Callon Petroleum Upsizes HQ As Part Of Memorial City Move
While some of its competitors are busy scaling back, Callon Petroleum Co. has signed a 107K SF lease for new headquarters space in MetroNational’s nine-story office building under construction in Memorial City.
The independent oil and natural gas company plans to relocate its headquarters from 2000 West Sam Houston Parkway S., just 5 miles away from its new digs, in the second half of 2024. Callon Petroleum’s current headquarters occupies 75K SF, while its new 107K SF space is the 10th-largest Houston office lease of 2022, the Houston Chronicle reported.
The 190K SF Memorial City building, known as 9753 Katy Freeway, is expected to deliver in Q2 of this year, per MetroNational, which owns and will manage the building. The deal brings the building to 100% leased, MetroNational said.
Callon Petroleum’s decision to increase space by more than 42% contrasts with other energy companies in the area, which are cutting square footage.
Apache Corp. is moving its headquarters from Post Oak to BriarLake Plaza in 2024, a move that could shrink its Houston presence by more than 50%. Other downsizes last year include pipeline company Enbridge, which shrunk from 600K SF to 293K SF, and Baker Hughes, which consolidated and scaled down its office space by 62%.
But the move to a new office building aligns with the ongoing flight-to-quality trend that has seen companies “leaning toward newer, more efficient buildings with state-of-the-art interior design to capitalize on the shift in employees' demand for a better workplace experience,” Avison Young Managing Director and principal Rand Stephens said in a blog post.
“Callon has been committed to finding an office space where our team could collaborate in an enjoyable work environment, have an abundance of accessible amenities and optimize their commutes,” Callon Petroleum President and CEO Joe Gatto said in a news release. “After a year-long search, we found an office building that exceeds our expectations.”
Gatto cited amenities including outdoor green space, shuttle service to Memorial City Mall and Memorial Hermann Medical Center, a fitness center and nearby hotels for visitors.
Brad MacDougall and Warren Alexander with MetroNational represented the landlord, and Joe Peddie and Morgan Relyea Colt of Cushman & Wakefield represented the tenant in the deal.
