| The downtown Houston office market is a hot topic | | | | Burlington Resources and Bank One, are expected to |
| these days. Recent months have seen a flurry of | | | | vacate CBD space in 2006 after acquisitions by |
| activity, whether it be leases, move-outs, or | | | | ConocoPhillips and Chase, respectively. In the same |
| acquisitions. It's no secret that the downtown market | | | | building Burlington is expected to vacate, Calpine Corp. |
| continues to be plagued by average vacancies | | | | reduced the amount of space they lease and |
| painfully close to 20% and stagnant rents. With the | | | | subsequently lost naming rights to the former Calpine |
| thought that things will improve in the near future, | | | | Center, now known by its address, 717 Texas. |
| investors have been purchasing properties in earnest. | | | | Questions still remain about when the downtown |
| The fourth quarter news was encouraging, notably | | | | office market will see a substantial improvement. It did |
| EPCO, Inc.'s acquisition of 1100 Louisiana, a building in | | | | not happen with the recent influx of New Orleans |
| which they have subsequently occupied 300,000 | | | | office tenants, as some thought it would. However, |
| square feet. Also, Wells Real Estate Funds paid the | | | | strong job growth has many experts predicting a |
| highest per-square-foot price in the Houston office | | | | healthy 2006 for the Houston office market overall, |
| market's history ($286 psf) for 5 Houston Center. | | | | and with the positive fourth quarter numbers, it |
| Rumor has it that ChevronTexaco is interested in | | | | appears the market is moving in the right direction. The |
| purchasing the remaining vacant former Enron building, | | | | office market had a relatively strong showing in the |
| while other energy companies have begun to reclaim | | | | fourth quarter, absorbing 414,678 square feet (SF), the |
| shadow space downtown. | | | | market's highest quarterly absorption figure since the |
| Unfortunately, the Central Business District's recovery | | | | third quarter of 2004. |
| is anything but a slam dunk. Two major tenants, | | | | |