www.boyarmiller.com
The Houston Commercial Real Estate Markets: What’s Ahead for 2015
Breakfast Forum
December 11, 2014
www.boyarmiller.com
Land Development,
Homebuilding &
Multi-Family MarketsWill Holder
Trendmaker Homes
# 1 Demand Driver Steams Ahead# 1 Demand Driver Steams Ahead
National Economic Overview Top Job Growth Markets Ranked by Change in Emp. – Sept 2014
Source: BLS October 2014
6
Rank Metropolitan area Sept. 2014 N et change % Change
1 New York-Northern New Jersey-Long Island, NY-NJ-PA 8,840,600 130,500 1.5%
2 Houston-Sugar Land-Baytown, TX 2,921,700 119,400 4.3%
3 Los Angeles-Long Beach-Santa Ana, CA 5,679,100 102,000 1.8%
4 Dallas-Fort W orth-Arlington, TX 3,219,100 100,200 3.2%
5 Miami-Fort Lauderdale-Pompano Beach, FL 2,415,500 69,200 2.9%
6 San Francisco-Oakland-Fremont, CA 2,175,500 60,900 2.9%
7 Atlanta-Sandy Springs-Marietta, GA 2,468,600 51,900 2.1%
8 Seattle-Tacoma-Bellevue, WA 1,851,900 50,200 2.8%
9 Boston-Cambridge-Quincy, MA-NH NECTA 2,613,400 45,300 1.8%
10 Chicago-Joliet-Naperville, IL-IN-WI 4,518,600 45,000 1.0%
11 Phoenix-Mesa-Glendale, AZ 1,859,900 41,200 2.3%
12 Orlando-Kissimmee-Sanford, FL 1,108,600 39,900 3.7%
13 Denver-Aurora-Broomfield, CO 1,347,600 38,800 3.0%
14 San Jose-Sunnyvale-Santa Clara, CA 1,004,900 34,300 3.5%
15 San Diego-Carlsbad-San Marcos, CA 1,345,500 33,300 2.5%
16 Austin-Round Rock-San Marcos, TX 901,300 31,400 3.6%
17 Minneapolis-St. Paul-Bloomington, MN-WI 1,843,200 31,000 1.7%
18 Riverside-San Bernardino-Ontario, CA 1,258,300 29,900 2.4%
19 Portland-Vancouver-Hillsboro, OR-WA 1,071,000 27,200 2.6%
20 Nashville-Davidson--Murfreesboro--Franklin, TN 843,100 25,500 3.1%
National Economic Overview Top MSAs – Ranked by SF YTD Permits September 2014
7
Source: State of the Cities Data System, HUD, November 2014
CBSA CBSAName 2014 2013 Annual Growth % Increase
1 Houston-Sugar Land-Baytown TX 37,061 33,645 3,416 10.2%
2 Dallas-Fort W orth-Arlington, TX 21,707 20,600 1,107 5.4%
3 Atlanta-Sandy Springs-Marietta, GA 16,176 13,914 2,262 16.3%
4 Washington-Arlington-Alexandria, DC-VA-MD-WV 12,515 13,044 (529) -4.1%
5 Phoenix-Mesa-Scottsdale, AZ 12,003 12,567 (564) -4.5%
6 Austin-Round Rock, T X 11,038 8,898 2,140 24.1%
7 New York-Northern New Jersey-Long Island, NY-NJ-PA 10,985 8,783 2,202 25.1%
8 Orlando-Kissimmee, FL 9,817 9,440 377 4.0%
9 Charlotte-Gastonia-Concord, NC-SC 8,887 8,558 329 3.8%
10 Seattle-Tacoma-Bellevue, WA 8,633 8,863 (230) -2.6%
11 Los Angeles-Long Beach-Santa Ana, CA 8,096 7,069 1,027 14.5%
12 Nashville-Davidson--Murfreesboro, TN 8,040 6,796 1,244 18.3%
13 Denver-Aurora, CO 7,921 6,789 1,132 16.7%
14 Chicago-Naperville-Joliet, IL-IN-WI 7,699 6,940 759 10.9%
15 Raleigh-Cary, NC 7,640 8,024 (384) -4.8%
16 Tampa-St. Petersburg-Clearwater, FL 6,914 7,578 (664) -8.8%
17 Riverside-San Bernardino-Ontario, CA 6,871 6,087 784 12.9%
18 Las Vegas-Paradise, NV 6,784 7,093 (309) -4.4%
19 Minneapolis-St. Paul-Bloomington, MN-WI 6,775 7,003 (228) -3.3%
20 Jacksonville, FL 6,261 6,158 103 1.7%
21 San Antonio, TX 6,174 5,650 524 9.3%
Existing Homes Can’t Keep Up
HoustonSingle Family Home Sales - MLS
Source: Texas Real Estate Center
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Listings for Sale
Annual Closings
New Lot Deliveries Lag Demand
0
10000
20000
30000
40000
50000
60000Annual Starts
Annual Deliveries
HoustonSingle Family Detached – Annual Starts and Lot Deliveries
1
3
Source: Metrostudy
HoustonVacant Developed Lots
Source: Metrostudy
0
5
10
15
20
25
30
35
40
45
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14
Mo
nth
s o
f Su
pp
ly
Lo
ts/S
tart
sVacant Developed Lots
Annual Starts
VDL Months of Supply
HoustonFuture Lot Detail
79,833
56,759
1,6254,212 5,693
1,573
9,971
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
Future Lots Vacant Land Stakes Equipment Excavations Paved Streets
Source: Metrostudy
Today’s Residential Business Environment?
