Houston oil and gas company Apache Corp. plans to relocate its headquarters to Westchase from its longtime home in the Galleria area after signing an early lease renewal and expansion in Briarlake Plaza.
Apache will occupy 328,000 square feet at Briarlake Plaza, where it currently leases 210,000 square feet in a lease that was set to expire in late 2024, according to landlord Cousins Properties. The new lease, at 2000 W. Sam Houston Parkway, will expire in 2038.
The deal is a big win for Cousins in a market with plenty of options for tenants seeking office space. The vacancy rate for Houston office properties stood at 26 percent in the third quarter, according to commercial real estate firm Cushman & Wakefield.
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"We are excited to move our corporate headquarters to Briarlake Plaza," Mark Maddox, Apache's senior vice president of administration, said in an announcement. "The customized space we will build out at Briarlake will facilitate employee connection, reduce drive times for the majority of our employees and enhance the employee workplace experience. Once complete, the new Apache office will feature a variety of collaboration spaces, state-of-the-art technology, and numerous employee amenities."
Apache leases about 525,000 square feet at its current headquarters in Post Oak Central, 2000 Post Oak Blvd., in a deal set to run through 2024, according to previous reports. Its exit from Post Oak Central will shrink its overall Houston office footprint by more than half. Apache has been a tenant in Post Oak Central for more than 30 years.
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With its reduced footprint, Apache joins a trend of large office users adjusting their space needs amid flexible work arrangements.
Baker Hughes recently announced plans to relocate its headquarters to 130,000 square feet at 575 Dairy Ashford Road in the Energy Corridor, shedding a net 346,000 square feet of office space from several other locations in the process. Also this year, financial services firm Invesco cut its office space by more than half in a renewal for about 180,000 square feet at its longtime home in Greenway Plaza.
The Apache deal is the second-largest office lease of the year, following EOG Resources' renewal for 367,000 square feet at downtown's Heritage Plaza, according to commercial real estate firm Transwestern.
Robert Kramp, a Transwestern vice president for research and analytics in Houston, said he was encouraged by the number of renewals in the region, which he saw as a sign of stability for companies' operations. In both renewals and new leases, companies continue to migrate to quality spaces, a pattern seen before the pandemic that has picked back up as companies evaluate options and select offices to help build their cultures.
"There are a lot of options out there," Kramp said. "Tenants are exploring all options at the same time deciding what they want to do in terms of hybrid work environments. I’m encouraged by the hybrid work environment. It gives employers and employees more flexibility in how they structure their professional work environments and work days."
Apache will consolidate all of its approximately 800 Houston employees at Briarlake Plaza in 2024, according to the company. The two-building campus, acquired by Atlanta-based Cousins through its acquisition of TIER REIT in 2019, is near the southwest corner of Beltway 8 and Briar Forest Drive.
"Our employees work a hybrid schedule and are in the office Tuesday, Wednesday and Thursday," Alexandra Franceschi, a spokesperson for Apache said in an e-mail.
Commercial real estate firm JLL represented Apache in the transaction. Transwestern represented the landlord. The company is partnering with Gensler and Harvey to design and build out the new space.
The property, a few miles south of restaurants and retail at Midway's CityCentre complex, offers on-site dining amenities, fitness and conference centers and outdoor spaces. The location is between neighborhoods in Memorial and Katy.
katherine.feser@chron.com
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Apache Corp. to move headquarters to Westchase - Houston Chronicle
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