1600 Smith Street Explained

1600 Smith Street
Status:completed
Location:Downtown Houston, Texas, United States[1]
Coordinates:29.7552°N -95.3728°W
Completion Date:[2]
Architect:Morris Architects (formerly Morris Aubry)
Owner:Brookfield Properties[3]
Floor Area:10979600NaN0
Floor Count:53
Building Type:Office
Roof:732feet
Management:Brookfield Properties

1600 Smith Street (previously named Continental Center I and also known as Cullen Center Plaza) is a 51-story, 732feet office tower in Downtown Houston, Texas, United States. It served as the headquarters of Continental Airlines prior to its merger with United Airlines,[4] and at one point also served as the headquarters of ExpressJet Airlines.[5] [6] It is a part of the Cullen Center complex.

The 51 story building has about 1098399square feet of rentable Class "A" office space. The design architect was Morris Architects, the general contractor was Linbeck Construction Company, the mechanical engineer was I.A. Naman, and the structural engineer was CBM Engineers. The building was completed in 1984.[7]

The tower stands as a postmodern-style building.[2] It is currently the 9th-tallest building in Houston.

History

Bruce Nichols of The Dallas Morning News said that in early 1984 1600 Smith Street "was so vacant it became a symbol for overexpansion in Houston".[8] By 1987 the Canadian company Trizec Group bought debentures carrying an option to buy portions of the Cullen Center, including 1600 Smith Street.[9] In 1997 subcommittees of the University of Houston System Board of Regents held meetings at 1600 Smith Street.[10] [11] [12] [13]

In September 1997, Continental Airlines announced that it would consolidate its Houston headquarters in what would become Continental Center I.[14] The airline scheduled to move around 3,200 employees in stages beginning in July 1998 and ending in January 1999. The airline consolidated the headquarters operation at the America Tower in Neartown and three other local operations into Continental Center I and Continental Center II in the Cullen Center. Continental anticipated taking 15 floors at Continental Center I. In addition it planned to add a company store, a credit union, and an employee service center in the street-level lobby of Continental Center I.[15] The airline agreed to lease 600000square feet of space in the Cullen Center for 11 years initially and 20 years if it takes renewal options.[16]

To make room for the airline and to increase the complex's overall tenancy, Trizec negotiated with the Shell Oil Company to renew a lease of 320000square feet that was scheduled to expire in 1998.[16] The unit of Shell Oil Company agreed to reduce its 320000square feet square feet of space in Continental Center I to 170000square feet to make room for Continental.[15] Shell had planned to downsize, so it renewed its lease for a smaller amount of space. In addition Houston Industries, Inc. paid TrizecHahn so it could break its lease on 100000square feet of space. This made additional room for Continental Airlines.[16]

Tim Reylea, the vice president of Cushman Realty Corp., said that the Continental move "is probably the largest corporate relocation in the central business district of Houston ever".[16] Bob Lanier, Mayor of Houston, said that he was "tickled to death" by the airline's move to relocate to Downtown Houston.[15] In September 2000 an electrical component burned out at Continental Center I, and the Houston Fire Department shut off the backup power supply as a precaution. As a result of the temporary power outage, delays of between 300 and 400 Continental Airlines flights occurred worldwide.[17] The Texas bureau of Jesse Jackson's Wall Street Project opened in office space in Continental Center I in May 2001.[18] After the September 11 attacks and by September 2004 Continental laid off 24% of its clerical and management workers. Despite the reduction of the workforce, Continental did not announce any plans to sublease any of its space in Continental Center I and Continental Center II.[19]

In 2004 three new lease agreements to occupy space in Continental Center I were signed. Nancy Sarnoff of the Houston Business Journal said that the three to five year terms were "considerably short" for leasing agreements; she added that the short leases were due to an abundance of capacity in the Downtown office market, which allowed tenants to have more say in their agreements. Southwest Bank of Texas (now Amegy Bank) agreed to occupy 23271square feet. Tana Exploration Co. LLC agreed to occupy 11347square feet. Stinnett Thiebaud & Remington LLP agreed to occupy 8974square feet.[20]

