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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 sales in the Greater Houston area increased in 2007 over 2006 sales.  Almost 300 properties traded hands last year, but 2008 appears to be off to a slower start.  Some of the areas that saw the most activity include the Champions area where at least 34 properties sold in 2007, the Far West area where 18 sales were recorded over the year, and the Westchase area where approximately 15 properties sold in 2007.  Not surprising is that 15 Inner Loop properties were also sold last year. Investors are usually interested at properties inside the Loop, in particular in the Museum District and Medical Center, where properties traded for prices well in excess of $100,000 per unit.  And as job growth in the Medical Center, Central Business District, and the Galleria area continue to expand, the acquisition of multi-family complexes will only get stronger.      According to www.oconnordata.com, O’Connor & Associates’ online apartment data program, Fourth Quarter 2007 overall occupancy for Houston area apartment projects is 88.22% (Class A = 88.59%; Class B = 89.83%; Class C = 85.94%; Class D = 84.42%).  Occupancy is down 0.70 points from the third quarter and down 0.39 points over the past year.  The overall rental rate is $0.848 per square foot (Class A = $1.122; Class B = $0.821; Class C = $0.698; Class D = $0.607).  Overall rents are up $0.003 from the third quarter of 2007 and $0.017 over the past year. ____________________ Note: The multifamily projects listed herein are followed by their representative identification number as they appear in the new O’Connor & Associates ApartmentLink 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).

• Legacy Partners Residential Development, Inc. (650-571-2200) is developing Legacy at Memorial (18043), a 330-unit Class A complex located at 440 Studemont St. and Memorial Dr. inside the Loop (493J).  One-, two-, and three-bedroom units will range in size from 868 to 3,568 square feet with rental rates ranging from $1.26 to $2.20 per square foot, while 15% of the development will be reserved for affordable housing.  Construction is expected to begin in February 2008 with completion estimated for November 2009.
  
  
• Camden Property Trust (713-354-2500) is developing Camden Travis (18083), a four-story 253-unit Class A complex located at 2830 Travis in Midtown (493T).  Proposed unit rental rates will be competitive with those in the area with a current range of $1.40 to $1.60 per square foot.  Construction is expected to begin in the third quarter of 2008.
  
  
• Mark-Dana Corp. (281-363-4210) is proposing to build Highland Manor Senior Housing (18081), a 140-unit senior tax credit complex located at 319 Newman Rd. in La Marque (736M).  Upon approval from the Texas Department of Housing and Community Affairs, construction is scheduled to start late 2008, with completion in late 2009 or early 2010.
  
  
• The Tejano Center for Community Concerns (713-670-1080) has opened Nueva Vida (18044), a 66-unit Class B senior citizens affordable housing complex located at 2950 Broadway in southeast Houston (535K).  The 540-square-foot units will be available to seniors at rates equaling 30% of their adjusted gross income with pre-determined income level caps of $21,350 for singles and $24,400 for couples.

The following chart illustrates historical apartment occupancy rates.

• Capri Capital Partners, LLC (312-573-5300) purchased a portfolio of 4 Houston area apartment complexes totaling 1,082 units from the International Realty, Inc. (210-281-1469).  The properties include Beverly Wilshire (17114), a 9-year-old complex located at 7550 Wilshire Place Dr. in northwest Houston (410Z), Meyer Park Lakeside Ph. I (3354), a 15-year-old complex located at 9701 Meyer Forest Dr. in the Meyerland area (531V), Meyer Park Lakeside Ph. II (15783), a 7-year-old complex located at 9550 Meyer Forest Dr. in the Meyerland area (531V), and The Seasons (1580), a 14-year-old complex located at 6969 Hollister Rd. in northwest Houston (410Z).  Occupancies at the properties range from 91% to 98%, while average rental rates range from $0.85 to $1.40 per square foot.  The buyer was represented in-house, while David Mitchell of ARA represented the seller.  

• Berkshire Property Advisors (617-646-2300) purchased Bayou Park Village (2470), a 698-unit Class A complex located at 4400 Memorial Dr. inside the Loop (492M), from Golden Greek Carpets, Inc.  The 27-year-old complex is 95% occupied with average rents at $1.15 per square foot.  The buyer was self-represented, while David Wylie, Matthew P. Rotan, David Mitchell, and David K. Oelfke of Apartment Realty Advisors represented the seller.  

• Mid-America Apartment Communities (901-682-6600) purchased Cascade at Fall Creek (17561), a 246-unit Class A complex located at 8330 N. Sam Houston Parkway E. in northeast Houston (375U), from Martin Fein Interest, Ltd. (713-683-4800).  The recently completed complex is 48% occupied with average rents at $1.13 per square foot.  The buyer was represented in-house, while David Wylie, Matthew Rotan, David Oelfke and David Mitchell of ARA represented the seller.

