NewsTalk Texas

Houston-Sugar Land-Baytown

Niagara Bottling labels 207,000 SF in Houston 

(2/27/2015 7:45:00 AM)

HOUSTON - Thackeray Partners has secured a lead tenant for its 310,010-sf warehouse facility being constructed within the Bayou Bend Business Park at 8520-B South Sam Houston Pkwy. W.

Ontario, Calif.-based water bottling company, Niagara Bottling, will occupy 207,230 sf, which is slated to deliver March 2015 along with a second 68,370-sf building delivering in the same month.

Up to 102,780 sf remains available for lease.

Read more at CoStar Group.

Webster: 237,000-SF Baybrook Gateway sold 

(2/27/2015 7:42:00 AM)

WEBSTER - Baybrook Gateway, a 236,854-sf regional retail center, has been sold.

Baybrook Gateway is located at the southeast corner of Bay Area Blvd. and I-45.

The property was built in 1995 and is 65 percent occupied. Tenants include Ashley Furniture, Michaels, World Market, Aaron Brothers and Barnes & Noble.

Read more at Texas Real Estate Business.

'Made in Houston' by Stewart Tubular adds 129,000 SF 

(2/27/2015 7:38:00 AM)

HOUSTON - Houston-based Stewart Tubular Products has added a second building located at 5951 N Houston Rosslyn Rd., allowing the company to double its manufacturing capacity.

The building adds 105,000 sf of production and warehouse space and 24,000 sf of office space. It sits on 15 acres with an additional 15 acres available for future needs.

"We have seen significant growth over recent years," said Steve Samuel, founder and president of Stewart Tubular Products. "The addition of our new location shows our strong long-term commitment to the industry and the customers we serve."

Stewart Tubular Products employs 203 people, all in Houston. Its high-precision products, which are used in applications such as connecting drilling pipe on wells in the deep sea as well as on land, are made in Houston. About 70 percent of its products are shipped overseas.

The company also has a 75,000-sf facility at 1810 Afton St. It will keep its Afton St. location, which contains 45,000 sf of manufacturing space, 20,000 sf of warehouse space and 10,000 sf of office space on seven acres.

Read more at the Houston Chronicle.

HEB plans 70,000-SF store for Bellaire 


BELLAIRE - HEB is planning a new 70,000-sf store to replace the current 20,000-sf store at 5100 Cedar St., more than tripling the space that is currently available.

The new store will bring a pharmacy, floral shop and wider selections to Bellaire shoppers. The new store also will bring more than 300 new jobs to the City of Bellaire.

Lisa Helfman, the Houston area real estate director for HEB, said that the current store location is just one of several options under consideration for development of the new store.

“One of the options is building on the site we are currently on,” Helfman said.

Read more at Instant News Bellaire.

Condominium tower to bring 90 units to The Woodlands 


THE WOODLANDS - The Woodlands Development Co. — a wholly owned subsidiary of Dallas-based The Howard Hughes Corp. — plans to build a 22- to 26-story luxury condominium tower near The Woodlands Waterway.

Earlier this year, The Woodlands Development Co. placed marketing signs at the tower's construction site, which is located next door to The Westin The Woodlands hotel under construction in Waterway Square.

Jim Carman, Howard Hughes' director of building development, said the condo tower height will depend on unit sales. Floor plans have not been finalized, but each floor is expected to have up to four units with possible penthouses having fewer units.

The tower will have approximately 90 units in total, and will have an upscale and contemporary design, Carman said.

The Woodlands Development Co. hopes to break ground on the project later this year, Carman said. The site is planned and permitted, and a groundbreaking date will be set pending unit sales.

Read more at the Houston Business Journal.

Sam Houston centers $22M on engineering 


HUNTSVILLE, WALKER COUNTY - Sam Houston State will build a $22 million engineering technology center and add $9.5 million worth of renovations to the Bernard G. Johnson Coliseum.

The 53,000-sf engineering technology center will house labs for agriculture science and engineering technology.

The building will be named for the late Sam Houston State alum and Therm-Omega-Tech Inc. founder Fred Pirkle, who donated money for the project. The center will also have an interdisciplinary multipurpose room and administrative offices.

In renovations and updates, the Bernard G. Johnson Coliseum's original mechanical equipment — including the heating and air conditioning system — will be replaced, 1,000 seats will be added, and another 4,000 sf will be built out. The facility was built in 1976.

A timeline for the project is still to be determined.

Read more at KBTX.

Colliers: Houston's strong 2014 medical office market 


HOUSTON - Houston’s medical office market demonstrated strength in 2014, according to a medical office report by Colliers International. The citywide average vacancy rate was 11 percent at year-end 2014, down from 12 percent at the end of 2013.

Sublease space has not had a significant impact on Houston’s current vacancy rates. Of the 3.2 million sf of vacant medical space on the market, only 52,500 sf is sublease space.

Nine new buildings — 353,315 sf — were added to the market during second half 2014. Currently, there are six medical office buildings totaling 371,797 sf under construction.

Colliers reports the largest medical office building currently under construction is the 150,000-sf Class A Springwoods Village Medical Office Building located in The Woodlands. The six-story building is 33.3 percent preleased and is expected to deliver September 2015.

In terms of sales activity, Colliers reported 13 Houston-area medical properties sold since July 1, 2014. The majority of the sales that occurred were patient medical centers and the average sales price was $340 per sf.

Read more at Realty News Report.

See the full Houston Medical Office Year-End 2014 report from Colliers International.

Need for Speedsportz races to New Caney 


NEW CANEY, MONTGOMERY COUNTY - Construction is set to break ground at the end of March on Speedsportz Racing Park, the motorsports complex at the future Grand Texas Sports & Entertainment District. It is set to open in late 2015.

The facility will be built on nearly 30 acres and will include a European-style rental kart facility and rental track, a performance track and a performance pad, according to a press release.

Plans for the complex have evolved since the preliminary concept was released last summer.

"The residual acreage will be developed for commercial pads along Hwy. 242 and a new unnamed road starting construction in March," said co-owner Alan Rudolph.

Rudolph, a renowned karting driver and racing trainer, most recently was vice president, general manager and chief instructor at Bondurant SuperKart School in Phoenix.

In November 2013, developer Monty Galland and the Grand Texas team unveiled the Grand Texas Sports and Entertainment District master plan.

The entire project is being developed on more than 600 acres along I-69 and SH 242 about 30 miles northeast of downtown Houston.

Read more at the Houston Business Journal.

Houston: Sprouts heads to 28,000 SF in Yale Market 


HOUSTON - Sprouts Farmers Market will open in the new Yale Market at 195 Yale at I-10 in the Heights. Sprouts will join LA Fitness, World Market, Mattress Firm and the Guitar Center as tenants in the new 125,000-sf Yale Market, which is fully leased, according to The Weitzman Group.

It will be the sixth local store for the chain since entering the Houston market in 2013, and the first inside Loop 610.

Sprouts most recently opened a new 28,000-sf store at 20708 Kuykendahl Rd. in Spring in August.

Other locations are at 11940 Westheimer in west Houston, 22506 Tomball Pkwy. in Spring Cypress Village, 7055 Texas 6 North in Copperfield, and 23105 Cinco Ranch Blvd. in Katy.

Phoenix-based Sprouts boasts an array of natural and organic products with affordable pricing.

Read more at the Houston Chronicle.

Pick a lot! Homebuyers sleep over for Reserve at Clear Lake 

(2/25/2015 8:00:00 AM)

CLEAR LAKE - It looked like a scene straight out of a new iPhone unveiling. More than 100 prospective homebuyers lined up — some overnight — to purchase a new home at The Reserve at Clear Lake City.

The Reserve at Clear Lake City, a new 372-acre luxury community — located southeast of Sam Houston Pkwy. and I-45 near Ellington Field — is the first new home development in the southeast Houston suburb in nearly two decades.

Trendmaker Homes and Village Builders are planning to build 740 homes ranging in price from $300,000 to $1 million. Both Houston home builders launched presale events this month, attracting more than one 100 people.

"We had people wait in line overnight to be able to pick their lot," Will Holder, Trendmaker's president, said in an email to the Houston Business Journal. "I've been building in Houston for 35 years and never seen such strong interest."

The Trendmaker community will feature single-family homes on 55-, 70- and 80-foot lots, a gated patio home neighborhood and a shopping center anchored by an H-E-B Grocery store, shops and restaurants.

Neighborhood amenities include miles of hiking and biking trails as well as a recreation center with a swimming pool, splash pad, tennis courts and playgrounds. Residents will be zoned to Clear Lake Independent School District.

Read more at the Houston Business Journal.

Houston: 165,000-SF Copperfield Village Shopping sold  


HOUSTON - Copperfield Village Shopping Center, a 165,293-sf, dual-anchored retail center in northwest Houston, has been sold. It is situated on 16.43 acres at 7081 SH 6 N. Kimco Realty Corp. purchased the asset from Copperfield Village Investors LP.

The property’s location in the 2,000-plus-acre Copperfield master-planned community places it in a densely-populated area with an estimated 350,000 residences within a five-mile radius.

The center is 92 percent leased to anchors Sprouts Farmers Market and Ross Dress for Less in addition to Goody Goody Liquor, Dollar Tree, Five Below, Panera Bread and Leslie’s Pool.

Kimco Realty, a REIT based in New Hyde Park, N.Y. Kimco owns interests in 754 shopping centers comprising 110 million sf of leasable space across 39 states, Puerto Rico, Canada, Mexico and Chile.

Read more at Realty News Report.

tag: Transwestern's Houston Retail MarketWatch Feb. 2015, Collier's Houston Retail Research and Forecast Report 4Q 2014, retail under Houston Market Research.

Transwestern: Houston retail MarketWatch Feb. 2015 


HOUSTON - Transwesten released the February 2015 MarketWatch for Houston retail. The report also contains recent leases, recent sales, retail lease statistics, and retail market indicators.

One sale of note was the 350,444-sf Copperwood Village in the Far Katy North submarket. Sale price: $46.2 million allocated (39 property portfolio). The buyer was Kimco, the seller was Blackstone.

Houston Retail Sales Statistics Feb. 2015
  1Q 2015 4Q 2014 Trailing 12
Volume ($ Mil.) $75.6 $260.3 $1,277.1
No. of properties 8 31 147
Total SF 663,874 1,516,253 8,822,849
Average price/SF N/A $233 $183
Average cap rate
N/A 7.0% 7.4%

Source: Transwestern

For more Retail statistics, see Houston Market Research.

tag: Houston NewsTalk retail

Houston Gateway to industrial, office stats year-end 2014 

(2/24/2015 10:00:00 AM)

HOUSTON - Commercial Gateway, the commercial division of the Houston Association of Realtors (HAR), has released its area industrial and office reports for year-end 2014.

Houston Area Industrial Market Summary Year-End 2014*
Net Absorp.
Northwest 135,083,980 5.7% 2,290,203 3,560,084 $8.05
Southeast 81,556,042 5.1% 1,956,977 730,157 $6.16
Northeast 70,064,308 9.2% 2,581,730 2,037,760 $7.88
406,955,376 5.8% 8,997,304 7,932,542 $7.78

*Top three markets ranked by SF.
**Includes all general-purpose existing industrial buildings 10,000 sf or larger.
***Rental rates are weighted and averaged based on available space.

Houston Area Office Market Summary Year-End 2014*
Net Absorp.
Suburban 162,896,194 12.0% 5,614,286 15,890,296 $23.31
CBD 40,627,042 8.2% 132,299 1,525,000 $35.09
Uptown 28,861,676 11.1% 512,544 1,377,824 $31.48
203,523,236 11.3% 5,746,585 17,415,296 $25.17

*Top three markets ranked by SF.
**Includes all general-purpose existing office buildings 20,000 sf or larger.
***Rental rates are weighted and averaged based on available space.

