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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

• Cadence McShane Construction (713-681-8500) has completed construction of La Maison at River Oaks (17991), a 423-unit Class A apartment complex located at 2727 Revere Street in the Museum District (492U), on behalf of ZOM Residential Services (214-220-3880).  The complex consists of one- and two-bedroom units ranging in size from 702 to 1,268 square feet, with rents ranging from $1,291 to $2,821.  The property is currently 41% occupied and around 50% pre-leased.
  
  
• Trammell Crow Residential (713-781-5775) has completed construction of Wynhaven at Town West (17836), a 396-unit Class B complex located at 14906 Westpark Dr in west Houston (527D).  The community consists of one and two-bedroom units ranging in size from 1,017 to 1,332 square feet, with rents ranging from $699 to $1,030.  The property is currently 58.8% occupied and over 63% pre-leased.
  
  
• Blazer Building, Inc (713-265-4328) has completed construction of The Grand Parkway (18239), a 250-unit senior housing community located at 22777 Franz Rd in Katy (445T).  The community consists of one and two-bedroom units ranging in size from 729 to 1,075 square feet, with rents ranging from $895 to $1,395.  The property is currently 23% occupied and over 23% pre-leased.
  
  
• Dwayne Henson Investments Inc (713-334-5808) has completed construction of Wyndham Park (17986), a 184-unit senior housing community located at 2700 Rollingbrook in Baytown (501N).  The community consists of one and two-bedroom units ranging in size from 729 to 1,075 square feet, with rents ranging from $646 to $775.  The property is currently 34% occupied and over 40% pre-leased. Orion Real Estate Services is handling the management.
  
  
• The Solana at Cinco Ranch (18226), a 158-unit luxury housing community for seniors located at 24001 Cinco Village Center in Katy (485T), has been opened fully for tenants in November end.  Developed by Alpharetta-based Formation Development Group (770-777-9898), the $37 million community includes 126 independent living units and 32 assisted living units, a heated saltwater pool, a restaurant, wine bar, theater, library, and a wellness center.  Rental rates at the community start at $2,795 per month, while it is already around 30% leased.
  
  
• Bonner Carrington (512-220-8000) has completed construction of Cypress Creek at Reed Rd (17719), a 132-unit income restricted community located at 2910 Reed Rd in Houston (573B).  The community consists of one to four-bedroom units ranging in size from 704 to 1,366 square feet, with rents ranging from $ 650 to $1,007.  The property is currently 83% occupied and over 99% pre-leased.
  
  
• Kilday Realty Corp (713-914-9400) has completed construction of Gardens at Friendswood Lakes (17737), a 114-unit income restricted senior housing community located at 1423 W Parkwood Ave in Friendswood (656R).  The community consists of one and two-bedroom units ranging in size from 750 to 925 square feet, with rents ranging from $198 to $648.  The property is currently 43% occupied and over 46% pre-leased.
  

The following chart illustrates historical apartment occupancy.

Apartment Sales

• Los Angeles-based Post Investment Group LLC (323-653-9700) has purchased Serrano Apartment Homes (2118), a 23-building, 438-unit apartment complex located at 14723 West Oaks Plaza Drive in far west Houston (487Z), for $24.6 million from Special Servicer ING (212-883-2500).  The 10-year-old, Class A complex is currently 29% occupied with average rents of $1.06 per square foot.  Edward Nwokedi of Cushman & Wakefield brokered the deal between the buyer and seller.
  
  
• Dallas-based Behringer Harvard Multifamily REIT I (214-655-1600) and its Netherlands-based partner PGGM Private Real Estate Fund (31-30-277-9911) has purchased Eclipse (17285), a 330-unit apartment complex located at 1725 Crescent Plaza in Houston’s Energy Corridor (488Q), from Simmons Vedder Partners (713-626-9102). This newly built, Class-A complex is about 80% occupied with average rents of $1.32 per square foot.  The joint venture paid more than $21 million to right off the asset’s construction loan and has obtained full control over its ownership.  Mark T Alferi of Behringer Havard represented the buyer, while Simmons Vedder Partners was represented in house.
  
