Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Source: CBRE Research, Apartment Data Services, Q3 2017.
Figure 3: Post-Harvey Key Takeaways
DEMAND RESPONSE
• 10,926 units absorbed since Hurricane Harvey
• More than 22,000 units absorbed year-to-date
FUNDAMENTALS SHIFT POST-HARVEY
• Occupancy at 90.2% when damaged units are removed from operating inventory
• Effective rent increased by $15 per month
• Effective rental rate increased 1.7 cents per sq. ft.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
1 Connection at Buffalo Pointe 10201 Buffalo Speedway 352 Med Center/Braes Bayou
2 Vista at Grand Crossing 302 Cobia Dr 351 Katy/Cinco Ranch/Waterside
3 Broadstone Grand Parkway 1111 Falcon Dr 342 Katy/Cinco Ranch/Waterside
4 North Park Crossing 310 Parramatta Ln 336 Willowbrook/Champions/Ella
5 Oak Forest 1370 Afton St 321 Memorial/Spring Branch
6 Equinox 2950 Old Spanish Trl 304 Med Center/Braes Bayou
7 Normandy Woods 695 Normandy St 268 I-10 East/Woodforest/Channelview
8 Hollister Place Apartments 6565 Hollister Rd 260 Brookhollow/Northwest Crossing
9 London Park Apartments 14545 Bammel N Houston Rd 257 Willowbrook/Champions/Ella
10 The Meritage 4550 N Braeswood Blvd 240 Med Center/Braes Bayou
Source: CBRE Research, Real Capital Analytics, Q1 2017.
Figure 4: Top Sales Transactions
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Source: CBRE Research, Apartment Data Services, Q4 2016.
Source: CBRE Research, Apartment Data Services, Q4 2016.
Figure 5: Development Activity
Source: CBRE Research, Apartment Data Services, Q4 2016.
0.5
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Units (000s)
Under Construction Deliveries
HOUSTON MULTIFAMILY
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
10 The Belvedere At Westchase Apts 10936 Meadowglen Ln 367 Westchase
EMPLOYMENT SLUGGISH DESPITE AUGUST
GAINS
Houston's unemployment rate has risen above
the U.S. average for the first time to 5.8%, 80
bps above the national average. Even with
industries like the Port of Houston being the
second largest in the U.S. by tonnage and the
Texas Medical Center, the combined
employment gains still struggle to make up for
the lost business in oil and gas. August
employment grew by 500 jobs, which although
not robust, indicates energy and professional
and business services sectors are stabilizing.
INVESTMENT SALES MARKET SEES ACTIVE
THIRD QUARTER, BUT DOWN YEAR-TO-DATE
The investment sales market in Houston is
down 29% in total properties sold year-to-date.
However, Q3 2016 was an active quarter with
35% more properties sold compared to Q2
2016. Year-to-date volume totals $2.9 billion,
down 27% from the same period in 2015.
Investors active in the Houston market
continues to be Private buyers as they make up
81% of total acquisitions. REITS and Publicly
Listed Securities made up 7%, institutional
buyers made up 7%, and international buyers
made up 5% of acquisitions in the Houston
market.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
sectors, primarily oil field services and oil field
equipment manufacturing. However, the losses
in E&P are balanced by job gains throughout the
retail and healthcare sectors. Yet, job gains have
not been robust enough to balance out losses.
The short term outlook contains flat
employment yet, long term forecasts show
improvement in 2018 and 2019.
CAPITAL MARKETS
Year to date, the Houston multifamily market is
continuing to see a major rise in private buyers
and conversely a drop in institutional buyers.
From Q2 2015 to Q2 2016, Houston saw an 11%
increase in private buyers, which is 21% higher
in comparison to the private buyers in the rest of
the U.S.
Despite this rise in private investments, sales
continue to decline throughout the city year-
over-year. Houston’s average price per unit
declined significantly compared to the rest of
the U.S. with a gap roughly from $7.60 a unit to
$14.50 per unit.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Completions Under Construction 24,889 Units 5,234 Units
Source: CBRE Research, Apartment Data Services, Q1 2016.
PERMIT ACTIVITY RIGHTFULLY SLOWING – BUT MORE
DELIVERIES SLATED FOR 2016
Houston multifamily permit activity has been registering at an elevated level since January 2014 with a high-water mark being reached in June of last year with 3,471 permits that month. As the market begins to absorb this new product, developers are pulling back – and so far this year only 1,401 permits have been issued – a sharp reduction when compared to the torpid pace of the past two years. Meanwhile, in another adjustment to the supply pipeline, Houston has recently seen a handful of planned projects canceled or postponed in areas such as Baytown and the Montrose/Museum/Midtown submarkets.
As Class A construction dwindles further (giving the market time to take a breather) , developers and investors are shifting their focus towards renovations and value-adds in Class B properties to create enhanced, yet affordable, housing that many Houston renters are craving. Indeed this class category seems to be a sweet spot this year for both renters and investors in the wake of Houston’s economy slowing down on the accelerator for payroll and population gains. While the Class A sector continues to see some rental rates on the rise in various parts of the metro, the Class B sector will be on the rise in Houston’s multifamily market as job growth continues in the employment categories of leisure and hospitality, government, teaching and health care.
