NRG Energy Is Latest Houston Firm To Downsize As It Signs New HQ Lease
NRG will occupy the top 10 floors of Brookfield Properties’ 1.2M SF, 51-story building at 1301 McKinney St. in Downtown Houston, Brookfield Properties said in a press release.
The lease was one of the city's biggest in the third quarter, though it signifies that NRG is sharply downsizing. The company subleased 431K SF from Shell at 910 Louisiana St. in 2017, Houston’s largest sublease deal ever at the time. Shell’s lease expires in December 2025, aligning with NRG's plans to move to 3 Houston Center.
“The move stems from NRG’s intention to provide new amenities for our diverse workforce, such as enhanced parking, a free gym and convenient tunnel access,” Gin Kinney, NRG’s senior vice president and head of administration, said in the release. “Over the next two years, we will spend time customizing the space to create fluid and collaborative workspaces to best meet our employees’ needs.”
Brookfield Properties has renovated the entire Houston Center campus in recent years. Upgrades to 3 Houston Center include improved pedestrian circulation, new porcelain floors and marble wall coverings, energy-efficient lighting and ceiling upgrades.
“We are already receiving positive feedback to the new experience created at the Houston Center campus and are confident that NRG's decision to place their headquarters at 3 Houston Center underscores the important investments we’ve made in the campus and the value it brings to top companies,” Travis Overall, executive vice president and head of the Texas region for Brookfield Properties, said in the release.
NRG moved its sole headquarters to Houston in 2021, after previously sharing dual HQs with Princeton, New Jersey, the Houston Chronicle reported.
As of May 2022, NRG had about 2,000 employees in Houston, according to the Chronicle. That included office-based employees working in a hybrid capacity.
NRG’s lease follows a trend of downsizing making up a significant portion of Houston’s office leasing activity this year.
LyondellBasell is moving its U.S. headquarters within the city and downsizing slightly, leaving its namesake tower. Technip Energies plans to move its U.S. headquarters within the Energy Corridor, downsizing by about 54%.
NRG Energy was represented in lease negotiations by Chris Oliver, Trey Strake and David Guion of Cushman & Wakefield. Brookfield Properties was represented by Doug Little, Kelli Gault, Jack Scharnberg and Parker Burkett of Transwestern.