron is a $300 billion company. They could move if they wanted to despite the downtown assets. I don’t believe they purchased the land in Bridgeland for nothing. The potential to move is there

I agree, it would not shock me if they did eventually make the move to Bridgeland. With that being said, I can't imagine they'd do it without significantly increasing their footprint, in other words for something like an HQ relo. And I don't think they're in a hurry for any of that.