XTO Energy Plans to Transfer its HQ to the Exxon Mobil School in Houston This Summer season
Fort Worth’s skyline was constructed, in part, because of long-held ties to the Texas energy industry, but XTO Energy’s decision to transfer its headquarters to Houston this year signals a shift for the market that was when its foundation.
By the end of this summer season, XTO Energy Inc., a subsidiary of Exxon Mobil Corp. (NYSE: XOM), plans to move about 1,200 jobs to the brand-new 385-acre Exxon campus near Houston. The moving, announced last year, belongs to XTO Energy’s effort to sell its corporate-owned real estate in Fort Worth.
With the aid of property services firm JLL, XTO Energy has currently sold five of its seven homes in Fort Worth, including the Petroleum Building, a 14-story, Art Deco-style office complex situated on a full city block along West 6th Street adjacent to Sundance Square. The Petroleum Building was built in 1927 for businessman Richard Dulaney, whose long profession was developed on oil and gas.
XTO Energy likewise put an extra building, the renowned WT Waggoner Building in Fort Worth, on the market previously this year.
The XTO Energy-owned property has actually been marketed and offered in stages to “alleviate market effects,” said Jeremy Eikenberry, a spokesman for XTO Energy.
“Most of employees will move to Houston next month, and the staying 400 in mid-2020 for operational factors,” Eikenberry informed CoStar News, in an email. “Our phased relocations are planned to support company connection while also helping decrease financial impact to the Fort Worth location.”
After those moves, the business anticipates to employ about 350 staff members in Fort Worth to support the local operations. Some staff members with XTO Energy’s midstream operations supporting the Barnett Shale operations will likewise stay in Fort Worth.
Previously this month, XTO Energy alerted the Texas Labor force Commission of the prepared moving, which will lead to the layoff of about 65 workers.
From a real estate perspective, Fort Worth Economic Development Director Robert Sturns stated he’s not too concerned.
“Anytime you lose a significant company with a great deal of staff members it’s an obstacle, however nobody was caught off guard and the buildings have been sold or repurposed quickly,” Sturns told CoStar News. “Those structures can be used for office or transformed into some other use that will bring other uses into downtown Fort Worth.”
Sundance Square has yet to determine what it will make with the Petroleum Building. However Sturns stated alternatives might consist of the conversion of the office complex into a property or hotel-condo development. Whatever is being talked about, he stated.
“They are attempting to determine the future chances for the building,” Sturns stated, including that Sundance Square, like many other Dallas-Fort Worth property owners, were at the annual International Council of Shopping Centers’ convention in hopes of landing some ideas.
The altering of the horizon has been decades in the making, with Fort Worth authorities focusing on widening its company base beyond energy, bringing in medical companies, engineering companies and aerospace operations, with the objective of making the city a lot more durable. Sturns approximates about 10 to 15 percent of Fort Worth’s service community presently relies on the energy market.
“In our tactical strategy, we started looking at how we might reduce the risks of the oil and gas industry on our neighborhood,” Sturns said. “The oil and gas market is so cyclical and those recessions can be hard on a neighborhood. We wished to diversify as much as we could.”