Although Houston rents have steadily increased over the last few years, signs are pointing towards stable to sideways rent growth, as Q1 2016 saw rents at $1.10 per sq. ft., where they remained for the last six months. Strengthening demand in Class B properties resulted in a slight increase in overall rates; average rental rates are $1.09 per sq. ft. Concessions rather than softening rates are on the rise in Class A product due to a surplus in inventory. Average rental rates for top tier product remain above $1.50 per. sq. ft., with some properties, such as 2929 Weslayan, asking upwards of $2.80 per sq. ft. in the Highland Village/Upper Kirby/West U submarket. NEW SUPPLY PUTS A SMALL DENT IN OCCUPANCY
Houston’s overall occupancy dropped 40 basis points (bps) to 90.2%, the lowest since Q1 2013. Whereas, Class A occupancy has steadily declined from 84.3% to 80.5% year-over-year. Again, this due to the dramatic increase in units delivered over the past two years, approximately 41,000 units and thus an increase in price per. sq. ft. On the other hand, Class B and Class C properties occupancy held steady above 93.0% for the last 12 months. Total net absorption for Q1 2016 was 2,803 units, which in historical terms is in line with the total units absorbed for the year in 2009. While Class A occupancy remains on the low end, absorption was positive at 2,831 units, on the other hand, Class B absorption was a negative (678) units due to seasonal adjustments.
CONSTRUCTION TAPERING. FINALLY.
After several quarters of strong construction activity, Q1 2016 construction slowed to 24,889 units under construction. The majority, approximately 21,000, of these units will deliver throughout 2016. The number of completions this quarter totaled 5,234 units, with the majority in the northwest submarkets. These include the high-end Class A properties, District at Memorial opening with 324 units, and 311-unit Pearl Citycentre.
Houston is already halfway through expected job losses in the wake of low crude oil prices and according to the Bureau of Labor Statistics, the Houston MSA job growth numbers showed 10,100 jobs gained in February, a year-over-year growth of 0.3%. These are the most sluggish job growth numbers since the recession in 2009. Still, job gains were due in part to seasonal hiring in restaurants and retail stores. Deepest declines of the industry sectors year-over-year have been in mining and logging (-16.5%), manufacturing (-9.0%), and professional and business services (-2.6%). A major blow to mining and logging is due to the continuous drop in oil prices as well as the major oil and gas companies announcing recent layoffs. While employment growth will be slow, payroll forecasts generally agree on a continuing oil price recovery throughout the year, while at the same time, modest job gains are expected throughout the retail and other service sectors. For example, the healthcare sector has played a significant role in the growth of the Houston MSA, especially with the continued expansion of the Texas Medical Center and area hospital systems. The completion of the Panama expansion project in June--in concert
with ongoing infrastructure improvements in the Houston Ship Channel--will be critical to Houston's future economic prosperity as a global trade and logistics hub. For the 14th consecutive month, the Houston Purchasing Managers Index (PMI) registered below the neutral point of 50, steadily declining in February to 44.5, continuing to show the Houston economy contracting.
Figure 6: Top 10 Key Transactions
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%
U.S. Texas Houston MSA
Figure 7: Unemployment Rates
Source: U.S. Bureau of Labor Statistics, February 2016.
Source: Real Capital Analytics, April 2016.
Name Address Units Submarket
1 Wilshire Place Apartments 6000 Hollister St. 536 Brookhollow/Northwest Crossing
2 Advenir at Stone Park 6160 E. Sam Houston Pkwy. 480 I-10 East/Woodforest/Channelview
3 Pines of Northwest Crossing 7200 Pinemont 412 Brookhollow/Northwest Crossing
4 Monterra Park 4000 Watonga 392 Brookhollow/Northwest Crossing
5 Retreat on Rosslyn 5801 N. Houston Rosslyn 364 Brookhollow/Northwest Crossing
6 Emerson Park 1799 FM 528 354 Beltway 8/I-45 South
7 Radius at Shadow Creek Ranch 2400 Business Center 350 Hwy 288 South/ Pearland West
8 Avana Cypress Estates 10802 Legacy Park Dr. 336 Jersey Village/Cypress
9 Dolce Living Grand Harbor 24758 Grand Harbor 324 Katy/Cinco Ranch/Waterside
10 Fountains at Katy 1007 S. Mason Rd. 316 Katy/Cinco Ranch/Waterside
MARKETVIEW
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CONTACTS
Robert C. Kramp Director, Research & Analysis Texas-Oklahoma Division [email protected] E. Michelle Miller Research Operations Manager Texas-Oklahoma Division [email protected]
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The Houston-The Woodlands- Sugar Land MSA added 4,800 jobs in November, with a year-over-year growth of 23,700 jobs.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
Although Houston rents remained stable this quarter at $1.10 per sq. ft., overall rental rate growth has continued to see an increase of 6.6% year-over-year. The Montrose/Museum District submarket is recording the highest average rental rate in Houston at $1.82 per sq. ft., followed by the Inner Loop West/Greenway Plaza submarket at $1.81 per sq. ft. Shifting outside the central markets, Houston continues to see multifamily growth in the eastern submarkets. Gulfgate/Almeda Mall and Baytown are the two submarkets with exponential rent growth, 10.9% and 10.3% year-over-year, respectively. Contributing factors are the ongoing strength of Houston’s Ship Channel and the April 2016 opening of the Panama Canal. OCCUPANCY
Overall occupancy dropped 30 basis points (bps) to 91.1% in the third quarter. Leading the way again from last quarter, Class B occupancy recorded 94.2%, remaining above 93.0% for the last five quarters. This is where the shift in property class demand is happening. Whereas Class A occupancy rates dipped 20 bps to 84.3%, including properties in lease-up. With a continued tight home supply and an increased average price, up 3.7% year-over- year, multifamily occupancy should continue to remain above the 90% mark. Population and job growth will continue to impact the housing market in a positive light, mainly in the eastern sections of Houston. CONSTRUCTION
The number of units under construction remains a robust 26,667 in Q3 2015, an increase of 3,000 units from last quarter. The top three suburban markets with the most units under construction are West Memorial/Briar Forest, Katy/ Far West, and Conroe/Montgomery, totaling 6,357 units. The number of units delivered this quarter totals 4,319 units, bringing the year-to-date total to 14,129 units. Next year, estimated delivered construction will be similar to 2015, but taper off at the beginning of 2017.
