Crescent Real Estate Equities, a Ft. Worth-based real estateinvestments trust, is expected to announce development of a25-story, 500,000-sf office tower at Austin and Walker, real estatesources told GlobeSt.com. Insiders have dubbed the building, FiveHouston Center.Crescent already owns several structures in themulti-use Houston Center. In the race for space, CenturyDevelopment and Hines also are contemplating property developmentsin the city's central business district. Brokers say Century hasrenewed its interest in developing a 38-floor officer tower on thesite of the former Lamar Hotel at Main, Travis, Lamar andMcKinney.

Hines, responsible for such Downtown landmarks as the 75-storyChase Tower and Pennzoil Place, is working on blueprints for a600,000-sf structure to be erected on three quarters of a CBD blockbounded by Texas, Milam, Prairie and Louisiana.

After more than a decade of double-digit vacancy rates, theoffice towers in Downtown Houston are 90% full, according to thereal estate firm of Trione & Gordon. The vacancy level in theHouston CBD hit 9.5% during this year's second quarter, down nearlyfour percentage points from the year-ago period. Meanwhile, thecity's overall office vacancy rate is 11.7% in comparison to 12%for second-quarter 1999.