Black & Veatch is getting $5 million to spruce up its digs in Houston’s popular Energy Corridor.
The Kansas-based engineering firm inked a deal to lease almost 41,000 square feet at Energy Tower II, at 11720 Katy Freeway, according to a recent filing with the state. It’s taking the third and fourth floors of the building. Work on the space is expected to start in March and be completed by the end of September.
The renovation comes out to $122 per square foot.
Houston-based firm Mac Haik Enterprises has owned the 17-story building since developing it in 2009. Energy Tower II is part of Energy Plaza Office Park, which includes four office buildings and an Embassy Suites Hotel. Fellow tenants include: New Era LIfe Insurance, contracting firm Tribble & Stephens and law firm Winston & Strawn LLP.
The building’s taxable value was $86.1 million last year, according to appraisal district records.
Houston’s Energy Corridor has become one of the city’s most sought-after office destinations, and occupancy levels reflect the trend.
Vacancy rates across the Katy Freeway West, Katy Freeway East and Westchase submarkets dropped from 23.8 percent to 22.5 percent between the fourth quarters of 2023 and 2024, according to JLL. Vacancy in the overall Houston office market was 26.4 percent in the fourth quarter. Earlier this week, Doug Agarwal’s Austin-based investment firm Capital Commercial Investments secured a 62,800-square-foot tenant in the Offices at Greenhouse, a 203,000-square-foot Class A office building at 19219 Katy Freeway, also in the Energy Corridor. The space will be occupied by DNV USA, the American division of Norwegian industrial services company DNV.
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