Although Houston’s job growth numbers showed a loss in August, they were regained in September, with 6,400 jobs added and the forecast is that Houston will end the year in the black with a net new jobs total eclipsing 14,500 payrolls. However, despite some job losses in the energy sector, a significant increase in job growth was in the government sector with 21,200 jobs, followed by education and health with 6,000 jobs. The Texas Medical Center continues to be a major employer in the Houston area, with an estimate of 106,000 employees. The Houston Purchasing Managers Index for September lies at 47.6, a smidge below the neutral point of 50, which shows the Houston economy is slightly contracting.
Figure 8: Top 10 Key Transactions
0
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2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
%
U.S. Texas Houston MSA
Figure 7: Unemployment Rates
Source: U.S. Bureau of Labor Statistics, September 2015.
Source: Real Capital Analytics, October 2015.
CAPITAL MARKETS
Q3 2015 Houston’s multifamily sales volume totaled $867 million, a 27% drop from Q2 2015 sales volume according to per Real Capital Analytics. The average price per unit in Q3 2015 is $82,420. On a national level, the multifamily average price per unit was 11.0% higher year-over-year, at $135,513 per unit for Q3 2015.
Name Address Units Submarket
1 The Palms on Westheimer 6425 Westheimer Rd 798 Galleria
2 Villages at Meyerland 8900 Chimney Rock Rd 714 Braeswood/Fondren SW
3 Monte Carlo 10950 Briar Forest 592 West Memorial/ Briar Forest
4 Boardwalk at Town Center 2203 Riva Row 450 Woodlands/Far North
5 El Sol Del Rio 14405 Rio Bonito Rd 424 Alief
6 Mira Bella 22921 Imperial Valley Dr 394 FM 1960 East/ IAH Airport
8 IMT Uptown Post Oak 1111 Post Oak Blvd 392 Galleria
9 Westmount at Summer Cove 725 FM 1959 376 Clear Lake
10 Parkside Grand Parkway 1226 W Grand Pkwy S 354 Katy/ Far West
The Houston-The Woodlands- Sugar Land MSA added 6,400 jobs in September, with a year-over-year growth of 36,200 jobs.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
CONTACTS
Robert C. Kramp Director, Research & Analysis – South Central U.S. [email protected] E. Michelle Miller Research Operations Manager [email protected]
2 El Sol Brillante 6403 Sierra Blanca Dr 792 Alief
3 Baybrook Village I & II 2702 W Bay Area Blvd 776 Friendswood/Pearland
4 Morgan West Oaks 2400 Briarwest Blvd 671 West Memorial/Briar Forest
5 Renaissance Village at Shadow Lake 2920 Shadowbriar Dr 624 Alief
6 Braesridge 11100 Braesridge Dr 542 Braeswood/Fondren SW
7 Preserve at Colony Lakes 1000 Farrah Lane 420 Ft. Bend
8 The Mandolin 10325 Cypresswood Dr 384 FM 1960 West/Steeplechase
9 Casa Verde 2 Goodson Dr 384 Northline/Aldine
10 Broadstone Post Oak 3100 Post Oak Blvd 272 Galleria
The Houston-The Woodlands- Sugar Land MSA added 4,300 jobs in June, with a year-over-year growth of 55,700 jobs.
The Houston market sold a staggering $5.58 billion in multifamily assets for the rolling 12 month total in Q2 2015.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
CONTACTS
Robert C. KrampDirector, Research & Analysis –South Central [email protected]
Houston’s overall occupancy rate returned to its peak of 91.1% in Q4 2014, which was last achieved in Q3 2013. Rental rates remained at a record high of $1.05 per sq. ft.
Houston’s net absorption dropped from 3,655 units in Q3 2014, to 1,483 units absorbed this quarter. This brings 2014 year-end to a total of 16,084 units absorbed, only slightly down from 2013 when 16,412 units were absorbed.
Although Houston’s overall rental rate remained at a record level of $1.05 per sq. ft, Class A rental rates decreased because of properties in lease-up. The Central submarkets average rates are still the highest in the Houston metro area, ranging from $1.25- $1.77 per sq. ft. Inner Loop East has the highest Class A rental rate at $1.89 per sq. ft.
OCCUPANCY
Houston’s overall occupancy increased by 10 basis points (bps) from the previous quarter. Class A and Class B rates are up from 82.8% and 93.3% in Q3 2014, to 86.4% and 94.4% for Q4 2014, respectively. On a geographic basis, occupancy was the highest at 93.0% in the Southeast submarkets, while the lowest occupancy rate was 88.4% in the Central submarkets. Renters will notice the positive side of lower occupancy rates in Class A product, seeing moderating rent growth and an increase in concessions. Additionally, this will allow Class A product to catch up with Class B and Class C occupancy rates.
CONSTRUCTION
The number of units under construction increased from 24,562 in Q3 2014, to 26,630 in Q4 2014. The West Memorial/Briar Forest submarket leads the way with 3,758 units currently under construction.
Delivered units for Q4 2014 totaled 3,814, bringing 2014 to a grand total of 17,628 units completed. Inner Loop West/Greenway Plaza had 1,093 units delivered in Q4 2014. Multifamily permit activity continues to stay strong, and Houston will continue to see a steady number of deliveries throughout 2015.
The Houston MSA unemployment rate continues to drop, and has reached a new low of 4.9%. The Texas and U.S. unemployment rates have dropped as well to 5.1% and 5.8%, respectively. These are the lowest rates we have seen since 2009.
