HOUSTON-Less than a year after breaking ground on the 332,000-sf Energy Center I, developer Trammell Crow Co. and development partner Principal Real Estate Investors have leased the entire spec project to Foster Wheeler USA Corp. The tenant, which supplies construction services and equipment to the energy industry, will take possession of the building upon its completion in February 2008.

Though specific financial considerations of the long-term lease were not made available, quoted asking rates in the Energy Corridor submarket are above $26 per sf. Foster Wheeler will be doing the bulk of its own improvements to the building at 585 N. Dairy Ashford Rd., and is using the building for consolidation and expansion. Foster Wheeler is currently located at 2020 Dairy Ashford Rd.

“The building is topped out now, and they’re starting to skin it with glass,” says Aaron Thielhorn, Trammell Crow principal. He says Foster Wheeler had approached Trammell Crow and its leasing arm, CB Richard Ellis Inc., right after construction began. Additionally, “we had a number of other prospects we were in various stages of discussion with. But this worked out the best, as Foster Wheeler needed to consolidate its multiple area locations, and they were able to take the entire building,” Thielhorn tells GlobeSt.com.

Thielhorn says plans are in the works for development of the project’s second phase, Energy Center II, which will be adjacent to Energy Center I. He declined to discuss specifics about the second phase, but did say the building would be spec.

CBRE managing director Mark Taylor and senior vice president Steve Rocher represented Trammell Crow and Principal. Andy Iversen, Jim Cooksey and John Beach of Jackson & Cooksey in Houston represented Foster Wheeler. The Energy Center development is part of a nationwide development program spearheaded by Trammell Crow and Principal Real Estate Investors.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.