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Single-Family Housing

MLS home sales decreased in January, as 2,980 used homes were sold, down from the 3,916 homes sold in December, according to the Houston Association of Realtors (HAR).  However, sales for January 2008 were down 10.6% from January 2007.  The median price of a used single-family home sold in January was $129,900, flat compared to the same time last year, while the average home price was $174,737, which was up 3.0% from the January 2007 level.  Note: MLS sales include primarily used 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 decreased 8% in December to 1,180 from 1,287 in November, but are down 33% from December 2006.  Realtor co-op sales represented 64% of gross sales, up 3% from December of last year.  Traffic decreased 23% from last year to 16,244 in December 2007.  The inventory of completed speculative homes (2,078) is down 5% from last year.  There are 1,782 spec homes under construction, which is down 50% from December 2006.  Overall, the 3,860 specs (both completed and under construction) are down 32% from December 2006.  Note: the 24 homebuilders in this survey account for approximately 65% of housing starts in Houston.

Nationwide sales of new single-family homes decreased in January to a seasonally adjusted annual rate of 588,000, 2.8% below the revised December sales rate of 605,000 and 33.9% below the January 2007 figure, according to a release by the U.S. Department of Commerce.  The median sales price in January was $216,000.  Privately owned housing starts were at a seasonally adjusted annual rate of 1,012,000 in January 2008, which is 0.8% above the revised December estimate, and 27.9% below the revised January 2007 rate.  Privately owned housing completions were at a seasonally adjusted annual rate of 1,351,000 in January, 1.8% above the revised December figure and 26.2% below the revised January 2007 figure.   

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly measure of builder confidence, rose one point to 20 in February, 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 also rose one point to 20, the index measuring sales expectations for the coming six months fell one point to 27, while the index measuring the traffic of prospective buyers increased five points to 19.

According to the National Association of Realtors (NAR), 4,890,000 existing homes were sold in January 2008, down 0.4% from December sales, and down 23.4% from the 6,440,000 homes sold in January 2007.  The median sale price was $201,100, which represents a 4.6% decrease from sale prices last year.

According to the most recent report by RealtyTrac, 233,001 foreclosure filings — default notices, auction sale notices, and bank repossessions — were reported during the month of January.  This figure is up 8% from December and up 57% from January 2007.  Texas ranks 13th in the nation in total foreclosure filings for the month of January.

The following chart illustrates historical used home sales.

Source: Houston Association of Realtors

Office Buildings

Office building construction is on the rise in the Houston area.  Over 5.4 million SF of new office space is currently in the works.  A big portion of the new construction can be found in the Katy Freeway West and Medical Center submarkets.  The Katy Freeway West submarket leads the pack with over 1.2 million SF of space under construction with the Energy Center I and II by Trammell Crow Co. and the CityCentre Offices by Midway Co. going up in the booming Energy Corridor area.  These two developments will bring several new tenants to the area.  The Medical Center submarket is set to deliver over 700,000 SF of new office space itself with the Faculty Center Tower being built by UTMD Anderson Cancer Center.  The Houston area can expect rents for Class A office space to continue to increase with the addition of buildings such as these in the near future, thus forcing tenants looking for affordable office space to look closer at the older Class B office space in the area.    According to the O’Connor & Associates Third Quarter 2007 Houston Office Data Program, citywide occupancy for Houston area multi-tenant office buildings is 86.96% (Class A = 91.67%; Class B = 84.18%; Class C = 82.36%; Class D = 76.06%).  The citywide annual multi-tenant office rental rate is $21.92 per square foot (Class A = $27.21; Class B = $18.61; Class C = $14.81; Class D = $12.05).  ______________________ 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).

• HP (281-514-0689) has placed Compaq Campus North (2452), a 2-million-square-foot Class B campus of 10 buildings located at 20555 Highway 249 in the Technology Corridor (329X), up for sale.  The 18-year-old buildings are 50% occupied.  Stewart Robinson is marketing the property on behalf of HP.

• Stream Realty Partners, LP (214-267-0400) is developing Stream Office Center (2457 and 2458), a two-building Class A office complex with approximately 500,000-square-feet total, located at Sawdust and Sawmill roads in far north Houston (251Z).  Construction is scheduled to begin on the first building in May 2008 with completion expected in the second quarter of 2009.  Paul Coonrod and Brad Fricks of Stream are handling pre-leasing duties.

• ZT Shadow Creek Partners (713-960-9962) is developing ZT Shadow Creek Business Center (2455 and 2456), a two-building Class A business center with approximately 160,000-square-feet total, located at the intersection of Shadow Creek Parkway and Highway 288 in Pearland (613E).  Construction is scheduled to begin on the first phase in March 2008.  Trey Halberdier and Robert Banzhaf of BanDier Realty Partners, LLC and Jessica Ochoa of CBRE are teaming to handle pre-leasing duties.

The following chart illustrates historical office rental occupancy rates.

• Vault Investments (281-488-1128) purchased 303 E. Main St. (2454), a 25,000-square-foot Class C building located in League City (659E), from League City Bank & Trust (281-332-1541).  The 40-year old building is 100% occupied.  Jason Kieschnick of Zann Commercial Brokerage represented the buyer, while Tommy Alexander and Warren Alexander of CBRE represented the seller.
  