You want more! So here you go.

See the full 4Q 2014 Industrial Market Summary. Scroll to page five of the PDF for the 4Q 2014 Office Market Summary.

Source: Commercial Gateway

Regions Bank to anchor 180,000-SF office in Houston 


HOUSTON - Regions Bank's Houston headquarters will anchor a new 11-story building located at 3773 Richmond Ave. The 180,000-sf building, which will be called Regions Financial Center, will have 162,000 sf of office space and 18,000 sf of retail.

Birmingham, Alabama-based Regions will occupy the top three-and-a-half floors, totaling 56,000 sf, as well as 3,500 sf on the retail level for a full-service customer banking center.

TRC Capital Partners (formerly The Redstone Cos.), Hansen Partners and Barbour Investments are developing the building. Construction began in December, and the project is expected to deliver in April 2016.

Regions Financial Corp. is the parent company of Regions Bank, which is the 14th-largest bank in the Houston area, based on its $1.55 billion in local deposits as of June 30, 2014.

Read more at the Houston Business Journal.

Baytown: CastleRock buys 106 acres for residential homes 

(2/23/2015 8:00:00 AM)

BAYTOWN - CastleRock Communities has purchased a 106-acre parcel of land at the northwest corner of Garth Rd. and Wallisville Rd. for a residential subdivision. The property was purchased from Sowell & Co.

Situated north of I-10, the land was part of a 124-acre parcel Sowell & Co. had purchased out of foreclosure in 2011. The Dallas-based company has been working on entitling the property and getting water and sewer service to the site from City of Baytown.

Home building has been on the rise in Baytown. The City of Baytown issued 176 permits for new single-family homes in 2014, up from 126 in 2013 and 62 permits in 2010.

Read more at the Houston Chronicle.

HAR: Houston area cities' home sales Jan. 2015 

(2/23/2015 7:45:00 AM)

HOUSTON - Houston Association of Realtors (HAR) released home sales data for January 2015. Some quick facts include:

•  The median price of existing single-family homes decreased to $192,000 — down 9.9 percent from December 2014.
•  Existing single-family home sales decreased 38.2 percent from December 2014 for a January 2015 total of 3,960 units sold.
•  Condos decreased in price to $154,500 — down 7.8 percent from December 2014.
•  Existing condo sales decreased 40.0 percent in January 2015 over December 2014 for a total of 374 units sold.

Select region cities are represented below along with statistics from the HAR MLS area as a whole.

HAR Jan. 2015 Regional Sales and Price Activity
MLS Wide Median Price
  Jan. 2015
Price Chg.
vs. Jan. 2014
Units Sold
  Jan. 2015
Sales Chg.
vs. Jan. 2014
$192,000 7.3% 3,960 1.1%
HAR (condo) $154,500 8.8% 374 -23.5%
Region Cities*        
Houston $169,900 8.9% 1,204 -1.0%
Spring $190,000 3.0% 257 -15.5%
Katy $235,000 9.3% 251 -7.0%
Pearland $260,000 18.2% 171 52.7%
Humble $173,442 17.4% 153 17.7%
Cypress $220,000 2.3% 152 -15.1%
Richmond $230,000 11.5% 135 5.5%
Sugar Land $303,000 -2.6% 99 -1.0%

*Region Cities' data include single-family only and represent eight cities sorted by number of units sold.

See Housing under Houston-Sugar Land-Baytown Market Data Research or see the full report from Houston Association of Realtors.

Yara and BASF to build $600M ammonia plant in Freeport 


FREEPORT - Norway-based Yara International ASA and German chemical giant BASF SE confirmed they will build a major $600 million "world-scale" ammonia plant to open 2017 at BASF's existing property.

The ammonia plant will be owned 68 percent by Yara and 32 percent by BASF. The plant will have a capacity of about 750,000 metric tons per year.

Yara also will build an ammonia tank at the BASF terminal, bringing Yara's total investment to $490 million. BASF will upgrade its current terminal and pipeline assets.

A 20-year supply agreement for nitrogen and hydrogen has been signed with Connecticut-based Praxair Inc., who is investing more than $400 million to add hydrogen and nitrogen production capacity and extending its Gulf Coast pipeline systems approximately 46 miles from Texas City to the Freeport area.

The pipeline extensions are scheduled to be in operation 2016 and the supply to the complex is expected to start late 2017.

The project follows the trend of foreign chemical companies rushing to invest in Gulf Coast chemical plant expansions to take advantage of cheap shale gas, which is used as a feedstock for many chemicals, including ammonia.

Yara has expertise in the global ammonia network and BASF is a major consumer of ammonia for its downstream manufacturing activities. Ammonia can be used in the manufacturing of fertilizers, home furnishings and explosives.

In Houston, BASF currently employs more than 1,200 people at multiple plants. It also is investing millions of dollars in building a new emulsion polymers plant at its existing chemical complex in Freeport.

Read more at the Houston Business Journal.

Houston: Stag Industrial buys 185,000-SF building 


HOUSTON - Stag Industrial Holdings LLC has acquired a 185,000-sf manufacturing building located on 16.8 acres at 1020 Rankin Rd. from Texas Best Land LP.

STAG Industrial is a real estate company focused on the acquisition, ownership and management of single-tenant industrial properties.

Read more at Texas Real Estate Business.

Houston George R. Brown 30,000 SF retail ready by Super Bowl 


HOUSTON - Up to seven new restaurants, sidewalk cafes and entertainment venues will be part of a makeover of the George R. Brown Convention Center and surrounding areas.

Approximately 30,000 sf of restaurant and other venue spaces will front Avenida de las Americas, which is being narrowed to make room for outdoor plazas designed to connect people in the George R. Brown to Discovery Green Park across the street.

The spaces will range from 1,500 sf to more than 10,000 sf. Roadwork and renovations are underway, including the addition of a grand entryway at the convention center.

Houston First Corp., which manages the convention center, is working with Griffin Partners and Wulfe & Co. in the development process. Houston First is also developing an office building at the northern end of the convention center which will house some of the new retail space.

The new retail and entertainment spaces are targeted for opening late 2016 around the same time as the The Marriott Marquis under construction nearby. They are expected to be open in time for the Super Bowl in 2017.

Read more at the Houston Chronicle.

Tomball, Cypress: 520-unit Avenues sell for $76M 

(2/20/2015 9:00:00 AM)

TOMBALL, CYPRESS - The acquisition of the 280-unit Avenues at Northpointe and the 240-unit Avenues at Cypress has been finalized for approximately $76 million, or roughly $140,000 per unit.

Atlanta-based multifamily owner and operator Preferred Apartment Communities purchased the properties.

Developed by Stockbridge, GA-based Davis Development, Avenues at Northpointe is located at 11740 Northpointe Blvd. in Tomball. The 28-building community is situated on 9.4 acres and consists of one-, two- and three-bedroom apartments.

Houston-based Friendswood Development Co. developed Avenues at Cypress on a 17.81-acre site at 21500 Cypresswood Dr. in Cypress. The nine-building community also features one-, two- and three-bedroom apartments.

The two newly constructed communities are each three stories and delivered approximately 12 miles from one another.

Read more at CoStar Group.

CBRE flash: Houston retail center market hits record high 

(2/20/2015 8:00:00 AM)

HOUSTON - Houston’s retail center market occupancy is at its highest point ever and it’s filling up fast, according to a CBRE Texas Marketflash report.

Occupancy hit 93.4 percent at the end of the year and many prime retail centers in Houston are running 100 percent occupancy.

Leasing is strong and a considerable amount of shopping center space was filled last year. Some 2.1 million sf of retail space was absorbed in 2014, the highest since 2003, CBRE reported.

With 2015 population growth projected at 125,000, positive job growth and healthy single-family construction, the Houston shopping center market will remain tight this year, CBRE said.

“Frankly, I think we have a shortage of retail space,” said Eric Lestin, senior vice president of retail properties at CBRE Houston.

Houston has some 2.7 million sf of retail space under construction, but that is not a large number considering the Houston market has 212 million sf of space, said Lestin, a 30-year veteran in the industry.

Lestin said he considers the Houston market to be “almost fully leased” currently.

Read more at Realty News Report.

Two more towers for Houston's Downtown Living Initiative 


HOUSTON - Two new residential projects are planned for downtown — a historic renovation of the 21-story Great Southwest Building, originally known as the Petroleum Building, and a new 24-story apartment tower.

Dallas-based Todd Interests is developing the Great Southwest Building located on the eastern half of Block 72, bounded by Texas Ave., Austin St. and Capitol St.

The existing office tower will be renovated into 162 residential units, and plans also call for the addition of 11 townhouses on Austin and Capitol, all lining an internal parking garage.

Illinois-based Marquette Cos. is developing the 304-unit, 24-story apartment tower planned for Block 114 located just a block northeast of Minute Maid Park.

Both projects have been approved for the Downtown Living Initiative, which now has nearly reached its cap. The program offers developers up to $15,000 for each unit built in a multifamily complex of at least ten units.

The Downtown Living Initiative is capped at 5,000 units, and there are now 17 projects totaling 4,955 units approved for the reimbursement, though some agreements are still pending.

Read more at the Houston Business Journal.

Green Crossing signs 45,000-SF lease in Houston 


HOUSTON - Columbus McKinnon signed a three-year lease for 45,185 sf in the Green Crossing Phase 2 building located in the Greens Crossing Business Park at 845 Greens Pkwy.

The 91,000-sf facility is owned by Denver-based DCT Industrial Trust, which acquired the asset back in 2005 in a portfolio.

Columbus McKinnon is an Amherst, NY-based designer, marketer and manufacturer of material handling systems and services. They have been in business for 140 years, and their focus is commercial and industrial applications.

Read more at CoStar Group.

Houston: 91,000-SF H-E-B shows off many firsts in Tanglewood 


HOUSTON - H-E-B is opening its newest 91,000-sf location at San Felipe and Fountainview. The Tanglewood location will have many firsts for the grocery chain, including an in-house restaurant Table 57.

Some of the other new or unique features include an expansion selection of Asian fare in addition to its sushi bar.

The store will have one of the largest bulk food offerings in any H-E-B stores, a hummus bar and the largest yogurt selection to date.

It will also have the largest selection of organic food, gluten-free options and 1,600 wines. The wine section includes a wine tasting area.

“H-E-B San Felipe’s unique shopping and family friendly environment will elevate the grocery-store experience in all aspects, from planning the weekly menu to entertaining in grand style to meeting friends for a casual dinner and a glass of wine or picking up dinner ‘to go’,” said Scott McClelland, president of H-E-B Houston.

Read more at the Houston Chronicle.

Baytown: $22M upgrades for 11,000-acre Cedar Port Industrial 

(2/18/2015 9:00:00 AM)

BAYTOWN - The fifth-largest industrial park in the world, Cedar Port Industrial Park, will soon undergo serious infrastructure improvements under new ownership, allowing nearly 11,000 acres of development along the Houston Ship Channel.

The industrial park was purchased by Beaumont-based Trans-Global Solutions Inc. (TGS) in December. See previous story 11,000-Acre sale! One of Houston area's biggest land deals for more details.

The park is located across the Houston Ship Channel from the Barbours Cut and Bayport container terminals with SH 99 running through it.

There is direct access to both the Union Pacific Railroad and BNSF Railway as well as to a Chambers County Improvement District barge dock on Cedar Bayou.