Houston is diversified and prepared to handle a drop in oil prices. The market has experienced tremendous absorption, job growth and rent growth in recent years, at a pace that is not
1 Woodlake/Westheimer 1.2 6.02 Baytown 0.8 13.43 Far East 0.9 9.14 Inwood/Northwest 0.9 4.95 Inner Loop East 0.6 7.6
Figure 7: Hottest Submarkets
Figure 8: Key Transactions
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%
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Figure 6: Unemployment Rates
Source: Apartment Data Services, January 2015.
Source: U.S. Bureau of Labor Statistics, December 2014.
maintainable in the long-term. The recent decrease in oil prices may slow down future developments, especially in the multifamily sector.
Despite the drop in oil prices, Houston’s economy is poised for modest growth with support from healthcare, downstream energy, and business/consumer services to support a growing population.
MARKETVIEW
Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.
NET ABSORPTION WAS POSITIVE FOR THE SEVENTH CONSECUTIVE QUARTERHouston multifamily market fundamentals continued their positive trend in the third quarter of 2014, with occupancy remaining steady. Apartment demand continued to increase in the third quarter due to Houston’s growing job market and population. Net absorption for Q3 2014 totaled 3,539 units, which keeps 2014 on pace with 2013, during which Houston had 16,189 units of net absorption for the calendar year.
OCCUPANCY REMAINS STEADY AT 91.0%Houston’s proposed and under construction projects show the ever expanding market is not slowing down, continuing to push the market upward while the occupancy rate remained steady at 91%. Houston’s suburban submarkets will continue to see an increase in construction as the central submarkets remain steady. Despite a large number of new deliveries expected in 2014, occupancy rates should remain steady or increase slightly in the central and suburban submarkets.
HIGHEST RENTS ACHIEVED Q3 2014 average rental rates have continued to push upward to an all-time high of $1.05 per sq. ft., from $1.03 per sq. ft. in Q2 2014. Rental rates in Houston are at an all-time high after a couple of years of rapid growth with a 7.8% year-over-year increase for Q3 2014. The $1.00 per sq. ft. barrier was passed in Q1 2014 for
RENTAL RATES CONTINUE STRONG GAINS
AVG. RENT$1.05 Per Sq. Ft.
NET ABSORPTION3,539 Units
UNDER CONSTRUCTION25,462 Units
DELIVERIES5,949 Units
PROPOSED CONSTRUCTION18,282 Units
TOTAL OCCUPANCY91.0%
Figure 1: Net Absorption and Occupancy Rate
Source: Apartment Data Services, October 2014. CBRE Research, Q3 2014.
the first time; rents have continued to increase with occupancy following in its path. New, Class A product in the Inner Loop East submarket is commanding high rental rates at $1.97 per sq. ft., and following close behind is the Montrose/Museum District submarket at $1.85 per sq. ft. With these high rental rates and more deliveries in the Inner Loop submarkets, occupancy is decreasing due to the low demand.
DELIVERED UNITS UP 11% FROM PREVIOUS QUARTER Multifamily construction activity remained strong in Q3 2014, delivering 5,949 apartment units to the market. This activity is up 11.0% from Q2 2014 when 3,722 units delivered. At the end of Q3 2014, 24,562 units remained under construction across the Houston metro area. Proposed construction in Houston reached 18,282 units in Q3 2014, a slight increase of 320 units more than in Q2 2014, significantly less than growth in recent years.
Directional arrows based on change from the previous quarter. Data reflects market totals.
86%
87%
88%
89%
90%
91%
92%
93%
94%
(1,000)
0
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2,000
3,000
4,000
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6,000
Central Southwest Northwest Northeast Southeast
Q1 Q2 Q3 2014 YTD Total Units Absorbed Occupancy Rate
Source: Bureau of Labor Statistics, October 2014. CBRE Research, Q3 2014.
Source: Apartment Data Services, October 2014. CBRE Research, Q3 2014.
MULTIFAMILY RENTSOne major noticeable change happening in 2014, is the increasing rent growth in Houston’s suburban markets, and decreasing rent growth in the urban core. Houston rents continued their upward climb in Q3 2014, reaching $1.05 per sq. ft. for the first time. Overall rental rates increased 7.8% over the past 12 months, while Class A, B, C and D rental rates each increased 5.8%, 8.0%, 6.9% and 6.3% year-over-year, respectively. Leading the suburban submarkets in rent is the Woodlands/Far North submarket at $1.22 per. sq. ft., followed by the Tomball/Far Northwest and Fort Bend submarkets with rents at $1.21 per sq. ft. The highest overall Q2 2014 rents can be found in the Inner Loop West/Greenway Plaza submarket at $1.79 per sq. ft., led by the Montrose/Museum District submarket at $1.77 per sq. ft. and the Heights submarket at $1.68 per sq. ft. This is a decrease in rent from Q2 2014 for the Montrose/Museum District and Heights submarket by $0.02 and $0.03 respectively.
MULTIFAMILY OCCUPANCYThe Q3 2014 overall occupancy rate is 91%, which stands even from last quarter and 10 basis points decrease from Q3 2013. Occupancy in the suburban submarkets stands much higher than the urban submarkets due to the lower overall rental rates. For example, the Friendswood/Pearland submarket leads the way with a 95.4% occupancy rate, and the Bear Creek/Copperfield submarket follows closely behind with a 95.2% occupancy rate.
MULTIFAMILY CONSTRUCTIONThe number of units under construction increased from 23,722 in Q2 2014 up to 24,562 in Q3 2014. The Montrose/Museum submarket leads the Houston area with 3,476 units under construction, followed by the West Memorial/Briar Forest submarket with 3,134 units. These two submarkets combined total 26.9% of the market’s hottest areas for new development. Despite the amount under construction, the increasing demand for apartments is not keeping up with supply, which we are seeing higher rental rates and lower occupancy rates as a result.
