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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 Developments

• Long Reach Associates (713-782-6363) has completed construction of Fairmont on San Felipe (17052), a 359 unit Class A complex located at 6363 San Felipe, in west Houston (491N). The apartment community consists of one and two-bedroom units ranging in size from 609 to 1,403 square feet, with rents ranging from $1,125 to $2,125. The property is currently 38% occupied.
  
  
• Grayco Partners (713-432-7100) has completed construction of Braeswood Place Apartments (17540), a 340 unit Class A complex located at 3838 N Braeswood Blvd, in west Houston (532K). The apartment community consists of one, two & three-bedroom units ranging in size from 703 to 1,660 square feet, with rents ranging from $1,033 to $2,428. The property is currently 40% occupied.
  
  
• Chancellor Property (713-432-1007) has completed construction of Meritage Apartments (17635), a 240 unit Class A complex located at 4550 Braeswood Blvd, in west Houston (531R). The apartment community consists of one, two & three-bedroom units ranging in size from 690 to 2,428 square feet, with rents ranging from $1,070 to $2,218. The property is currently 33% occupied.
  
  
• Mariposa Apartment Homes (713-738-1222) has completed construction of Mariposa Apartment Homes @ Reed Road (17472), a 180 unit Class B senior tax credit community located at 2889 Reed Rd, in south Houston (533X). The apartment community consists of one and two-bedroom units ranging in size from 762 to 1,248 square feet, with rents ranging from $624 to $754. The property is currently 30% occupied.

The following chart illustrates historical apartment occupancy.

Apartment Sales

• Behringer Harvard Multifamily REIT I and Dutch pension fund PGGM has purchased The Verandah at Meyerland (16988), a 301-unit apartment complex located at 4620 N. Braeswood Blvd in north Houston (332L), from BlackRock Realty (713-541-3770). The 5-year-old Class-B complex is 89% occupied with average rents of $1.47 per square foot. David Oelfke and David Mitchell of Apartment Realty Advisors represented the seller, while Robert Behringer of Behringer Harvard Multifamily REIT I of represented the buyer.
  
  
• JPMCC 2006-LDp9 Parramatta Lane Apartments LLC, an entity of LNR Partners (305-695-5500) has purchased The Chancellor (1295), a 12-building, 224-unit apartment complex located at 311 Parramatta Avenue in north Houston (332L), from the Chancellor Apartment LLC (281-480-5665). The 25-year-old Class-B complex is 45% occupied with average rents of $0.81 per square foot. Chip Nash and Greg Austin of the Houston office of Hendricks & Partners represented the seller, while the buyer was represented in-house by Ken Kristofek.
  
  
• Northway Investments LLC (281-890-9112) has purchased Meridian (1399), a 12-building, 152-unit apartment complex located at 10200 Bammel N Houston Road in northwest Houston (371W), from Blue Valley Apartments Inc (561-682-8000). The 29-year-old Class C complex is 70% occupied with average rents of $0.76 per square foot. This property was bought out of foreclosure with Arun M. Parikh of Aaron Property Investments represented the buyer.
  
  
• Mosaic Residential Inc. (281-647-6400) has purchased Kressington Place (1257), an 11-building, 136-unit apartment complex located at 7203 Oakwood Glen Blvd. in Spring (330L), from Reliant Group (415-788-0700). The 24-year-old Class B complex, now renamed as Cottages of Cypresswood by Mosaic, is 93% occupied with average rents of $0.79 per square foot. Abe Bhimani represented the buyer, while the seller was represented in-house by Joseph L. Sherman.
  