Walmart Stores Inc. has its largest import distribution center complex, which is the size of 70 football fields, located within the park, and Home Depot Inc. has a 755,000-sf distribution center there.

Much of the park remains undeveloped, but not for long. "There's $22 million in work we'll do that'll be completed this year," said William F. Scott, TGS's CEO. Those improvements include adding two 9,000-foot interchange railroad tracks on the north end of the property.

The tracks, which are slated to be complete in the fourth quarter of this year, will open up more than 4,000 acres around the park for development, the company said.

Railcar storage capacity will also be added and weight capacity of existing rail lines will be increased. The project also includes drainage and road improvements.

"Previously, you had all this land and rail, but capacity wasn't there to build out," said Scott, who added that the prime location is ripe for development. "All of it is tied to logistics. Our job is to put the infrastructure in place so that real estate is advantaged."

Read more at the Houston Business Journal.

No time to play in Waller's 500,000-SF industrial park 

(2/18/2015 9:00:00 AM)

WALLER, WALLER COUNTY - Alegacy Development is developing an 87-acre industrial park near the Waller community, west of Houston.

Located near Hwy. 290, the park will include more than 20 industrial and office buildings totaling 500,000 sf upon completion.

Commercial State Bank recently closed a $17 million commitment to Alegacy Development for the industrial park.

With syndication to Community Bank of Texas and Amegy Bank, it will fund the first of three phases for the development.

Read more at Realty News Report.

Luxury details of the 34-unit 3615 Montrose in Houston 


HOUSTON - Riverway Properties has begun presales for 3615 Montrose — a seven-story, 34-unit condominium project planned for the former site of The River Cafe on the northeast corner of Montrose Blvd. and Marshall St.

The building features six floor plans with floor-to-ceiling windows that look out toward downtown Houston, the Texas Medical Center and St. Basil's Chapel. The units — including four penthouses — range in size from 1,900 sf to 4,149 sf and are priced from $1 million to $2.25 million.

Common amenities will include a 24/7 concierge service, two levels of private parking for residents with electric car-charging stations and private elevator access for some residences.

Riverway plans to break ground spring 2016, after selling about half of the units, said Michael Carroll, Riverway's president.

Read more at the Houston Business Journal.

O'Connor: Houston apartment overview Feb. 2015 


HOUSTON - O'Connor and Associates submarket apartment data for February 2015 are available. Below is a chart of the eight submarkets with the highest number of units in the region.

Annual Houston Submarket Overview
February 2015
Submarkets # Units Avg.
Far West 29,352 91.15% 953 $1,035
Galleria 27,939 92.92% 884 $1,193
Clear Lake/
League City
22,949 94.08% 861 $918
22,719 90.59% 792 $639
Alief 22,453 90.16% 837 $733
- East
21,719 91.69% 855 $738
Gulf Freeway 20,384 93.95% 800 $720
Steeplechase 18,755 92.94% 907 $916

See the entire list of Houston area cities (from Alief to Woodlands) at O'Connor and Associates

For more Multifamily stats, see Houston-Sugar Land-Baytown Market Research.

Another SkyHouse joins Houston's skyline with SkyHouse Main 


HOUSTON - The SkyHouse development partnership has broken ground on SkyHouse Main — a mirror image of SkyHouse Houston located in downtown Houston.

The new 24-story tower at 1725 Main St. will feature 336 residences and 7,200 sf of street-level retail space. Delivery is expected in early 2016.

SkyHouse Main apartment homes will have floor-to-ceiling glass and nine-foot plus ceiling heights with stainless steel appliances, granite counter tops, wood floors, expansive balconies and high speed internet.

Within walking distance of more than 40 million sf of office space, the Toyota Center, Minute Maid Park and BBVA Compass Stadium, the project will provide residents with excellent access via public transportation to the surrounding areas.

Read more at Multi-Housing News.

Pelican migrating to 17-story Wilshire in Houston 


HOUSTON - Pelican Builders Inc. plans to break ground in May 2015 on its 17-story luxury condominium tower, The Wilshire. Located near the Galleria, the tower will offer 96 residences ranging from $800,000 to $2.99 million.

The Wilshire will be located at 2049 Westcreek Lane on the site of the former Westcreek apartment complex. Pelican purchased the land, immediately south of SkyHouse River Oaks, about a year ago.

The building will offer 14 different floor plans. The two-bedroom units average 1,300 sf for those with two bathrooms and 1,750 sf for those with two-and-a-half bathrooms. The typical three-bedroom units average 2,300 sf, and there are 12 three-bedroom penthouses that average 3,500 sf.

Pelican Builders Principal Robert Bland called the project a landmark building for the company. Presales have been very strong despite Houston's current economic uncertainty, he said in a statement.

The Westcreek site is immediately south of San Felipe St. and directly north of the River Oaks District luxury mixed-use development just inside the 610 Loop.

Read more at the Houston Business Journal.

Bay Area hospital set to add 100,000 SF in Webster 


WEBSTER - The Bay Area Regional Medical Center, an acute-care hospital located at 200 Blossom St., is set to begin construction in May to add more than 100,000 sf over four stories, doubling its patient capacity.

Currently, the five-story, 232,000-sf general acute care hospital has 104 beds and five operating rooms. The expansion will bring the patient-room total to 200.

The eighth floor is being designed for women’s services, including labor and delivery and a NICU. When the expansion is completed, the facility will have 373,000 sf over nine stories.

Medistar Corp. is developing the project. “The expansion will significantly add to the hospital’s emergency, diagnostic and surgical services capabilities while nearly doubling its inpatient capacity,” Medistar said.

Read more at the Houston Chronicle and the Houston Business Journal.

Houston: Omninet buys 328-unit Hartford Park Apartments 


HOUSTON - Los Angeles-based Omninet Capital has purchased Hartford Park Apartments, a 328-unit property at 3939 Synott Rd. just north of the Westpark Tollway.

Built in 1983, the complex sits on 9.5 acres a few miles south of the Energy Corridor and west of Beltway 8. Rents range from $623 to $802. Sizes range from 602 sf to 1,070 sf.

Omninet Capital made its first Houston purchase last year with the acquisition of Southwest Corporate Center, a 525,580-sf office complex at 9700 Bissonnet. It is planning to launch a capital improvement program consisting of upgrades to the interiors, lobbies and parking.

Read more at the Houston Chronicle.

Katy: $12.3M Parkwest Skilled Nursing Facility planned 


KATY - The $12.3 million, 80-bed Kindred Parkwest Skilled Nursing Facility will be built at Katy Fort Bend Rd. and Colonial Pkwy.

Work on the 60,000-sf building is scheduled to begin early this year, and construction is expected to take approximately 11 months.

The five-acre site will have room for future expansion to 120 inpatient rooms. A separate generator with a weatherproof enclosure will be installed to provide emergency power.

Medistar Corporation is developing the project.

Read more at Texas Real Estate Business.

Galveston: Carnival Freedom joins Magic and Triumph 

(2/13/2015 8:30:00 AM)

GALVESTON - The Port of Galveston will welcome a third year-round ship from Carnival Cruise this month.

Carnival Freedom will make its inaugural sailing from Galveston on Feb. 15, 2015.

Carnival will host a special event honoring military families, including a performance by Martina McBride, at the Port of Galveston on Feb. 14.

Carnival Freedom will be the first Carnival ship to offer seven-day cruises. Carnival is the first cruise line to deploy three year-round ships in Texas, as the Freedom joins the Carnival Magic and Carnival Triumph in Galveston.

It also brings Carnival's annual passenger count to 600,000 people departing from Texas, more than any other cruise operator, according to the company.

Cruise activity generated $43 million in passenger onshore spending and another $12 million in services provided in Galveston in 2013, according to a report conducted by Pennsylvania-based Tourism Economics for the Galveston Island Convention and Visitors Bureau.

In recent years, the Port of Galveston has pursuing growth in the face of new local competition from the Port of Houston Authority's Bayport Cruise terminal, which began operating cruises at the end of 2013 after sitting vacant for years.

Last year, the Port of Galveston said it is investing about $10 million to expand its second cruise terminal, which will help accommodate bigger ships and more passengers. The port’s governing board has also approved spending up to $100,000 to commission design plans for a third cruise terminal.

Read more at the Houston Business Journal.

Lake Jackson Class A, 238-unit Plantation Park underway 


LAKE JACKSON - Plantation Park, a 238-unit apartment community located at 100 Cactus St., is underway. It is the first Class A apartment complex to break ground in the area since 2008.

Plantation Park will offer one-, two- and three-bedroom units. Common amenities will include a pool with a cabana, a dog park and a fitness center.

The developers closed in August on 27 acres of land between the Port of Freeport and downtown. The first phase of the project will be the 238-unit apartment complex on 15 acres of now wooded land abutting a residential community and existing apartment complexes.

Houston-based BHW real estate firm hopes the complex will house not just the transient construction workers but the young engineers and other white collar workers expected to move into the community in the next several years thanks to a boom in the petrochemical industry.

“It’s different from what is currently available in Lake Jackson,” said project coordinator Barton Kelly. “Everything you expect in Class A apartments in the Houston, you’ll find here.”

Current rents in Lake Jackson for a 700-sf one-bedroom could be as high as $1,200 a month. The total average for Class A apartments in the area is $1.40 a sf.

Read more at the Houston Chronicle.

Fort Bend County: Fig, Butterfly, Cotton to Harvest Green 


FORT BEND COUNTY - Johnson Development Corp. has submitted land plans to the City of Houston for several residential neighborhoods within Harvest Green, a 1,300-acre master-planned community located by the Grand Pkwy. and West Airport Blvd., near Cullinan Park.

Harvest Green is planned for 2,000 home lots as well as 87 acres of commercial space, according to the community's website.

Plat records for subdivisions along Harlem Rd. show plans for dozens of homes on streets named Butterfly Garden Trail, Fig Leaf Lane and Cotton Farms Dr.

As the community and street names suggest, Harvest Green will include many natural features, including 280 acres of green space, 230 acres of lakes and waterways and 50 acres of parks.

Children in Harvest Green will be zoned to James Bowie Middle School and Travis High School within the Fort Bend Independent School District.

The Grand Pkwy. extension has been spurring new development across Houston, particularly in the northwest. Once the project is complete, the expanded transportation corridor will connect Houston's western suburbs of Sugar Land and Katy all the way around to Kingwood.

Read more at the Houston Business Journal.

Downtown Houston's 1301 Fannin Street office sold 

(2/11/2015 10:00:00 AM)

HOUSTON - A 1.1 million-sf downtown building, 1301 Fannin Street, has been sold. The 25-story building originally was developed in 1981 as an enterprise data center and office building.

It has nearly 400,000 sf of data center space, with additional space available to be converted to network colocation use.

Netrality bought the property from Houston-based Griffin Partners. Netrality will be developing plans to convert two floors — up to 100,000 sf — for additional data center space, pending tenant demand.

Netrality is a new joint venture operated by affiliates of Philadelphia-based Amerimar Enterprises Inc. and Hunter Newby, founder and CEO of New York-based Allied Fiber LLC.

"Under the stewardship of Griffin Partners, 1301 Fannin was renovated and repositioned into a multitenant, Class A office and data center facility," said Gerald Marshall, president and CEO of Netrality, "and we look forward to building on Griffin's legacy and continuing to enhance the profile of this excellent asset."

Read more at the Houston Business Journal.

Texas City: 45,000-SF World Gym opens in former Macy's 


TEXAS CITY - The state’s largest World Gym is flexing away after opening. The 45,000-sf World Gym is in the redeveloped Macy’s building at Mall of the Mainland, 10000 Emmett F. Lowry Expy.

