XTO Puts 714 Main On The Market
XTO Energy has put its 24-story Downtown Fort Worth headquarters building on the market, clearing the way to relocate the majority of the company's 1,200 employees to Houston.
Irving-based Exxon Mobil acquired XTO Energy in 2009, signaling a shift toward natural gas and domestic production. JLL has subsequently sold four of XTO Energy's seven property assets; most recently, the 14-story Petroleum Building and its adjacent parking garage to Sundance Square.
"Properties within the downtown core are being aggressively pursued by residential and hospitality developers, and 714 Main provides a rare opportunity to become a key stakeholder in downtown Fort Worth's vibrant environment," JLL Executive Vice President Ryan Matthews said in a prepared statement. "As one of the largest, historically registered buildings in downtown, 714's redevelopment upside is significant."
The total vacancy rate for the Fort Worth CBD was 11.5% in Q1, with the average rental rate being $26.26/SF, according to JLL's Q1 office report. The only Fort Worth office submarket with a higher asking rate is Westlake/Southlake at $26.90.
XTO owned five historic properties downtown, totaling 615K SF of renovated above-market office space, according to reporting in REBusiness last year. Extensive remodeling and restoration of the 185K SF property, built in 1921, was completed in 2010.
The bulk of XTO Energy's 1,200 Fort Worth employees will be moving to Exxon Mobil's campus in Spring, north of Houston. Another 400 will stay behind until 2020.
Matthews is also leading marketing efforts for XTO's WT Waggoner Building at 810 Houston St. JLL expects to close on a deal on the building this summer.