  
• FBRE II (281-242-2200) purchased 8410 Highway 90A (1541), an 17,500-square-foot Class B office building located in the Sugar Land area (568M), from Sugar Land 6 (713-722-1250).  The 24-year-old building is 100% occupied with average rents at $17.00 per square foot.  Bud Friedman of Fort Bend Real Estate Corp. represented the buyer, while the seller was represented by Tim Clay of Clay & Co.
  
  
• Dr. Anh Tu Dang (713-759-0932) purchased 2600 Cordes Dr. (2231), an 18,000-square-foot Class A medical office building located in the Sugar Land area (568Y), from Greenberg & Company (713-778-0900).  The 1-year-old building is 33% occupied with average rents at $27.00 per square foot.  The buyer was self-represented, while the seller was represented by Jay Kyle and Todd N. Edmonds of Colliers International.
  
  
• Simmons & Co. International renewed and expanded a lease of 60,000 square feet at the Bank of America Center (106) a 1,256,000-square-foot Class A office building located at 700 Louisiana in the Central Business District (493L), from GE Asset Management (203-326-2300).  The 25-year-old building is 95% occupied with average rents at $32.74 per square foot.  Louis Cushman of Cushman & Wakefield represented the tenant, while John Spafford of PM Realty represented the landlord. 
  
  
• Rimkus Consulting Group renewed a lease of 40,000 square feet at 8 Greenway Plaza (750) a 255,000-square-foot Class A building located in the Greenway Plaza area (492X), from Crescent Real Estate Holdings (713-840-1170).  The 25-year-old building is 97% occupied with average rents at $23.91 per square foot.  Anthony Fritsche and David Anderson of Fritsche Anderson Realty Partners represented the tenant, while Preston Young and Brad Fricks of Stream Realty Partners represented the landlord. 
  
  
• INVISTA S. leased 30,000 square feet at World Houston Plaza (597) a 215,000-square-foot Class A building located at 15710 JFK Blvd. in the Greenspoint area (374P), from FMC Technologies (281-591-4000).  The 23-year-old building is fully occupied with average rents at $21.50 per square foot.  Keith Lloyd of Grubb & Ellis represented the tenant, while Sanford Criner of CBRE represented the landlord.
  
  
• Clariant Corp. leased 13,500 square feet at 2635 N. Crescent Ridge Dr.  (2453) a 13,000-square-foot Class C building in The Woodlands (251C), from Dirk Laukien (936-273-3310).  The 12-year-old building is 100% occupied.  Joe Brockman of Cypresswood Co. represented the tenant, while Sean Quinn of The Quinn Co. represented the landlord.

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Retail Centers

The Houston area retail market continues to expand at a rapid pace following the trends and locations of new home development over recent years.  According to Ed Wulfe of Wulfe & Co. at a recent presentation hosted by O’Connor & Associates, Houston will see rise to more than 4.2-million square feet of retail space through the course of 2008 with fourteen percent of the forecasted growth in the form of speculative space.  Discount stores will lead the way in this year’s developments consuming seventeen percent of the planned centers, followed by Supermarkets with fifteen percent, while Home Improvement stores will garner an additional ten percent of the total.  Mixed-Use has become the new key term in the industry as developers continue the lifestyle oriented construction which has helped to lure business’ from the northeast while netting developers higher rents. According to the O’Connor & Associates Fourth Quarter 2007 Houston Retail Data Program, citywide occupancy for Houston area multi-tenant retail buildings is 84.46% (Regional = 90.99%; Community = 89.57%; Neighborhood = 79.69%; Strip = 83.12%).  Occupancy is up 0.33 points over the last quarter and up 0.21 points over the past 12 months.  The citywide monthly multi-tenant retail rental rate is $2.00 per square foot (Regional = $3.16; Community = $1.83; Neighborhood = $1.30; Strip = $1.25).  Overall rents are up $0.02 from the last quarter and are up $0.07 from last year’s figure.                                         _ 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).

• MC Chiliport, LP (281-751-7550) is developing Somerton Plaza Shopping Center (3885), a 16,500-square-foot retail center located at 8980 Spencer Highway in La Porte (538Z).  The project is currently under construction and is scheduled to be delivered in the third quarter of 2008.

• Dick’s Sporting Goods (877-846-9997) has postponed plans of entering the Houston market, walking away from finalizing a lease on 83,000 square-feet at Village Plaza at Bunker Hill (3779).  The sporting goods company had been in the process of negotiating leases with four other Houston properties with its first opening slated for 2008.  Further plans regarding Dick’s entry to the Houston market are not known at this time.

The following chart illustrates historical retail occupancy rates.

