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.

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