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Single-Family Housing

MLS home sales increased in June as 4,685 existing homes were sold, compared to 4,019 homes sold last month, according to the Houston Association of Realtors (HAR). However, sales for June 2009 were down 10.4% from June 2008. The median price of an existing single-family home sold in June was $156,000, up 2.3% from the same time last year, while the average home price – $208,036 – was down 1.1% from the June 2008 level.
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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 decreased 18% in June to 1,297 from 1,583 in May and down 10% from June 2008. Realtor co-op sales represented 64.4% of gross sales for the month, up 3.6% from June 2008. Traffic decreased 22% from last year to 15,044 in June 2009. The inventory of completed speculative homes (1,285) is down 27% from June last year. There are 1,669 spec homes under construction, which is down 33% from June 2008. Overall, the 2,954 specs (both completed and under construction) are down almost 31% from June 2008.
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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 June to a seasonally adjusted annual rate of 384,000, 11% above the revised May sales rate of 346,000 but 21.3% below the June 2008 figure, according to a release by the U.S. Department of Commerce. The median sales price in June was $206,200. Privately owned housing starts were at a seasonally adjusted annual rate of 582,000 in June 2009, which is 3.6% above the revised May estimate but 46% below the revised June 2008 rate. Privately owned housing completions were at a seasonally adjusted annual rate of 818,000 in June, 0.4% below the revised May figure and 27.7% below the revised June 2008 figure.

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly measure of builder confidence, increased to 17 in July, 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 increased by three points to 17, the index measuring sales expectations for the coming six months remained at 26, and the index measuring the traffic of prospective buyers is currently at 14, up one point from the revised June figure

According to the National Association of Realtors (NAR), 4,890,000 existing homes were sold in June 2009, up 3.6% from May sales but down 0.2% from the 4,900,000 homes sold in June 2008. The median sale price was $181,800, which represents a 15.4% decrease from sale prices last year.

According to the most recent report by RealtyTrac, 336,173 foreclosure filings — default notices, auction sale notices, and bank repossessions — were reported during the month of June 2009. This figure is up 4.57% from the previous month and up 33% from June 2008. Texas remains among the nation’s 23 highest states in total foreclosure filings in June 2009.

The following chart illustrates historical existing home sales.

Source: Houston Association of Realtors

• The Woodlands Development Co. (281-719-6300) is set to begin construction on Timarron, a new 240-acre planned community that will feature Pulte Homes (866-785-8325) and Beazer Homes (888-623-2937) located in The Woodlands Village of Creekside Park (250R). The community will be comprised of ten neighborhoods and consist of both patio homes and traditional single-family residential plans. Homes prices are anticipated to begin from the $170’s.
  
  
• General Growth Properties Inc. (312-960-5000) has pulled its Bridgeland master-planned community off the market, not long after having awarded the Houston-based Caldwell Companies (713-690-0000) the acquisition rights for this development at a purchase price of approximately $90 to $100 million. Located near Fry Road and U.S. 290, Cypress in northwest Houston (366H), Bridgeland is a new 11,400-acre residential project site that still has over 10,000 acres of vacant land and 20,000 lots to be developed. The Chicago-based company will continue to develop the project as planned, while it expects Bridgeland to benefit from the resurgence of the Houston residential market.
  

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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	$2,008,939,404
Year-to-Date	$3,420,890,399	$3,792,499,894	$4,065,629,121

*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

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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 83.04% (Class A = 85.52%; Class B = 81.52%; Class C = 80.82%; Class D = 76.59%). The citywide quarterly multi-tenant office rental rate is $20.60 per square foot (Class A = $24.01; Class B = $18.49; Class C = $15.01; Class D = $11.42).
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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

• Radler Enterprises Inc (281-440-8595) has completed construction on Phase II of the Beltway Lakes Office Complex (17918). Phase II consists of two six-story Class A gold level LEED certified buildings, totaling 320,000 square feet. The office complex is located in northwest Houston between beltway 8 and Hwy 249 (370V). Deep Marine Technology is currently the only tenant in the complex. David Carter, Chris Volke, and Robert Parsley of Colliers International have been selected to handle the leasing for the buildings.
  
  
• The Urban Group (713-339-5380) has started construction on Interwood Office Building (17246), a 62,000 square foot, two-story traditional office building located at 15109 Heathrow Forest Parkway in north Houston (374T). Completion is anticipated for late summer 2009.

The following chart illustrates historical office occupancy.

Office Sales

• White Rock Commercial (972-888-1490) sold West Pointe Center (2494), a three-story office building totaling 170,823 square feet at 9420 W. Sam Houston Parkway North in northwest Houston (409H). The recently completed building is White Rock Commercial's first project in the Houston area and is looking for is first occupancy. Wade Bowlin and Doug Little of PM Realty Group represented the seller while Bob Parsley and Bill Byrd of Colliers International represented the buyer. The buyer was not disclosed.
  