Rows of treadmills and elliptical machines fill the gym.

Other cardio equipment includes four Star Trac Tread Climbers and 30 spin bikes. The gym also features a 60-yard indoor track, a private area for women to lift weights, a large free-weight area for everyone, 36 TVs and space for group classes.

World Gym joins Palais Royal at the 150,000-sf Macy’s building, which has been subdivided.

Friendswood developer Jerome Karam owns the World Gym franchise in Texas City and expects more tenants to lease space in the former Macy’s building he acquired last year.

Karam has confirmed he has an earnest money contract on the entire 451,000-sf mall property, where interior stores were closed last year. Sears, Cinemark and Palais Royal, which in November moved to the Macy’s building, all remained opened.

Karam said he intends to keep the Mall of the Mainland name and repopulate the property with national and local retailers and other tenants.

Read more at the Galveston Daily News.

Katy: 250-unit Providence at Grand Parkway sold for $27M 


KATY - Providence at Grand Parkway, a 250-unit luxury community for active seniors 55 and older, has been sold. The buyer acquired the property for $27 million or $108,000 per unit. The property was 95 percent leased at the time of sale.

Built in 2009, the property features nine separate buildings and was developed through a partnership with Blazer Building Corp.

Providence features a heated pool, business center, library, conference room, chapel, activity rooms, game room, a fitness center, media room and covered parking.

Read more at Texas Real Estate Business.

Houston: BMW driving machine to new 95,000-SF dealership 


HOUSTON - BMW of West Houston has officially opened its new dealership at 20822 Katy Fwy. Part of Sonic Automotive, the dealership spans 95,000 sf. It relocated from 15865 Katy Fwy.

The new facility includes a customer cafe, lounge seating and an interactive center where customers can now customize and build their own BMW on site, according to general manager Maria Moncada-Alaoui.

Houston-based Goree Architects designed the dealership, which was built by Wier Enterprises.

Read more at the Houston Chronicle.

Houston real estate 2014? Transwestern tells all 

(2/10/2015 6:30:00 AM)

HOUSTON - For Houston, 2014 was a successful year for the metro’s economy, according to the Houston Metro Real Estate Outlook report from Transwestern.

The office market had a banner year with high leasing velocity and a significant number of preleased deliveries. Leasing activity is expected to weaken in 2015 as some businesses refrain from expanding in the current energy climate.

Net absorption of industrial space totaled 2.1 million sf in fourth quarter 2014, for a year-end total of 9.0 million sf. A decrease in demand is expected in 2015 as lower oil prices cause a slowdown in manufacturing, especially for oil field equipment.

The retail sector added 6,500 jobs over the 12 months ending in November. Retail vacancy was 7.7 percent for 4Q 2014, down significantly from 9.7 percent in 3Q. Throughout the year, grocery-anchored tenants had a dominant presence with more than 25 new stores opening, many in the suburbs.

Houston Market Indicators Year-End 2014*
Sector Inventory SF Available Vacancy Rate
4Q 2014
Net Absorption
4Q 2014
Net Absorption
Office** 228,569,000 21,816,976 9.5% 16,607,985 1,586,000 6,412,000
Industrial*** 466,656,871 20,080,427 4.3% 8,645,130 2,090,000 8,956,000

*Does not include buildings under construction or owned by the government.
**Includes buildings 50,000 sf and greater.
***Includes buildings 15,000 sf and greater.

Click here for the full Houston Metro Real Estate Outlook Year-End 2014 report from Transwestern.

See Office Report Dec. 2014 (Transwestern)

See Industrial Report Dec. 2014 (Transwestern)

See Multifamily Report Dec. 2014 (Transwestern)

Save time and effort! See Houston Market Data Sources for a variety of up-to-date stats.

Houston: $28M swarm to Honeywell Building sale 


HOUSTON - Parkway Properties reached an agreement to sell the eight-story, 157,000-sf Honeywell Building for $28 million, the company announced.

The property is located at 1250 W. Sam Houston Pkwy. in the Westchase District.

Parkway expects to close on the sale in first quarter for a gain of about $13.5 million.

Source: Houston Chronicle

Porter: 440-home Azalea District on order for Valley Ranch 

(2/9/2015 7:45:00 AM)

PORTER, MONTGOMERY COUNTY - Lot development will begin in March on The Azalea District, a new 130-acre neighborhood within Valley Ranch — a 1,400-acre master-planned community just north of Kingwood.

The Azalea District is located on the southeast corner of Valley Ranch, off US 59 and the proposed Grand Pkwy. extension.

It will feature 440 homes amid lush azaleas and dogwoods, lakes and trails.

Signorelli Co. is the developer of The Azalea District as well as Valley Ranch. The two builders for The Azalea District will be the Signorelli's home building division, Signorelli Homes, and Houston-based Legend Homes.

The builders plan to begin home construction by summer 2015. The homes will range from 1,400 sf to 3,750 sf. Prices will range between $200,000s and $400,000s.

Currently, Valley Ranch has 900 homes and is expected to have about 3,000 homes at buildout. Home prices range from $180,000s to the $400,000s.

Valley Ranch is zoned to New Caney Independent School District, which has built two schools so far: Valley Ranch Elementary and New Caney Middle schools.

In 2014, the school district opened Texan Drive Stadium in Valley Ranch, a $20 million high school football stadium with 8,500 seats and the largest video screen for a Texas high school.

Read more at the Houston Business Journal.

Houston: $125M mixed-use Kirby Collection gearing up 

(2/6/2015 10:00:00 AM)

HOUSTON - New York-based Thor Equities is gearing up to break ground on the $125 million Kirby Collection, a million-plus-sf mixed-use project in Upper Kirby, despite the current oil slump.

"The oil issue is a silver lining for us," said Jack Bousquet, a developer at Thor. "We think we'll get more favorable construction costs and some of the competition will fade."

Demolition of the site's former buildings is finished, and construction is set to start in April or May, Bousquet said. It's slated to be complete third quarter 2017.

The project will encompass the block bounded by Kirby Dr., West Main St., Colquitt St. and Lake St.

It will include:

•  a 25-story, 385,000-sf residential tower,
•  a 13-story, 210,000-sf Class A office building, and
•  67,000 sf of high-end retail along Kirby Dr.

The residential tower will include 199 apartments averaging just under 1,500 sf. There will be seven two-story, ground-level townhomes along Lake St., and the sixth-floor plaza level will have seven two-story residential loft spaces with private yards.

Thor bought the land in 2008. In May 2014, Thor's request to replat the property from commercial use to unrestricted was approved through the Houston Planning Commission.

Read more at the Houston Business Journal.

tags: Houston apartments, Houston office, Houston Transwestern Metro Outlook Year-End 2014, Houston Market Data

Roger that! Houston airports' record-breaking year 

(2/6/2015 5:45:00 AM)

HOUSTON - George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU) both broke records for numbers of passengers in 2014, the Houston Airport System announced.

IAH saw record highs for international travelers and combined passenger totals for the airport's 46-year history.

Meanwhile, Hobby's total passenger traffic in 2014 reached an all-time high for the fifth consecutive year. Combined, the airports saw a 4.5 percent increase from 2013 and an all-time high.

The Federal Aviation Administration ranked IAH the eighth-busiest airport in the U.S., with nearly 509,000 flight operations in 2014. That includes commercial airline flights, general aviation flights, military flights and air taxi operations.

IAH, which offers flights to more than 70 international destinations and more Mexican destinations than any other U.S. airports, added six new international carriers in 2014, with four more scheduled to begin operations in 2015.

Meanwhile, Southwest Airlines Co. will begin flights to Latin American destinations after Hobby's new five-gate international terminal opens. The $156 million project, a partnership between Southwest and the Houston Airport System, is expected to open later this year.

IAH also plans to build a new international terminal, replacing its existing Terminal D.

Houston Airport System Statistics 2014
  George Bush IAH William P. Hobby
2014 2013 2014 2013
Domestic Passengers  
     Deplaned 15,752,398 15,438,007 5,948,290 5,518,391
     Enplaned 15,686,331 15,375,192 5,997,534 5,591,058
International Passengers  
     Deplaned 4,915,892 4,499,817 0 0
     Enplaned 4,896,394 4,486,398 0 0
Freight (metric tons)  
     Deplaned 209,772.8 188,981.8 6,199.8 6,228.4
     Enplaned 223,660.5 212,789.9 6,505 6,686

The full 2014 report is available here! Department of Aviation Monthly Statistical Summary Report

Read more at the Houston Business Journal.

Houston: Retreat at Vintage Park part of $190M sale 


HOUSTON - Mid-America Apartment Communities Inc. (MAA) has purchased Retreat at Vintage Park, a 323-unit apartment community.

The purchase was part of a three-property portfolio that sold for $191.8 million.

Retreat at Vintage park offers one-, two- and three-bedroom units ranging from 655 sf to 1,468 sf and in price from $1,015 to $2,170.

Amenities include a fitness facility, an internet cafe, a business center and a lap pool.

For more, check out MAA's operating results for fourth quarter 2014 at PRNewswire.

Needing quick stats? See the Multifamily category under Houston Market Data Sources.

Wildwood expands 200 acres, 475 lots in Tomball 


TOMBALL - Friendswood Development Co. has acquired a 200-acre parcel of land for the expansion of its top-selling Wildwood at NorthPointe community off SH 249 and Northpointe Blvd.

The 200 acres, which borders Boudreaux Rd. and is north of the Oakcrest at Wildwood neighborhood, was purchased from the Martens family of Tomball. The expansion will add about 475 lots, plus space for trails, pocket parks and a recreation center.

The first lots are expected to be available to builders next year. The lots will come in a variety of sizes consisting of 50-, 60-, 65-, and 75-foot wide home sites.

Buildout for the expanded Wildwood at NorthPointe is projected for spring 2019. Builders consist of Village Builders, Lennar, M/I Homes, Meritage Homes and Anglia Homes.

Wildwood at NorthPointe, a 700-acre community offering homes priced from about $190,000 to more than $600,000, was named among the Top 20 master-planned communities in the nation for 2014 by John Burns Real Estate Consulting.

The community reported 442 home sales last year, an increase of 129 percent in 2014, according John Burns Real Estate Consulting. It benefited from the completion of the Grand Pkwy. south of US 290 to I-10 along with other communities such as Towne Lake and Canyon Lakes West.

Read more at the Houston Chronicle.

Pearland new housing starts to add 13,000 new residents  


PEARLAND - Last year, the City of Pearland issued the highest number of single-family housing permits in a single year since 2008.

The Pearland Economic Development Corporation reported that the city issued 1,068 single-family residential permits and 1,008 multifamily residential permits in 2014.

In the fiscal year running from October 2013 to September 2014, 2,252 residential lots were approved by the city for construction of single-family homes and 2,163 lots were approved under preliminary plats.

The group predicts that the new housing starts will bring 13,000 new residents to Pearland in coming years.

Read more at the Houston Chronicle. See the Pearland Economic Development Corporation for more information.

97-Room DoubleTree Hilton beaches in Galveston 


GALVESTON - DoubleTree by Hilton Galveston Beach, a five-story, 97-room hotel located at 1702 Seawall Blvd. is now open.

Amenities include a saltwater swimming pool with swim-up bar, 24-hour fitness center, laundry service, on-site parking, 24-hour business center and in-room safes.

Formerly the Galveston Beach Hotel, the property has concluded a multimillion-dollar renovation that includes a redesign of the lobby, food and beverage outlets, public spaces, meeting and event areas and guest rooms.

The property is DoubleTree by Hilton’s first hotel in Galveston. It is owned by 17th Street Properties LLC.

