HOUSTON-ExxonMobil Chemical Co. has put its 352,170-square-foot headquarters on the market in hopes of snagging a sale-leaseback deal. The company, a division of Exxon Mobil Corp., is preparing to relocate to its new campus, which is currently under construction in Springwoods Village, about 25 miles north of Houston's CBD.
That relocation, however, is at least two years away. As such, according to HFF managing director Robert Williamson, ExxonMobil Chemical hasn't set a specific date as to when it will vacate Energy Corridor submarket property at 13501 Katy Fwy. (Interstate 10). "They'll sign a lease through March, 2015, with the right to extend on a short-term basis," says Williamson, who with colleague, HFF senior managing director Davis Adams, is leading the team that is representing ExxonMobil Chemical in the marketing process. The HFF debt team will be led by senior managing director Wally Reid and director Colby Mueck.
Williamson tells GlobeSt.com that the buying process could go one of two ways. In one scenario, another large company could come in and acquire the 1980s building for its own corporate headquarters. Or a development-oriented buyer could decide to totally revamp the site.
"It's in the heart of the Energy Corridor and the only site with frontage on Katy Freeway and Memorial Drive," Williamson observes. The property is also bounded on the east side by the Buffalo Bayou Bike Trail, making it a good office site, multifamily site or hotel site, Williamson adds.
If a buyer decides to redevelop or revamp the current office building there, it will do so in a submarket boasting single-digit vacancy ranging from 8% to 9%. Though new office buildings are under construction, "there is significant pre-leasing out there," Williamson says. Furthermore, though there's still room for development, good quality tracts are fast disappearing, with developers having to travel further west on Katy Freeway/Interstate 10 to find viable tracts at a good price.
Williamson says HFF will put the building through the traditional marketing process, complete with a winnowing down of bids to a best and final offer. There is no set time goal on the owner's part to sell, though Williamson acknowledges a 2013 closing would be highly desirable.
"We're getting very solid interest so far," he adds. "Word is getting around."
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