HOUSTON—After a recent lease, Capitol Tower is now 33% leased, less than halfway through construction. Quantum Energy Partners has leased the top floor and will occupy approximately 32,000 square feet of the 35-story class-A downtown tower when it moves its headquarters in November 2019.

Located at 800 Capitol St., Capitol Tower sits at one of the most desirable locations in the central business district, near landmark cultural neighbors that include the Theater District, the historic Market Square and Buffalo Bayou Park. The tower offers 754,000 square feet of office space and a two-level open-air atrium that features more than 26,000 square feet of retail and restaurant space in the tunnel level.

“The top floor of Capitol Tower will provide Quantum with a prestigious office space that is highly energy efficient and has unparalleled views of downtown Houston,” said Matt Damborsky, executive vice president for Skanska USA Commercial Development, the tower's owner/developer.

In an exclusive, Damborsky recently discussed the benefits of Skanska USA Commercial Development being the only self-financed developer in the metro and other building trends.

GlobeSt.com: What is the advantage of being the only contractor/developer in Houston that self-finances, and builds core and shell projects?

Damborsky: Our unique ability as a developer to self-finance our commercial developments provides a level of certainty to our tenants that most developers can't because we control the financing and scheduling of our projects. We are also able to take more creative license with our buildings and incorporate the top-of-the-line amenities that we know tenants are seeking, from sustainable design to high-quality finishes. Projects with these features are not just appreciated by tenants–they are also a key draw for institutional investors.

GlobeSt.com: What types of economies of scale are available?

Damborsky: When you have a vertically integrated construction company in your office from the start of development through the construction process, as we do at Skanska, we are able to produce a stronger plan and better navigate constructability issues that may arise. The construction team is involved from day one and we can determine those challenges at the onset, which means we can achieve better schedule certainty and minimize cost overruns. This unique design-build experience as a construction manager is also what allows Skanska to provide these economies of scale for our external clients–not just on our own development projects.

GlobeSt.com: What are some of the trends evident in the Houston building industry?

Damborsky: One trend we are seeing in the Houston commercial real estate market is a flight to quality. Tenants are seeking high-quality buildings that feature a wide range of top-of-the-line amenities. Tenants are also placing a high priority on flexible design, functionality and efficient floorplates. In Houston's central business district, we see a renewed focus on mixed-use spaces that can accommodate a diverse tenant mix, from retail and food offerings, as well as recreational spaces that go beyond the traditional nine-to-five. This focus has inspired some of the amenities we are incorporating at Capitol Tower, like the 24,000 square-foot SkyPark and the two-story retail market that connects to Houston's expansive downtown tunnel system.

“Our company was drawn to Capitol Tower's amenity-rich offerings, from the tunnel-level retail market to the SkyPark green roof open to tenants,” said Mike Denham, chief financial officer for Quantum Energy Partners. “The convenience of the location and easy access to major highways, thoroughfares and mass transit will also allow our team to be more efficient while staying connected to all of our stakeholders.”

When Capitol Tower rises in Houston's skyline in 2019, it will be the most sustainable office tower in Houston, using 25% less energy than typical baseline facilities. Precertified under LEED v4 Platinum, one of only four core-and-shell projects nationwide, the sustainable office development will feature a number of green amenities, including the first and largest green roof in downtown to be open to all building tenants.

Other sustainable features include a 50,000-gallon rainwater collection system for reuse in landscape irrigation and restrooms, secured bicycle storage room with access to lockers and showers, location within one block of three MetroRail stations, 90% access to daylight and views, a high-performance façade that significantly reduces solar heat gain, an energy recovery wheel to precondition fresh air intake, and district cooling to provide chilled water throughout the facility–lowering cooling costs and offering unlimited service capacity to tenants.

CBRE represented Skanska and Cushman & Wakefield represented Quantum Energy Partners.

In an exclusive, Damborsky recently discussed the benefits of Skanska USA Commercial Development being the only self-financed developer in the metro and other building trends.

GlobeSt.com: What is the advantage of being the only contractor/developer in Houston that self-finances, and builds core and shell projects?

GlobeSt.com: What types of economies of scale are available?

GlobeSt.com: What are some of the trends evident in the Houston building industry?

CBRE represented Skanska and Cushman & Wakefield represented Quantum Energy Partners.

Instant Insights /

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