Read more at Texas Real Estate Business.

Houston's Westway Plaza now 100 percent preleased 

(2/5/2015 7:00:00 AM)

HOUSTON - The Westway Plaza office building located on nine acres at 11330 Clay Rd. is now 100 percent preleased. The five-story building with 314,000 sf is set to open second quarter.

General Electric Co. will take up more than 70 percent of the building after signing an expansion for an additional 72,177 sf, bringing its total space to 222,177 sf.

In June 2014, GE agreed to prelease 150,000 sf to house employees in its GE Power & Water and GE Oil & Gas divisions.

Superior Energy Services has leased 64,018 sf. Tesco Corp. has leased 27,225 sf.

Westway Plaza will feature an onsite restaurant and fitness center with locker rooms and a two-story lobby with granite flooring. Parking will be available in a separate garage.

Read more at the Houston Chronicle.

Whole Foods sets up camp in The Woodlands 


THE WOODLANDS - Whole Foods will open its first Woodlands location in March. The 40,000-sf store is located at 1925 Hughes Landing Blvd., Ste. 100.

The 66-acre Hughes Landing development, located along Lake Woodlands Dr. west of Grogan’s Mill Rd., features two office buildings with more on the way.

The project will also offer several restaurants along what is being called Restaurant Row, including Truluck’s, Del Frisco Grille, Local Pour and California Pizza Kitchen.

Alex Sutton, co-president of The Woodlands Development Company, said many of the restaurants would begin opening this spring.

One Lake’s Edge, an apartment complex in Hughes Landing, is leasing for an April opening, and construction is underway on an Embassy Suites Hotel.

Read more at Community Impact Newspaper.

Houston: $90M Midtown units move forward (anyway) 


HOUSTON - Camden McGowen Station, a 315-unit apartment project in Midtown, is underway, despite the market slowdown expected this year.

The $90 million project is being developed by Camden Property Trust.

The eight-story project will be built along Main St. at McGowen, Camden said earlier this year.

McGowen Station is expected to open in 2017, when Camden Chairman and CEO Ric Campo expects few new multifamily projects will be opening, as development plans now are slowing.

"When the market has a hole in it in 2017, we'll be there to fill it," Campo said.

The news comes as multifamily developers across Houston are casting a wary eye toward falling oil prices. While some developers are pushing forward with new projects, others are playing a game of wait-and-see.

Campo said Houston has two key economic drivers beyond the energy industry that will help the economy through the downturn: the medical sector and the port.

Read more at the Houston Chronicle and the Houston Business Journal.

Humble's Point North Cargo Park to expand, renew leases 

(2/2/2015 8:00:00 AM)

HUMBLE - Duke Realty Corp. has acquired a new 250,660-sf building and parcel of land for the expansion of its Point North Cargo Park next to Bush Intercontinental Airport.

The building is fully leased to K&K Express. The building is adjacent to the company’s Point North One and Two buildings and will be known as Point North Four.

The company also acquired an adjacent 13.9 acres as the site of Point North Five, a 205,608-sf building which is 47 percent preleased. Roadrunner Transportation Systems has leased 97,344 sf in the building, which will break ground this month.

In recent leasing activity, Geodis Wilson USA, a global freight forwarder a tenant since 2009, renewed its lease in Point North One, a 158,940-sf building at 8210 Humble-Westfield Rd. last year. leased Point North Two, a 240,000-sf building at 8120 Humble Westfield Rd. in 2013.

“Since we delivered our first building in Point North Cargo Park in 2008, we have continued to see a great deal of interest from companies that want to be close to the airport,” said David Hudson, senior vice president of Duke Realty’s Houston operations.

“With the transactions we completed recently, three tenants have secured their positions in the park for the long term. Plus, we have increased the size of Point North Cargo Park to more than 850,000 sf with the ability to expand it to approximately 1.2 million sf,” Hudson said.

Duke Realty owns and manages nearly 4.4 million sf of industrial, office and medical office space in the Houston area, as part of its national portfolio of 153.2 million sf in 22 markets.

Read more at the Houston Chronicle.

tag: Colliers Industrial Houston 4Q 2014, IRR Industrial 2015 Forecast

Make searching easy! Visit Houston Market Data Sources for Industrial, Office, Retail, Hotel data and more from a variety of sources.

Houston: 269-unit Alexan Blaire House to Medical Center 


HOUSTON - Alexan Blaire House, a 269-unit, Class A luxury apartment community, will be developed on a 4.2-acre tract located two miles from the Texas Medical Center.

The total project is expected to cost $48.6 million, or about $181,000 per unit, according to a filing with the U.S. Securities and Exchange Commission.

The filing notes that approximately 70 percent of the project will be one-bedroom units, and the remaining 30 percent will be two-bedroom units. Units are expected to average 894 sf.

In order to cater to the area’s high-income demographic, the community will feature best-in-class interior finishes, larger-than-average floor plans on account of limited supply, premium appliances, a pool, a fitness facility, a concierge and a business center.

Trammell Crow Residential and Bluerock Residential Growth REIT will develop the community.

The project is expected to break ground third quarter 2015 and be complete 4Q 2017.

The two companies are collaborating on another Houston-based project, the Alexan CityCentre, a 340-unit, Class A community slated for completion in 2016.

Read more at the Houston Business Journal and Commercial Property Executive.

Houston: tech companies lease 68,000 SF in Town Centre 


HOUSTON - Moody Rambin has attracted two tech-related companies, Microsoft and Altus Group, as the first tenants in its Town Centre development at 700 Town & Country Blvd.

The Houston-based company is putting the finishing touches on the first of two planned office buildings in the development, which is surrounded by stores and restaurants in Town & Country Village and is next to additional retail, office, apartment and hotel space at CityCentre.

Microsoft has leased 40,589 sf to consolidate its regional office and technology center in August.

Altus Group, a commercial real estate consulting and software company, has leased 27,194 sf with a move-in date of November.

The ten-story, 253,714-sf Town Centre I near I-10 West and Beltway 8 is 30 percent preleased. Companies will begin moving in later this year after building out their spaces. The project contains a parking garage that can accommodate four cars per 1,000 sf.

Toronto-based Altus Group chose the new building to consolidate its two Houston offices with a total of 120 employees. About 100 of the employees will move from the Galleria-area headquarters of its Argus Software subsidiary.

Town Centre II, an eight-story office building with 150,000 sf, is planned. The timing will depend on how quickly the first building gets leased and the overall health of the market later in the year, said Dan Moody III, principal and managing director of Moody Rambin.

"If we see that the demand is dropping in the market and the Houston economy softens, then we will carefully evaluate if we go forward with the second building," Moody said.

Read more at the Houston Chronicle.

CBRE: Houston industrial market's record numbers 2014 

(1/30/2015 7:45:00 AM)

HOUSTON - The Houston area absorbed a record-breaking 8.1 million sf of industrial space in 2014, according to CBRE's fourth quarter 2014 report.

In 2014, nearly 12 million sf of industrial space was delivered to the market, the highest since 2008. The past quarter was the 15th consecutive quarter of positive absorption at 2.2 million sf.

Much of the recent industrial activity involves distribution. In October 2014, a 400,000-sf warehouse for Houston-based Silver Eagle Distributors, Anheuser-Busch's biggest U.S. distributor, was completed.

A big project underway is Aldi's new 650,000-sf division headquarters and distribution center that's slated to open in early 2016 in Rosenberg.

Dallas-based Crow Holdings Industrial has broken ground on a 415,000-sf Class A industrial park, Apex Distribution Center, on Tanner Rd. near Beltway 8, on the site of New Jersey-based Goya Foods' former manufacturing site.

Houston Industrial Market Statistics 4Q 2014*
Market Rentable
Area SF
4Q Net
2014 Net
Avg. Asking
Northwest 133,718,928 3.9% 468,712 1,880,729 3,501,971 0.78
North 77,566,092 8.5% 551,112 1,907,599 2,251,284 0.71
Southeast 75,697,565 5.0% 647,309 1,766,981 1,241,888 0.68
Southwest 61,059,279 5.6% 104,649 653,856 1,122,926 0.78
CBD 52,582,252 4.8% 176,922 404,611 0 0.53
Total** 474,015,067 5.0% 2,216,488 2,216,488 8,392,470 0.67

*Ranked by market rentable area.
**Totals are based on all submarkets. Only top five of the seven submarkets are shown.

Click here to see the full Industrial 4Q 2014 report from CBRE.

Read more at the Houston Business Journal.

tags: Houston industrial, Houston Industrial Data

Spring: 400,000-SF retail center planned near Grand Pkwy. 


SPRING - A 400,000-sf retail power center — to be called Grand Parkway Marketplace — is planned for the intersection of Spring Stuebner Rd. and Kuykendahl Rd. in the Woodlands area.

New York-based Kimco Realty Corp. has acquired 64 acres for the project. Kimco owns and operates multiple Houston-area shopping centers, including Copperwood Village, Cypress Town Centre, Tomball Crossing and the Centre at Copperfield.

Growth in the area has been robust due to construction on the Grand Pkwy. extension and Exxon's new campus.

"Our leasing is moving along briskly," said Rob Nadler, the central region president for Kimco. "For many retailers operating in the Houston market, this (location) is a void for them. Given the growth between residential and community development in the area, it's quite a remarkable site."

The leg of Grand Pkwy. from I-45 to US 290 is slated to be complete at the end of 2015. Grand Parkway Marketplace is expected to open during fourth quarter 2016.

Read more at the Houston Business Journal.

Memorial Hermann underway on $168M Cypress campus 


CYPRESS - Memorial Hermann Health System has broken ground on its $168 million full-service medical campus. It is located on a 32-acre site at the northeast side of Hwy. 290 and the Grand Pkwy., between Mason Rd. and Mueschke Rd.

The first phase includes a six story, 125,000-sf medical office building with a 40,000-sf Convenient Care Center.

Phase two involves an 80-bed hospital. Besides the eight operating rooms, the hospital is set to house a 16-bed intensive care unit, neonatal intensive care unit, cardiac catheterization lab, with room to accommodate future growth.

Plans also include Life Flight helipad, an air ambulance service who has 15 minutes access to any location within a 150-mile radius of Houston.

The Convenient Care Center is set to open early 2016, and the hospital is expected to be completed by 2017.

As the area continues to grow, the campus has room for two additional medical office buildings and two additional patient bed towers.

The Cypress campus is said to be designed with a “forward-looking focus” taking into consideration the area’s current population of more than 355,000 residents and an expected growth of nearly 100,000 more people over the next decade.

Read more at Your Houston News.

Houston: 94,000-SF Timbercreek, Copperfield offices sold 


HOUSTON - Hartman Highway 6 LLC has purchased the Timbercreek Atrium and Copperfield office buildings, two Class B office buildings totaling 93,656 sf. The multi-story office buildings are located along Hwy. 6 between I-10 and FM 529.

Timbercreek Atrium is a three-story, 51,035-sf building located at US 6 North and & Timbercreek Place. As of Dec. 2014, the property was 79 percent leased to tenants including The Loken Group, H2O and the Harris County Hospital District.

Copperfield Building is a three-story, 42,621-sf office building located on Spencer Rd. and US 6. As of Dec. 2014, the property was 80 percent leased to tenants including J. P. Morgan Chase Bank, Deep Sea Development and Harvey Home Health.

Read more at Realty News Report.

Houston's apartment market outlook for 2015 not as rosy? 

(1/28/2015 7:30:00 AM)

HOUSTON - The multifamily market in Houston has been booming with sky-high occupancy rates and rents, hordes of new people moving to the city and thousands of brand-new apartment units under construction.

