Is Downtown About to Go Vacant?

The excitement about Downtown is palpable these days, but the future isn’t a straight shot. Cushman & Wakefield executive vice chairman Tim Relyea said at Bisnow's Future of Downtown event that we have 6M SF coming back to the submarket soon. Big names like Exxon, Pennzoil, and Devon are gone or going. But Tim’s not worried—he says we have the best Downtown in America, and major corporations love us and will continue to expand in the market and come here from the ‘burbs.

Colvill Office Properties prez Chip Colvill (here with colleague Clark Thompson and HFF’s Danny Miller) says Downtown is known as a market where companies stick around and grow. So he’s not worried about the big upcoming vacancies—he says lots of new companies (many you haven’t heard of yet) are starting that cycle, and users are already finding that there isn’t room for expansion in their current building. Besides these little (but will one day be big) tenants, he also knows of a number of companies larger than 200k SF eying Downtown. Tim says we need to get those big deals done now (“if you’re not doing it now, you’re not going to do it”). One interesting factor to watch going forward: Tim says there are only about three good office sites left in the CBD.

Colvill’s Michael Anderson (far right, with panelist Brookfield’s Paul Frazier and Skanska’s Tyler Garrett) shared new renderings and info on Hines’ 609 Main at Texas. The office development had its mat pour two weekends ago, and it's estimated to begin occupancy in December 2016.

609 Main at Texas will include stunning features like a reflecting pool and huge vertical atrium—rendered here—Tim says it will truly be the best building in Houston and exactly what corporate America wants.

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