• Wise Key Realty, LLC (713-266-8088) purchased South Village Shopping Center (2416), a 28,000 square-foot center located at 5959 Long Dr. in south Houston (534K), from Azad Hardam Singh (713-686-6200).  The 26-year-old center is 61% occupied with average rental rates at $0.68 per square foot.  Mark Ray of Kensington Property Group represented the buyer, while the seller was represented in-house by Mark Lipman.
  
  
• Rooms To Go leased 74,000 square feet at Willow Chase Shopping Center (1100), a 273,000-square-foot center located at 12900 Willow Chase Dr. in northwest Houston (370J), from Perrine Wheeler Real Estate (866-203-4864).  The 23-year old center is fully occupied with average rental rates at $0.86 per square foot.  Tenants of the center include Fiesta Mart, Burke’s Outlet, and JoAnn Fabrics.  Scott Shillings of The Staubach Cos. represented the tenant, while Dean Lane of NewQuest Properties represented the landlord.

• Jones & Carter (281-342-2033) leased 43,000 square feet at Brazos Town Center (2224), a 1-million-square-foot center located at 24502 Southwest Freeway in Rosenberg (605R), from NewQuest Properties (281-477-4325).  The newly constructed center 98% occupied.  Tenants of the center include Target, Home Depot, and Hobby Lobby.  The tenant was represented in-house, while Eric Walker and Anderson Smith of NewQuest Properties represented the landlord.
  
  
• Comerica Bank signed a ground lease for 39,000 square feet at Atascocita Commons Shopping Center (358), a 300,000-square-foot center located at FM 1960 and W. Lake Houston Pkwy. in northeast Houston (337Y), from Trammell Crow Co. (713-840-6500).  The under-construction center is 91% preleased with average rental rates at $2.41 per square foot.  Tenants of the center include Super Target, Palais Royal, Petco, and Office Depot.  Mark Sondock of NewQuest Properties represented the tenant, while Matt Keener and CBRE represented the landlord.
  
  
• Fallas Paredes leased 31,000 square feet at Northwest Freeway Center (1032), a 247,000-square-foot center located at 12005 Northwest Freeway in northwest Houston (451K), from Jim R. Smith & Co. (713-622-9933).  The 14-year old center is 79% occupied.  Tenants of the center include Burlington Coat Factory, Starbuck’s, and Petco.  Jason Gaines and Shawn Ackerman of Henry S. Miller Commercial represented the tenant, while Jim Smith and Matt Strange of The Staubach Cos. represented the landlord.
  
  
• Circuit City leased 24,000 square feet at Deerbrook Mall (324), a 1,200,000-square-foot mall located at 20131 Eastex Freeway in Humble (335U), from General Growth Properties (312-960-5270).  The 23-year old mall is 74% occupied with average rental rates at $2.40 per square foot.  “The City” will be the first concept store for the retailer that will feature a wider selection of electronics and be an interactive store.  Tenants of the mall include Dillard’s, Macy’s, and Sears.  The tenant was represented in-house, while Justin Roache of Deerbrook Mall represented the landlord.
  
  
• Staples leased 20,000 square feet at Sawyer Heights Village (31), a 235,000-square-foot center located at 2580 Shearn in the Inner Loop area of Houston (493E), from Property Commerce (713-686-3456).  The 2-year old center is 91% occupied with average rental rates at $1.96 per square foot.  Tenants of the center include Target, Smoothie King, and Marble Slab.  Scott Shillings of The Staubach Cos. represented the tenant, while the landlord was represented in-house by Chad Moss.
  
  
• Staples leased 20,000 square feet at North Oaks Shopping Center (1138), a 315,000-square-foot center located at 4501 FM 1960 W. in northwest Houston (331W), from Weingarten Realty (713-866-6000).  The 30-year old center is 95% occupied with average rental rates at $1.42 per square foot.  Tenants of the center include Ross, Big Lots, and TJ Maxx.  Scott Shillings and Matt Strange of The Staubach Cos. represented the tenant, while the landlord was represented in-house by Gerald Crump.
  
  
• It’s Fashion Metro leased 11,000 square feet at the Kroger Center at Woodforest (418), a 75,000-square foot center located at 10911 East Freeway in northeast Houston (496F), from Beeson Properties (713-622-5595).  The 29-year old center is 67% occupied with average rental rates at $1.50 per square foot.  Tenants of the center include Family Dollar, Casual Male, and Blockbuster Video.  Mark Davis of Davis Commercial represented the tenant, while Bea Naranjo of Moseley Commercial Real Estate represented the landlord.
  
  
• AJM Furniture, Inc. leased 10,000 square feet at 5329 Telephone Rd. (4544), a 10,000-square foot center located in south Houston (534R), from Dunsmore Estates, LLC (281-528-6785).  The 44-year old building will be fully occupied by AJM.  Richard Glass of The National Realty Group represented both the tenant and landlord in the transaction.
  
  
• Enterprise Leasing Co. leased a 1.03 acre pad site at the northeast corner of Interstate 45 North and Cypresswood (292X), from Kensinger Properties, Ltd. (713-784-3300).  Jane Baker and Steven Thomas of The Staubach Cos. represented the tenant, while Elizabeth Bowman Clampitt of CBRE represented the landlord.

