Energy tenants renew for 160k sf

Two Houston energy companies renewed leases for their headquarters, marking some of the largest lease signings so far this year.

Oil and gas company Chord Energy renewed its lease occupying 103,000 square feet at 1001 Fannin Street, while Black Stone Minerals renewed for 55,000 square feet in the 47-story First City Tower, the Houston Business Journal reported. 

Brad Beasley and Chip Colvill of Cushman & Wakefield represented landlord FC Tower Property Partners, and Chad Beck of Cushman & Wakefield represented Chord Energy. Trey Strake, David Guion and Chris Oliver of Cushman & Wakefield represented Black Stone Minerals.

The lease renewals are a bright spot in the city’s struggling office sector. The vacancy rate in the Houston metro was at 26 percent in the fourth quarter of 2022, and it was at 32 percent in the central business district, according to Cushman & Wakefield.

The 1.3 million-square-foot First City Tower received a $20 million renovation in 2020, including an 8,000-square-foot fitness center, tunnel-level tenant lounge and upgraded exterior plazas to improve outside workspace. 

More recently, a conference center was added, and lobbies were revamped to include new escalators, artistic lighting and a coffee bar, the outlet said.

Other large leases in Houston recently include Callon Petroleum taking 107,000 square feet at 9753 Katy Freeway, in December, and EOG Resources’ 375,000-square-foot lease in the 52-story 1111 Bagby Street, signed in September. 

—Quinn Donoghue