LNG Firm Expands in Downtown Houston

HOUSTON – (Realty News Report) – Freeport LNG Development, a natural gas export firm, is expanding its offices in Three Allen Center, a 50-story skyscraper in Downtown Houston.

The tower is part of Brookfield Properties’ Allen Center complex, which has three office towers with a total of 3.1 million SF along Smith Street in downtown

Under the terms of the extend-and-expand agreement, Freeport LNG will extend their existing 56,903-SF lease and expand by an additional 8,831 SF for a new total footprint of 65,734 SF at Three Allen Center.

“Brookfield Properties is thrilled to announce that Freeport LNG Development has chosen not only to recommit but to expand their presence at Allen Center, a place they’ve proudly called home since 2002,” said Travis Overall, Executive Vice President and Head of the Texas Region for Brookfield Properties’ office business.

Congressional Debate: Repealing the LNG Gas Expansion Pause

The Allen Center lease comes as expansion of the LNG gas export industry is being debated in Congress.

In January of 2024, President Joe Biden placed a freeze on approvals to build additional liquefied natural gas export facilities. President-elect Donald Trump has announced plans to lift the freeze on new LNG export project approvals on his first day in office.

“U.S. LNG exports are crucial not only to American independence but also amidst a fragile geopolitical environment,” Rep. Pat Fallon, R-Texas said at a congressional subcommittee Wednesday. “From the Israel-Hamas war, to the Russian invasion of Ukraine, to the growing threats posed by China, countries across the world have heightened awareness of their own energy reliance. Withholding our own LNG potential simply to appease climate extremists fails not only our allies but our citizens at home, who work tirelessly to keep power on around the world.”

Freeport LNG Facility Second Largest in U.S.

The Freeport LNG is headquartered in Houston, Texas. The company’s three liquefaction trains produce in excess of, 15 MTPA. Freeport LNG’s liquefaction facility is the seventh largest in the world and second largest in the U.S.

In the new office lease, Freeport LNG was represented by Kyle Kelley with Savills, and Brookfield Properties was represented in-house by Tyler Merritt, and by Bubba Harkins, Jenny Sealy and Kristen Rabel of CBRE in the lease negotiations.

The Three Allen Center, 333 Clay St., is a 1.4 million SF tower completed in 1983.

Brookfield Properties finished a major renovation of Allen Center in 2021. The project also includes the 34-story One Allen Center and the 36-story Two Allen Center.

The first phase of the Allen Center renovation, completed in 2017, cost $48.5 million, but the total price tag for all phases has never been disclosed.

An Achievement in Downtown Green Space

A key achievement in Brookfield’s renovation program was the removal of an imposing skybridge between the One Allen and Two Allen buildings and the removal of an earthen berm, which reduced the fortress factor for pedestrians. A large green space, called The Acre, was created, providing a people-friendly vibe and 171 trees were planted.

The Office of James Burnett, landscape architecture firm designed the Allen Center exterior upgrade. The Office of James Burnett, a firm founded in Houston in 1989, is no stranger to urban parks. The firm designed the award-winning Klyde Warren Park, a catalytic over-the-freeway park in downtown Dallas. The Office of James Burnett (OJB) firm could be included in future design discussions for the proposed, 30-acre over-the-freeway park envisioned for the east side of the George R. Brown Convention Center in downtown Houston

In today’s competitive office market, building owners like Brookfield Properties are faced with a choice – spend heavily to redevelop the buildings to meet the modern space demands of the Millennial generation – or let the buildings decline into the dreaded Class B status.

Brookfield Properties also spent heavily, in excess of $200 million, for renovations to its Houston Center downtown complex which has four office buildings containing 4.2 million SF and 200,000 SF of retail.

Credit: Allen Center photography by Peter Molick, courtesy of Brookfield Properties.

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