But the forecast for 2015 — in light of tumbling in oil prices — is far less rosy, a panel of industry leaders said at the annual Houston Apartment Association meeting.

Rent growth will drop off and job growth will shrink as construction crews bring even more units online.

Jesse Thompson, business economist with the Federal Reserve Bank of Dallas, Houston branch, predicted that job growth in Houston will shrink by about half of that in recent years to about 50,000 to 55,000 a year.

He does not predict Houston is heading toward a recession, however.

He said while Houston is certainly affected by a dip in oil prices, the economy is much more diversified than it was in the mid-1980s during the oil bust.

Last year, 18,000 new apartment units came to the market to keep up with the demand.

This year, 27,000 are expected to come to the market, said Bruce McClenny, president of Houston-based Apartment Data Services. Last year, rent growth reached 8.1 percent and McClenny predicted that would fall to 4 percent this year.

For the top-end Class A product, McClenny said there will be concessions on the horizon, such as first-month free or other discounts.

The lower-end products may still see growth, as people priced out of the higher-end complexes move down. However, there is much less inventory in that category. There were 6,000 units torn down since 2012.

At the meeting, Orion CEO Kirk Tate said Houston has been “red-lighted” by lenders. He said developers have opportunities in lower-end Class B and C apartments to refurbish those products.

Brandt Bowden with the Hanover Company agreed that capital for new construction has dried up in Houston. He said the drop could be a positive, as things were heating up very fast in the last few years and construction costs became inflated.

Read more at the Houston Chronicle.

Houston: Villas at West Road part of 1,941-unit sale 

(1/28/2015 7:20:00 AM)

HOUSTON - Miami-based Atlantic Pacific Cos. (APC) struck a deal with Richmond, Va.-based McCann Realty Partners to acquire a 1,941-unit portfolio across Texas and Georgia for a sales price over $200 million.

As part of the portfolio, the company will acquire the Villas at West Road, a 240-unit community constructed in 2006 at 9500 West Rd. in Houston. It measures 273,568 sf on nearly 20 acres.

It offers one- to three-bedroom floor plans, and features 24-hour maintenance, a pool with poolside grilling area and a business center. Villas at West Roads is APC's first investment in the Houston market.

APC's property leasing and management platform will manage the newly acquired communities. APC also intends to make select capital improvements at certain communities which will include interior upgrades and common area improvements.

Read more at CoStar Group.

Texas City rubble to 62,000-SF H-E-B 


TEXAS CITY - Demolition work is underway and construction will soon begin at the site of the new H-E-B grocery store located at the Palmer Shopping Center at the corner of Hwy. 146 and north of Palmer Hwy.

In place of what was an 87,237-sf Kmart building will be a new approximately 62,000-sf H-E-B, scheduled for completion by the end of the year.

Construction should begin as soon as the rubble is cleared away.

City commissioners approved a $1.4 million tax incentive package to bring a new H-E-B store to the city in November 2014.

H-E-B operates a store at 918 20th St. N. that will close once the new location opens.

Read more at the Galveston Daily News.

Houston: 294-unit Oaks of Cypress Station sold 


HOUSTON - The Oaks of Cypress Station, a 294-unit community located on 11.24 acres at 1000 Cypress Station Dr., has been sold.

Renovated in 2002, the community features three swimming pools, a clubhouse, spa, fitness center and some units come equipped with a fireplace. The unit mix consists of one- and two-bedroom floor plans.

Just west of I-45, the community sits in close proximity to major area employers the Northwest Medical Center and Greenspoint Business District, and five miles north of the 389-acre ExxonMobil office campus.

Fort Worth-based Panther FW Investments teamed up with a local multifamily investment group to acquire the property. Panther plans to increase rental revenue with extensive interior and exterior upgrades.

Read more at CoStar Group.

152-Room Aloft Houston Galleria sold 


HOUSTON - The 152-room, five-story Aloft Houston Galleria has been sold. The boutique hotel at 5415 Westheimer Rd. was built in 2009.

The pet-friendly property targets younger, active guests and families. It has electronic check-in kiosks, a lounge with a pool table, a 24-hour fitness center, indoor pool and an activity program for children aged 2 to 12.

Norwalk, Ct.-based HEI Hotels & Resorts, which will continue to manage the hotel, sold the property to a Westpark I of Melville, New York.

Read more at the Houston Chronicle.

Houston: Rockwell buys 187,000-SF Westchase office 


HOUSTON - A 186,964-sf office building at 9900 Richmond Ave. in Westchase has traded hands. The property is located on 5.7 acres at the northeast corner of Richmond and Briarpark.

The building is 92 percent leased with Seismic City, Costello, Norris Conference Centers, U.S. Navy Recruiting, DBR Engineering and Selene Finance among its tenants.

The recently renovated four-story building has an attached three-story parking garage. 

A joint venture between Houston-based Fuller Realty Partners and Harbert Management Corp. sold the property to Houston-based Rockwell Management Corp.

Read more at the Houston Chronicle.

Pearland: 165,000-SF center adds more national retailers 


PEARLAND - More retailers have opened in The Center at Pearland Parkway, a 165,000-sf power center developed by Stream Realty Partners at FM 518 and Pearland Pkwy.

The center opened last year with anchors Petco, TJ Maxx and Palais Royal opening in November. The next stores to open will be Ross Dress for Less and Five Below, with openings planned in March, followed by Salons by JC in April.

Other tenants include Rack Room, Rue 21, Payless, America’s Best Contacts & Eyewear, MOD Pizza, Mattress Firm, Massage Envy,

Read more at the Houston Chronicle.

City of Houston building permits set record in 2014 


HOUSTON - Construction permitting in the City of Houston set a record in 2014, according to a report by the Greater Houston Partnership.

The City of Houston issued $8.7 billion in construction permits in 2014, a 41 percent increase over 2013 when $6.1 billion in permits were issued.

Nonresidential permits made up the highest value, growing 47.2 percent to $5.6 billion, while residential permits were up 30.9 percent to $3 billion.

Permit activity in December, however, was down slightly from the same month a year earlier. Residential permits slowed down the most, falling 17.4 percent to $214.1 million. In contrast, permits for non-residential construction was up 11.1 percent to $413.3 million.

Read more at the Houston Chronicle. To see the 'Building Permits Update' from the Greater Houston Partnership, click here.

Pearland: 98,000-SF Boat & RV Storage sold 


PEARLAND - Pearland Boat & RV Storage, a 97,560-sf self-storage facility, has been sold. The facility is located at 3600 Old Chocolate Bayou.

The seller was a Houston-based private investor, and the buyer was a limited liability company.

Read more at Texas Real Estate Business.

Downtown Houston: $60M City View Terrace underway 

(1/23/2015 10:00:00 AM)

HOUSTON - A $60 million development, City View Terrace, is underway in downtown. City View Terrace will comprise a full city block, with residential and full retail.

City View Terrace will also have 12 stories and 336 residential units. To date, this is the largest development ever in its category.

The anticipated date of completion is 2017. The project is anticipated to generate over 700 jobs for Houston.

The City View Terrace project is a joint venture between two partners, Abdul Dawood and Dan Nip at City View LLC.

It is being developed by Premier Regional Center, a real estate investment company in Sugar Land, Texas.

Read more at PRWeb.

tag: Houston apartments, Houston shopping list for data

Houston: Grocery game of chain, chain, chain  

(1/23/2015 7:15:00 AM)

HOUSTON - New grocery stores will make up nearly half of the 3.7 million sf of new retail space that will be built and opened in Houston this year, according to an annual retail survey by Houston-based developer Wulfe & Co.

Grocery chains are slated to open 32 new locations across Houston. H-E-B Grocery Co. will have the greatest expansion with seven new stores. Additionally, Wal-Mart Stores Inc. will build four, and Kroger Co. will build four and expand two.

Sprouts Farmers Market Inc. will open two, Whole Foods Market Inc. will open two, and Fiesta Mart and Trader Joe's will each open one. Aldi Inc. will add 11 smaller stores across Houston.

In addition to supermarkets, a 180,000-sf Walmart superstore and a 165,000-sf Gallery Furniture will contribute to the 3.7 million sf of new retail, which is the highest since 2008. The number represents a 56 percent increase over last year's 2.37 million sf.

The report attributes these numbers to low fuel prices and consumers' increased disposable income, which has benefited the retail sector.

"With this high activity of new retail growth, we project that higher retail occupancy rates will exceed a seldom-achieved rate of 92 percent this year," CEO Ed Wulfe said in the report.

Read more at the Houston Business Journal.

For the full press release from Wulfe & Co. click here.

Downtown Houston: Hines' 32-story apartment tower underway 


HOUSTON - Hines has broken ground on a 32-story, 300,000-sf apartment building next to Market Square Park in the northern part of downtown.

One Market Square will consist of 274 units and an eight-story podium garage. The average unit size will be 1,200 sf.

The tower will be built on about one-half of a block bounded by Prairie, Preston, Travis and Main. The block is known as “Block 44.”

Houston-based Ziegler Cooper Architects designed the building. The project will be complete in 2016, said Hines spokesman Mark Clegg.

A number of projects are under construction in downtown Houston following a city-backed Downtown Living Initiative, which provides a $15,000 per unit tax credit for new multifamily development.

Read more at Realty News Report and the Houston Business Journal.

Houston: 320-unit Villas at Hermann Park sold 

(1/22/2015 7:30:00 AM)

HOUSTON - The 320-unit garden-style Villas at Hermann Park, located at 6301 Almeda Rd., has been purchased.

Built in 2000 with a combination of one-, two- and three-bedroom units, Villas at Hermann Park has rents that range from $1,300 to $2,600 per month. Units average 1,020 sf, and the complex is 94 percent occupied.

The location is directly across from Hermann Park and near major employers such as the Texas Medical Center and close to Texas 288.

Chicago-based Waterton Associates purchased the property from Falcon Southwest. On the first-floor units, the firm plans to add fences at 55 units to create private outdoor areas.

Along with upgrades, the firm is projecting an increase in rents by about $150 over the next two years.

Read more at the Houston Chronicle.

Houston: Midtown eyesore to 300,000-SF beauty 


HOUSTON - Central Square Plaza, originally developed in 1957 by legendary Texas oilman Glenn McCarthy, is being redeveloped into 300,000 sf of office and retail space after laying vacant for more than ten years.

Located at 2100 Travis St., the property is owned by Houston-based Claremont Properties Co.

The property received a building permit for the core-and-shell work for $6 million. The building does not yet have any tenants signed on, but is going for $21 to $30 per sf, according to an online listing.

Claremont Properties also bought an adjoining space, and the renovated property will occupy the entire block bordered by Travis St., Milam St., Gray St. and Webster St.

Central Square Plaza originally consisted of a connected 12-floor and 14-floor office building as well as a parking garage and was formerly the Central Bank building. 

Keeley Megarity, owner of Claremont Properties, said they were able to use the original engineers of the building, Houston-based Walter P. Moore, for the remodel.

Megarity said he expects renovations to be finished early in the second quarter of this year, and could see restaurant and retail tenants open in July.

Read more at the Houston Business Journal.

HCC Stafford centers on $27M workforce training 


STAFFORD - It doesn't take a four-year degree to earn a salary above $50,000.

That's why Houston Community College (HCC) has broken ground on its $27 million, 57,000-sf workforce training facility at the HCC Southwest Stafford campus. 

It is designed to provide training for high-growth, advanced manufacturing trades, including welding, pipefitting and robotics.

"The manufacturing companies that we have in Stafford and the complimentary companies, those who supply and work with them, pay salaries of $50,000 to $80,000 a year," said Stafford Mayor Leonard Scarcella.