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Industrial Facilities

Duke Realty Corp. has recently made a significant transaction in the Houston industrial market by acquiring 161 acres of land at the southeast corner of W. Fairmont Pkwy. and Underwood Rd. near the Port of Houston from Powers Holdings, LLC.  Duke Realty plans to invest $140 million into the development over the next seven to eight years with the end result being 2.9 million square feet of industrial space to be named FairPort.  Construction for Phase I of the FairPort facility is set to begin in early 2009 with Phase II projected to begin at the 50%-75% lease point.  Houston’s robust industrial market assured that this land position fit precisely into Duke’s plans of acquiring prime real-estate near U.S. ports.    

According to the O’Connor & Associates Third Quarter 2007 Houston Industrial Data Program, citywide occupancy for Houston area operating industrial facilities is 91.12% (Flex = 89.43%; Bulk = 93.39%; Manufacturing = 91.62%, Service = 85.78%, Distribution = 83.79%, R&D = 96.97%).  Occupancy is down 1.68 points from the last quarter and down 1.09 points over the last year.  The overall monthly rental rates remained flat at $0.43 per square foot (Flex = $0.46; Bulk = $0.37; Manufacturing = $0.36, Service = $0.57, Distribution = $0.39, R&D = $0.58).
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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 monthly basis and accessible over the web (please contact us for more details).

The following chart illustrates historical industrial occupancy rates.

• Realty Associates Advisors, LLC (617-476-2700) purchased City Park East Industrial Park (2272B, 2271, 2269, 2270, and 2272), a 880,000-square-foot warehouse park, located at  8503-8833 City Park Loop in northeast Houston (455X), from City Park Industrial GP, LLC (713-850-8500).  The 28 year-old park is fully occupied by long-term tenant Excel Logistics.  The buyer was represented in-house, while Mike Parker of HFF represented the seller.
  
  
• Oil States International, Inc. (713-652-0582) purchased 16730 Jacintoport Blvd. (3696C), a 210,000-square-foot office/warehouse facility located along the Houston Ship Channel (498N), from BTEC Turbines, LP (281-864-9122) for $22,500,000.  The 38-year-old facility, which features 26-foot clearance and dock high loading, is 100% occupied.
  
  
• YKK AP America, Inc. leased 24,000 square feet at 3550 Brittmoore Rd. (1085), a 184,500-square-foot warehouse facility located in far west Houston (449L), from Claymoore III, Inc. (972-715-7400).  The 8-year-old facility, which features 24-foot clearance and dock high loading, is 71% occupied with average rents at $0.34 per square foot.  Chris Kugle of NAI Houston represented the tenant, while Jude Filippone of Transwestern represented the landlord.
  
  
• Lovett Commercial (713-961-3877) purchased Main-Link Biotechnology Park (4204, 4199), a pair of office/warehouse facilities with a total of 110,000 square feet, and 24 acres of vacant land located at 10555 & 10301 Stella Link Rd. in South Houston near the Medical Center (532S), from Tanox, Inc. (713-578-4000).  The 18- and 24-year-old facilities are currently vacant. Frank Liu of Lovett Commercial represented the buyer in-house, while Dan Boyles, Jr. and John Ferruzzo of NAI Houston represented the seller
  
  
• CU Companies Texas, LLC (281-970-2822) purchased 3203 N. Main  (3728A), a 12,000-square-foot office/warehouse facility in Baytown (501Q), from 6012 Avenue T (713-44-3122).  The 31-year-old facility, which features 15-foot clearance and dock high loading, is 100% occupied.  The buyer was represented in-house, while Robert Lowery of Coldwell Banker Commercial United represented the seller.
  
  
• EastCoast Mouldings, Inc. leased 158,000 square feet while American Tire Distribution Holdings, Inc. and Consolidated Electrical Distributors, Inc. each leased 79,000 square feet at Greens Crossing Distribution Center 2 (0288F), a 316,000-square-foot warehouse facility located at 850 Greens Pkwy. in north Houston (372P), from Liberty Property Trust (281-955-2000).  The newly built facility, which features 32-foot clearance, is fully occupied with average rents at $0.49 per square foot.  Clay Peeples of Boyd Commercial represented the EastCost Mouldings, Adam Faulk of Jackson & Cooksey Co. represented American Tire Distribution Holdings, Inc., and Brian Corriston of Caldwell Cos. represented Consolidated Electrical Distributors, Inc, while the landlord was represented by Faron Wiley of CBRE.
  
  
• CenTex Periodicals leased 94,000 square feet at Cole Creek Business Park I (0692), a 198,000-square-foot office/warehouse facility located at 8708 W. Little York in northwest Houston (410U), from LIT Finance, LP (214-647-4900).  The 5-year-old facility, which features 28-foot clearance, is fully occupied with average rents at $0.35 per square foot.  Brian Corriston of Caldwell Cos. represented the tenant, while the landlord was represented by Faron Wiley and Joseph Smith of CBRE.
  