Overheated Costs
High Lot Prices and High Construction CostsResulting in?
• Market Resistance• Price Elasticity Testing• Listing Hesitation• Remodeling • Renting• Market Hesitation
In closing:
• Demand fundamentals in place in the foreseeable future
• New home prices still within the medians
• Despite challenges, supply rich environment self corrects
• Houston housing is resilient and flexible
• Lots of competition keeps market creative and fresh
• New rooftops keep everyone’s market alive!
www.boyarmiller.com
Retail MarketAllen H. Crosswell
NewQuest Crosswell
Annual Job Growth
Source: www.sca.ir.umich.edu “Surveys of consumers Thomson Reuters University of Michigan”
U.S Consumer Sentiment Index
Source: U.S. Census
Retail Trade Sales
NRF expects sales in the months
of November and December to
increase a healthy 4.1% to
$616.9 billion.
The forecast is higher than the
10-year average holiday sales
growth of 4.0%.
Shop.org released its 2014
online holiday sales forecast,
expecting sales in November
and December to grow between
8-11% over last holiday season
to as much as $105 billion.
The U.S. Department of
Commerce announced that final
Q3 2014 e-commerce sales
increased 16.2%.
Forecast
Source: www.nrf.com “NRF Forecasts Marginal Sales Gain This Holiday Season”
Online and mobile continue to be
a leading area of growth for
retailers.
In this economy savvy, cost-
conscious consumers go to the
web to do their research and get
the best bang for their bucks.
In addition to researching with
their peers are saying online
about products and gifts this
holiday season, consumers will
use the buy online pick-up in
store option, retailers’ aps and
mobile website.
Online / Mobile Shopping
Retailers are expected to hire
between 725,000 to 800,000
seasonal workers.
14% year-over-year increase
from 2013.
Retailers operate more than 3.7
million U.S. establishments that
support one in four U.S. jobs –
42 million working Americans.
Seasonal Employment
Holiday Sales
Source: www.investors.BestBuy.com
Best Buy Quarterly Comparable Store Sales - Continuing Operations
Fiscal Years 2011-2014
January Fiscal Year-End
Enterprise Comparable Store Sales
Fiscal Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Fiscal 2014 (1.3%) (0.6%) 0.3%
Fiscal 2013 (5.2%) (3.3%) (5.1%) (1.4%) (3.5%)
Fiscal 2012* (3.1%) (3.8%) (0.3%) (1.0%) (1.9%)
Fiscal 2011* 5.1% 0.7% (2.8%) (5.0%) (1.2%)
Domestic Comparable Store Sales
Fiscal Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Fiscal 2014 (1.1%) (0.4%) 1.7%
Fiscal 2013 (3.7%) (1.6%) (4.0%) 0.9% (1.7%)
Fiscal 2012* (3.8%) (4.1%) 0.1% (1.1%) (2.1%)
Fiscal 2011* 4.7% 0.0% (3.9%) (5.2%) (1.7%)
International Comparable Store Sales
Fiscal Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year
Fiscal 2014 (2.8%) (1.8%) (6.4%)
Fiscal 2013 (13.4%) (11.3%) (10.3%) (12.6%) (12.0%)
Fiscal 2012* 0.7% (2.2%) (2.0%) (0.5%) (1.0%)
Fiscal 2011* 7.7% 5.2% 3.3% (3.6%) 2.0%
Best Buy Annual Sales
Kroger's adjusted earnings per diluted share was $0.69 for the
quarter.
