Exxon Neighbor Doubles Spec Office Plans
Halberdier Holdings is breaking ground July 1 on Energy Crossing North. And surprise! It’s much bigger than originally planned. Continued groundbreakings in North Houston are one reason we’re excited to host our Bisnow Future of The Woodlands and Springwoods Village summit at The Woodlands Waterway Marriott on April 1 starting at 11am. Sign up now.
Owner Trey Halberdier (a speaker at our event) tells us the firm originally planned about a 100k SF Class-A office building on the site directly across from Exxon at the Hardy Toll Road and Northgate Crossing. That grew to 144k SF, and then he was able to snap up 2.5 adjacent acres. Now it’s developing two 144k SF, six-story office facilities totaling 288k SF and a garage. Neither has any pre-leasing locked in (although Trey says he’s speaking with a handful of larger companies, including a couple of Fortune 500 ones), but both will break ground simultaneously. Pictured is The H team: Eric Day, Chris Boone, Trey and Matt Mitchell.
Here’s a rendering by Powers Brown, which is designing Energy Crossing North. Construction will take about 14 to 16 months, and Trey says he thinks it’s timed just right—the team will be able to take advantage of a market correction and lower construction costs and will deliver in late 2016 when the market may be picking up again. All available corners at the Hardy and Northgate Crossing are being developed now (one is an existing elementary school)—Halberdier’s five-acre project will join two hotels and a Class-A multifamily community under construction already.
Colliers co-chairman Bob Parsley (another panelist) says the economy has slowed, but he’s still getting tenant interest for the Class-A office space he’s leasing in The Woodlands. Lots of that is coming from out-of-town and out-of-state companies, he tells us. Believe it or not, he is still seeing a steady stream of energy-related companies attracted to the new buildings at Hughes Landing. There are very few availabilities in existing product, which is good news for Three Hughes Landing, which he’s marketing now. That 320k SF property will be ready for occupancy in November. (Check out our full Hughes Landing update here.)
Next, Howard Hughes and Bob will turn their focus to 10 Waterway Square. Bob says that building will be 400k to 500k SF but won’t break ground without a lead tenant. He’s also continued to see build-to-suit prospects in The Woodlands and tells us he wouldn’t be surprised if some of those kick off in the next year or two. Another sector is booming—Bob says there’s strong healthcare activity in The Woodlands and across Houston. Methodist will soon build its hospital/MOB at 242 and I-45. (It purchased 58 acres there.) That area is becoming quite the healthcare destination—Memorial Hermann and St. Luke’s both also have a presence there.
Keep your eye on Willis, says Caldwell Cos CEO Fred Caldwell (another speaker). He’s seeing people and companies migrate north from The Woodlands, and says we’ll be talking about the area north of Conroe a lot over the next year or two. Activity is spreading outside of The Woodlands in pretty much every direction—moving west is preferred, but the area east of 45 is definitely popping. He’s expecting a fair amount of single-family and retail activity (multifamily has gotten tricky because of financing, and spec office is less viable, he says). Fred says land prices are holding steady across North Houston, and development activity has continued, a good sign that the area is resisting an energy-related panic. Join us for our Bisnow Future of The Woodlands and Springwoods Village summit at the The Woodlands Waterway Marriott on April 1 starting at 11am. (Register here.)