Houston Real Estate Trends is widely read by brokers, developers and other industry professionals. The newsletter is $199 per year and covers significant transactions and economic and financial news for Multifamily, Retail, Office, Industrial, Single-family and Vacant land. Click on the following for more information:

Apartments Single-Family Housing Permit Issuance Office Buildings Retail Centers Industrial Facilities Vacant Land Economic & Financial News Potpourri Click here for a PDF (printable) version of this report.

Apartments

Apartment Developments

• The joint venture of Passco Companies Development LLC (949-442-1000) and Seneca Investments (214-265-8686) has completed construction of Stoneleigh on Kenswick (18144), a 318-unit Class A complex located at 19800 Kenswick Drive in FM 1960 East submarket (335S).  The apartment community consists of one and two-bedroom units, ranging in size from 525 to 934 square feet, with rents ranging from $650 to $935.  The property is currently 27% occupied and over 39% preleased.

The following chart illustrates historical apartment occupancy.

Apartment Sales

• Aldine Greenbriar Apartments LLC (972-539-1246) has purchased Greenbriar Park North (1483), a 400-unit apartment complex located at 818 Richcrest Drive in the Greenspoint area (373J), from Bank of America (713-759-3300).  The 26-year-old Class-C complex is 18% occupied with average rents of $0.70 per square foot.  Chip Nash, Greg Austin, Wade Schmitz, Tom Burns, and Jay Gun of Hendricks & Partners represented the seller and buyer in the transaction.
  
  
• VC Barcelona LLC, an affiliate of Vende Capital LLC (713-426-1696), has purchased Barcelona (2242), a 19-building, 127-unit apartment complex located at 6434 Ella Lee Lane in the Galleria area (491S), from AIMCO (303-757-8101). The 46-year-old Class-B complex is 92% occupied with average rents of $0.85 per square foot.  Brandon Brown of LMI Capital arranged financing for the transaction.
  

 back to top

Single-Family Housing

MLS home sales increased in July as 4,928 existing homes were sold, compared to 4,685 homes sold last month, according to the Houston Association of Realtors (HAR).  However, sales for July 2009 were down 2.5% from July 2008.  The median price of an existing single-family home sold in July was $155,000, up 3.3% from the same time last year, while the average home price – $206,401 – remained unchanged from the July 2008 level.
____________________
Note: MLS sales include primarily existing home sales throughout the Houston region. Historical comparisons are offered solely for informational purposes and may not truly reflect growth in sales

According to American MetroStudy, net sales of new homes increased 2% in July to 1,370 from 1,343 in June and up nearly 1% from July 2008.  Realtor co-op sales represented nearly 63% of gross sales for the month, up 1% from July 2008.  Traffic decreased 14% from last year to 16,082 in July 2009.  The inventory of completed speculative homes (1,148) is down 36.4% from July last year.  There are 1,817 spec homes under construction, which is down 24% from July 2008.  Overall, the 2,965 specs (both completed and under construction) are down 29.4% from July 2008.
____________________
Note: the 23 homebuilders in this survey account for approximately 55% of housing starts in Houston.

Nationwide sales of new single-family homes increased significantly in July to a seasonally adjusted annual rate of 433,000, 9.6% above the revised June sales rate of 395,000 but 13.4% below the July 2008 figure, according to a release by the U.S. Department of Commerce.  The median sales price in July was $210,100.  Privately owned housing starts were at a seasonally adjusted annual rate of 581,000 in July 2009, which is 1.0% below the revised June estimate and 37.7% below the revised July 2008 rate. Privately owned housing completions were at a seasonally adjusted annual rate of 802,000 in July, 0.9% below the revised June figure and 26.4% below the revised July 2008 figure.

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly measure of builder confidence, increased to 18 in August, on a scale where any number greater than 50 indicates that builders view sales as more good than poor.  The index measuring current sales of new single-family homes held steady at 16, the index measuring sales expectations for the coming six months increased by four points to 30, and the index measuring the traffic of prospective buyers is currently at 16, up three points from the revised July figure.

According to the National Association of Realtors (NAR), 5,240,000 existing homes were sold in July 2009, up 7.2% from June sales and up 0.5% from the 4,990,000 homes sold in July 2008.  The median sale price was $178,400, which represents a 15.1% decrease from sale prices last year.

According to the most recent report by RealtyTrac, 360,149 foreclosure filings — default notices, auction sale notices, and bank repossessions — were reported during the month of July 2009.  This figure is up nearly 7% from the previous month and up 32% from July 2008.  Texas remains among the nation’s 25 highest states in total foreclosure filings in July 2009.