Identical supermarket sales growth, without fuel, was 5.6% in
the third quarter.
Achieved 44(th) consecutive quarter of positive identical
supermarket sales
Reports Record Second Quarter Earnings Per Share
Source: www.ir.kroger.com “Quarterly Results”
Kroger 3rd Quarter Highlights
Source: State of Texas – Texas Department of State Health Services
Years
Po
pu
lati
on
6,127,645
6,280,138
6,435,268
6,593,498
6,754,8966,788,559
5,600,000
5,800,000
6,000,000
6,200,000
6,400,000
6,600,000
6,800,000
7,000,000
2011 2012 2013 2014 2015 2016
Population
Population Growth
Houston’s Retail Market
25.0% market share
24.8% market share
22.2 % market share
Houston – area
Market Leaders
Source: www.bizjournals.com/houston – “The
Business Journal Interview with Bill Breetz of Kroger”
2014 & Beyond
Store Openings
Grocery Anchored Developments
Project / Anchor Developer Location Projected Opening
Tanglewood Court
Fountainview & San Felipe 2014
Hughes Landing
Lake Front and Lake Woodlands Summer 2015
River Oaks District Near 610 & Westheimer Fall 2015
FM 1463 & Spring Green Fall 2015
League City & Hobbs Rd. Spring 2016
Clear Lake Marketplace
Clear Lake City Blvd & El Dorado Summer 2016
Green Street
formerly Houston Pavilions 1201 Fannin Street Renovations are in
progress
New Shopping Centers – Planned
Project / Anchor Developer Location Projected Opening
Mason Rd.& SH 290 Summer 2016
Valley Ranch
Grand Parkway & North Hwy 59 TBD - Summer 2016
Beltway & Westlake Houston Late 2016
Grand Parkway & Boudreaux 4th Quarter 2015
Late 2016
Baytown
Garth Rd. & Hunter Rd. Fall 2016
Grand Parkway & Holzworth Early 2017
Conroe
Loop 336 & I-45 Early 2017
Grand Parkway & Morton Rd. 2017
New Shopping Centers – Planned
• New concept
• Opened first store in
Sugar land at 13833
Southwest Freeway at
Sugar Creek Blvd on July
17
• North Carolina based
gourmet grocery store
• 4 new stores former Rice
Epicurean locations
• Now Open
• Phoenix based healthy
foods/ organic grocery
store
• 4 stores now open
• Limited assortment
grocery with over 1,000
stores nationwide
• 18 new stores in Houston
out of 30 planned
• California base specialty
Grocery
• 3 stores now open
• 4th store to open in Katy
at LaCenterra with
12,500 sq. ft.
• Now Open Grand Katy
Location
• Now Open Sugarland
location at Hwy 59 &
University
• New Concept
• About 7,500 sq. ft. –
10,000 sq. ft.
• Sells products that cost
no more than $5
• Grocery anchored
• 8 Stores – June 2014
• 8 more stores coming
• 5,000 sq. ft. Petco store
• Grocery anchored &
• Urban markets
• No live animals
• Organic foods
• 7 Stores
• New pet store concept
• Looking for 7,000 –
• 9,000 sq. ft.
• No stores built yet in
Houston Market
• New pet store concept
• Chicago based
• All-natural food and
treats
• 3 Stores
• 4 new stores opening
• Village Plaza at Bunker
Hill – Spring 2014
• The Woodlands Mall –
September 2014
• Willbrook Mall – Fall
2014
• Baybrook Square –
Spring 2015
• New wireless concept
subsidiary of AT&T
• Prepaid service
• Looking for 1,000 –
1,800 sq. ft.
• 20 planned stores
• Dallas based liquor store
• 28,000 sq. ft.
• Opened 2 stores in
Houston (Humble and
West Oaks)
• Plans to open 2 more in
2014 and another in
2015.