  
• Interurban Clear Lake LLP, an entity of Colorado-based Interurban Corporation (303-759-9090), has purchased Retreat of Clear Lake (4060), a 26-building, 232-unit apartment complex located at 2305 Bay Area Boulevard in the Clear Lake/League City submarket (618L), from Village Green Associates LP, an entity of Missouri-based CRES Management Co (816-756-0220).  The 31-year-old, Class-B complex is currently 92% occupied with average rents of $0.95 per square foot.  Jim Hearn and Tom Warren of Hendricks & Partners arranged the deal between the buyer and seller.
  
  
• Dimitrios Lambropoulous has purchased Paradise Apartments (FKA: Oasis Apartments) (3130), a five-building, 66-unit apartment complex located at 7650 Moonmist Drive in the Sharpstown/Westwood submarket (530C), from U.S. Bank National Association (800-685-5065).  The 46-year-old, Class-B complex is 85% leased with average rents of $0.63 per square foot.  Alice Ward of Regal Properties represented the buyer, while Mike Chance and Lester Langdon of Coldwell Banker Commercial United Realtors represented the seller.
  

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Single-Family Housing

MLS home sales decreased further in October as 4,049 existing homes were sold, compared to 4,074 homes sold last month, according to the Houston Association of Realtors (HAR).  Nevertheless, sales for October 2009 were up 15.6% from October 2008.  The median price of an existing single-family home sold in October was $140,000, up 7.7% from the same time last year, while the average home price – $185,117 – was up 7.0% from the October 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 was steady in October at 1,159, but are up 19% from October 2008.  Realtor co-op sales represented 66.1% of gross sales for the month, up 4.2% from September.  Traffic declined 7% from last year to 13,010 in September 2009.  The inventory of completed speculative homes (1,032) is down nearly 47% from September last year.  There are 319 spec homes under construction, which is down nearly 17% from September 2008.  Overall, the 1,351 specs (both completed and under construction) are down 43% from September 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 in October to a seasonally adjusted annual rate of 430,000, 6.2% above the revised September sales rate of 405,000 and 5.1% above the October 2008 figure, according to a release by the U.S. Department of Commerce.  The median sales price in October was $212,200.  Privately owned housing starts were at a seasonally adjusted annual rate of 529,000 in October 2009, which is 10.6% below the revised September estimate and 30.7% below the revised October 2008 rate.  Privately owned housing completions were at a seasonally adjusted annual rate of 740,000 in October, 1.9% above the revised September figure but 29.9% below the revised October 2008 figure.

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly measure of builder confidence, remained at 17 in November, 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 stayed even at 17, the index measuring sales expectations for the coming six months increased to 28, and the index measuring the traffic of prospective buyers is currently at 13, unchanged from the revised October figure.

According to the National Association of Realtors (NAR), 6,100,000 existing homes were sold in October 2009, up 10.1% from September sales and up 23.5% from the 4,940,000 homes sold in October 2008.  The median sale price was $173,100, which represents a 7.1% decrease from sale prices last year.

According to the most recent report by RealtyTrac, 332,292 foreclosure filings — default notices, auction sale notices, and bank repossessions — were reported during the month of October 2009.  This figure is down 3% from the previous month but up 19% from October 2008.  Texas remains among the nation’s 28 highest states in total foreclosure filings in October 2009.

The following chart illustrates historical existing home sales.

Source: Houston Association of Realtors

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Permit Issuance

The City of Houston issued permits to build 209 private single-family houses and 6 private multifamily buildings in October.  Demolition permits were issued for 86 private single-family houses and 21 multifamily structures.  In addition, 137 permits were issued for privately owned non-residential construction totaling $60,253,676 and 29 permits were issued for public non-residential construction.  Additions, alterations, and conversions totaled $121,284,227 for the private sector and $6,377,139 for the public sector.