The new workforce training facility will include eight classrooms, seven labs and a large "maker space" where students and community members will be able to work with advanced equipment, including 3D printers and CNC routers (computer-controlled cutting machines).

Students will also be able to move through high-tech training quickly at the new workforce development center, with most working toward industry recognized certifications or two-year associate of applied science degrees.

HCC plans to work with local employers to help the community grow and provide the skilled workforce that businesses need.

Classes aren't just for recent high school graduates. "Workforce training is for people who want to explore a new career and/or retrain for jobs that have become obsolete," said Southwest College President Fena Garza.

"It's also for veterans coming out of the military who are looking for additional training," Garza said.

The groundbreaking in Stafford is the third of 14 under the $425 million HCC Groundbreaker Bond Program, a capital improvement program involving all six of the district's campuses.

For more information, see previous story Houston Community College's $24M and $18M projects.

Read more at the Houston Chronicle.

Galveston: 100-room Best Western Plus underway 


GALVESTON - Crews have begun foundation work on what will be a five-story 100-room Best Western Plus at 8502 Seawall Blvd. on a parcel previously occupied by Reef Resort Apartments.

The Reef Resort Apartments, dating back to the 1970s, had been badly damaged by Hurricane Ike, which struck in 2008.

The Gandhi family, who is behind the hotel, initially considered renovating the 36-unit complex, but decided that would not be cost effective. The building was demolished nearly five years ago.

The Gandhi family already owns La Quinta Inn & Suites, 8710 Seawall; Holiday Inn Express, 8628 Seawall; and Econo Lodge 3924 Ave.

Read more at the Galveston Daily News.

HAR: Houston area cities' home sales Dec. 2014 

(1/16/2015 10:45:00 AM)

HOUSTON - Houston Association of Realtors (HAR) released home sales data for December 2014. Some quick facts include:

•  The median price of existing single-family homes increased to $210,000 — up 5.8 percent from November 2014.
•  Existing single-family home sales increased 21.7 percent from November 2014 for a December 2014 total of 6,168 units sold.
•  Condos decreased in price to $167,250 — down 3.0 percent from November 2014.
•  Existing condo sales increased 15.9 percent in December 2014 over November 2014 for a total of 612 units sold.

Select region cities are represented below along with statistics from the HAR MLS area as a whole.

HAR Dec. 2014 Regional Sales and Price Activity
MLS Wide Median Price
  Dec. 2014
Price Chg.
vs. Dec. 2013
Units Sold
  Dec. 2014
Sales Chg.
vs. Dec. 2013
$210,000 10.5% 6,168 7.3%
HAR (condo) $167,250 -5.2% 612 2.0%
Region Cities*        
Houston $195,000 4.8% 1,911 4.4%
Katy $239,750 8.8% 470 2.6%
Spring $205,000 10.8% 453 6.8%
Cypress $242,500 21.3% 255 4.1%
Richmond $248,500 14.0% 221 -1.8%
Humble $174,000 8.3% 204 5.7%
Pearland $223,655 15.0% 170 30.8%
Sugar Land $331,675 3.6% 168 -9.7%

*Region Cities' data include single-family only and represent eight cities sorted by number of units sold.

See Housing under Houston-Sugar Land-Baytown Market Data Sources or see the full report from Houston Association of Realtors.

Transwestern Houston Office Market Watch Dec. 2014 

(1/16/2015 9:42:00 AM)

HOUSTON - Transwestern has released the Market Watch for Houston Office December 2014. Here's the latest:

Office Market Indicators Dec. 2014*
Submarket Total
SF Available
SF Under
Asking Rental
Rate (FSG**)
Class A
Asking Rental
Rate (FSG)
Class B
Katy Fwy./Energy Corridor 196 1,902,633 7.0% 5,670,188 $35.40 $22.78
The Woodlands 79 501,252 5.7% 4,565,837 $37.14 $26.80
Westchase 85 1,272,259 8.6% 1,817,000 $37.31 $20.87
Downtown 117 3,861,025 8.0% 1,631,162 $42.10 $27.84
Northwest 96 1,374,354 12.2% 1,193,336 $26.47 $19.25
Total** 1,271 21,002,128 9.9% 17,116,898 $34.52 $20.80

*Top five submarkets ranked by SF under construction.
**FSG; Full Service Gross
***Total includes all 15 submarkets.

Click here for the full Market Watch report from Transwestern.

tag: Houston-Sugar Land-Baytown Market Data Sources for more office reports.

Cypress: Towne Lake's mixed-use Boardwalk underway 


CYPRESS - Construction has begun on a mixed-use development, The Boardwalk, located in the master-planned community of Towne Lake off of Hwy. 290 and Barker Cypress Rd.

The development is centered around what will be the largest private lake in the region. When completed, The Boardwalk will feature waterfront dining, 61,000 sf of retail and 57,500 sf of office space accessible by both land and water.

In addition to office, shops and restaurants, The Boardwalk consists of five freestanding buildings, a central green area for concerts and events, a breezeway plaza and a boulder play area for kids.

The Boardwalk is set to open fourth quarter 2015. 

Read more at Texas Real Estate Business.

Houston: final spec building to Sam Houston Business Park 


HOUSTON - Levey Group has started construction on the second phase of its Sam Houston Business Park development in northwest Houston. The 263,000-sf park is located along Beltway 8 between US 290 and SH 249.

Phase two, which will complete the project, is a 56,600-sf building on 3.9 acres set for completion in May. It can be used by a single tenant or divided into space as small as 27,720 sf.

Sam Houston Business Park is configured to provide tenants with the opportunity to combine office or showroom space with manufacturing, laboratory, warehouse and distribution areas.

Started in 2012, the business park was developed entirely on a speculative basis.

The first phase, consisting of three buildings, is 95 percent leased. Among the largest tenants is Flotek Industries, which signed a 50,000-sf, 15-year lease. Flotek will build-out a laboratory research facility in the park.

Other tenants inside the park include Ringers Gloves, Tyndale USA, NDLI Logistics, Westermann and Doorscapes.

The park is located at 8844, 8846, 8848 and 8850 N. Sam Houston Pkwy. West.

Read more at the Houston Chronicle.

Colliers 4Q 2014: Houston office 2.2M SF net absorption 

(1/15/2015 6:45:00 AM)

HOUSTON - Houston’s office market recorded 2.2 million sf of positive net absorption fourth quarter 2014, bringing the year-end total to 6.8 million sf, according to a report released by Colliers International.

With over 2.1 million sf of new inventory delivered during 4Q, the year-end delivered inventory was over 6.6 million sf in 2014.

ExxonMobil is one of the key motivators. The company began moving into a portion of its new north campus headquarters, and Southwestern Energy moved into its new corporate headquarters just south of the ExxonMobil campus.

Houston's office construction pipeline still contains over 17 million sf, and 7.5 million sf of that is speculative development which is 28.8 percent preleased. The majority of the space is located in the suburban submarkets and is scheduled to deliver in 2015.

The citywide average rental rate decreased 1.6 percent from $27.08 to $26.78 per sf between quarters, but it is still 3.2 percent higher than it was a year ago.

Both CBD and suburban Class A average rental rates decreased over the quarter, however, both Class B average rental rates rose.

Houston Office Market Indicators
  3Q 2014 4Q 2014
Citywide net
absorption (SF)
674,000 2.2 million
Citywide avg.
11.9% 11.5%
Citywide avg.
rental rate
$27.08 $26.79
Citywide delivered
inventory (SF)
1.5 million 2.1 million
Class A Rental Rate    
CBD $42.36 $42.01
Suburban $32.13 $31.61
Class A Vacancy    
CBD 9.9% 8.6%
Suburban 9.6% 9.9%

Read more at GlobeSt.

To see Colliers' Houston Office Market Report 4Q 2014 with submarkets, click here.

tag: Houston-Sugar Land-Baytown Market Data Sources

Houston-area housing market to cool off, not collapse 


HOUSTON - Houston's red-hot real estate market will most likely cool off a bit in 2015 but not crash with the price of oil as inventory remains extremely low, mortgage rates are favorable and major home builders report no letup in demand for new homes, according to real estate experts.

Dr. Mark Dotzour, chief economist and director of research for the Real Estate Center at Texas A&M, told a sold-out crowd that Houston-area builders will tap the brakes on new home construction in 2015 after several years of increases.

Dotzour expects builders to start construction on between 20,000 and 30,000 homes in 2015.

Home builders started 30,100 homes last year, according to an estimate from housing research firm Metrostudy. That was up 7 percent from 2013.

Dotzour, who dedicated much of his talk to global politics and the reason oil prices will rebound, stayed away from dire predictions about the local housing market. Despite a possible construction slowdown, home prices will continue to rise as inventory remains at extremely low levels, Dotzour said.

One threat to the market is a psychological one, as some would-be homebuyers may decide not to purchase a house this year after seeing headlines and hearing news about plunging oil prices and corporate cutbacks.

A drilling boom, which has increased the supply of oil and helped fuel economic growth in Texas, is beginning to slow, Dotzour said. That, combined with an eventual tapering off of production on wells already drilled, should help lift oil prices, he added.

Some of the positive aspects that could show up this year include an increase in sales of entry-level homes, as new lending programs make homebuying more accessible to a wider range of buyers, Dozer noted.

And a long-lasting labor shortage may also loosen up as construction workers leave oil-related jobs and move into the residential sector. Mortgage rates, too, are expected to remain low.

Even if home sales were to fall this year, overall prices should rise, based on the diminished housing supply, Dotzour said. "There's no chance you're going to see a generalized price decline with houses in Houston even if home sales fall off 50 percent," he said.

Still, Dotzour cautioned the crowd to be cautious this year. "There's a lot of risk, but it's not the end of the world," he said. "Try to avoid getting too heavy in debt."

Read more at the Houston Chronicle.

tags: Houston housing, Houston data

HAR: Houston history-making home sales in 2014 

(1/14/2015 2:00:00 PM)

HOUSTON - The year 2014 was a record year for the Houston housing market, according to the Houston Association of Realtors (HAR).

There were 75,319 single-family closings and 91,202 total closings, representing the most transactions in the history of Houston real estate.

The December 2014 monthly report prepared by HAR shows that housing inventory decreased to a 2.5-months supply, the lowest level of all time.

Housing inventory has been below a four-month supply since November 2012. It first fell below a three-month supply in November 2013.

The single-family home average price rose 6.6 percent year-over-year to $280,863 while the median price rose 11.2 percent to $209,590, representing historic highs for a December in Houston. They did not top the all-time record prices (average of $284,569 and median of $215,000) reached in June 2014.

December sales of townhouses and condominiums rose 7.3 percent from one year earlier. Rentals of single-family homes jumped 11.7 percent compared to December 2013, while year-over-year townhouse/condominium rentals increased 11.5 percent.

Housing Market Summary: Dec. 2013 vs. Dec. 2014
  Dec. 2013 Dec. 2014 Chg.
Total sales 6,932 7,695 11.0%
Total dollar volume $1,750,080,206 $2,066,438,709 18.1%
Total active listings 28,147 25,821 -8.3%
Total pending sales 3,122 3,414 9.4%
Single-family sales 5,781 6,451 11.6%
Single-family home avg. price $263,403 $280,863 6.6%
Single-family home median price $188,500 $209,590 11.2%
Single-family inventory* 2.6 2.5 -6.2%

* The number of months it will take to deplete current active inventory based on the prior 12 months of sales activity. The market is considered evenly balanced between supply and demand when it has a six-month inventory.

Source: Houston Association of Realtors

Also see 'Housing' under Houston Market Data Sources.

