Chemical giant LyondellBasell is on the move, planning to relocate its U.S. headquarters with a hefty price tag attached. The estimated cost for the company's new venture is ballparked at $61 million for their forthcoming occupancy in Williams Tower, a defining feature of Houston's skyline. LyondellBasell's leap into the Galleria-area skyscraper was first reported by the Houston Chronicle, which detailed the filings stating the build-out will cover a whopping 318,000 square feet across several floors.
Slated to begin during the summer months, the completion is earmarked for February 2025, as Kirksey Architecture spearheads the design process. Currently nested in downtown Houston at 1221 McKinney, a building that proudly bore the LyondellBasell name, the company will vacate a substantial presence as one of the premier employers in the area. Despite multiple attempts, LyondellBasell has yet to comment on the move, which was also brought to light by the Houston Business Journal.
This relocation mirrors a shift in the firm's operational philosophy, embracing a more flexible workplace policy since 2021 that allows employees to telecommute twice a week. This adaptability, no doubt, paves the way for a new era as LyondellBasell gears up to inhabit the Williams Tower, a lofty perch outside of Houston's central business district, renowned for over 1.4 million square feet of office space and a notable standing as the tallest building in the area.
The departure from their longstanding downtown foothold leaves a sizeable gap in the real estate market, a region already grappling with a vacancy rate of 25.6% in the first quarter. A Brookfield Properties spokesperson disclosed, in a statement obtained by the Houston Chronicle, that there were "no updates at this time" about potential tenants to backfill the space left by LyondellBasell, or if a name change for the tower is on the horizon.
Alongside the grand designs for its future, LyondellBasell's current campus is part of the recent extensive renovations helmed by Brookfield, with new plazas, refreshed exteriors, and lobbies now gracing the Houston Center buildings. Meanwhile, the prestigious Williams Tower too has not been left untouched, recently undergoing renovations focusing on its lobby. As for the financial footings of LyondellBasell, its full-year revenue saw a significant reduction of about 19% to nearly $41.11 billion in 2023, marking a shift from the previous year's earnings, as per details shared by the Houston Business Journal.