• New Palladium Theatres
• 22 stadium-style theaters
• Located on The Grand
Pkwy near Long Meadow
Farms
• Now Open
• 8 screen
• 560 seat luxury theater
• Located at Westheimer
and Westcreek Ln
• Open 2014
New to Houston’s Market
Houston Sales Comps 2014
Name SF Anchor(s) Seller Buyer % Leased Purchase Price $/SF CAP RATE
Grocery
Market Street Center 133,599 Sellers Brothers, Family Dollar Jacinto City LTD Rivoli Property Investors LP 100%$
3,600,000 $
73.58 9.24%
Atascocita Shopping Plaza 728,759 Aldi, Dollar Tree, Goodwill, Spec's Red Tail Acquisitions Jimmy Yee 95%$
22,250,000 $
140.28 7.54%
Woodlake Square 903,434 Randalls, Walgreens AEW Capital AmREIT 92%$
41,600,000 $
258.39 6.25%
Spring Plaza Shopping Center 55,146
Seller Brothers, Family Dollar, H&R Block AEW Capital Management David Vu 100%
$ 6,500,000
$ 117.86 7.25%
Kirkwood Shopping Center 81,607 Sprouts, Half Price Books, Spec's Revesco PropertiesPhillips Edison ARC Shopping Center
REIT 92%$
17,100,000 $
209.54 N/A
La Michoacana Shopping Center 61,777 La Michoacana, Salvation Army State Street Enterprises N/A 96%
$ 8,861,000
$ 136.69 8.00%
Kingwood Glen 103,397Kroger Signature, Radio Shack, Pap
John BVT Equity Holdings JV Preferred Apt Communities 100%$
18,000,000 $
175.00 6.00%
Spring Cypress Village 101,371 Sprouts, Specs, El Corral Sun Life Assurance PE ARC Grocery Center REIT II 79%$
21,400,000 $
211.00 <6.00%
H-E-B Grocery 75,049 H-E-BRobert Abercrombie Family
Trust Montrose Real Estate Partners Ltd 100% N/A N/A N/A
Greenbriar North 133,604Food World, Family Dollar, Citi
Trends, Cricket The Marcel Group US Investments N/A$
7,500,000 $
56.14 8.50%
Normandy Square 25,080 La Michoacana, Cash America Pawn LE Commercial Real Estate Joseph T. Kung 100%$
3,300,000 $
130.00 6.70%
Kings Crossing 127,525 Randalls, Wells Fargo Hines REIT Weingarten Realty N/A N/A N/A N/A
Randalls Center Bay Area 81,290 Aldi, Specs Gateway Sherman Inc WFP Baymont LP 65%$
10,900,000 $
134.09 N/A
Randalls Fairmont Parkway 105,488 N/A Gateway Sherman Inc WFP Baymont LP N/A N/A N/A N/A
Name SF Anchor(s) Seller Buyer % Leased Purchase Price $/SF CAP RATE
Power Center/Other
The Market at Hunting Bayou 133,165 Cinemark, (shadow) 24 Hour Fitness Gordon Realty Co JBL Asset Management 74% $ 15,600,000 $ 117.00 N/A
League City Towne Plaza 100,671 Palais Royal, Family Dollar, Goodwill Brixmor Prime Real Estate Us Properties Inc 84% N/A N/A N/A
Mason Village 97,405Jasons Deli, Harbor Freight, Synergy Dance
Studio, 99 Cents Store Madison Marquette Crow Holdings JV DNA Partners 94% $ 14,400,000 $ 148.00 N/A
Sharpstown Court 84,189Office Depot, Metropolitan Furniture,
Quiznos Hsiuh Lin Trust Steve Wu 97% N/A N/A N/A
Office Depot 21,000 Office Depot Cole Real Estate Investments Avery Commercial Medium B LLC 100% $ 2,600,000 $ 124.00 9.70%
Office Depot 20,931 Office Depot Cole Real Estate Investments Orangestone Bevis LLC 100% $ 3,700,000 $ 178.00 9.40%
Pearland Town Center 718,000Barnes & Noble, Coldwater Creek, Dillards,
Macy's, Sports Authority APC CBL N/A $ 149,200,000 $ 208.00 N/A
Almeda Crossing Power Center 223,223 Ross, Staples, PetsMart, Party City, Conns Realm Realty ARCP 99% $ 33,700,000 $ 151.00 7.60%
Southway Shopping Center 182,000 Ross, Marshalls, Best Buy RPM Investments ARC Retail Centers 100% $ 28,900,000 $ 159.00 N/A
Tomball Crossing 164,000 Kohl's, (shadow) Ross, Old Navy, Petco MetroNational Kimco 94% $ 35,300,000 $ 215.00 6.30%
Plaza at Bellaire II 74,365 99 cent Only, Advance Auto Parts American Realty Group Enterprise Logic, Inc. 96% $ 16,995,000 $ 288.53