Office Leases

• Goodrich Petroleum Corp (713-780-9494) has leased 36,765 square feet on the top three floors of 801 Louisiana (103), a 105,000-square-foot, Class-B office building located in the Central Business District (493L), from TPMC Realty Corp (713-963-9955). The recently renovated 31-year-old building, is now 45% occupied with asking rents ranging from $24.00 to $28.00 per square foot. Stanley H. Voekel II, Robert S. Parsley, and Jay Kyle of Colliers International represented both the tenant and landlord in this transaction.

• Vestas Technology R&D (970-674-6100) has leased 28,534 square feet at Heritage Plaza (129), a 1,150,000-square-foot, Class-A office building located 1111 Bagby in the Central Business District (493L), from Goddard Investment Group (404-442-5500). The 24-year-old building is now 89% occupied with asking rents ranging from $20.0 to $28.00 per square foot. Charlie Giammalva with Lincoln Property Co represented landlord, while Steve Burkett, with Jones Lang LaSalle, represented the tenant.

• The U.S. General Services Administration (281-372-7130) has renewed its lease of 24,296 square feet at NorthBelt Atrium II (653), a 105,271-square-foot, Class B office building located at 15355 Vantage Pkwy W in Greenspoint Northbelt (373U), from Houston R E Income Property XVII, an entity of Hartman Management (713-467-2222). The 26-year-old building is 99% leased with asking rents at $15.50 per square foot. Tenant was represented in house, while Steve Bryant of Moody Rambin Investment Services represented the landlord.
  
  
• Memorial Bone and Joint Clinic (713-827-9316) has leased 12,675 square feet at Town & Country Hospital Med Offices (2237), a 117,000-square-foot, Class A office building located at 1140 Business Center Drive in Katy (449Y), from Memorial Hermann Healthcare System (713-448-5555). The four-year-old building is over 84% leased with asking rents of $18.50 per square foot. Tenant was represented in house, while Lisa Lehmann Bovermann of CB Richard Ellis represented the landlord in the lease negotiation.
  
  
• IntegraNet Physician Resource Inc (281-447-6800) has leased 12,419 square feet at 333 NorthBelt East (605), a 204,000-square-foot Class B office building located at 333 N Sam Houston Pkwy E in the Greenspoint area (373S), from Houston 333-10700 investment Group LLC, an affiliate of Janez Properties Inc. (858-481-5693). The 29-year-old building is 77% leased with asking rents at $19.25 per square foot. Andre Granello of Gibson Granello represented the tenant, while Kristen Rabel, Steve Rocher, and Louann Pereira of CB Richard Ellis represented the landlord.
  
  
• Nexus Health Systems Ltd (713-355-6111) has renewed its lease of 12,051 square feet at One Riverway (486), a 481,000-square-foot, Class A office building located in the Galleria area (491L), from Riverway Holdings LP, an entity of Unilev Management Corp (713-850-7878). The 31-year-old building is nearly 86% leased with asking rents at $18.00 per square foot. Mitch Pearl of UGL Equis represented the tenant, while Steve Rocher and Dave Hanusa of CB Richard Ellis represented the landlord.
  
  
• The Lincoln National Life Insurance Co (336-691-3000) has leased 11,652 square feet at Phoenix Tower (804), a 662,000-square-foot, Class-A office building located at 3200 Southwest Freeway in the Greenway Plaza area (492X), from FSP Franklin Street Properties (781-246-4900). The 23-year-old building is now 67% occupied with asking rents ranging from $26.00 to $28.00per square foot. Jon Silberman of NAI Houston represented the tenant, while Paula Bruns of Hines represented the building owner.

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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 82.94% (Regional = 87.76%; Community = 86.50%; Neighborhood = 80.75%; Strip = 77.10%). Occupancy is down 0.64 points over the last quarter and down 1.12 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).
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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

• No retail developments were noted for the month of July.

The following chart illustrates historical retail occupancy.

Retail Sales

• A Texas-based private investor has purchased Broadway (54668), a 37-year-old, 75,000-square-foot shopping center located at 8201 and 8209 Broadway in Pearland (535T), from Utah-based Pennbridge Capital (801-766-4787). Adam Lewis and Don Stringham of Marcus and Millichap brokered the transaction.
  