Houston 843-unit Trails at Dominion Park brings $52M 

(1/14/2015 7:30:00 AM)

HOUSTON - The Trails at Dominion Park, an 843-unit apartment complex at 200 Dominion Park, has been purchased for $52.5 million.

The property consists of 17 apartment buildings plus a clubhouse, according to tax records. It was built in the early 1990s on 50 acres along the I-45 corridor. It was 95 percent occupied at the time of purchase.

The property offers one-, two- and three-bedroom floor plans from 600 sf to 1,500 sf.

Philadelphia-based GoldOller Real Estate Investments purchased the complex from Dallas-based Presidium Group.

GoldOller plans to bring residents its signature GO lifestyle services, including free fitness programs and nutritional counseling, enhanced amenities, and a staff fully committed to exceeding resident expectation.

Read more at the Houston Chronicle.

tags: apartments, multifamily data

Humble: 300-unit Township Apartments sold 

(1/14/2015 6:45:00 AM)

HUMBLE - Township Apartments, a residential community located at 401 South Bender Ave., has been sold. The property is close to George Bush Intercontinental Airport and the Greenspoint Business District.

The 300-unit property was built in 1972 and is comprised of 41 residential buildings spread through 15 acres. The complex offers one-, two- and three-bedroom floor plans ranging from 555 sf to 1,500 sf.

Gaia Real Estate sold the property. After acquiring the property in January 2012, Gaia updated amenities including new roofs, exterior paint, and a redesigned fitness center, business center and pool.

Source: Township Apartments

Read more at GlobeSt.

Downtown Houston to see 290 more multifamily units 


HOUSTON - A 290-unit multifamily project is planned for a downtown site bounded by Main, Jefferson, St. Joseph and Travis, with its address being 902 Jefferson. The property is now a parking lot.

The project is being developed by national multifamily firm Fairfield Residential. The project has been accepted into Houston's Downtown Living Initiative, a tax rebate program created to entice residential developers to build in the urban core.

The program offers up to $15,000 for each unit a developer builds in a multifamily complex of at least ten units.

The property also must meet certain design guidelines. The Fairfield project could amount to nearly $4.4 million in rebates.

The average unit will be 880 sf and the first floor along Main will have live/work units, a cafe and fitness center, according to materials the developer submitted to the redevelopment authority.

Renderings show the ten-story building with recessed balconies and a mix of brick, stucco, wood and metal materials on the exterior.

Read more at the Houston Chronicle.

Reframing Houston fine arts to $450M heartbeat 


HOUSTON - The Museum of Fine Arts has released a $450 million redevelopment plan that will create a pedestrian-friendly cultural hub with a lively landscape, two distinctive new buildings, ample underground parking and smooth circulation patterns for vehicles and people.

The plan, named the Fayez S. Sarofim Campus, is designed by Steven Holl Architects. It has garnered hefty donations, with lead gifts of $70 million by Sarofim; $50 million by board chairman Richard Kinder and his wife, Nancy; and $10 million each from eight other donors.

The most prominent new structure will be the three-story 164,000-sf Nancy and Rich Kinder Building, on what's now the museum's parking lot. The building will also have a new theater, a fine restaurant and a cafe.

There will be a new 80,000-sf Glassell School of Art, also three stories at its highest point.

A block farther east, the Sarah Campbell Blaffer Foundation Conservation Center will rise two stories above the existing parking garage to create a 20,000-sf topper to house studios and art labs as well as a cafe at street level, adjacent to the museum's Metrorail stop.

There will be 190,000 sf of parking underground. Museum director Gary Tinterow, Kinder and Holl all say flooding should not be an issue, and the underground areas will have pumps.

Construction will begin summer 2014 with the Glassell. The whole project won't be complete until 2019.

Read more at the Houston Chronicle.

Missouri City: 525,000-SF industrial project going up 


MISSOURI CITY - A 36.24-acre tract of land in the northeast quadrant of Beltway 8 & US 90A has been sold. It will be developed into a three-building, 525,800-sf industrial project.

A joint venture of Conor Commercial Real Estate and USAA Real Estate Co. will develop the project.

The land seller was Patricia Al-Attas Barret. The buildings will be handled by Cadence McShane Construction Co. and Powers Brown Architecture.

Read more at Realty News Report.

League City: 36 acres of retail to Marketplace at Ninety-Six 


LEAGUE CITY - NewQuest Properties will begin this year on Marketplace at Ninety-Six, a 36-acre retail development in featuring a 123,000-sf Kroger Marketplace as well as several pad sites and 25,000 sf of retail.

The project is set for completion early 2016. There are more than 6,000 homes within the immediate area, with nearby residential communities including Brittany Lakes, Brittany Bay, Sedona, Westover Park and Magnolia Creek.

The development is located less than half a mile from I-45.

Read more at Texas Real Estate Business.

Del Webb to build 550-home gated community in The Woodlands 


THE WOODLANDS - Del Webb, a national brand of residential communities for those at or nearing retirement age, will develop a new gated community expected to have 550 single-family homes on 200 acres at the southeast corner of FM 1488 and Old Conroe Rd.

It will be the second Del Webb development in this Houston area. The first, Del Webb Sweetgrass, opened in 2011 in Richmond. It is still under development and has room for a total of 1,500 homes.

Construction on model homes should begin early 2016. Presales will start then as well. The homes, designed with one story, will range from 1,650 to 2,900 sf, but some will have options for attic storage space or a second-floor study or bedroom and bathroom.

Plans are still in the works for the amenities, but the company said its other projects include fitness centers, gathering rooms, outdoor pools, walking and jogging trails, and tennis.

David Kalosis, a senior vice president of John Burns Real Estate Consulting, said many of the baby boomers being targeted for these communities still work and want to be near job centers. They also like to stay close to family.

Read more at the Houston Chronicle.

Havenwood Office Park to Spring with 250,000 SF 


SPRING - Havenwood Office Park is planned for construction at 25700 I-45 North, between Woodlands Pkwy. and Sawdust Rd., replacing the current Brookhaven Business Park.

Havenwood Office Park will feature a four-story building offering approximately 250,000 sf of Class A office space.

Construction is anticipated to be completed by fourth quarter 2015.

The project will feature amenities including an adjacent parking garage, covered walkways with high quality finishes throughout and an outdoor plaza with seating area.

Read more at Woodlands Online.

Houston: Alfa Laval to consolidate into 106,000 SF 


HOUSTON - The U.S. subsidiary of Swedish manufacturer Alfa Laval has signed a long-term lease for 105,800 sf in a building under construction in the Pinto Business Park located at I-45 and the North Belt.

The new manufacturing facility will consolidate the company’s three local operations into one facility that will include 25,000 sf of office space. The building will house more than 150 employees.

The project is scheduled for completion second quarter 2015. The company makes heat transfer, separation and fluid handling equipment, systems and technology.

Hines and partners KKR and Pinto Real Estate Development are developing the business park. Over the past year, more than 3.2 million sf has opened or been announced for the project, Hines said.

When completed, Pinto Business Park could have more than 8 million sf representing more than $900 million.

Read more at the Houston Chronicle.

Houston: 81,000-SF 1500 CityWest trades hands 


HOUSTON - California-based Unilev Capital Corp. purchased 1500 CityWest, a 192,313-sf Class A ten-story office building in the Westchase submarket, from Metro National Corp.

The building is currently 80 percent leased. Geokinetics is the building's largest tenant, occupying just over 81,000 sf.

The Westchase District has transformed from a suburban outlier to a business mecca as several companies including Phillips 66 have decided to relocate there.

Hubbard called Westchase a "wish-list" submarket for investors and tenants, due to its proximity to the Energy Corridor and Beltway 8.

Read more at the Houston Business Journal.

Three Clear Lake office buildings bring $10.3M 

(1/9/2015 8:00:00 AM)

CLEAR LAKE - Whitestone REIT has sold three non-core office buildings for $10.3 million, or a 7.7 percent cap rate on trailing 12-month net operating income (NOI).

The portfolio consists of 

  1. the 37,740-sf Zeta Building at 1020 Bay Area Blvd.;
  2. the 24,900-sf Royal Crest Townhome Offices at 16815 Royal Crest Dr.; and
  3. the 49,760-sf Featherwood at 12727 Featherwood Dr.

The two-story properties were sold because they did not fit Whitestone’s Community Center Properties business model. Whitestone expects to re-invest the proceeds of the sale into the purchase of assets that fit its core strategy.

Read more at CoStar Group.

Where is apartment development gaining momentum? 

(1/9/2015 7:44:00 AM)

HOUSTON - Houston ranked No. 2 nationally for the number of multifamily units permitted between January and November 2014, based on an analysis of U.S. Census building permit data by CBRE Group Inc.

Houston saw 21,550 multifamily units permitted year-to-date 2014 through November, topped only by New York City with 30,397 units permitted.

Houston ranked No. 3 in the country for multifamily development momentum, which CBRE defined as the ratio of multifamily units permitted to the city's population.

The Bayou City permitted one multifamily unit for every 293 residents, only beaten by Austin (1:236) and San Jose, California (1:265), according to CBRE.

The City of Houston's Downtown Living Initiative and revitalization efforts to Hermann Park and the Astrodome is spurring residential construction in the city's Central Business District and Museum District.

The Grand Parkway extension project and the new Exxon Mobil campus is fueling multifamily growth in the suburbs, like Conroe, Katy, Springwoods Village, The Woodlands and Tomball.

The top ten cities ranked by the number of multifamily units permitted between January and November 2014, according to CBRE's analysis of U.S. Census building permit data:

1. New York City: 30,397
2. Houston: 21,550
3. Los Angeles: 16,448
4. Dallas-Fort Worth: 15,218
5. Washington: 12,173
6. Seattle: 11,397
7. Miami: 8,440
8. Austin: 7,968
9. Atlanta: 7,575
10. San Jose: 7,240

Read more at the Houston Business Journal.

tag: apartments, Houston Multifamily data

Low oil prices to slow Houston's luxury housing market? 


HOUSTON - Houstonians purchased 1,411 homes that each sold for at least $1 million last year, up from 688 five years earlier, according to the Houston Association of Realtors (HAR). But the market's swift surge is now threatened by strains in the energy industry that fueled much of the city's high-end real estate boom.

Houston had the highest number of luxury home sales among Texas' four major cities last year, a report released by the Texas Association of Realtors showed. That represents almost 2 percent of the area's total housing transactions.

Million-dollar-plus home sales were up 13 percent in 2014 over the previous year, according to the second-annual Texas Luxury Home Sales Report, which looks at high-end home sales in the state's largest cities based on sales data from the first ten months of the year.

Texas economist Dr. Jim Gaines, who remains bullish on the local property market, has reasons to believe demand for luxury properties will continue.

"The statistics will look different, but it'll still be a decent year," said Gaines of the Real Estate Center at Texas A&M, which analyzed the data in the association's report.

He cited lower rates on jumbo mortgages, those hefty home loans too big to be sold to Fannie Mae and Freddie Mac that make high-dollar borrowing more accessible.

While layoffs are expected and forecasts for Houston-area job growth are at least half of what they were last year, Gaines said the most skilled, high-paying energy jobs are less at risk.

There could be a shift in buying patterns, however. "A lot of people who might have been buying $3, $4 or $5 million homes might buy a $1 million home," Gaines said.

He posed another caveat: If the price of oil falls into the $30-per-barrel range and stays there a while, "there will be some readjustment," Gaines said.

Here's the number of homes that sold for at least $1 million across the Houston area, by year, according to HAR:

2014: 1,411
2013: 1,252
2012: 896
2011: 728
2010: 668

Read more at the Houston Chronicle.

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