Cost of Construction*
	2007	2008	2009
Month of October	$538,796,865	$637,266,487	$233,123,338
Year-to-Date	$4,692,736,972	$5,212,595,684	$3,284,184,610

*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 Third Quarter 2009 Houston Office Data Program, citywide occupancy for Houston area multi-tenant office buildings is 82.91% (Class A = 84.75%; Class B = 82.07%; Class C = 79.69%; Class D = 76.29%).  The citywide quarterly multi-tenant office rental rate is $19.75 per square foot (Class A = $22.60; Class B = $17.87; Class C = $14.22; Class D = $10.78).
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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

• No office developments were recorded for the month of November.
  

The following chart illustrates historical office occupancy.

Office Sales

• Texas Tower Ltd (713-223-0441) has purchased JP Morgan Chase Center (140), a 424,000-square-foot, Class B office building located at 601 Travis Street in Central Business District (493L), from JP Morgan Chase & Co (212-270-6000).  The 20-story, 27-year-old building is now fully occupied.  Houston-based Hines along with Clifford Chance US LLP of New York represented the buyer, while J. Mark Russell of Studley represented the seller.
  
  
• Manny Khoshbin of California-based The Khoshbin Co (949-863-9390) has purchased Regency Square Tower (1769), a 122,000-square-foot Class B office building located at 6001 Savoy Drive in southwest Houston (530D), from New Mexico-based BGK Texas Property Management (713-862-3333).  The 31-year-old, six-story building is currently around 50% leased with asking rents at $14.50 per square feet.  Kennet Page and Scott Myers of Grubb & Ellis brokered the deal.
  
  
• Darlig Hund LLC has purchased 3828 Hughes Court (TBA), a 21-year-old, 23,000-square-foot medical office building located in Dickinson, Texas (659A), from Hughes Court Professional Building (409-772-7210). The seller was represented in house, while Jason Kieschnick with Zann Commercial Brokerage represented the buyer.
  

Office Leases

• Southwestern Energy Co. (281-618-4700) has leased 101,000 square feet at One Commerce Green (588), a 340,000-square-foot, Class A office building located at 515 W Greens Road in Greenspoint Northbelt (372Q), from Parkway Properties LP (601-948-4091).  The 26-year-old building is now fully leased.  Lispah Hogan of Newmark Knight Frank represented the tenant, while Mark Preston of Moody Rambin Interests represented the landlord in the negotiations.

• Excelerate Energy (832-813-7100) has leased 23,242 square feet at Town Center One (1867), a 12-year-old, 145,046-square-foot Class A office building located at 1450 Lake Robbins Drive near The Woodlands Mall in The Woodlands (251H), from BIT Holdings Forty-Six Inc (858-558-5654).  Mary Barnwell of CB Richard Ellis and Lance McCarthy of Studley represented the tenant, while Gary Johnson of Crimson Services represented the landlord.

• Alliance International Forwarder Inc (713-428-3100) has renewed their lease of 11,300 square feet at Washington Place North & South (1340), a 31-year-old, 89,934-square-foot, Class B office building located at 7155 Old Katy Road in the Bellaire area (492A), from Old Katy Road Associates (713-973-7711).  Scott Covington of S.E. Covington & Co. represented the tenant, while Kevin Nolan of Moody Rambin Interests represented the landlord.
  
  
• Family Psychiatry of The Woodlands (832-381-2050) has leased 11,171 square feet at Venture Technology Center Bldg III (1890), a 20-year-old, 58,637-square-foot Class B office building located at 8701 New Trails across Research Forest Drive in The Woodlands (251B), from The Vista Companies (281-531-5300).  Michael Cianciola of MC Commercial Real Estate represented the tenant, while Sherry Barnette represented the landlord in-house.
  