  
• 7321 Harrisburg LLC (516-747-3876) purchased Family Dollar Store (54661), a two-year-old, 24,000-square-foot strip center located at 7321 Harrisburg in southeast Houston (495W), from 73rd Street @ Harrisburg L.P. Gus Lagos of Grubb & Ellis represented the buyer, while the seller was represented in house.

Retail Leases

• Dollar Tree (757-321-5000) has leased 16,307 square feet at Providence Plaza (2153), a 90,000-square-foot shopping center located at 9402 Highway 6 South in Sugar Land (528S), from Whitestone REIT (713-827-9595). This 25-year-old building is nearly 95% leased. Perry Zieben of Perry Zieben Realty Company represented the tenant, while the landlord was represented in-house by Gary Triplett.
  

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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 81.88% (Flex = 81.86%; Bulk = 81.38%; Manufacturing = 79.68%, Service = 79.57%, Distribution = 73.88%, R&D = 46.96%). Occupancy is down 1.49 points over the last quarter and down 0.05 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 = $0.36; Manufacturing = $0.40, Service = $0.56, Distribution = $0.37, R&D = $0.78).
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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 quarterly basis and accessible over the web (please contact us for more details).

The following chart illustrates historical industrial occupancy.

Industrial Developments

• No industrial developments were noted for the month of June.

Industrial Sales

• PSREH Ltd. (956-630-9400) has purchased InterBelt North Business Center (6496), a 25,000-square-foot warehouse located at 2700 Aldine Bender Road in mid north Houston (374W), from StoneBridge T1 LP (713-439-1151). The recently completed building is fully occupied by Petroleum Solutions (281-449-4027). Trey Martin, Griff Bandy, John Ferruzzo, and Travis Land of NAI Houston represented the buyer and seller in the transaction.
  
  
• Pneumatic and Hydraulic Co (713-681-5211) has purchased 15811 Tuckerton (36742), a 20,000-square-foot office/warehouse building located in northwest Houston (408A), from The National Realty Group (713-744-7400). Brian Corriston of Caldwell Cos. represented the buyer, while the seller was represented in house by Steve Adkisson.
  
  
• 1406 North Sam Houston West LLC has purchased 1406 N Sam Houston Pkwy W (37456), the newly build, 15,000-square-foot warehouse facility located adjacent to Sharon Road in far northwest Houston (372T), from StoneBridge Sharmon LP (713-439-1151). Darren O’Conor and John Ferruzzo of NAI Houston brokered the sale.

Industrial Leases

• Kinder Morgan Texas Terminals (713-450-7477) renewed a lease for 87,750 square feet of warehouse space at 8825 and 8827 Mississippi St. Kelley Parker, a 35-year-old warehouse building located in southeast Houston (495U), from Tuffli Company Inc (310-326-5500). John Littman and Coe Parker of Cushman & Wakefield represented the landlord, while the ternate where represented in-house.
  
  
• Lebco Industries (713-785-6095) leased 47,101 square feet of space at Pine Forest Business Park (4321), a 30 year old, 170,000-square-foot warehouse located at 401-407 Crosstimbers in near north Houston (452M), from CRP 2 Holdings (617-235-6300). Glynn Mireles of CB Richard Ellis represented the tenant. Walker Barnett of Colliers International represented the landlord.
  
  
• New York based Graham Packaging (713-869-6280) has leased 40,230 square feet at West Loop Business Park - 4005 W 11th St (4302), a 243,000-square-foot warehouse facility located at 1160 West Loop N in near west Houston (491D), from AN/WRI Partnership Ltd (713-866-6000). This 44-year-old facility is over 50% leased with asking rents of $0.34 per square foot. Glynn Mireles of CB Richard Ellis represented the tenant, while Mary Jo Giammalva of Weingarten Realty Investors represented the landlord.
  
  
• Gateway Distribution of Texas (713-466-1299) has leased 32,000 square feet at West by Northwest Ind Park (5180), an 11-year-old, 140,000-square-foot warehouse facility located at 10425 Okanella Street in far northwest Houston (410W), from Prologis Texas II LLC (713-682-2292). John Simons of CB Richards Ellis represented tenant, while Holden Rushing represented the landlord in-house.
  