  
• Freightliner (503-745-8066) leased 54,000 square feet at 9111 Glesby (3489), a 54,000-square-foot office/warehouse facility located at 9111 Glesby in Near Northeast Houston inside the Loop (495C), from GSL Industrial Partners (713-952-7000).  The 31-year-old facility, which features 16-foot clearance, is fully occupied with average rents at $0.34 per square foot.  The buyer was represented in-house, while the landlord was represented by Ryan Wasaff of GSL Industrial Partners.
  
  
• West End Roofing Siding & Windows leased 31,000 square feet at 2902 W. 12th St., a manufacturing facility located in west Houston (452X), from Lovett Commercial (832-553-6000).  The 28-year-old facility, which features 16- to 20-foot clearance, is fully occupied with average rents at $0.55 per square foot.  Fred Sklar of Sklar Realty Services represented the tenant, while Beau Kaleel of Cushman & Wakefield represented the landlord.
  
  
• Ohio Gratings leased 31,000 square feet at 12300 Amelia, a manufacturing facility located in southwest Houston (572M), from National Property Holdings (713-943-0750).  The 48-year-old facility, which features 30-foot clearance, is 82% occupied with average rents at $0.35 per square foot.  Coe Parker of Cushman & Wakefield represented the tenant, while John Clark of NAI Houston represented the landlord.
  
  
• Simplex Grinnell, LP leased 51,000 square feet and Recall Total Information Management leased 17,000 square feet at Westland I (0008), a 263,000-square-foot warehouse facility located at 8323 N. Eldridge Rd. in northwest Houston (408H), from Duke Realty (713-353-3200).  The year-old facility, which features 28-foot clearance, is 70% occupied with average rents at $0.38 per square foot.  Faron Wiley, Joseph Smith, and Mike Scimo of CBRE represented both of the tenants, while the landlord was represented in-house by Cory Driskill.
  
  
• Synergy Cables USA leased 50,000 square feet at Navigation Business Park I (3249A), a 238,000-square-foot warehouse facility located at 3403 Navigation Blvd. in southeast Houston (494N), from Weingarten Realty (713-866-6000).  The 27-year-old facility, which features 23-foot clearance, is fully occupied with average rents at $0.30 per square foot.  Alexander Reilly of Boyd Commercial represented the tenant, while the landlord was represented by Mary Jo Giammalva of Weingarten.
  
  
• KLW Plastics (513-539-2673) leased 45,000 square feet at Kirkton Drive Distribution Center (0167S), a 46,000-square-foot distribution center located at 9725 Kirkton in far northwest Houston (368W), from GSL Industrial Partners (713-952-7000).  The 7-year-old facility, which features 30-foot clearance, is fully occupied.  John Simmons of CBRE represented the tenant, while the landlord was represented by Kevin Erck and John Talhelm of The Staubach Cos.
  
  
• Industrial Steel & Wire leased 19,000 square feet at Wynnwood Park (1976), a 58,000-square-foot warehouse facility located at 7215-7225 Wynnwood Ln. in west Houston (452W), from DCT Industrial Trust (303-597-2400).  The 39-year-old facility, which features 18-foot clearance, is 75% occupied.  John Clark of NAI Houston represented the tenant, while Alexander Reilly of Boyd Commercial represented the landlord.
  
  
• Recall Total Information Management leased 17,000 square feet at Westland I (0008), a 263,000-square-foot warehouse facility located at 8323 N. Eldridge Rd. in northwest Houston (408H), from Duke Realty (713-353-3200).  The year-old facility, which features 28-foot clearance, is 70% occupied with average rents at $0.38 per square foot.  Faron Wiley, Joseph Smith, and Jim Bob Taylor of CBRE represented the tenant, while the landlord was represented in-house by Cory Driskill of Duke.
  
  
• Alarmax Distributors, Inc. leased 16,000 square feet at Taylor Industrial Park (2825), a 131,000-square-foot office/warehouse facility located at 2020-2198 Taylor St. in north Houston (493F), from TIAA-CREF (212-490-9000).  The 32-year-old facility, which features 18-foot clearance, is fully occupied with average rents at $0.37 per square foot.  Jeff Venghaus of The Staubach Cos. represented the tenant, while Edward Bane of Holt Lunsford Commercial represented the landlord.
  
  
• Aimsco Supply leased 14,000 square feet at the West Loop Business Park I (1740), an 84,000-square-foot office/warehouse facility located at 1234 N. Post Oak Rd. in northwest Houston (451Z), from East Group Properties (281-987-7200).  The 25-year-old facility, which features 22-foot clearance, is fully occupied with average rents.  John Clark of NAI Houston represented the tenant, while Clay Reichenbach of Insite Realty represented the landlord.
  
