Skanska USA Targets Houston for Buys and Builds

HOUSTON – Less than four months after taking ownership of the Houston Club Building, Skanska USA’s Commercial Development business will break ground on a 302,000-square-foot office building in the Galleria/Uptown submarket. These two activities are a sign of things to come, as the New York-based Skanska USA has targeted Houston as one of four tier-one cities for development and acquisitions.

“What we’re looking for in our model is value-add propositions,” comments Michael Mair, executive vice president, regional manager, Skanska USA Commercial Development. “We like ground-up opportunities in urban settings with high barriers to entry.” Also on tap, he adds, are build solutions for development, as well as irreplaceable corners or premier streets.

To that end, the new speculative office building, which will break ground this month at 3009 Post Oak Blvd. is in an area with very high barriers to entry, as there is very little ground left on which to build. Furthermore, the Post Oak address is considered a great one to have.

“If you look at this submarket – Uptown/Galleria – there hasn’t been a significant new development there in more than 25 years,” Mair tells GlobeSt.com. Furthermore, with the building pre-certified as LEED Platinum, it becomes operationally efficient and cost-effective for tenants. “It should position this product very well in a market that hasn’t seen development in awhile,” comments Mair, who adds that completion is scheduled for the summer of 2013.

The Houston Club building at (get this) has another story, as it’s located in the Central Business District. Mair says Skanska USA hasn’t determined the future of this building and won’t until the current leases expire over the next year or so. But the site, he points out, is priceless, because of its location at 811 Rusk St.

Furthermore, “this property has five tunnel connections that don’t really exist at any other location,” Mair says. “Five of them. That’s why this is an irreplaceable site.” Those wondering why tunnel connections between buildings are so important should travel to Houston in mid-July. A few minutes in the heat and humidity of Sweat City are convincing reasons for these tunnel connections, which link the CBD buildings together.

Mair says Skanska USA likes Houston – as well as the other three cities of Boston, MA; Seattle and Washington DC – because of economic drivers. Houston, especially, is impressive because of its population growth, an increase in jobs and quality of life, he says adding that “we’re working on a couple of projects in Houston that are not yet under contract.”