  
• London American Risk Specialist (713-977-7726) has renewed its lease of around 10,000 square feet at Westchase Midrise (1945), an 115,784-square-foot, Class B office building located at 11000 Richmond Avenue in Westchase District (489Y), from Woodbranch Partners Ltd., an entity of BMS Management Inc (713-621-3222).  The 27-year-old building is about 86% leased with asking rents at $19.00 per square foot.  John Beach and Laura Kelley of Jackson Cooksey represented the tenant, while Kristen Rabel, Louann Pereira, and Steve Rocher of CB Richard Ellis represented the landlord.
  
  
• First Commonwealth (713-781-8848) has leased around 10,000 square feet at Town & Country  Village Building 23 (17255), a year-old, 66,316-square-foot, Class A office building located at 788 W Sam Houston Parkway N in Katy Freeway sector (489C), from T & C Partnership.  Steven Crawford represented the tenant in-house, while Bob Cromwell and Kevin Nolan of Moody Rambin Interests represented the landlord.
  

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Retail Centers

According to the O’Connor & Associates Third Quarter 2009 Houston Retail Data Program, citywide occupancy for Houston area multi-tenant retail buildings is 82.98% (Regional = 87.77%; Community = 86.15%; Neighborhood = 80.79%; Strip = 77.17%).  Occupancy is down 0.33 points over the last quarter and down 0.89 points over the third quarter 2008.  The citywide quarterly multi-tenant retail rental rate is $1.64 per square foot (Regional = $2.91; Community = $1.66; Neighborhood = $1.24; Strip = $1.27).
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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

• Kroger Marketplace (866-221-4141) has opened its second grocery store in Texas in a 123,000-square-foot facility within Brazos Town Center (2224), the 1,000,000-square-foot regional lifestyle center of NewQuest Properties (281-477-4300) located at 24502 Southwest Freeway Street across Reading Road in Rosenberg (605R).  In addition to Kroger’s standard store sections, this outlet features a general merchandise section including outdoor living products, electronics, home goods, and toys, a Fred Meyer Jewelers, and a home furnishing section featuring Ashley Furniture.
  
  
• Hunington Properties (713-623-6944) has started construction at The Shops on Grand Parkway (TBA), a 12,075-square-foot shopping center located at the corner of Grand Parkway and Bellaire Boulevard in Katy (567D), within the 100-acre, master-planned Bella Terra Development.  Tenants already signed at the center include Subway, Bright Now Dental, and a national hair salon.  Scheduled for completion by March 2010, the center is being developed, managed, and leased by Hunington Properties.
  

The following chart illustrates historical retail occupancy.

Retail Sales

• MHK Realty of Texas LLC has purchased Village Shops (1710), a 25-year-old, 68,000 square-foot strip center located at 12280-12288 Westheimer Road in far west Houston (489S), for $7.3 million from Alter II LLC, Continental Terrace Joint Venture LLC, SLS Properties LLC, and Treasure Principle LLC, an entity group of the California-based Silver Crest Properties Inc (916-837-6599).  Jerry Goldstein of the Houston office of Marcus & Millichap brokered the deal.
  

Retail Leases

• Family Thrift Center (713-868-4261) has leased 33,862 square feet and opened its new store at Sharpstown Plaza (2111), a 43,000-square-foot retail center located at 7555 Bellaire Boulevard near southwest Houston (530G), from Centro Properties Group (713-660-4328).  The 41-year-old center is over 90% occupied with asking rents of $1.25 per square foot.  Ronnie Turboff of Prime Capital Corp represented the tenant, while Mike Parker represented the landlord in-house.
  
  
• Great Goods Inc (713-952-9193) has leased 10,500 square feet at Harwin Wholesale Center (2067), a 152,000-square-foot community shopping center located at 7501 Harwin Drive in southwest Houston (530C), from Asset Plus Corporation (713-782-5800).  The 14-year-old center is currently approximately 95% leased with asking rents of $0.88 per square foot.  The tenant was represented in-house, while Douglas Drew represented the landlord in-house.
  

