While commercial real estate has experienced a significant downturn recently due to the recession, the Energy Corridor has remained stable and poised for long-term growth. Of course, serving as the hub for the world’s energy capital has helped this market weather the economy, with BP America Inc. ConocoPhillips, Shell Oil Company, ExxonMobil Chemical and CITGO Petroleum Corporation, all calling the Energy Corridor home. But, most important is the projected growth for West Houston including the Energy Corridor. Recent studies anticipate a 12 percent increase over the next five years.
To meet the demand stemming from this growth, several construction projects have been recently completed or are nearing completion. New single-tenant buildings include the 400,000 square foot BP Helios Plaza and the 150,000 square foot Shell Woodcreek. Additionally, new multi-tenant Class A buildings include Energy Center I and II, 306,000 square foot and 330,000 square foot respectively, both of which were developed by Trammell Crow and leased by CBRE. Three Eldridge Place, a 305,528 square foot Silver LEED building has been developed by BehringerHarvard. And, 350,000 square foot Eldridge Oaks, has been developed by Transwestern.
At midyear, vacancy rates in the Energy Corridor were 8.8 percent compared to 5.7 percent in 2008 and 6.4 percent in 2007. Also, lease rates mid-year for Class A space were approximately $27.35 per square foot.
Additional buildings, reflecting more than one million square feet of space, are under construction or have recently come on-line including the recently opened Gulf States Toyota office building, The Reserve at Park Ten Place and Texas Children’s Hospital Physician Building.