  
• The Care Group leased 12,000 square feet at Commerce Park Med Center (4212), a 49,000-square-foot warehouse facility located at 9303-9349 Kirby in south Houston (532U), from Sealy & Company, Inc. (318-222-8700).  The 22-year-old facility, which features 16-foot clearance, is fully occupied.  Randy Frnka of Moody Rambin represented the tenant, while the landlord was represented in-house by Allison Koborssi.
  
  
• Access ATM leased 11,500 square feet at Town & Country Business Center (1113), an 88,000-square-foot distribution center located at 10649-10681 Haddington Dr. in west Houston (449V), from Sealy & Company, Inc. (318-222-8700).  The 27-year-old facility, which features 12-to 16-foot clearance, is 87% occupied with average rents at $0.70 per square foot.  Steve Jenkins of Vanguard Realty represented the tenant, while the landlord was represented in-house by Allison Koborssi.
  
  
• Azonix leased 10,800 square feet at 8601 Jameel Rd. (0735), a 45,000-square-foot office/warehouse facility located in northwest Houston (410Y), from Sealy & Company, Inc. (318-222-8700).  The 27-year-old facility, which features 16-foot clearance, is 93% occupied.  Stephen Schneidau of Cushman & Wakefield represented the tenant, while the landlord was represented in-house by Allison Koborssi.
  
  
• HB Power, LLC leased 10,000 square feet at the Wright Business Park (6424), a 40,000-square-foot office/warehouse facility located at 12111-12117 Taylor Rd. in northwest Houston (409J), from Black Gold JV (281-647-9111).  The year-old facility, which features 20-foot clearance, is fully occupied.  Randal Vaughn of The National Realty Group represented the tenant, while Mark Ward of The National Realty Group represented the landlord.

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Vacant Land

• Tommy Joe Oliver purchased 214 acres of land near Fairview Rd. in Chambers County (465C) from Ella Mae Mayes.  Andrew Lockwood of Grubb & Ellis represented the both the buyer and seller in the transaction.
  
  
• LRI Investment Group, Ltd. purchased 152 acres of land between Grand Pkwy. and FM 1464 in near Sugar Land (567N) from the Texas General Land Office (1-800-998-4GLO).   David Garrett of Great American Co. represented the buyer, while Donna Kolius, Pierce Owens, Cody Persyn, and Jeremy Richmond of CBRE and Hudson and Marshall Inc. represented the seller.
  
  
• Michael B. and Susan A. Soulant purchased 63 acres of land near Johnson Rd. in Montgomery County (154Z), from Karey and London Vaught.  Roy Harwell of Harwell Real Estate represented the buyer, while Larry Jacobs of Jacobs Properties represented the seller.
  
  
• St. Luke’s Episcopal Health System (832-355-1000) purchased 40 acres of land near The Vintage master-planned community in northwest Houston (329U) from V & W Management, LLC.   The hospital system and its affiliate, Kelsey-Seybold, plan to build a community hospital with 70 to 100 beds on the site.  The buyer was represented in-house, while David Cook of Cushman & Wakefield represented the seller.
  
  
• CCIB Interwood purchased 12.5 acres of land in the Interwood Business Park (790) in far north Houston (374T) from Essex Interwood.  Mark Nicholas and Richard Quarles of The Staubach Cos. represented the buyer, while Marc Drumwright of Southwest Realty Advisors represented the seller.
  
  
• TAHA Development purchased 8 acres of land at the southwest corner of Rankin and Spears-Gears in far north Houston (372K) from KYCO and Hassan Nahgavi.  The company plans to develop a retail center on the site.  Keith Jaehne of General Property & Services represented the seller.
  
  
• Advantage Solutions purchased 4.9 acres of land at 12210 Taylor Rd. in the far northwest Houston area (491Y) from Paula McMahon Hill.  Pamela Tranpark of Victory Realty Solutions, Inc. represented the buyer, while Keith Edwards and Dylon Schopper of Caldwell Cos. represented the seller.
  
  
• Shamrock Ventures (713-785-3092) purchased 4.7 acres of land at the northwest corner of South Shore Blvd. and Texas 96 in League City (660J) from South Shore Harbour Development (281-334-7501).  Scott Davis, Larry McWherter, and Laura Smith of CBRE represented the buyer, while the seller was represented in-house.
  
  
• Steven Anderson purchased 3.7 acres of land near FM 529 and Paddock Bend in Cypress (407N) from James D. Lowery.  Stephen Hausser of McDade, Smith, Gould, Johnston, + Mason represented the buyer, while Alan Parker of Alan Parker Properties represented the seller.
  
  
• Parsley Family, LP (281-326-2800) purchased 3.3 acres of land on Broadway along Offats Bayou in Galveston (773U) from BS & RG, Ltd.  The buyer was represented in-house, while Ronald Simmons of McDade, Smith, Gould, Johnston, + Mason represented the seller.
• Gessner Philippine 2 72, Ltd. purchased 2.7 acres of land at N. Gessner Rd. and Phillippine St. in northwest Houston (410N) from Gess Phill, LP.  The buyer was represented in-house, while Robert Clay of Clay & Co. represented the seller. 
  
