AEW Capital Management Inks 357 KSF Renewal

3 min read

Brookfield Properties manages the iconic downtown Houston tower.

EOG Resources Inc. has extended its lease at AEW Capital Management‘s Heritage Plaza, a Class A+ office tower in downtown Houston. The oil and gas company has been at the location since 2007 and will now occupy some 375,000 square feet at the high-rise.

Brookfield Properties, which still retains an ownership position, is also the leasing manager of the 1.1 million-square-foot tower located at 1111 Bagby St. AEW, the property’s majority owner, purchased its stake from Brookfield in 2014, in a deal that valued the tower at $473.3 million, according to CommercialEdge data. The 52-story building’s current roster includes high-profile tenants, such as Deloitte, Kroll and Lime Rock Resources, the same data provider shows.

Brookfield implemented an improvement and redevelopment program for the fifth-tallest building in the city. As a result, the downtown Houston landmark features luxury amenities such as a 10,000-square-foot fitness center, a sky lobby with floor-to-ceiling windows and an exterior patio on the 13th floor, as well as two conference rooms. The property is equipped with a skybridge, connecting the office tower with the C. Baldwin hotel and One Allen Center.

Houston’s office market is recovering

Completed in 1986, the iconic high-rise sits in Houston’s CBD, between Houston City Hall and 1600 Smith St., another landmark property. Heritage Plaza is an energy-efficient building, with LEED ED O&M Gold and Energy Star certifications, also holding a WELL Health-Safety rating.

The state of Texas has been attracting population from the West and East coasts of the country in recent years, a trend that was only accelerated by the pandemic. Houston’s office market is also benefiting from this in-migration, according to an Avison Young market report. Earlier this month, Invesco Group Services Inc. extended its lease at Eleven Greenway Plaza, a 745,900-square-foot office tower in Houston. This year, Exxon Mobil Corp. announced it will relocate its headquarters to Greater Houston.

 

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