UNEMPLOYMENTThe Houston economy continues to outshine the national economy. National unemployment dropped 10 basis points this quarter to 6.2%. In September 2014, the Texas unemployment rate fell to 5.1%, while Houston unemployment dropped to 5.0%. With the exceptional employment growth and population growth, we will continue to see an increase in apartment demand.
Figure 3: Average Rents, $/Sq. Ft./Mth.
Figure 4: Occupancy Rates by Class
Figure 5: Construction Activity and Net Absorption
Figure 6: Unemployment Rates
Source: Apartment Data Services, October 2014. CBRE Research, Q3 2014.
Source: Apartment Data Services, October 2014. CBRE Research, Q3 2014.
Lynn CirilloResearch Operations ManagerCBRE Americas Research2800 Post Oak, Suite 2300Houston, TX 77056 e: [email protected]
Kindell Villarreal ResearcherCBRE Houston Research2800 Post Oak, Suite 2300Houston, TX 77056t: +1 713 577 1894e: [email protected]
CONTACTSFor more information about this Houston Multifamily MarketView, please contact:
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DISCLAIMER
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of CBRE.
Houston’s job and population growth continued to drive apartment demand. Rental rates and occupancy pushed upward as average rents reached $1.03 per sq. ft. for the first time ever in Houston and overall occupancy climbed to 91%. Net absorption for Q2 2014 totaled 5,221 units, which keeps 2014 on pace with 2012 and 2013, during which Houston averaged 16,300 units of net absorption per year.
Multifamily construction activity remained strong in Q2 2014 delivering 3,722 apartment units to the market. This was down slightly from Q1 2014 when 4,143 units delivered. At the end of Q2 2014, 23,722 units remained under construction across the Houston metro area.
In Houston’s CBD, several new projects are underway, spurred in part by the city’s Downtown Living Initiative, which offers developers a $15,000-per-unit subsidy for apartments built downtown. SkyHouse Houston, a 24-story, 336-unit complex recently broke ground in April. There are 880 units currently under construction in the Inner Loop East submarket, including 500 Crawford expected delivery in March 2015. Proposed construction in the CBD includes the Camden Downtown Towers and Market Square Tower with 560 units and 463 units, respectively. The city hopes to encourage downtown apartment development in order to increase population and revitalize the area.
Suburban development has steadily increased over the past few months in certain areas. Most notably, the West
HOUSTON APARTMENT MARKET STILL CLIMBING.
AVG. RENT$1.03 Per Sq. Ft.
NET ABSORPTION5,221 Units
UNDER CONSTRUCTION23,722 Units
DELIVERIES3,722 Units
PROPOSED CONSTRUCTION17,962 Units
TOTAL OCCUPANCY91.1%
Figure 1: Net Absorption and Occupancy
Source: Apartment Data Services, July 2014. CBRE Research, Q2 2014.
Memorial/Briar Forest submarket has experienced a continued increase in new projects and closed Q2 2014 with 3,374 units under construction. High levels of office development in the nearby Energy Corridor is driving the apartment development in West Memorial/Briar Forest. The Katy/Far West submarket follows with 2,820 units under construction. The Tomball/Far Northwest follows and Woodlands/Far North submarkets are also experiencing a boom in apartment construction driven primarily by the expansion of the Grand Parkway and the development of the ExxonMobil campus near Spring with a combined total of 1,969 units under construction. Adding to this boom is the start of phase one of CityPlace located just south of The Woodlands, which will expand the office market by 4 million sq. ft. when completed.
Q2 2014 average rental rates increased to $1.03 per sq. ft., from $1.00 per sq. ft. in Q1 2014. Rental rates in Houston are at an all time high after a couple of years of
rapid growth. Rental rates increased 7.6% year-over-year in Q2 2014, which is an increase of 90 basis points from Q1 2014’s year-over-year rental rates.
New, Class A product in the Montrose/Museum District submarket is commanding high rental rates at $1.89 per. sq. ft. Suburban submarkets have a lower trend, with rental rates as low as $1.36 per sq. ft. in the Katy/Far West submarket, and $1.29 in the Bear Creek/Copperfield submarket.
Houston’s proposed and under construction projects show the ever expanding market is not slowing down, and continues to push the market upward. Houston’s suburban submarkets will continue to see an increase in construction as the central submarkets remain at pace. Despite a large number of new deliveries expected in 2014, occupancy rates should remain steady or increase slightly in the central and suburban submarkets.
Directional arrows based on change from the previous quarter. Data reflects market totals.
Source: Bureau of Labor Statistics, July 2014. CBRE Research, Q2 2014.
Source: Apartment Data Services, July 2014 CBRE Research, Q2 2014.
MULTIFAMILY RENTSHouston rents continued their upward climb in Q2 2014, reaching $1.03 per sq. ft. for the first time. Overall rental rates remained steady at 7.6% over the past 12 months, while Class A, B and C rental rates each increased 6.7%, 6.6% and 7.3%, respectively. Class D rates decreased by 4% since Q2 2013. Rent growth was strong in most of the 41 submarkets. The highest overall Q2 2014 rents can be found in the Montrose/Museum District submarkets at $1.80 per sq. ft., led by the Inner Loop West/ Greenway Plaza submarkets at $1.75 per sq. ft. and the Heights submarket at $1.71 per sq. ft. The highest rents in suburban markets were found in Fort Bend and the Woodlands/Far North areas, at an average of $1.21 per sq. ft.