  
• Advanced Pharmacy (713-391-200) has leased 25,091 square feet at Westbelt Distribution Center (3779), a 25-year-old, 111,000-square-foot warehouse facility located at 2000 W. Sam Houston Parkway N near west Houston (449U), from The Realty Associates Fund VI (617-476-2700). James E. Foreman and William “Cape” Bell of Cushman & Wakefield represented the tenant, while Edward Bane and John Kruse of Holt Lunsford Commercial represented the landlord.
  
  
• M Manufacturing has leased 20,000 square feet at 1203 Boyles (1302), a 36-year-old, 35,000-square-foot warehouse facility located near southeast Houston (494M), from Walkup Co. (713-675-6383). Steven O’Connor and Marc Drumwright of Southwest Realty Advisors represented both the tenant and landlord in the transaction.
  
  
• Houston-based Greenstar Recycling (713-965-0005) has leased 18,900 square feet of warehouse space at 4789 Eastpark Drive (820), a 30-year-old building located in northeast Houston (454Z) ,from First Industrial Realty Trust (713-681-0885). Patrick Rollins of CB Richard Ellis represented the tenant. Blake Gibson of Colliers International represented the landlord.

• Parades ETC (713-228-4500) has renewed its 17,964-square-foot lease at Quitman Building (215), a 771,000-square-foot warehouse facility located at 2300 Quitman in north Houston (494A), from Hartman Management (713-467-2222). This 89-year-old building is 92% leased. The landlord was represented in-house by Tim Murphy.

• Accutest Laboratories Gulf Coast (713-271-4700) has leased 17,685 square feet at Point West Center 3 (3440), a 28-year-old, 32,000-square-foot service center located at 10165 Harwin Drive near southwest Houston (530A), from Mammoth Equities Harwin LP (949-276-2500). Mark Ray of Kensington Property Group represented both the tenant and landlord in the transaction.

• Goodyear Tire & Rubber Co (713-477-8801) has leased 17,658 square feet at Hammerly Business Park (37541), a 140,000-square-foot office and distribution/warehouse facility located at 1811 Brittmoore Road in far west Houston (449Q), from Clay Development and Construction (713-789-2529). Goodyear is the first tenant in the newly built facility. Cody Smoot of Colliers International represented the tenant, while Gray Gilbert and Bill Rudolf of CB Richard Ellis represented the landlord.

• Sweetie Shoes (281-545-9272) has leased 15,000 square feet at Groth Corp Building (6651), a 65,000-square-foot manufacturing facility located at 13650 N. Promenade Blvd. in far southeast Stafford (569Q), from Groth Corporation (281-295-6800). The eight-year-old building is now fully leased. Nick Miller and Marc Drumwright of Southwest Realty Advisors represented both the tenant and landlord in the transaction.
  
  
• Specified Lighting Sales (713-681-1966) has leased 14,658 square feet at Pine Forest Business Ctr 26 (4326), a 108,000-square-foot warehouse located at 460-486 Garden Oaks Blvd near north Houston (452M), from ProLogis (713-682-2292). This 30-year-old facility is now fully leased. Joe MacDougall of MacDougall & Co represented the tenant, while Adam Lowe represented the landlord in-house.

• Rud and Pickarts Marketing Co (713-643-8726), has renewed its lease of 12,510 square feet at Griggs Rd 1 & 2 (2529), a 44-year-old, 225,000-square-foot warehouse facility located at 5990-6018 Griggs Road near south Houston (534L), from Cobalt Industrial REIT (972-893-7000). Darren O’Conor and Jon Michael of NAI Houston represented the tenant and landlord, respectively.

• Houston 2-Way Radio (713-681-2525) has leased 10,250 square feet at 5800 Centralcrest (37563), a ten-year-old, 19,000square-foot warehouse facility located in west Houston (451P), from 5800 Centralcrest joint Venture/ Latham Ray E & Trustee (713-682-8880). Joe MacDougall of MacDougall represented both the parties in the transaction.

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Vacant Land

• The Harris County Housing Authority (713-747-0353) has purchased 10 acres of land, located at 15403 Kuykendahl Road in northwest Houston (331V), from Texas Community Bank (713-232-4801). Timothy K. Clay of Clay & Company brokered the sale, while Re/Max Realty Center acted as a cooperating broker.
  