Marq*e Entertainment Center 349,336Edwards Cinemas, Dave & Busters, LA
Fitness, Improv Comedy Club Fidelis Realty Partners Levcor, Inc 95% 79,600,000 $ 227.86 8.04
Willowbrook Court 137,650 N/A Strip/Anchored property Pacific Star Esmeraldas Keila Gonzalez JV Joao R Romaldini N/A N/A N/A
Greenway Commons 253,223 Costco, IberiaBank, Bank of America ARCP Blackstone JV DDR 98% $ 33,800,000 $ 133.00 N/A
Cypress Station Square 140,924David's Bridal, Texas Workforce Solutions,
DaVita Dialysis Weingarten Realty Moiz Bhamani, Harwinder Keng 84% $ 14,500,000 $ 102.00 6.90%
OfficeMax 23,500 OfficeMax Trenton LP Bk This Way Ltd 100% N/A N/A N/A
The Village Arcade 183,000Gap Kids, The Children's Place, Yankee
Candle, STA Travel Weingarten RealtyRice Management Co JV Trademark
Property CO 85% N/A N/A N/A
Lowes 125,357 Lowes SDI Lake Jackson Holdings LLC SJS Beacon Partners II LP 100% N/A N/A N/A
Village Real Shopping Center 94,300 Half Price Books, Always 99 Cents Ersa Grae Corporation Dunhill Partners 85% $ 10,700,000 $ 148.00 N/A
Former Walmart 125,884 Former Walmart 9669 FM 1960 LP District & Urban Texas Inc N/A N/A N/A N/A
Woodpark Plaza 143,850 JoAnn Fabric, Ashley Furniture, GolfSmith Eagle Equity JV NDC Capital Partners Retail Connection JV Long Wharf RE Ptnrs 100% N/A N/A N/A
Lowes 131,644 Lowes DDR Consolidated Tomoka 100% $ 14,700,000 $ 112.00 N/A
Gander Mountain River Park 64,329 Gander Mountain Retail Properties of America RioCan Real Estate Investment Trust 100% $ 9,300,000 $ 144.00 8.00%
Woodridge Plaza 211,673 Pier 1, Mattress Firm, Chair King, Dailyspa Heitman Crow Holdings 87% $ 41,133,885 $ 194.33 6.98%
Mission Bell 99,108 Dollar General Bimillennium Property Investment N/A N/A $ 6,500,000 $ 65.59 9.18%
Eastwood Shopping Center 104,251 Hibbett Sports, Palais Royal Tobin Properties Inc. N/A N/A $ 4,550,000 $ 43.64 8.50%
Houston Sales Comps 2014
Houston Metro Retail Market
Houston Metro Retail Market
Houston Metro Retail Market
Chambers Town Center
SEC I-10 & Highway 146 | Baytown
Anchored by Wal-Mart Super Center
300,000 SF project
$23 million projected cost
Chambers Town Center
Fairfield Marketplace
Fairfield Marketplace
NEC Highway 290 & Mason | Cypress
Anchored by Kroger Marketplace
200,000 SF project
$30 million projected cost
Grand Morton Town Center
Grand Morton Town Center
NEC & SEC Grand Parkway & Morton Ranch | Katy
Anchored by Wal-Mart with Future Grocer opportunity
89 Acre project
$50 million projected cost
Grand Morton Town Center
Grand Parkway Town Center
SWC Highway 249 & Grand Parkway | Tomball
Anchored by Grocer & Club Store
500,000 SF project
$150 million projected cost
Grand Parkway Town Center
Shops at Katy Reserve
1681-1737 FM 1463 | Katy
Anchored by Kroger Marketplace
282,000+ SF project
$30 million projected cost
Shops at Katy Reserve
Marketplace at Ninety-Six
Marketplace at Ninety-Six
NEC & SEC Highway 96 & Hobbs | League City
Anchored by Kroger Marketplace
270,000 SF project
$30 million projected cost
Marketplace at Ninety-Six
www.boyarmiller.com
Office Market / Multi-Use
DevelopmentJonathan Brinsden
Midway
BoyarMiller
Houston Commercial Real Estate Markets
What’s Ahead for 2015
Big Picture
midwaycompanies.com | 56
Price of Oil
Houston Is A Great Place To Work & LIVE Densification and Connectivity
The Office Worker Is Different
Third Coast/“Core” Investment Market
Woodlands, Katy Freeway
Northwest
West Belt North
Greenway Plaza
midwaycompanies.com | 57
Landlo
rd L
evera
ge
Tenant L
evera
ge
FM 1960
Greenspoint
Peaking
market
Falling
market
Stabilizing
market
Rising
market
Westchase
Overall Houston, CBD
Midtown
Southwest
Galleria/West Loop