MULTIFAMILY OCCUPANCYThe Q2 2014 overall occupancy rate stands at 91%, up 10 basis points (bps) from last quarter and 20 bps from Q2 2013. Class C and D projects led improvement over the quarter with Class C occupancy up 60 bps in Q2 2014, to 93.3%, and Class D occupancy up 140 bps, to 87.5%. Class A occupancy dropped to 82.8%. This number is skewed downward because the data includes many new apartments that are still in the process of leasing up. Class B occupancy was 93.3%, down from 93.6% in Q1 2014.
MULTIFAMILY CONSTRUCTIONThe number of units under construction increased from 22,246 in Q1 2014 up to 23,722 in Q2 2014. The West Memorial/Briar Forest submarket remains one of the market’s hottest areas for new development. Units under construction increased by 8% in Q2 2014 from Q1 2014. The booming office development in the area is driving apartment demand.
UNEMPLOYMENTThe Houston economy continues to outshine the national economy. National unemployment held steady throughout the quarter at 6.3%. In May 2014, the Texas unemployment rate fell to 5.2%, while Houston unemployment dropped to 5.1%.
Figure 3: Average Rates ($/Sq. Ft./Mth.)
Figure 4: Occupancy Rates by Class
Figure 5: Construction Activity and Absorption
Figure 6: Unemployment
Source: Apartment Data Services, July 2014. CBRE Research, Q2 2014.
Source: Apartment Data Services, July 2014. CBRE Research, Q2 2014.
Lynn CirilloResearch Operations ManagerCBRE Americas Research2800 Post Oak, Suite 2300Houston, TX 77056 e: [email protected]
Kindell Villarreal ResearcherCBRE Houston Research2800 Post Oak, Suite 2300Houston, TX 77056t: +1 713 577 1894e: [email protected]
CONTACTSFor more information about this Houston Multifamily MarketView, please contact:
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GLOBAL RESEARCH AND CONSULTING This report was prepared by the CBRE U.S. Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. Additional U.S. research produced by Global Research and Consulting can be found at www.cbre.us/research.
DISCLAIMER
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of CBRE.
Houston’s job and population growth continued to drive apartment demand. Rental rates and occupancy continued their upward trend as average rents reached $1.00 per sq. ft. for the first time ever in Houston and occupancy climbed to 90.9%. Q1 2014 net absorption was 5,538 units - roughly 1% of the market - which puts this year on pace with 2012 and 2013, during which Houston averaged 16,300 units of net absorption per year.
In Q1 2014, 4,199 new apartment units were delivered, up slightly from the Q4 2013 when 4,060 units delivered. 22,246 units remained under construction across the Houston metro at the end of Q1 2014.
Construction activity remained strong in the inner loop as it has since the start of this development cycle. 8,342 units were under construction in the loop, with the development concentrated in the area bounded on the north by I-10 and by US-59 to the south. Several new projects were underway in the CBD, spurred in part by the city’s Downtown Living Initiative, which offers developers a $15,000-per-unit subsidy for apartments built downtown. The city hopes to encourage downtown apartment development in order to increase population and revitalize the area.
Suburban development has increased over the past few months in certain areas. Notably, the West Memorial/Briar Forest submarket saw a large increase in new projects and ended Q1 2014 with 3,122 units under construction, compared to only 832 units in Q1 2013. High levels of office
HOUSTON APARTMENT MARKET STILL CLIMBING.
AVG. RENT$1.00 Per Sq. Ft.
NET ABSORPTION5,538 Units
UNDER CONSTRUCTION22,246 Units
DELIVERIES4,199 Units
PROPOSED CONSTRUCTION17,678 Units
TOTAL OCCUPANCY90.9%
Figure 1: Net Absorption and Occupancy
Source: Apartment Data Services, April 2014. CBRE Research, Q1 2014.
development in the nearby Energy Corridor is driving the apartment development in West Memorial/Briar Forest. The Tomball/Far Northwest and Woodlands/Far North submarkets are also experiencing a boom in apartment construction driven primarily by the development of the Exxon campus near Spring and the expansion of the Grand Parkway. Roughly 3,500 combined units are under construction in those submarkets.
Q1 2014 average rental rates increased to $1.00 per sq. ft., from $0.98 per sq. ft. in Q4 2013. Rental rates in Houston are at an all time high after a couple of years of rapid growth. However, the pace of growth is slowing. Rental rates increased 7.0% year-over-year in Q1 2014, whereas, over the previous 5 quarters, rental rates grew at an average of 7.7% year-over-year. With strong leasing activity and development anticipated to continue, rental rates should continue to trend upward, albeit not at the rapid pace seen in recent quarters.
New Class A product in the Inner Loop is commanding high rental rates. In the Montrose/Museum District submarket, Class A average rental rates are $1.83 per sq. ft. with some properties asking over $2.20 per sq. ft. for a 1 bedroom unit. The newest Rental rates for Class A product in the suburban submarkets can range from $1.20 to $1.50 per sq. ft.
Developers and investors are confident in the Houston market, which continued to expand in Q1 2014. Quality development projects, along with a strong and diversified local economy, should continue to push the market upward throughout 2014. Despite a large number of number of new deliveries expected in 2014, occupancy rates should remain steady or increase slightly. Rental rates should continue to increase throughout 2014, although the rate of growth will be slower than it has been the past few quarters.
Directional arrows based on change from the previous quarter. Data reflects market totals.
Source: Bureau of Labor Statistics, April 2014. CBRE Research, Q1 2014.
Source: Apartment Data Services, April 2014 CBRE Research, Q1 2014.
