KBR signs big lease in Hoover’s Galleria Tower

The Galleria Tower office building at the Riverchase Galleria has a new major tenant in KBR. (contributed)
General Growth Properties (GGP) has committed tens of millions of dollars to renovating and enhancing Riverchase Galleria in Hoover over the past three years.
The result has been a resurgence in retail occupancy at the over-half-million-square-foot shopping mall.

Galleria Tower at Riverchase Galleria is now 90 percent leased after KBR’s 80,000-square-foot lease.
In addition to the retail real estate giant’s financial commitment to the mall and the Hyatt Regency Birmingham-The Wynfrey Hotel, GGP has spent millions on renovating the 17-story Galleria Tower, the 275,000-square-foot Class A office property.
Recently, Jim Wilson & Associates LLC announced the signing of a lease that has put the Galleria Tower back on the map in terms of office space in the Birmingham area.
Houston-based KBR Inc. signed a lease for 80,000 square feet in the tower and will occupy floors 4, 11, 12 and 14. The company will bring more than 400 employees to the Galleria Tower.

KBR is taking 80,000 square feet in the Galleria Tower office building. (contributed)
“KBR was looking to relocate to a modern facility that allowed the company to focus on its core business,” said Carl Bartlett Jr., executive vice president at Jim Wilson & Associates. “The ability to feature full floor plans with 20,000 square feet each allowed KBR to develop an integrated plan that met their needs. In addition, the presence of covered parking, coupled with the ease of access to the Galleria Tower to and from I-459 via the interstate flyover exit, were certainly positive factors that influenced the transaction. In the end, the transaction gets done because both sides were satisfied with the final result.”
According to Bartlett, negotiations with KBR began about a year before the signing of the lease, but preparations for such a company’s arrival were already underway at Galleria Tower.
Galleria owners installed a digital-based elevator control system that provides quicker and seamless vertical transportation for the building, along with an upgraded energy management system to permit more efficient heating, cooling and overall system control, as well as new dual elevators and a conference room facility that is Wi-Fi enhanced for all tenants
GGP also invested in building repairs that include a new roof, cleaned and sealed building facade, new entrance landscaping and a multimillion-dollar parking deck remodeling project that includes LED lighting.
Bartlett said that upgrades to each component at Riverchase Galleria, whether it be retail, hospitality or office, benefit the other aspects of the property.
“Practically all of the invested dollars that directly benefit one part of the Riverchase Galleria complex likewise provide a corresponding benefit to all other aspects,” Bartlett said. “The multi-use nature of the complex allows each area of discipline to have better value because of the adjacent and complementing component. For example, KBR’s occupancy in the Tower will translate to more people shopping and dining in the Galleria and additional room-nights at the Hyatt Regency Birmingham-The Wynfrey Hotel.”
After KBR’s commitment, Galleria Tower is now 90 percent occupied.
Construction and renovation for KBR’s 80,000 square feet of Galleria Tower is underway, and the company expects to be in the Hoover office building during the second quarter of 2016.