HOUSTON – (Realty News Report) – Downtown Houston’s skyline is undergoing a significant transformation, with more than a dozen major renovation projects under way alongside numerous smaller upgrades and conversions.
According to the third quarter Downtown Houston Market Update, 12.6 million square feet of office space across 13 buildings are currently being renovated. These projects include major properties such as Heritage Plaza and the Allen and Houston Centers. Since 2015, an additional 6.1 million square feet have been modernized—nearly half of Downtown’s total net rentable office space.
Market professionals describe the renovation wave as essential. Many Downtown towers are roughly 40 years old, and in order to remain competitive with newer construction, these older buildings require substantial updates to their systems, lobbies, façades and tenant amenities.
Some projects focus on exterior improvements. The 811 Louisiana tower, formerly Two Shell Plaza, is an example: built by Hines in 1970, its lower four floors were reclad in dark granite and the building’s address signage was changed from Walker Street to Louisiana Street as part of its exterior refresh.
Other redevelopments concentrate on interior upgrades and enhanced tenant services, including expanded food and dining options. At 1415 Louisiana, the Strato 550 restaurant recently opened on the forty-third floor, adding a high‑end dining amenity for tenants and visitors.
Fitness centers and bicycle facilities are also being added across Downtown properties as part of efforts to modernize tenant offerings and support healthier commuting choices.
The Downtown report, published by Central Houston Inc. and the Houston Downtown Management District, predicts 2020 will be an exceptionally active year for construction and development in Downtown’s office sector.
Brookfield Properties, owner of several prominent Downtown assets including Allen Center and Houston Center, is executing large-scale renovation programs across its portfolio.
Brookfield’s work includes a major overhaul of the 53-story Heritage Plaza, a 1.1 million-square-foot tower at 1111 Bagby. Kirksey Architecture is designing the renovation, which will feature both exterior and lobby enhancements and is scheduled for completion in January 2021. Planned exterior changes include a redesigned arrival experience with a new glass curtain wall at the corner of Dallas and Brazos Streets, refreshed landscaping, updated pavers and integrated seating in the plaza.
Downtown Houston contains approximately 30.9 million square feet of Class A office space and currently shows a 16.4 percent vacancy rate, according to CBRE.
New construction is also changing the market mix. Skanska recently finished a 35-story tower, and Hines is developing the 46-story Texas Tower on Texas Avenue. These newly built, amenity-rich buildings attract tenants under a trend known as “the flight to quality,” where companies move toward modern, fully equipped spaces.
Some older office buildings have been repurposed into hotels and residential apartments as owners reposition assets to meet evolving market demand.
Oct. 9, 2019 Realty News Report Copyright 2019
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