The following chart illustrates historical existing home sales.

Source: Houston Association of Realtors

• Bridgewood Property Co. (713-623-6767) has broken ground on The Village at the Woodlands Waterway, a new senior citizen community.  Located at 2323 Lake Robbins Drive and overlooking The Waterway and The Woodlands Town Center in Montgomery County (217X), the eight-story community will consist of 207 rental units including 116 independent living units, 63 assisted living units, and 28 memory-care units.  Amenities will include a dining room, living room, computer room, library, fitness center with indoor pool, theater, bridge room, billiard room, and landscaped courtyard.  Being developed in a joint venture with Harrison Real Estate Capital (281-458-2817), the community is designed by Ambrose, McEnany, and House Architects (713-522-0815) and Munoz & Albin Architects (713-532-1110), while the construction work will be handled by Construction Supervisors (713-667-0123).  Build-out and opening is expected in spring 2011.
  

back to top

Permit Issuance

The City of Houston issued permits to build 347 private single-family houses and 14 private multifamily buildings in July.  Demolition permits were issued for 51 private single-family houses and 16 multifamily structures.  In addition, 230 permits were issued for privately owned non-residential construction totaling $150,281,466 and 88 permits were issued for public non-residential construction.  Additions, alterations, and conversions totaled $102,775,736 for the private sector and $10,038,399 for the public sector.

Cost of Construction*
	2007	2008	2009
Month of July	$532,981,777	$576,446,153	$392,777,784
Year-to-Date	$3,420,890,399	$3,792,499,894	$2,449,467,501

*The figures in this section include all categories of buildings and non-building structures

*The figures in this section include all categories of buildings and non-building structures

back to top

Office Buildings

According to the O’Connor & Associates Second Quarter 2009 Houston Office Data Program, citywide occupancy for Houston area multi-tenant office buildings is 83.09% (Class A = 85.63%; Class B = 81.52%; Class C = 80.86%; Class D = 76.59%). The citywide quarterly multi-tenant office rental rate is $20.59 per square foot (Class A = $24.01; Class B = $18.49; Class C = $15.01; Class D = $11.42).
________________
Note: The office buildings listed herein are followed by their representative sector code and identification number as they appear in the O’Connor & Associates OfficeLink Online Data platform and are provided for subscriber cross-referencing. The property information contained within this database is updated on a monthly basis and accessible over the web (please contact us for more details).

Office Developments

• Mercan City Place Development, a division of D’Agostino Companies (936-788-2060), has completed construction on Phase I of the Sadler Clinic (18064), a 54-acre medical campus, on behalf of regional medical tenant Sadler Clinic (936-522-4900).  Phase I consists of a 3-story, tilt wall and glass, 60,000-square-foot Class A medical office building.  Located at 4015 League Line Road in Conroe (157A) and the 10th Sadler Clinic in Montgomery County, the building includes an urgent care center, support services, and physician’s medical office space.  Finalizing plans for development and construction of a second medical building on this site is under progress.  Jeff Beard of The J. Beard Real Estate Company represented both parties in this build-to-suit transaction.
  
  
• Panattoni Development Co. (713-273-8989) is developing CyrusOne Professional Building (TBA), a 94,000-square-foot, build-to-suit data center on behalf of IT infrastructure and services provider CyrusOne (713-821-1260).  Situated within Beltway 8 Corporate Center along the North West Beltway, between Interstate 10 and US 290 (451D), the data center is going to be the third Houston location of CyrusOne, owned by Boston-based ABRY Partners (617-859-2959).  John Pruitt, Jessica Ochoa, and Kristen Rabel of CB Richards Ellis and Justin Bennett of Panattoni represented the landlord, while Brant Bernet and Peter Tippen of Rackhouse and Anthony Fritsche of Fritsche Anderson represented the tenant in the lease negotiations for the facility.  The facility will feature redundant utility power feeds and access to one of the city’s major telecommunications fiber corridors and is scheduled for completion in November.

The following chart illustrates historical office occupancy.

Office Sales

• Hartman Income REIT (713-467-2222) has purchased a two building, office portfolio totaling approximately 200,000 square feet, from KBS Realty Advisors Inc. (949-417-6500).  Northchase Center (315) is a 25-year-old, 129,000-square-foot Class B office building with asking rents of $15.50 per square foot located at 14550 Torrey Chase Boulevard in the Technology Corridor (331W).  Cornerstone Towers I (361) is a 25-year-old, 71,000-square-foot Class B office building with asking rents of $12.75 per square foot located at 3707 FM 1960 W in Technology Corridor (331X).  Each of the two buildings is approximately 92% occupied.  Mark Lucescu of Lucescu Realty represented the seller, while the buyer was represented in-house by Dave Wheeler.
  

