ExxonMobil makes waves in Houston
ExxonMobil’s move into Houston with its newest corporate campus has begun to impact the physical and economic landscape of the city and its surrounding areas.
One of the largest construction projects in North America, ExxonMobil’s new 20-building, 3- million-square-foot, 385-acre corporate campus will be able to house more than 10,000 workers from Houston and Fairfax, Virginia.
What does this mean for Houston?
The “Exxon effect”
Houston has long been a beacon for energy companies. However, ExxonMobil’s move has been one of the most significant yet with the creation of a Second Energy Corridor for the city. The decision to set up shop in Houston has snowballed into a movement that’s drawing other companies to the city in what has been called the “Exxon effect.”
In 2014, commercial development companies such as the New York-based Skanska USA bought 14 acres from across the ExxonMobil Campus. The Howard Hughes Corp. also announced plans to build new motels, and multifamily and office projects, among many others in the area.
In addition, developers and homebuilders anticipating the influx of thousands of new residents to the north of Houston bought up land along Shenandoah, Conroe, Spring, Springwoods Village, and The Woodlands to construct more new master-planned communities and hundreds of new homes.
Slow but surely
However, by September of 2015, after the first phase of ExxonMobil’s new campus was completed, demand flatlined.
Developers were surprised by the slowdown of the so-called “Exxon effect.”
Instead of buying new homes, the first wave of Houston energy transplants opted to rent.
Nevertheless, Exxon employees are still expected to troop to North Houston – bringing hope to homebuilders and developers. Even amidst the falling oil prices of July 2015, the ExxonMobil and Southwestern energy campuses still remain a big deal for Houston real estate.
Shaping the area
It’s remarkable to see just how much influence these companies can have on the surrounding communities and the changes they have on the local economy. Plans are afoot to increase the Port of Houston’s capacity for transporting people in and out of the area by deepening both Bayport and Barbours Cut from 40 to 45 feet.
As identified by the Houston Business Journal, the “Exxon effect” has also played a strong role in influencing the following major developers into forging ahead with their major projects:
May 2014
- Taylor Morrison announced plans to build a neighborhood within Johnston Development Corp. Community near the Exxon campuses.
- Partners in Building opened two new pocket communities on the new campuses of ExxonMobil Corp.
May 2014
- Gracepoint Homes starts construction of The Forest, a new community near the ExxonMobil campuses.
June 2014
- Toll Brothers starts construction of new master-planned communities in north Houston.
July 2014
- CDC Houston welcomed its first residents and approved plans for a mixed use project called CityPlace located within Springwood Village, near the new ExxonMobil Campus.
August 2014
- The Johnson Development Corp. unveils plans for previous Camp Strake property.
- Houston-based Frankel Building Group announces the development of The Lakes of Shadow Creek, another upscale community near The Woodlands.
September 2014
- Hines Interests LP plans new community called Laurel Park North.
October 2014
- Meritage Homes and Perry Homes, two new homebuilders, joins Woodson’s Reserve master-planned community.
- Alliance Residential Co. plans to build two new luxury multifamily projects near The Woodland.
December 2014
- Martin Fein Interests Ltd. plans new luxury apartment called “The mark” near ExxonMobil campuses.
- LGI Land’s community Benders Landing will feature luxury homes on smaller lots due to demands.
To learn about how the ExxonMobil move into Houston affects the communities you’re in and its impact on your real estate plans in the North and Northeast Houston areas, call Stephanie Cribbs today at 832.777.8671.