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Industrial Facilities

According to the O’Connor & Associates Third Quarter 2009 Houston Industrial Data Program, citywide occupancy for Houston area operating multi-tenant industrial facilities is 81.80% (Flex = 80.32%; Bulk = 81.04%; Manufacturing = 85.11%, Service = 85.23%, Distribution = 73.97%, R&D = 72.97%).  Occupancy is down 0.17 points over the last quarter and down 1.40 points over the third quarter 2008.  The overall quarterly rental rates decreased $0.03 ending at $0.40 per square foot (Flex = $0.44; Bulk = $0.34; Manufacturing = $0.40, Service = $0.52, Distribution = $0.31, R&D = $0.94).
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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

• The Houston office of Cadence McShane Construction (713-681-8500) has completed construction of two buildings totaling 299,174 square feet within ClayPoint Distribution Park Ph II (TBA), a 353,875-square-foot office/warehouse facility located at 8810 Clay Road near northwest Houston (450H).  Adjacent to the year-old 58,500-square-foot building 1, both new buildings – building 2 (98,324 square feet) and building 3 (200,850 square feet) – have incorporated many environmental and sustainable design features including the recycling and re-use of existing on-site asphalt during construction, use of reflective roofing materials, energy-efficient double-glazed windows, and irrigation-free landscaping.  In addition, Cadence McShane has done site work, utility, and roadway improvements within the industrial park.  Developed by Weingarten Realty Investors (713-866-6035), the architectural services for the project were provided by Seeberger & Associates LP (713-977-5400).
  

Industrial Sales

• Howell Lafroy Adkins, Doxie A Adkins, and Neil A Adkins (713-686-2070) have purchased Oilfield Electric Marine Inc (5679), a 44-year-old, 20,000-square-foot office/warehouse facility located at 3616 Pinemont Drive near northwest Houston (452E), from Kevlor Management LP (281-304-5017).  Clay Pritchett and Troy Collins of Holt Lunsford Commercial represented the seller, while the buyer was self-represented.
  
  
• Pat Thai (713-522-4865) has purchased 2219 Sabine (4693), a 69-year-old, 14,400-square-foot warehouse located in the neighborhood of Lewis & Maese Auction Co in north Houston (493F), from Spring Street Property LLC, an entity of Harris Moving & Package Co. (713-869-6301).  Greg Egan of LeaseSquareFeet.com represented the buyer, while Coe Parker, John F Littman, and B. Kelley Parker of Cushman & Wakefield represented the seller.
  
  
• Allan R Klein (281-376-7959) has purchased 3402 T C Jester Blvd E (5731), a 35-year-old, 13,550-square-foot service center located near west Houston (452N), from FAM Investors LLC (713-963-0454).  Bob Conwell of NewQuest Properties represented the buyer, while Alexander Reilly of Boyd Commercial represented the seller in the transaction.
  

Industrial Leases

• Exel Logistics Inc (713-673-7108) has renewed its full lease of 8833 Citypark Loop (889), a 26-year-old, 254,445-square-foot warehouse located near northeast Houston (455U), from The Realty Associates Fund VIII (617-476-2700).  Sam Brown of Sam H. Brown Inc represented the tenant, while Edward Bane of Holt Lunsford Commercial represented the landlord.
  
  
• The Salvation Army (713-752-0677), a nonprofit organization, has leased 78,980 square feet at Hempstead D C (5903), a 10-year-old, 111,200-square-foot office/warehouse facility located at 8017 Pinemont Drive near northwest Houston (450H), from Proterra Properties (713-462-7888).  Robert Alinger of Boyd Commercial represented the tenant, while Kit Dolan represented the landlord in-house.
  