Office Leases

• Tax Masters Inc. (713-463-2950) has leased Dairy Ashford Plaza (1912), a 27-year-old, 108,000-square-foot, Class-C office building located at 2020 Dairy Ashford Road in the Westchase sector (488R), from DAP Plaza Ltd. (281-493-4665).  The tenant was represented in-house, while David Hanusa of CB Richard Ellis and D. A. Smith of Briarhollow Realty Group represented the landlord.

• The Houston Police Department (713-837-0311) has leased Ardmore Professional Center (1184), a 32-year-old, 50,800-square-foot, Class-E office building located at 7125 Ardmore Street in the Medical Center submarket (533K), from Ardmore Professional Center LLC (713-748-8278).  Chip Horne of Cushman & Wakefield represented the tenant, while Charlie Herder and Jay Kyle of Colliers International represented the landlord.

• Burnett Staffing Specialists (713-977-4777) has renewed its lease of 18,747 square feet at Richmond Plaza One (1928), a 175,583-square-foot, Class B office building located at 9800 Richmond Avenue in Westchase sector (490W), from Caroline Partners Ltd. (713-621-3222).  The 27-year-old building is nearly 85% leased with asking rents at $19.00 per square foot.  Bill Boyer, Steve Hesse, Kristen Rabel, Louann Pereira, and Steve Rocher of CB Richard Ellis represented the tenant and landlord in the transaction.
  
  
• Humana Health Plan of Texas (800-486-2620) has leased 18,000 square feet on the 20th floor of Coastal Tower (747), a 747,000-square-foot, Class A office building located at 9 Greenway Plaza in Greenway Plaza area (492X), from Crescent Real Estate Equities LP (713-840-1170).  The 31-year-old building is over 70% occupied with asking rents at $25.43 per square foot.  Doug Morrow with Colliers International represented the tenant, while Preston Young and Ryan Bishop with Stream Realty Partners LP represented the landlord.
  
  
• Clear Wireless (281-948-4406) has leased 15,000 square feet at 3800 Buffalo Speedway (736), a 44,000-square-foot, Class A office building located in the Greenway Plaza area (492X), from Crescent Real Estate Equities LP (713-840-1170).  The 33-year-old building is 76% leased with asking rents at $14.50 per square foot.  Jay Kyle and Stan Voelkel with Colliers International represented the tenant, while Paul Coonrod with Stream Realty Partners LP represented the landlord.
  
  
• Executive Business Services (713-914-8000) has renewed its lease of 13,181 square feet at 7500 San Felipe (381), a 163,000-sqaure-foot, Class B office building located in Fountainview/Gessner area (490R), from SanVoss Properties (713-273-7100).  The 30-year-old building is over 90% leased with asking rents at $22.00 per square foot.  Jason Whittington of NAI Houston represented the tenant, while Kristen Rabel, Steve Rocher, and Louann Pereira of CB Richard Ellis represented the landlord.
  
  
• Rock Solid Images (713-783-5593) has renewed its 11,785-square-foot lease at Woodlake Plaza (1918), a 106,000-square-foot, Class C office building located at 2600 South Gessner Road in the Westchase sector (490S), from Hartman Management (713-467-2222).  The 33-year-old building is 94% leased with asking rents at $18.00 per square foot.  Damon Tajmes and Steve Hesse of CB Richard Ellis represented the tenant, while Jim Patton of Whitestone REIT represented the landlord.
  
  
• Tier One Warranty (281-880-7475) has leased 11,190 square feet at Cornerstone Towers I (361), a 71,000-square-foot, Class B office building located at 3707 FM 1960 W in the Technology Corridor (331X), from KB Fund IV, an entity of KBS Realty Advisors Inc. (949-417-6500).  The 25-year-old building is 92% leased with asking rents at $12.75 per square foot.  Jay Kyle of Colliers International represented the tenant, while Marci Phillips and Livy Romo of PM Realty Group represented the landlord.
  
