Energy Firm Renews, Expands Houston Lease
- Apr 29, 2008
As the energy business continues to grow in Houston, Enbridge Energy Partners L.P.– operator of the world’s longest crude oil and liquids pipeline system–have added to their Houston office space at the 1100 Louisiana building with a long-term lease renewal and expansion. Enbridge renewed their current lease of 220,000 square feet and expanded to 264,400 square feet with the addition of two floors. Other terms of the lease were not disclosed.“This was an early renewal and expansion for Enbridge. Given their size, it necessitates being out in the market a little early,” Kyle Kelley, senior vice president with CB Richard Ellis Inc., which represented Enbridge in the transaction, told CPN today. “We have a healthy market in the CBD with Class A vacancy at only 5.8 percent. The market and rates have gone up dramatically in the last two years,” Kelley added. “For a tenant of their size, we were looking at renewal and expansion in place or moving to a new location and there really wasn’t available space elsewhere.” Enbridge currently occupies several partial floors in the building, but they are currently on floors 25 through 26 and will be adding the 23rd and 24th floors in a contiguous expansion, Kelley said. “It ends up being an excellent opportunity for them. The economics we were able to secure were outstanding in the market and it is a great opportunity through options to continue to grow in the building,” Kelley said. “There has been tremendous growth over the last few years in Houston and it was of high importance for them to secure growth options on a go forward basis.” Developed in 1980 by Hines, 1100 Louisiana (pictured) is a 55-story, 1.3-million-square-foot office building located in the heart of Houston’s primary energy and financial corridor. The building is owned by National Office Partners L.P., a joint venture between Hines and the California Public Employees Retirement System (CalPERS). In addition to Enbridge, other major tenants in the building include Enterprise Products, The Houston Exploration Co. and King & Spalding L.L.P. Hines is the property manager for the building. Charles Gordon and Lance McCarthy with CB Richard Ellis Inc. worked with Kelley representing the tenant in the transaction. Enbridge Inc., a Canadian company, is a leader in energy transportation and distribution in North America and internationally. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system. The firm also has international operations and a growing involvement in the natural gas transmission and midstream businesses.