XTO office buildings expected to be hot commodity in Fort Worth

June 19,2017

By Sandra Baker

XTO Energy’s decision to move 1,600 workers to an Exxon Mobil campus near Houston threatens to leave a hole in the downtown office market.

But real estate and economic development professionals said Monday that there are some encouraging signs for the future.

XTO has already lined up buyers for two of their seven buildings in Fort Worth, albeit the smallest two.

The former Swift & Co. headquarters in the Fort Worth Stockyards, at 600 Exchange Ave., is under contract with a sale expected to close this fall. The buyer has not been disclosed. It was listed for sale earlier this year for $5.4 million.

Also, a 50,000-square-foot building at 801 Grove St., on the east end of downtown, is under contract to be sold to the Fort Worth Transportation Authority. The T plans to move its headquarters to the building, which is near the Intermodal Transportation Center.

It could be some time before the fate of the other five buildings is known, but for now downtown officials see opportunity on the horizon.

XTO will be moving in phases — it plans to relocate 1,200 jobs next year and the other 400 by 2020 — giving professionals “a gracious timeline” to find new occupants, said Brandom Gengelbach, executive vice president of economic development for the Fort Worth Chamber of Commerce.

“They’re such a great community partner. It was hard to hear they will be moving jobs. The goal is to fill the space before they leave,” Gengelbach said.

Gengelbach said the chamber is hoping to meet this week with XTO officials to get the green light to market their properties when they have prospects. Showing office space when it’s occupied is easier than when it’s vacant, he said. Currently, the chamber is working with two companies that are looking to relocate to a downtown location, including one that wants to be close to a vendor, Gengelbach said.

XTO plans to keep 350 employees in Fort Worth and retain one of its seven buildings.

XTO hopes to retain as many of its employees as possible by offering them relocation packages to its Houston-area campus, particularly those in professional and technical positions, said spokeswoman Suann Guthrie. The moving dates in mid-2018 and mid-2020 were picked to allow those with families to relocate during the summer months.

“We want them to have a long, productive career at Exxon and the company values their knowledge,” Guthrie said. “We are making our best effort to relocate them”

The company also is scheduled to meet with City Manager David Cooke to discuss the impact the company’s move will have on Fort Worth.

“We’ve indicated with the mayor and the chamber that we want to work with them on an effective transition for the highest and best usage for the downtown buildings,” Guthrie said.“We have done great things together and we will continue that relationship going forward.”