Deloitte Signs Big Deal to Remain at Heritage Plaza, Ending Move Speculation
The design of Heritage Plaza was inspired by a Mayan temple.
HOUSTON – (Realty News Report) – Deloitte has renewed its lease at Heritage Plaza in downtown Houston, according to building owner Brookfield Properties.
The accounting firm had been a significant tenant to watch in the downtown market. Last year, Deloitte was reported as a potential occupant of the new Hines tower being built on the former Houston Chronicle site on Texas Avenue, but it ultimately chose to extend its commitment at Heritage Plaza.
Under the renewed agreement, Deloitte will lease 204,210 square feet on the 39th through 45th floors. The firm, which employs nearly 2,300 people in Houston, has been based at Heritage Plaza since 2007.
Heritage Plaza, known also by its address 1111 Bagby, is a 53-story tower completed in 1987. The 1.2 million-square-foot office building sits adjacent to Brookfield’s Allen Center complex and connects by skybridge to the DoubleTree/C. Baldwin hotel in Allen Center.
As part of the lease renewal, Deloitte will renovate its space, updating common areas, conference rooms and technology systems. The redesigned offices will include dedicated collaboration zones for team work and events, as well as quieter areas for individual focus. Construction is planned to begin this summer with completion targeted for late 2020.
“At Deloitte, our people are at the center of our business and our new Houston office design will reflect that theme,” said Amy Chronis, Deloitte Houston managing partner. “As our local practice continues to grow and thrive, our new space in Heritage Plaza will complement who we are as an organization, prioritizing collaboration, wellness, and technology.”
Travis Overall, executive vice president and head of the Texas region for Brookfield Properties, added, “This re-commitment to Heritage Plaza is a testament to the continued vitality of downtown Houston and confidence in Brookfield’s emphasis on placemaking and creating a thriving mixed-use environment.”
Brookfield Properties was represented in the lease negotiations by Clint Bawcom and Jon Dutton of Brookfield Properties. The lease was signed late in 2018. A spokeswoman said the tenant declined to identify the tenant representative broker.
Heritage Plaza is often a focal point in promotional photos of the downtown skyline thanks to its distinctive stepped crown, a design inspired by Mayan temples. M. Nasr & Partners served as architect. Construction began in 1984 at a time when Houston’s office market was experiencing a pronounced oversupply. According to a widely told anecdote from that era, developer Kenneth Schnitzer—who was responsible for numerous downtown office projects—criticized the Heritage Plaza development as “the single most irresponsible act” in the history of Houston commercial development, reflecting concerns about adding more space to an already saturated market.
Despite those early concerns, the excess inventory in Houston’s office market was eventually absorbed, and Heritage Plaza went on to serve as the regional headquarters for Texaco for several years.