MULTI-HOUSING RENTSHouston rents continued their upward climb in Q1 2014, reaching $1.00 per sq. ft. for the first time. Overall rental rates increased 7.0% over the past year while Class A, B and C rental rates each increased 6.4%. Class D rates increased 4.9% since Q1 2013. Rent growth was strong in most of the 41 submarkets. The highest overall Q1 2013 rents can still be found in the Central (Inner Loop) submarkets, led by Montrose/Museum District again at $1.75 per sq. ft. and Inner Loop West/Greenway Plaza at $1.68 per sq. ft. The highest rents in suburban markets were $1.16, in Woodlands/Far North, Tomball/Northwest, and Fort Bend.
MULTI-HOUSING OCCUPANCYQ1 2014 occupancy rates stood at 90.9%, up 40 basis points (bps) from last quarter and 70 bps from Q1 2013. Class A occupancy was 85%. This number is skewed downward because the data includes many new apartments that are still in the process of leasing up. Class B occupancy was 93.6%, up from 93.5% in Q4 2013. Class C occupancy increased 10 bps as well in Q1 2014, reaching 92.7%.
MULTI-HOUSING CONSTRUCTIONThe number of units under construction at the end of Q1 2014 was 22,246 up from 17,614 in Q4 2013. The Central (Inner Loop) region accounts for the highest share of construction, with about 4 out of every 10 units under construction in Houston being built there. The West Memorial/Briar Forest submarket has become one of the market’s hottest areas for new development. In Q1 2014, there were 3,122 units under construction within that submarket while last year at this time only 822 units were underway. The booming office development in the area is driving apartment demand.
UNEMPLOYMENTThe Houston economy continues to outshine the national economy. National unemployment held steady throughout the quarter at 6.7%. In March 2014, the Texas unemployment rate fell to 5.5%, while Houston unemployment dropped to 5.2%. Economic growth slowed in March 2014 as Houston’s economy grew 2.9% year-over-year.
Figure 3: Average Rates ($/Sq. Ft./Mth.)
Figure 4: Occupancy Rates by Class
Figure 5: Construction Activity and Absorption
Figure 6: Unemployment
Source: Apartment Data Services, April 2014. CBRE Research, Q1 2014.
Source: Apartment Data Services, April 2014. CBRE Research, Q1 2014.
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Lynn CirilloResearch Operations ManagerCBRE Americas Research e: [email protected]
Eric Himarios Research AnalystCBRE Houston Research2800 Post Oak, Suite 2300Houston, TX 77056t: +1 713 577 1792e: [email protected]
CONTACTSFor more information about this Houston Multi-Housing MarketView, please contact:
TEXAS RESEARCH
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GLOBAL RESEARCH AND CONSULTING This report was prepared by the CBRE U.S. Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe. Additional U.S. research produced by Global Research and Consulting can be found at www.cbre.us/research.
DISCLAIMER
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of the CBRE Global Chief Economist.
NET ABSORPTION EXCEEDS 16,000 UNITS IN 2013The number of units absorbed in 2013 reached 16,678. Not only is net absorption outpacing the three-year average of approximately 14,000 units, but this marks the sixth consecutive year with positive annual net absorption. Due to increased new supply delivered in Q4 2013 creating new options for renters, absorption compressed to 510 units, down from 3,794 units in Q3 2013. All five submarkets in the greater Houston area had positive net absorption in each quarter of 2013, except the Northwest which experienced negative net absorption of 202 units in Q4 2013. The Southwest recorded the highest net absorption, with 5,191 units, while the Inner Loop posted the lowest, at 1,645 units. Although the horizon for new deliveries suggests further increases in absorption, the Houston MSA is on course to remain positive in Q1 2014 due in large part to continued job growth. OCCUPANCY REACHED 90.5% in Q4 2013.Q4 2013 occupancy outperformed both Q4 2011 and Q4 2012 occupancy, by 280 basis points (bps) and 90 bps, respectively. Although occupancy fell 60 bps from Q3 2013, Houston still experiences occupancy over 90%. Per the Houston Association of Realtors, home sales increased 19.4% year-over-year in November with trailing year volume up 31.9%, to $20.8 billion, which is the highest 12-month total on record. With robust home sales bringing months of supply to historic lows and strong housing demand in general, multifamily fundamentals are tight, especially as more millennials opt for Class A rentals in the Inner Loop. RENTS ACHIEVED $0.98 PER SQ. FT. IN Q4 2013. Rent growth continued in Q4 2013 and Houston average rental rates are on track to reach $1.00 per sq. ft. soon. Rents reached $0.98 per sq. ft. in Q4 2013, continuing the upward pattern for all four quarters of 2013. Occupancy dipped this quarter, as did some of the Class A rents, with deliveries up significantly over the quarter. The pace of rent growth may moderate until this new product is fully leased up. Class B, C, and D all saw $0.01 per sq. ft. gains demonstrating growing demand for these units. Moody’s Analytics’ placed net migration for the Houston MSA in 2013 at 55,700 persons due to rapid growth in the energy and healthcare sectors and the relatively low cost of living. This trend should continue in 2014, supporting rents and construction.
RENTAL RATES AND CONSTRUCTION ACTIVITY CONTINUE STRONG GAINS IN Q4 2013.
AVG. RENT$0.98 Per Sq. Ft.
NET ABSORPTION510 Units
CONSTRUCTION17,614 Units
DELIVERIES4,060 Units
PROPOSED CONSTRUCTION20,820 Units
TOTAL OCCUPANCY90.5%
Figure 1: Market Net Absorption and Occupancy
Source: Apartment Data Services, January 2014. CBRE Research, Q4 2013.
