Commercial construction forges ahead in downtown
Lack of activity on streets has helped further projects in works that total more than $1.9B
Commercial construction has forged ahead in downtown Houston, which has otherwise been quiet since the coronavirus pandemic prompted companies to keep workers at home since early last year.
The lack of activity on streets and in buildings has created a favorable environment for construction downtown, where projects in the works total more than $1.9 billion, according to the Houston Downtown Management District.
“For the last 10 years, we’ve had a lot of construction in downtown. That pace right now has not diminished,” said Bob Eury, CEO of the district.
About 16 percent of the workforce has returned to downtown offices, according to Downtown District estimates, and building occupancy is expected to remain low until companies feel it is safe to bring workers back, likely once the COVID-19 vaccination is widely distributed.
Meantime, the buzz of office workers has been replaced by the noise of construction. More than 12.8 million square feet of office renovation projects have been completed or neared completion over the past year, according to a Downtown District report. New office construction and renovations are underway on projects totaling more than 1.5 million square feet. The total market consists of 51 million square feet.
Downtown, which has grown to more than 10,000 residents,
has several residential buildings under construction totaling nearly 1,400 units, according to the report.
Hotels, which have been hard hit by the sharp decline in conventions and business travel, have taken the opportunity to update during the slow period. The Four Seasons Hotel Houston unveiled new guest rooms in 2020 as part of renovations that will include ballroom and event space transformation, according to Downtown District. The Hilton-Americas Houston’s $54 million renovation of rooms and meeting spaces was completed in 2020.
Among the large office projects underway downtown are Skanska’s 1550 on the Green, a 28-story office building announced this month that is part of a three-block project that will include restaurants, retail and green space near Discovery Green park. Lovett Commercial has moved ahead with the conversion of the former Barbara Jordan Post Office into POST Houston, a 550,000-square-foot development with coworking, event space, an international food hall and retail. The first phase is expected to open this fall.
Brookfield Properties is redeveloping the 53-story Heritage Plaza at 1111 Bagby with a new lobby, sky lobby and glass curtain wall at the corner of Dallas and Brazos. Brookfield’s Total Plaza
and Allen Center have also received major updates.
Hines and Ivanhoe Cambridge are developing the 47-story Texas Tower at 845 Texas Ave. near the Theater District. Completion is planned in the fourth quarter.
Other renovations underway are M-M Properties’ TC Energy Center at 700 Louisiana, which is getting restaurant space, creative office space a new lobby and mezzanine level with collaborative workspaces; FC Tower Property Partners’ addition of a conference center as part of $20 million in updates at 1001 Fannin; Amegy on Main is undergoing renovations including the lobby and amenities and a new garage; and Pride Management’s redevelopmdent of the former Southwestern Bell Telephone Co. building at 1114 Texas Ave. into a 150-room Hyatt Place Hotel.
On the residential front, Hines and partners are on track to complete Brava, a 46-story apartment tower at 414 Milam in 2022; High Street Residential, part of Trammell Crow Co., is developing a 43-story apartment tower with 309 units at 808 Crawford, next to Discovery Green, with completion is targeted for late 2022; Fairfield Residential is developing a 10-story, 286-unit residential building at 1810 Main; McKee City Living, a 120-unit apartment community at 625—650 McKee, will bring affordable workforce units to the Warehouse District; and Sovereign the Ballpark, a six-story, 229-unit apartment building, is under construction at 100 Crawford near Minute Maid Park.