  
• Dynoyx (713-830-5909) has leased 10,873 square feet at North Loop Center I (1257), a 216,000-square-foot, Class B office building located at 1235 N Loop W in northwest Houston (452U), from Tomorrow North Loop, an entity of BGK Texas Property Management (713-862-3333).  The 28-year-old building is 75% leased with asking rents of $15.50 per square foot.  Julie King of Cresa Partners represented the tenant, while Michele Ellis-Felder of Transwestern Commercial Services represented the landlord.

back to top

Retail Centers

According to the O’Connor & Associates Second Quarter 2009 Houston Retail Data Program, citywide occupancy for Houston area multi-tenant retail buildings is 82.97% (Regional = 88.04%; Community = 86.43%; Neighborhood = 80.79%; Strip = 77.08%). Occupancy is down 0.58 points over the last quarter and down 1.10 points over the second quarter 2008. The citywide quarterly multi-tenant retail rental rate is $1.63 per square foot (Regional = $2.91; Community = $1.68; Neighborhood = $1.22; Strip = $1.24).
                                        _
Note: The retail centers listed herein are followed by their representative identification number as they appear in the new O’Connor & Associates RetailLink Online Data platform and are provided for subscriber cross-referencing. The property information contained within this database is updated on a monthly basis and accessible over the web (please contact us for more details).

Retail Developments

• A group led by NFL quarterback Vince Young of the Tennessee Titans and former pro athlete James Cooper is developing The Co-op Athletic Club & Spa (TBD), a 75,000-square-foot fitness center.  It is located on the west side of SH 288 at the WaterLights District, a 2 million-square-foot, $750 million mixed-use lifestyle development center in Pearland (613A). The major facilities will include a 65-yard football/soccer field, basketball courts, baseball batting cages, indoor running track, a rock climbing wall, fitness equipment, martial arts, and a luxury spa.  The building is designed by 2SCALE Architects (214-827-9222), while Allegro Builders (713-880-8899) is the general contractor.  Completion is scheduled for fall of 2010.
  
  
• The Sports Authority (713-436-3363) has opened its first Pearland location in a 42,000-square-foot facility within Pearland Town Center (2481), the 700,000-square-foot regional lifestyle center of CBL & Associates Properties (214-596-1195), located at 11200 Broadway Street across FM 518 in south Pearland (613N).  This full-line sporting equipment and products store marks the retailer’s 11th store in the region.

The following chart illustrates historical retail occupancy.

Retail Sales

• Jones 1960 Crossroads LLC, an entity of Schreer Partnership Interests (713-681-6000), purchased Steeplechase (1198), a 27-year-old, 188,000 square foot community shopping center located at 10701-10951 Jones Road in far northwest Houston (369T), from Weingarten Realty Investors (713-866-6000).  The center is now over 79% occupied by tenants including Palais Royal, 99 ¢ Only, Anna’s Linens, and Capital One Bank.  Rudy Hubbard and Leah Gallagher of Transwestern Commercial Services represented the seller, while Andrew Schreer represented the buyer in-house.
  
  
• Centro Properties (713 660 4300) has purchased Mount Houston Square (397), a 173,000-square-foot community shopping center located at 11703 Eastex Freeway/US 59 in northwest Houston (414L), from Galileo Funds Management (888-912-2288).  The 35-year-old center is nearly 98% occupied by tenants including Fallas Parades, Walgreens, La Canasta Furnishings, and FAMSA.
  
  
• Maryland-based Spring TX Venture LLC (410-356-9100) has purchased CVS (3342), a 14,000-square-foot freestanding retail facility located at 8754 Spring Cypress Road in far northwest Spring (329H), from Houston-based Gulf Coast Commercial Group (713-532-0977).  The four-year-old facility is fully occupied by CVS Pharmacy (281-257-4320).  Stephen Weiss of Baltimore-based Colliers Pinkard represented the buyer, while Daniel Herrold and Hunter Jaggard of Stan Johnson Co. represented the seller.

Retail Leases

• Dynamic Fitness (713-436-3882) has leased 33,700 square feet at Shadow Creek Ranch Town Center (2484), a 625,000-square-foot retail center located at 2803 Business Center Drive in south Pearland (613N), from AmREIT SPF Shadow Creek, an entity of AmREIT/JP Morgan JV (713-850-1400).  The two-year-old facility is nearly 77% occupied with market rents of $2.38 per square foot.  Matt Strange of Smithco Development and Cliff West of Jones Lang LaSalle represented the tenant, while Jodie Pearson and Neal Wade represented the landlord in-house.
  