  
• RCI Ready Cable, Inc has renewed its full lease of 11315 W Little York Rd (5091), a 27-year-old, 31,050 -square-foot manufacturing facility located in far northwest Houston (409T), from Skypark One, LP.  The tenant was self-represented, while Coe Parker, John F. Littman, and B. Kelley Parker of Cushman & Wakefield represented the landlord.
  
  
• Goodman Distribution Inc (713-849-3183) has leased 25,300 square feet at Ellington Trade Center Ph I (6591), a newly developed, 513,500-square-foot office/warehouse facility located at 12552 Highway 3 in far southeast Houston (577W), from Dallas-based Koll Development Co. - KDC (214-696-1700).  Shirley Laymance of Mohr Partners represented the tenant, while Griff Bandy, John Ferruzzo, and Jon Michael of NAI Houston represented the landlord.
  
  
• PWM Electronic Price Signs (713-290-0626) has leased 24,170 square feet at Barren Springs Business Center (6318), a two-year-old, 72,500-square-foot office/warehouse facility located at 220 Barren Springs Drive in far north Houston (332X), from Capital Real Estate Commercial  (713-681-1100).  Fred Sklar of Sklar Realty Services represented the tenant, while Hart Schleicher represented the landlord in-house.
  
  
• Houston Chronicle (713-362-7171) has leased 15,300 square feet at Ellington Trade Center Ph I (6591), a newly developed, three-building, 513,500-square-foot office/warehouse facility located at 12552 State Highway 3 in far southeast Houston (577W), from Dallas-based Koll Development Co. - KDC (214-696-1700).  Valerie Palmquist of Transwestern Commercial Services represented the tenant, while Griff Bandy, John Ferruzzo, and Jon Michael of NAI Houston represented the landlord.
  
  
• Beatty Street Properties Inc (713-645-9620) has leased 16,650 square feet at Port Plaza (1814), a 27-year-old, 100,700-square-foot office/warehouse space located at 8201-8211 La Porte Freeway in southeast Houston (535F), from United Stevedoring Corporation (713-921-5939).  The tenants represented themselves in-house, while Coe Parker, John F. Littman, and B. Kelley Parker of Cushman & Wakefield represented the landlord.

• Simmonds Equipment (504-394-7466) has leased 15,625 square feet at Northwest Green Bus Park (37567), a 11-year old, 24,000 square-foot warehouse located at 5121 Hiltonview Road in northwest Houston (371S), from Capital Commercial Investments (512-472-6990).  Chris Kugle, John Ferruzzo, and Travis Land of NAI Houston represented the landlord.

• PII North America (713-849-6300) has renewed its lease of 12,000 square feet at Park Entry Warehouse (5114), an 11-year old, 30,000-square-foot warehouse facility located at 16111 Park Entry Drive in far northwest Houston (409U), from Principal Life Insurance (713-783-1818).  Gray Gilbert of CB Richard Ellis represented the tenant, while Edward Bane and Robin Moore of Holt Lunsford Commercial represented the landlord.

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Vacant Land

• Federal Express Corp (281-873-1750) has purchased 9 acres of land, located across W Greens Road and Bammel North Houston Road in northwest Houston (371N), from Patrick Thomas Properties (281-893-8930).  David Boyd and Greg Barra with Boyd Commercial and David Ginther and Fred Placke with Fischer & Co represented the buyer, while Jeff Lokey with NewQuest Properties represented the seller in the negotiations.
  
  
• Lufkin Automation (281-495-1100) has purchased 6.2 acres of land, located on Fondren Road within the 157-acre industrial development Lakeview Business Park in Missouri City (570U), from Trammell Crow Co (713-963-1000).  The buyer is investing around $4 million to construct its new Houston-area headquarters in early 2010.  Missouri City and Fort Bend Economic Development Council will provide economic incentives.  Jarret Venghaus and Don Foster of Jones Lang LaSalle represented the buyer, while Steve King, Faron Wiley, and Joseph Smith of CB Richard Ellis represented the seller.
  
