Thursday, November 10, 2016

This oil and gas company just signed a long-term,

 120,000 square-foot lease along the Tollway

The two six-story office buildings will connect with 'The Hub,' a three-story amenity building.

Houston-based Occidental Petroleum Corp. (NYSE: OXY), one of the largest oil-and-gas companies in the United States, just made a long-term commitment to Dallas-Fort Worth less than a year after it sold its office tower along LBJ Freeway for an estimated $95 million.
Oxy's chemical division signed a 120,000-square-foot, long-term lease on Wednesday that will make way for the development of a new office complex along the Dallas North Tollway, according to a handful of North Texas real estate sources.
The division is expected to set up shop in about half of one of the two office towers along the Dallas North Tollway, which is part of a larger office complex, known as Fourteen 555, at 14555 Dallas Parkway between Belt Line Road and Spring Valley Road in Addison.
The office complex includes two, six-story office buildings totaling 480,000 square feet tied together by a three-story amenity building, called 'The Hub.' The complex will include a full-service restaurant, fitness center, conference center, and a covered terrace for lounging and to play games, among many other amenities.
It may have been those amenities that swayed Oxy's chemical division to make a move from its longtime office along LBJ Freeway, said Randy Garrett, a principal at Transwestern's Dallas office.
Garrett was not connected to the Oxy deal, but Garrett has worked with office tenants as a broker for more than three decades and specializes in the Platinum Corridor along the Dallas North Tollway.
"Business environments have changed drastically over the last five to 10 years," Garrett told the Dallas Business Journal."Firms are always seeking the most productive office space design possible and, if I had to speculate, I'd say selecting (Bill) Cawley's new building was just too good for OxyChem to pass up."
Occidental Petroleum Corp. did not immediately respond to an interview request late Thursday.
Construction will begin in the near future on Fourteen 555, with plans to complete the office complex in September 2018. Bill CawleyJeremy Duggins and Addie Ludwig of Dallas-based Cawley Partners are leasing the remainder of the office complex, which totals 360,000 square feet of office space.
Cawley declined to disclose the name of the tenant, but said an undisclosed tenant with a long-term lease will office in about half of the northernmost office building in the complex.
Dallas-based BOKA Powell is the project architect.
Last year, Occidental Petroleum decided to consolidate its Dallas operations and relocate up to 100 employees to its new Houston headquarters.
The energy firm has major operations in the Permian Basin. In addition to its oil and gas divisions, Oxy has operations in chemicals and midstream assets such as pipelines and terminals.
By deciding to consolidate and better align its divisions, Oxy sold its 24-story office building at 5005 LBJ Freeway for a reported $95 million in January to an affiliate of Dallas-based Encore Enterprises and New York Life.
The new ownership group has since unveiled plans to spend $9 million upgrading the office tower that was originally built in 1986 to attract a major corporate tenant.
Oxy's chemical division still sits in about 20 percent of the 540,514-square-foot building, fulfilling a two-year lease that was signed at the time the building was sold.
The energy firm signed the real estate lease a day after reporting a $241 million third quarter loss on Tuesday, which was higher-than-expected revenue by analysts.
In Tuesday's earnings call, CEO Vicki Hollub said Oxy spent $2 billion in cash on acquiring 35,000 net acres in the Permian Basin in West Texas.

Written by Candice Carlisle - Dallas Business Journal