  
• Marshalls (281-955-8381) has renewed its lease of 27,000 square feet at Commons @ Willowbrook (1091), a 458,000-square-foot community shopping center located at 7502-7950 FM 1960 W in far northwest Houston (370E), from Commons at Willowbrook Inc. (281-894-8111).  The 20-year-old center is 92% occupied with negotiable rents.  Marshalls was represented in house, while Matt Keener and Alex Makris of CB Richard Ellis represented the landlord.
  
  
• Morton Kuehnert Auctioneers & Appraisers (713-827-7835) has leased a ten-year-old, 24,000-square-foot retail facility located at 4901 Richmond Avenue in West Loop South/Galleria (492F), from Gus Parvizian, owner of Parvizian Signature Rugs (713-522-7847).  Patrick Wolford and Henry Santamaria of Patrick Henry Properties represented the tenant, while Hamid Parvizian of Lestin Partners represented the landlord.
  
  
• Dollar General (281-530-0423) has leased 10,000 square feet at Mission Bend (2138), a 77,500-square-foot shopping center located at 6806 Highway 6 South in far southwest Houston (528E), from Eqyinvest Owner II Ltd LLP, an entity of Global Fund Investments, LLC (713-410-8910).  This 30-year-old building is nearly 78% leased with market rents of $1.14 per square foot.  Jim Thompson of Grubb & Ellis represented the tenant, while Jason Gaines represented the landlord in-house.
  

back to top

Industrial Facilities

According to the O’Connor & Associates Second Quarter 2009 Houston Industrial Data Program, citywide occupancy for Houston area operating multi-tenant industrial facilities is 82.23% (Flex = 83.57%; Bulk = 81.37%; Manufacturing = 79.67%, Service = 79.57%, Distribution = 71.92%, R&D = 46.96%). Occupancy is down 1.71 points over the last quarter and down 0.04 points over the second quarter 2008. The overall quarterly rental rates decreased $0.01 ending at $0.43 per square foot (Flex = $0.48; Bulk = $0.35; Manufacturing = $0.40, Service = $0.56, Distribution = $0.36, R&D = $0.78).
______________________________
Note: The industrial facilities listed herein are followed by their representative identification number as they appear in the O’Connor & Associates IndustrialLink Online Data platform and are provided for subscriber cross-referencing. The property information contained within this database is updated on a quarterly basis and accessible over the web (please contact us for more details).

The following chart illustrates historical industrial occupancy.

Industrial Developments

• Arch-Con Construction (713-533-1900) has broken ground on the GET Office Warehouse (37495), a 96,360-square-foot office/warehouse facility located at 1555 W Sam Houston Parkway N in far west Houston (449B).  The concrete tilt wall building, being developed for G.E.T Enterprises Inc. (713-467-9394), is scheduled for completion first quarter of 2010.
  
  
• Biotics Research Corp. (281-344-0909) has announced plans to expand its Biotics Building (26394), an 11-year-old, 42,500-square-foot research and development center located at 6801 Biotics Research Drive in far southwest Rosenberg (606B).  The cost of expansion is expected to be around $2 million, adding 35,000 square feet for the company’s existing manufacturing and warehouse operations at the site.

Industrial Sales

• Reforma Properties Ltd. (281-493-5529) has purchased 2001 Cavalcade (155), a 29-year-old, 34,000-square-foot distribution center located in Houston’s North Inner Loop (453V), from 2001 Cavalcade Inc, an entity of Owen Electric Supply Inc. (713-691-0909).  Beto Carrsco represented the buyer in-house, while Rob Stillwell of Grubb & Ellis represented the seller.
  
  
• Elbar Properties LLC (713-784-888) has purchased 10685 Hazelhurst Dr (3851), a 41-year-old, 31,500-square-foot warehouse located within Town & Country Business Park in west Houston (449Z), from V & B Hazelhurst Properties LLC (713-652-2525).  Richard Glass and Steve Adkisson of The National Realty Group represented the buyer, while Joe MacDougall of MacDougall & Co represented the seller in the transaction.
  
  
• 10535 Fisher Road LLC, an entity of Mike Gould with C-Automation Inc. (832-467-4644), has purchased 10535 Fisher Road (37386), a 36-year-old, 24,000-square-foot distribution center located in Northwest Inner Loop (450A), from Ron Avery and Janice Avery of Imminent Designs LP (281-326-5055).  Barrett Gibson with Gibson & Granello Realty Partners represented the buyer, while Bill Burge and Mark Lehman with Grubb & Ellis represented the seller in the transaction.
  