DELIVERED UNITS INCREASE TO 4,060 WHILE UNITS UNDER CONSTRUCTION DIP TO 17,614.Multi-housing construction cooled slightly in Q4 2013. As a persistent trend from Q3 2013, most of the units under construction are concentrated in the Central (or Inner Loop region). Inner Loop West/Greenway Plaza leads the pack with a grand total of 3,055 units currently under construction. Montrose/Museum District was not far behind with 2,509 units. The Southwest region is also active with 5,297 units under construction, where the largest share of activity is in the West Memorial/Briar Forest submarket with 2,251 units under construction. With another 1,425 units in the pipeline, this Energy Corridor-area market should soon catch up to the high demand created from that growing sector. The Northwest Region posted strong construction numbers again, totaling 5,001 units. The most heated submarket for the Northwest Region is Katy/Far West, with 1,551 units under construction and another 2,870 delivered. As expected, the ExxonMobil campus has driven Woodlands/Far North and Tomball/Far Northwest
construction numbers up with these submarkets reporting 1,487 and 1,327 units underway, respectively.
Q4 2013 saw the most construction deliveries of any single quarter since Q2 2009. An impressive 4,060 units were delivered this quarter, bumping the annual total to a staggering 11,472 units. This is a positive for the growing multi-housing sector in Houston as the total is closely aligned with demand and has not surpassed its previous peak of over 14,000 units delivered per year in 2008 and 2009.
The Houston MSA is currently experiencing a single family housing shortage and, with 69,800 new jobs forecasted for 2014 by the Greater Houston Partnership, the multi-housing sector can expect another strong year. In anticipation of 2014, 20,820 multifamily units are currently proposed. 35.3% of this proposed construction is slated for the Central region, with a slew of high profile mid- and high-rise properties expected to begin construction next year.
Directional arrows based on change from the previous quarter. Data reflects market totals.
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Source: Bureau of Labor Statistics, January 2014. CBRE Research, Q4 2013.
Source: Apartment Data Services, January 2014 CBRE Research, Q4 2013.
MULTI-HOUSING RENTSHouston rents continued their upward climb in Q4 2013, reaching $0.98 per sq. ft. for the first time. In 2013, all classes experienced positive rent growth: Both Class A and B rents increased by 6.6% over the year and Class C rents rose by 5.1%. Rents on average, from Q3 2013 to Q4 2013, grew in three out of the five regions with the Northwest and Southeast remaining the same. Rent growth was strong in most of the 41 submarkets. The highest overall Q4 2013 rents can still be found in the Central (Inner Loop) submarkets, led by Montrose/Museum District again at $1.71 per sq. ft. and Inner Loop West/Greenway Plaza at $1.64 per sq. ft. Heights showed the most impressive gains with a market average at $1.67 for Q4 2013, up from $1.57 in Q3 2013. Medical Center/Bellaire and the Southwest’s Galleria submarket were the only other submarkets to reach the $1.30 per sq. ft. level, at $1.39 and $1.34 respectively. The highest rents in suburban markets were $1.15, in Woodlands/Far North, and $1.13 and $1.12, in Katy Far West and Fort Bend respectively.
MULTI-HOUSING OCCUPANCY90.5% of units are occupied across the city. This marks an entire year of citywide occupancy rates above 90%. Year over year occupancy is up 90 bps from 89.6% in Q4 2012. However, Class D occupancy was the only product type to experience a gain in occupancy over the quarter, from 84.0% in Q3 2013 to 85.1% in Q4 2013. Class B and Class C product still have occupancies over 90%, at 93.5% and 91.6%, respectively. Class A occupancy dropped to 86.2% in Q4 2013, likely due to the high volume of delivered units. Overall, 25 of the 41 submarkets experienced occupancy rates over 90%. Inner Loop East, located in the central region, jumped 50 bps, from 94.1% in Q3 2013 to 94.6% in Q4 2013, to record the highest occupancy of all 41 submarkets this quarter. Despite the positive gains for that submarket, overall Central region occupancy dipped from 92.2% in Q3 2013 to 87.4% in Q4 2013.
MULTI-HOUSING CONSTRUCTIONThe number of units under construction for Q4 2013 is 17,614, down from 18,672 in Q3 2013, but still stronger than first two quarters of the year, which were 15,124 and 16, 449, respectively. The Central (Inner Loop) region’s accounts for the highest share of construction, representing 38% of units underway, followed by the Southwest region at 30%, where most construction is in the West Memorial/Briar Forest submarket. The Northwest region’s share of construction activity isn’t far behind at 28.4%. This region also had the highest number of delivered units for Q4 2013. Office development and employment growth is a contributing factor for the multi-housing construction boom in the Energy Corridor and in the north submarkets near the ExxonMobil campus. The number of proposed units is up this quarter, reaching 20,820, suggesting that the development trend will not slow for multi-housing in 2014.
UNEMPLOYMENTUnemployment continued its steady decline since 2010 through Q4 2013. National unemployment experienced a significant decline this quarter, from 7.3% as of August 2013 to 6.6% in November 2013. The Texas unemployment rate in November 2013 fell to 5.8%, while Houston unemployment dropped to 5.6%. The Greater Houston Partnership expects 69,800 new jobs to be created in 2014, which will maintain the downward unemployment rate trend into the new year. The healthcare sector in the Houston MSA has played a large role in this growth; not only in the Texas Medical Center, but also in Pearland, supporting further development in the Hwy 288/South submarket.
Figure 3: Average Rates Per Sq. Ft./Mth
Figure 4: Occupancy Rates by Class
Figure 5: Construction Activity and Absorption
Figure 6: Unemployment
Source: Apartment Data Services, January 2013. CBRE Research, Q4 2013.
Source: Apartment Data Services, January 2013. CBRE Research, Q4 2013.
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GLOBAL RESEARCH AND CONSULTING This report was prepared by the CBRE U.S. Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe.
DISCLAIMER
Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and
completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be
reproduced without prior written permission of the CBRE Global Chief Economist.