  
• F & W, LLC (281-679-8167) purchased 1.2 acres of land at 1100 Pleasantville Dr. (495K) from Metro Bank NA (713-414-3556).  Andy Hsu of Asian American Realty represented the buyer, while Andrew Lockwood and Sam Sheff of Grubb & Ellis represented the seller.

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Economic & Financial News

The total number of nonagricultural wage and salary jobs in the ten-county Houston area decreased by 41,900 jobs to 2,569500 in January 2008, according to the Texas Workforce Commission.  This month’s total is 95,300 jobs more than the 2,471,600 jobs at this time last year.  Of nonagricultural employers, the Mining sector posted the largest gain over the month at 600 jobs.  Over the year, the Professional & Business Services and Construction sectors had the largest increases in employment, adding 21,300 jobs each, followed by the Trade, Transportation and Utilities sector, which has added 15,800 jobs.

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

Source: Texas Workforce Commission (TWC)

Advance estimates reported by the U.S. Department of Commerce show that seasonally adjusted national retail and food services sales for January 2009 were $382.9 billion, an increase of 0.3% from December and up 3.9% from January 2007.  Retail trade sales in January were up 0.4% from December and were 3.8% above last year’s level.

Personal income increased $32.2 billion, or 0.3%, and Disposable Personal Income (DPI) increased $46.6 billion, or 0.4%, in January 2008, according to the Bureau of Economic Analysis.  Personal Consumption Expenditures (PCE) increased $39.9 billion or 0.3% in January 2008.  Meanwhile, the U.S. Department of Labor reports that the seasonally adjusted Consumer Price Index (CPI) for urban consumers increased 0.5% in January 2008 and is 4.3% higher than in January 2007.

The latest Conference Board Survey indicates that the Consumer Confidence Index decreased to 75.0 in February 2008, down 12.3 points from 87.3 in January.  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 decreased 0.1% in January to 135.8.  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 0.1% in January and is up 2.3% over the January 2007 level.  Output in the manufacturing sector was unchanged in January; output of utilities increased 2.2% over the month, while output at mines rose 0.9%.  The rate of industrial capacity utilization was 81.5% in January, which was unchanged from the previous month’s level, and is 1.8 points higher compared to the previous year’s level. 

The U.S. Department of Commerce reports that advance estimates of the real GDP, the output of goods and services produced by labor and property in the United States, increased at an annual rate of 0.6% in the fourth quarter of 2007, down from the 4.9% growth rate recorded in the third quarter of 2007. The increase in GDP in the fourth quarter primarily reflected positive contributions from personal consumption expenditures (PCE), nonresidential structures, state and local government spending, exports, and equipment and software.

The U.S. Department of Commerce reports that construction spending during January 2008 was estimated at a seasonally adjusted annual rate of $1,121.5 billion, 1.7% below the revised December 2007 estimate. The current figure is 3.3% below the January 2007
estimate of $1,160.2 billion. Private residential construction was at a seasonally adjusted annual rate of $455.8 billion in January, 3.0% below the revised December estimate of $469.7 billion, and 19.7% below the January 2007 estimate of $567.5 billion.

The Baker Hughes count of active domestic rotary rigs stands at 1,771 during the week ending February 22, 2008. The current rig count is up 1.0% from last year’s figure of 1,754 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) gained 0.2 points in January to 98.9. The index is a monthly composite index that tracks the health and outlook for the U.S. restaurant industry. This is the index’s lowest level since February 2003.

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Potpourri

According to the monthly Monster Worldwide, Inc. employment index, online job demand posted a seven point decline in the month of January.  Of 21 occupational categories, 2 posted an increase over the month, while 19 declined.  Life, Physical, and Social Science occupations posted the largest monthly loss of any category in online job opportunities over the month of January, while Legal occupations posted the largest monthly gain.

The Houston Zoo was named the 2007 Marketer of the Year by the Houston Chapter of the American Marketing Association.  The zoo was recognized for it marketing program that increased attendance and revenue, while spotlighting its core missions of education and conservation.  Other finalists included Energy Maintenance Services Group I, LLC, KBR, Inc., and Shell Oil.

Ray Childress has placed the 10.8-acre Lawrence Marshall dealership on the South Loop up for sale.  The land is split into two parcels, one is east of Lakes at 610 Dr. and the other is across the street fronting the Loop.  No word yet on what Childress plans to do with the dealership once the land has sold.  No asking price has been put on the property.  David Meyers of NewQuest Properties is marketing the property.

According to the January 2008 Architecture Billings Index, developed by the American Institute of Architects, demand for non-residential construction fell for the first time in four months.  Following an increase in December, January reported an index of 50.4 (any score above 50 indicates an increase in billings), down from the 55.0 mark in December.

Please direct any questions regarding content in the Houston Real Estate Trends to Kathryn Koepke at 713-686-9955 or kkoepke@poconnor.com.

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