  
• Republic Enterprises LLC, a subsidiary of General Crane USA Inc. (713-987-5438), has purchased 4000 Oates Rd (5757), a 30-year-old, 22,000-square-foot warehouse located in Northeast I-10 (456W), from D & B Management Co. (281-999-2739).  Rob Stillwell of Grubb & Ellis represented the buyer, while John Ferruzzo of NAI Houston represented the seller.

Industrial Leases

• RAM Chemical & Supply (281-856-7600) has leased 79,740 square feet at Westland I (6465), a 262,800-square-foot warehouse facility located at 8323 N. Eldridge Parkway within Westland Business Park in far northwest Houston (408H), from Duke Realty Corp. (713-353-2501).  The two-year-old facility is now fully leased.  Jim Thompson of Grubb & Ellis represented the tenant, while Cory Driskill represented the landlord in-house.
  
  
• Southwest Processor (281-240-6172) has leased 4330 Bluebonnet Dr (26444), a 23-year-old, 35,000-square-foot warehouse located within Freeport Southwest Business Park in far southwest Stafford (572C), from Nickson Bluebonnet Industrial LLC (713-961-4400).  Scott Voelkel of Foster & Co. represented the tenant, while Marc Drumwright and Nick Miller of Southwest Realty Advisors represented the landlord.
  
  
• Team Associates Inc., also known as Talo Service Center (713-228-1524), has leased 33,062 square feet at Freeport Ninety Business Park Bldg 4 (37500), a recently built, 113,375-square-foot office/warehouse building located at 13833 N Promenade Blvd. in far southwest Stafford (569A), from Cobalt Avera Freeport, an entity of Avera Companies (713-783-9600).  Team NAFTA represented the tenant, while Edward Bane and John Kruse of Holt Lunsford Commercial represented the landlord.
  
  
• Masco Corp. (313-274-7400) has leased 4930 Cranswick Rd (5459), a 39-year old, 22,672 square-foot manufacturing facility located within Northwest Industrial Park near northwest Houston (450B), from 4930 Cranswick – 2008 Ltd. (713-699-2282).  Mark Lehman and Bill Burge of Grubb & Ellis represented the tenant, while Joe MacDougall of MacDougall & Co represented the landlord.
  
  
• First Call Field Service (281-440-8500) has leased 20,000 square feet at Northwest Green Bus Park (4896), an 11-year-old, 54,000-square-foot office/warehouse facility located at 7618 Bluff Point Drive near northwest Houston (371S), from Capital Commercial Investments (512-472-6990).  Travis Land and John Ferruzzo of NAI Houston represented the tenant and landlord, respectively.
  
  
• Protect Controls Inc. (713-691-5183) has leased 15,000 square feet at Goodnight Trail 1010 (31), an eight-year-old, 30,000-square-foot office/warehouse facility located at 1010-1060 Goodnight Trail in far north Houston (373J), from Rental Inc. (713-975-6969). The tenant was represented in house, while Glynn Mireles of CB Richard Ellis represented the landlord.
  
  
• Nationwide Liquidators Inc. (832-794-3080) has leased 14,721 square feet at Beltway Service Center I (3335), a 34-year-old, 78,000-square-foot office/warehouse facility located at 10515 Harwin Drive in Southwest Outer Loop (529D), from Halawa View Apartments, an entity of Riverbed Properties (808-488-3613).  The tenant was represented in-house, while Walter Menuet of Vantage Houston Inc. represented the landlord.

• Environ tech Services (972-234-2811) has leased 14,000 square feet at Rankin North Business Park – Bldg A & B (16513), a newly built, 26,000-square-foot warehouse facility located at 415-421 Rankin North Circle in far north Houston (372H), from Rankin North Business Park LP, an entity of The National Realty Group (713-956-1000).  Glynn Mireles of CB Richard Ellis represented the tenant, while Mike Spears represented TNRG.

• Web Devices (800-262-4891) has leased 903 Port Houston (1654), a 40-year-old, 12,500-square-foot warehouse located near southwest Houston (495K), from M & M Erectors Inc (713-671-5333).  Steve King of CB Richard Ellis represented the tenant, while Andrew Sowell of Boyd Commercial represented the landlord.

• Haldex Brake Systems (713-672-8888) has leased 12,244 square feet at Wallisville Industrial Park (960), a 29-year-old, 127,000-square-foot distribution center located at 8801-8811 Wallisville Road near northeast Houston (455Y), from Pinemount GPI Ltd., an affiliate of Granite Properties (713-781-8000).  Doug Nicholson and John Nicholson of Grubb & Ellis represented the tenant, while Steve Carter represented the landlord in-house.