In February 2006 Chevron U.S.A. Inc. signed a lease for 465000square feet of space. The lease deal filled the building to full occupancy and removed a large portion of available space from the Downtown Houston submarket. Tim Relyea, the vice chairperson of Cushman & Wakefield of Texas Inc., said that Chevron considered other properties before deciding on Continental Center I. He did not state which other towers the company had considered. Chevron planned to place 1,300 employees in 20 floors in the building. The company planned to begin moving employees into the tower by the third quarter of 2006.[21] Prior to the signing of the lease agreement, rumors stated that the company was looking for more office space in Downtown Houston.[22]

In 2008 Continental renewed its lease for around 450000square feet in Continental Center I. Before the lease renewal, rumors spread stating that the airline would relocate its headquarters to office space around George Bush Intercontinental Airport due to high fuel costs affecting the airline industry; the rumors stated that the airline was studying possibilities of less expensive alternatives to Continental Center I. If the airline had left Continental Center I, 40% of the space in the building would have been unoccupied. Steven Biegel, the senior vice president of Studley Inc. and a representative of office building tenants, said that the square footage renewed by Continental is a significant amount of space. Biegel added that if the space went vacant, the vacancy would not have had a significant impact in the Downtown Houston submarket as there is not an abundance of available space, and that another potential tenant would likely occupy it. Jennifer Dawson of the Houston Business Journal said that if Continental Airlines left Continental Center I, the development of Brookfield Properties's new office tower would have been delayed.[23] The parties did not reveal the terms of the lease agreement. As of 2008, Continental Center I was 98% leased.[24]

In 2010, Continental Airlines and United Airlines announced that they would merge and that the headquarters of the combined company would be in the Chicago Loop in Chicago.[25] As of 2010 Continental had around 3,000 clerical and management workers in its Downtown Houston offices[26] and leased 450000square feet in Continental Center I, about 40% of the tower's office space.[27] United continued to occupy space in the building following the merger, but stated in 2011 that it would not renew the lease for 142000square feet of space on six floors.[28] By 2016, United had reduced their leasehold at 1600 Smith to just 140,000 SF, and announced they would be leaving at the end of 2017 for new space at 609 E Main.[29]

In 2011 Chevron renewed a lease for 311000square feet of space for seven years.[30]

As of July 2018, the building was 69% leased with over 500,000 square feet available.[31]

Design

Continental Center I includes a blue lighting pattern on the roof that displays the Continental Airlines logo. The light had been kept off for a period before 2010.[32] After Continental had occupied the building, the airline wanted to display its logo on the roof of Continental Center I. The City of Houston had a 1993 ordinance restricting the height of any new signs in Downtown Houston to 42.5feet. On Wednesday August 2, 2000, the Houston City Council voted 10–4 to stop enforcing the informal agreement and enact a new law that exempts a company from the height restriction if the national headquarters of a company occupies 45 percent or more of a Downtown Houston building of over 750000square feet of usable space. The Mayor of Houston, Lee P. Brown, said that he supported the ordinance change since it was a promise made by Bob Lanier to the airline in exchange for enticing the company to move its headquarters to Continental Center I. Opponents of the change feared that company logos would become more prevalent in the Downtown Houston skyline.[33]

The elevators were manufactured by Fujitec.[34]