  
• Sire Enterprises (415-382-0800) has purchased 4.2 acres of land, located at 1302 Humble Westfield Road in northeast Houston (332M), from the Peterson Family Estate. Timothy K. Clay of Clay & Co. brokered the sale, while Realty Associates acted as a cooperating broker.

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Economic & Financial News

The total number of nonagricultural wage and salary jobs in the ten-county Houston area increased by about 2,200 jobs to 2,550,900 in June 2009, according to the U.S. Department of Labor. This month’s total is 69,600 fewer jobs than the 2,620,500 jobs at this time last year. Of nonagricultural employers, the Professional and Business Services sector posted the largest gain over the month at 6,300 jobs, while the largest year over year increase occurred in the Education and Health Services sector, which added 2,200 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 June 2009 were $342.1 billion, an increase of 0.6% from May but 9.0% below June 2008. Retail trade sales in June were up 0.8% from May but were 10.0% below last year’s level.

Personal income decreased $159.8 billion, or 1.3%, and Disposable Personal Income (DPI) decreased $143.8 billion, or 1.3%, in June 2009, according to the Bureau of Economic Analysis. Personal Consumption Expenditures (PCE) increased $41.4 billion or 0.4% in June 2009. Meanwhile, the U.S. Department of Labor reports that the seasonally adjusted Consumer Price Index (CPI) for urban consumers increased 0.7% in June 2009, while it is 1.4% lower than June 2008.

The latest Conference Board Survey indicates that the Consumer Confidence Index decreased to 46.6 in July 2009, down 2.7 points from June. 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 0.7% in June. 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 decreased 0.4% in June 2009 from May 2009 and is down 13.6% from the June 2008 level. Output in the manufacturing sector decreased 0.6% and output at mines decreased another 0.5% in June, while output of utilities increased 0.8% from last month. The rate of industrial capacity utilization was 68.0% in June, which is down 0.2% from the previous month’s level and is 0.1 point lower compared to the previous year’s level.

Freddie Mac reports that the 30-year fixed-rate mortgage (FRM) averaged 5.22% in July 2009, down 0.20 points from June and down 1.21 points from one year ago. The average for the 15-year FRM averaged 4.69% in June 2009, down 0.21 points from June and down 1.28 points from July 2008.

The Bureau of Economic Analysis (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, decreased at an annual rate of 1.0% in the second quarter of 2009, compared to the first quarter decrease of 6.4%. This decrease in GDP in the second quarter primarily reflected negative contributions from residential and nonresidential fixed investment, exports, private inventory management, personal consumption expenditure (PCE), and equipment and software.

The U.S. Department of Commerce reports that construction spending during June 2009 was estimated at a seasonally adjusted annual rate of $965.7 billion, which is 0.3% above the revised May 2009 estimate. The current figure is, however, 10.2% below the June 2008 estimate of $1,075.6 billion. Private residential construction was at a seasonally adjusted annual rate of $246.1 billion in June, 0.5% above the revised May estimate of $244.7 billion.

The Baker Hughes count of active domestic rotary rigs stands at 931 for July 2009. The current rig count is down nearly 52% from last year’s figure of 1,932 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 97.8 in June, down 0.5 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 20th consecutive month below 100.

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Potpourri

According to the monthly Monster Worldwide, Inc. employment index, online job demand decreased further by three points in the month of July. The index currently stands at 114 and is 43 points below July 2008, a decrease of over 27%. Online demand for workers increased in only two of the 28 major U.S. metro markets.

According to the May 2009 Architecture Billings Index, developed by the American Institute of Architects, June reported an index of 37.7, down 5.2 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 53.8.

Johnson Development Corp (713-960-9977) has taken over redevelopment of the former Imperial Sugar Co site at the intersection of SH 90 and Main St in Sugar Land. Demolition of existing Imperial Sugar buildings is projected by the fall for 2009, and anticipating land development as soon as 2010.

Studley Houston (713-522-5300) has added Jim Bell, previously with Jones Lang LaSalle, and Russell Hodges, formerly of Colvill Office. Jim Bell will take on the role associate director, while Russell Hodges will work as an associate.

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

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