• A & A Remodeling Inc. (713-773-3383) has renewed its lease of 10,818 square feet at Beltway Service Center I (3335), a 34-year-old, 78,000-square-foot office/warehouse facility located at 10515 Harwin Drive in Southwest Outer Loop (529D), from Halawa View Apartments, an entity of Riverbed Properties (808-488-3613).  Walter Menuet of Vantage Houston Inc. represented both the tenant and landlord in the transaction.

back to top

Vacant Land

• B & S Marshall Enterprises LLC (713) 631-6416) has purchased 20 acres of land, located at 4800 Schurmier Road and Cottingham Street in south Houston (573C), from Scuba Reef Inc. (713-203-0152).  Carson Underwood and Peter Mainguy of McDade, Smith, Gould, Johnston, Mason and Company represented the buyer, while Troy Lambert of Mainstreet Properties represented the seller.
  
  
• Ali Safai and Mostafa Ahmadi have purchased 13.3 acres of land, located at the intersection of Ella Boulevard and Richey Road in north Houston (332X), from Louis F. Bonner.  Co/MAX Holding & Realty Co. represented the buyer, while of Clay & Co. represented the seller.
  
  
• Greater Greenspoint Redevelopment Authority (281-877-9952) has purchased 10.2 acres of land, located between West Rankin Road and Kuykendahl Road in north Houston (372L), from TLC & Papa Inc. (281-496-0222).  Robert Bain of Coldwell Banker Commercial United Realtors brokered the sale.
  
  
• Seawater (713-473-1219) has purchased 5.8 acres of land, located at the intersection of New West Drive and New Century Drive near Bayport North Industrial Park in Pasadena (579E), from Inversiones Rangers SA.  Alix Fox of Qualified Properties represented the buyer, while Lane Guinn of JLM Commercial Advisors represented the seller.

back to top

Economic & Financial News

The total number of nonagricultural wage and salary jobs in the ten-county Houston area decreased by about 19,300 jobs to 2,523,100 in July 2009, according to the U.S. Department of Labor.  This month’s total is 80,800 fewer jobs than the 2,603,900 jobs at this time last year.  Of nonagricultural employers, the Mining and Logging sector posted the largest gain over the month at 400 jobs, while the largest year over year increase occurred in the Education and Health Services sector, which added 1,800 jobs.

The following chart illustrates total non-agricultural employment in the Houston MSA.

Source:  Bureau of Labor Statistics (BLS)

Advance estimates reported by the U.S. Department of Commerce show that seasonally adjusted national retail and food services sales for July 2009 were $342.3 billion, a decrease of 0.1% from June and 8.3% from July 2008.  Retail trade sales in July were down 0.1% from June and 9.4% from last year’s level.

Personal income increased $3.8 billion, or about 0.1%, while Disposable Personal Income (DPI) decreased $4.6 billion, or about 0.1%, in July 2009, according to the Bureau of Economic Analysis.  Personal Consumption Expenditures (PCE) increased $25.0 billion or 0.2% in July 2009.  Meanwhile, the U.S. Department of Labor reports that the seasonally adjusted Consumer Price Index (CPI) for urban consumers remained unchanged in July 2009 after a 0.7% increase in previous month, while it is 2.1% lower than July 2008.

The latest Conference Board Survey indicates that the Consumer Confidence Index increased to 54.1 in August 2009, up 6.7 points from July.  The index is an indicator of consumers’ overall assessment of current conditions, relative to a figure of 100 in 1985, the base year.  The Index of Leading Economic Indicators increased 0.6% in July.  The index is an indicator of direction the economy is expected to take in coming months, relative to a figure of 100 in 1996, the base year.

According to the Federal Reserve, industrial production increased 0.5% in July 2009 from previous month but is down 13.1% from the July 2008 level.  Output in the manufacturing sector increased 1.0% and output at mines increased 0.8% in July, while output of utilities decreased 2.4% from last month.  The rate of industrial capacity utilization was 68.5% in July, which is up 0.4% from the previous month’s level but down 0.3 points compared to the previous year’s level.

Freddie Mac reports that the 30-year fixed-rate mortgage (FRM) averaged 5.19% in August 2009, down 0.03 points from July and down 1.29 points from one year ago.  The average for the 15-year FRM averaged 4.61% in August 2009, down 0.08 points from July and down 1.42 points from August 2008.