In popular culture

See also

External links

Notes and References

  1. Web site: Continental Center I . https://web.archive.org/web/20070218074952/http://www.emporis.com/en/wm/bu/?id=continentalcenteri-houston-tx-usa . dead . February 18, 2007 . Emporis.com . 2008-01-10.
  2. Web site: Continental Center One . SkyscraperPage.com . 2008-01-10 . dead . https://web.archive.org/web/20100204123006/http://skyscraperpage.com/cities/?buildingID=295 . 2010-02-04 .
  3. "Cullen Center ." Carlin/White Associates. Retrieved on August 23, 2009.
  4. "Headquarters Location ." Continental Airlines. Retrieved on December 7, 2008.
  5. "Expressjet.com Terms, Conditions, And Notices." June 8, 2003. Retrieved on May 19, 2009.
  6. "Air Transportation." Opportunity Houston. Retrieved on December 10, 2008.
  7. "Continental Center I." Brookfield Properties. Retrieved on August 13, 2009.
  8. Nichols, Bruce. "HOUSTON: IS THE WORST OVER? Analysts split on former boomtown's future." The Dallas Morning News. May 20, 1985. Retrieved on November 11, 2009.
  9. Nichols, Bruce. "The Selling of a City." The Dallas Morning News. June 7, 1987. Retrieved on November 11, 2009.
  10. "Approved Minutes ." University of Houston System. January 30, 1997. Retrieved on November 11, 2009.
  11. "Approved Minutes ." University of Houston System. April 2, 1997. Retrieved on November 11, 2009.
  12. "Approved Minutes ." University of Houston System. June 2, 1997. Retrieved on November 11, 2009.
  13. "Approved Minutes ." University of Houston System. October 6, 1997. Retrieved on November 11, 2009.
  14. "Company History 1991 to 2000 ." Continental Airlines. Retrieved on February 11, 2009.
  15. Boisseau, Charles. "Airline confirms relocation/Continental moving offices downtown." Houston Chronicle. Wednesday September 3, 1997. Business 1. Retrieved on August 23, 2009.
  16. Zehr, Leonard. "TrizecHahn nabs U.S. leasing deal Continental Airlines enticed to move head office to downtown Houston from suburbs." The Globe and Mail. September 11, 1997. Report on Business B7. Retrieved from LexisNexis on April 1, 2010.
  17. Christian, Carol. "Outage delays hundreds of Continental flights." Houston Chronicle. Wednesday September 13, 2000. Business 4. Retrieved on November 11, 2009.
  18. Kaplan, David. "Jackson opens Houston project office / Rainbow/PUSH leader sees owning stock as entryway for minorities." Houston Chronicle. Tuesday May 1, 2001. Business 3. Retrieved on November 11, 2009.
  19. Sarnoff, Nancy. "Tunnel business going up? / Aboveground shops on rail line draw attention to new competition." Houston Chronicle. Sunday September 12, 2004. Business 3. Retrieved on November 11, 2004.
  20. Sarnoff, Nancy. "Cullen Center snags new leases." Houston Business Journal. Wednesday February 18, 2004. Retrieved on November 11, 2009.
  21. Dawson, Jennifer. "Chevron ends space odyssey with landmark lease." Houston Business Journal. Friday March 3, 2006. Retrieved on November 11, 2009.
  22. Dawson, Jennifer. "Chevron leases large chunk of downtown space." Houston Business Journal. Friday February 24, 2006. Retrieved on November 11, 2009.
  23. Dawson, Jennifer. "Continental renews lease, decides to stay downtown." Houston Business Journal. Friday September 19, 2008. Retrieved on November 11, 2009.
  24. Feser, Katherine. "Continental to stay put at 1600 Smith." Houston Chronicle. September 26, 2008. Retrieved on November 11, 2009.
  25. Sarnoff, Nancy. "Tenant has a ticket to fly." Houston Chronicle. May 8, 2010. Retrieved on July 12, 2010.
  26. Moreno, Jenalia. "Most Continental jobs safe for now." Houston Chronicle. July 24, 2010. Retrieved on July 24m 2010.
  27. Bradford, Nicole. "Houston real estate brokers staying positive amid change." Houston Business Journal. Friday September 10, 2010. 1. Retrieved on October 4, 2010.
  28. "DOWNTOWN REAL ESTATE UPDATE" (Archive). Downtown Houston Association. December 2011. p. 3/5.
  29. Web site: United to lease space in new downtown high-rise. 26 February 2016.
  30. "7 Vastly Undervalued, High Momentum Stocks With Significant Upside." Seeking Alpha. July 8, 2011. Retrieved on August 3, 2011.
  31. Web site: The 10 Largest Office Blocks Available In Houston. Smith. Tierra. 2018-07-26. Bisnow Houston. 2018-10-03.
  32. Sarnoff, Nancy. "Continental's headquarters: A trip down memory lane ." Houston Chronicle. May 5, 2010. Retrieved on May 7, 2010.
  33. Schwartz, Matt. "Council adjusts sign ordinance /Skyline can now glow with Continental logo." Houston Chronicle. Thursday August 3, 2000. A29. Retrieved on May 7, 2010.
  34. "1600 Smith Street ." Fujitec Canada. Retrieved on November 14, 2009.
  35. Web site: Continental Center I, Houston. Houston Architecture. 2019-11-12.