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