The Bureau of Economic Analysis (U.S. Department of Commerce) reports that second estimates of the real GDP, the output of goods and services produced by labor and property in the United States, decreased at an annual rate of 1.0% in the second quarter of 2009.  This decrease in GDP in the second quarter primarily reflected negative contributions from residential and nonresidential fixed investment, exports, private inventory management, and personal consumption expenditure (PCE).

The U.S. Department of Commerce reports that construction spending during July 2009 was estimated at a seasonally adjusted annual rate of $958.0 billion, which is 0.2% below the revised June 2009 estimate.  The current figure is 10.5% below the July 2008 estimate of $1,070.2 billion.  Private residential construction was at a seasonally adjusted annual rate of $245.6 billion in July, 2.3% above the revised June estimate of $240.1 billion.

The Baker Hughes count of active domestic rotary rigs stands at 980 for August 2009.  The current rig count is down nearly 50.7% from last year’s figure of 1,987 rigs.  The rotary rig count is a census of the number of drilling rigs actually exploring for or developing oil or natural gas in the United States.

The National Restaurant Association’s Restaurant Performance Index (RPI) stood at 98.1 in July, up 0.3 percent from the previous month.  The index is a monthly composite index that tracks the health and outlook for the U.S. restaurant industry.  This is the 21st consecutive month below 100.

back to top

Potpourri

According to the monthly Monster Worldwide, Inc.employment index, online job demand had a 7-point increase in the month of August, against the drop of 3 points in July.  The index currently stands at 121 and is 38 points below August 2008, a decrease of nearly 24%.  Online demand for workers increased in 26 of the 28 major U.S. metro markets.

According to the July 2009 Architecture Billings Index, developed by the American Institute of Architects, July reported an index of 43.1, up 5.4 points from the previous month (any score above 50 indicates an increase in billings).  Both the project inquiries index and the inquiries for new projects score was 50.3.

The Houston office of Turner Construction Co. (713-840-8441) has completed construction of an 11,300-square-foot municipal court building, located 25 miles east of downtown Houston, for the City of La Porte.  The facility comprises of a 4,000-square-foot courtroom finished in wood veneers, administrative offices, a landscaped courtyard, and 100,000 square feet of parking space.  The building’s alternative energy resources include a natural gas-powered generator, a reflective roof, use of recycled construction materials, high-efficiency plumbing features, low-emitting interior materials, and a drip irrigation system.  Constructed with concrete tilt walls and a structural steel frame, the facility is planned to be used also as an emergency control center during times of extreme weather like Category 3 hurricane.  The architectural services for the project were provided by Huitt-Zollars Inc.

919 Milam/910 Travis (127), a 542,919-square-foot, Class A office building owned by Transwestern Investment Co. – TIC (713-270-7700), has been awarded LEED™ Silver for the Leadership in Energy and Environmental Design for Existing Buildings: Operations & Maintenance Green Building Rating System™ by the U.S. Green Building Council.  Sustainable features currently at the property include CO2 sensors, green cleaning and building recycling programs, new restroom fixtures, and improvements to reduce energy consumption and improve water efficiency.  Located in Central Business District (493L), this 24-story, 53-year-old multi-tenant office building was last renovated in 2006 and is managed and leased by Transwestern Commercial Services, an affiliate of TIC.

Houston witnessed several new appointments to executive-level positions of its commercial real estate firms, during the month of July/August.  Dave Brown and Kristen McCaig of Senior Quality Lifestyles Corp. (713-660-6552) have been named Vice President of Development and Vice President of Corporate Sales and Marketing, respectively.  Lee Jeane has joined Moody Rambin Interests (713-271-5900) as Vice President, Office Services division.  Dallas Felder of Morris Architects (713-622-1180) has been promoted as Associate Principal, while Kristin Higueros of Tarantino Properties Inc. (713-974-4292) has been named Vice President, Investment Sales team, at the firm’s Houston office.  Real estate veterans Lance McCarthy and Kyle Kelley, both previously with CB Richard Ellis, have joined Studley Houston (713-522-5300) as Managing Director and Executive Managing Director, respectively.  Jim Pratt, formerly a Principal at NAI Houston, has joined Colliers International (713-830-2135) as Senior Vice President of the office division, specializing in representing office and industrial tenants.  Mark Preston, formerly Senior Vice President of Moody Rambin Interests, has joined Parkway Realty Services (713-850-0300) as Managing Director of the firm’s Houston office.

Please direct any questions regarding content in the Houston Real Estate Trends to Scott Sherrill at 713-375-4264 or ssherrill@poconnor.com.

back to top