North Loop
Current Market
New Developments
midwaycompanies.com | 58
24.8%
24.4% 10.2%
8.2%
5.9%
5.6%
4.9%
4.3%
Energy Corridor West
24.8%
The Woodlands
24.4%
Westchase
10.2%
CBD
8.2%
Energy Corridor East
5.9%
Northeast
5.6%
West Loop
4.9%
West Belt
4.3%
SUBMARKET # OF PROJECTS
CBD 2
Inner Loop 1
West Loop 3
Upper Kirby / Greenway 2
Sugar Land 0
North Loop / Northwest 0
Energy Corridor West 12
Energy Corridor East 4
Westchase 3
West Belt 4
Highway 249 2
Greenspoint 1
The Woodlands 6
TOTAL 40
2
121
23
4
3
4
2
1
6
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016
Pre Leased Under Construction
New Development
midwaycompanies.com | 59
Total Under Construction for Lease 10,437,713 SF
Total Under Construction Owner-Occupied 7,326,600 SF
Total Under Construction 17,764,313 SF
Total Committed 12,065,459 SF
67.9%
Houston Supply, Demand and Vacancy
midwaycompanies.com | 60
Mixed-Use
midwaycompanies.com | 61
Three or more significant
revenue-producing uses
Significant physical &
functional integration of
project components
Development in
conformance with a
coherent plan & scale
of uses
midwaycompanies.com | 62
midwaycompanies.com | 63
www.boyarmiller.com
Industrial MarketWelcome W. Wilson, Jr.
Welcome Group
Houston…not only the City of
Opportunity…
• “Best City in America”
• “Coolest City in the Nation”
• “Best city for Job Growth”
• “One of the Top 10 Cities for Relocation”
…the City With No Limits.
I don’t always try to think about the
future. .
But when I do, It’s no joking matter.
• Energy Sector
• Accounts for over 50% of employment
• Has 5,000 energy related companies
• #1 in total energy, crude oil, natural gas and electricity production
Key Economic Drivers…
• 78.5% increase of jobs recovered
• 107,400 jobs created
• Houston: the Master Mind of a better
future
532 million SF
6.349 million SF under
construction
521 million SF
5.366 million SF under
construction
506 million SF
1.977 million SF under
construction
Warehouse/Distribution 4.8%
Flex Projects 7.1%
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
500,000
Q3-2013 Q4-2013 Q1-2014 Q3-2014Q2-2014
2%
3%
4%
5%
6%
7%
8%
Absorption
New Supply
Vacancy Rate
• Overall net absorption – 2.9 million SF
• Supply and demand balance
• Demand should accelerate once more
LARGEST PROJECT
IN PROGRESS
What it will look like
Katy Grand
Parkway. . .
Helping save
time by just
one drive.
Q3 2014
CEDAR CROSSING INDUSTRIAL PARK
• Biggest land sale ever in
Houston
• Purchased by TGS
• World’s 5th largest industrial
park (15,000 Acres)
• Largest Industrial park in
the Gulf
• Home to several well
known companies
• Plan to expand 2015
MESA REAL ESTATE PARTNERS, L.P.
• Consists of 75
industrial buildings
• 80% are in Texas
• 2.5M sq. ft. of industrial
buildings
• Sold for $295M
$$
$
$
$$
$
$
$
In 1928, this illuminated sign, located at the intersection
of Main Street and Bellaire Blvd, was the first thing folks
would see as they approached the city at night.
And since then, Houston
has illuminated more
welcoming paths.
1.1M
3.4M
2009 2014
• Out produced most
OPEC nations
• Ending the year with
3.4M barrels per day
• Saudi Arabia tries to
knock us down
• Will not weaken us
U.S. Oil output 2009
compared to 2014
/
• Final investment
decision to be made
2015
• Create about 45,000
jobs
• Waiting on
Department of Energy
approvals
News paper.com
• Number one port
• Have been
prosperous since the
1914s.
• Canal to be
completed by 2016
News paper.com
• Distribution and
Logistics Hub
• Different means
of transportation
• No hassle
Driving
Energy
&
Producing
Jobs
HOUSTON…
…The City of Success!
Happy holidays