  
• EKC Cutten Loose LP has purchased 5.1 acres of land, located across Bourgeois Road and Cutten Road in north Houston (370M), from Cutten Commerce Park LP (713-744-7400).  Stephen Kuper, Mike Spears, and Robert McGee of The National Realty Group represented the buyer and seller in the deal.
  
  
• Keith C. Jahne, Trustee has purchased 4.2 acres of land, located at Greens Road near Aldine Westfield Road and George Bush International Airport in north Houston (374N), from Whitney National Bank (713) 951-7330).  Brandon Jaehne of General Property & Services represented the buyer, while John Wall Jr of The Situs Cos represented the seller.
  
  
• Zephyr Realty Group LLC has purchased around 4 acres, located at Clara Road north of Tanner Road in northwest Houston (449D), from Rose J. Spinella Estate Trust.  Randal Vaughn of The National Realty Group represented the buyer, while George Polydoros of George Polydoros Co 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 increased by about 9,100 jobs to 2,529,100 in October 2009, according to the U.S. Department of Labor.  This month’s total is 78,200 fewer jobs than the 2,607,300 jobs at this time last year.  Of nonagricultural employers, the Professional and Business Services sector posted the largest gain over the month at 2,500 jobs, while the largest year over year increase occurred in the Education and Health Services sector, which added 6,000 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 October 2009 were $347.5 billion, an increase of 1.4% from September but 1.7% below October 2008.  Retail trade sales in October were up 1.4% from September but 2.1% below last year’s level.

Personal income increased $30.1 billion, or 0.2%, and Disposable Personal Income (DPI) increased $45.7 billion, or 0.4%, in October 2009, according to the Bureau of Economic Analysis.  Personal Consumption Expenditures (PCE) increased $68.3 billion, or 0.7%, in October 2009.  Meanwhile, the U.S. Department of Labor reports that the seasonally adjusted Consumer Price Index (CPI) for urban consumers increased 0.3% in October 2009, while it is 0.2% lower than October 2008.

The latest Conference Board Survey indicates that the Consumer Confidence Index increased to 49.5 in November 2009, up 0.8 points from October.  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 0.3% in October, following a 1.0% increase in September and 0.4% in August.  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 October 2009 from previous month but is down 7.1% from the October 2008 level.  Output in the manufacturing sector decreased 0.1% and output at mines decreased 0.2%, while output of utilities increased 1.6% in October.  The rate of industrial capacity utilization was 70.7% in October, which is up 0.2% from September’s revised level but down 0.8 points compared to the previous year’s level.

Freddie Mac reports that the 30-year fixed-rate mortgage (FRM) averaged 4.88% in November 2009, down 0.07 points from October and down 1.22 points from one year ago.  The average for the 15-year FRM averaged 4.34% in November 2009, down 0.05 points from October and down 1.45 points from November 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, increased at an annual rate of 2.8% in the third quarter of 2009.  This increase in GDP in the third quarter primarily reflected positive contributions from personal consumption expenditure (PCE), exports, residential fixed investment, private inventory investment, and federal government spending.

The U.S. Department of Commerce reports that construction spending during October 2009 was estimated at a seasonally adjusted annual rate of $910.8 billion, which is only about 0.04% above the revised September 2009 estimate ($910.4 billion).  The current figure is, however, 14.4% below the October 2008 estimate of $1,064.1 billion.  Private residential construction was at a seasonally adjusted annual rate of $250.3 billion in October, 4.4% above the revised September estimate of $239.7 billion.

The Baker Hughes count of active domestic rotary rigs stands at 1,107 for November 2009.  The current rig count is down nearly 42.8% from last year’s figure of 1,935 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 98.0 in October, up 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 24th consecutive month below 100.

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Potpourri

According to the monthly Monster Worldwide, Inc employment index, online job demand decreased by 1 point in the month of November.  The index currently stands at 119 and is 24 points below November 2008, a decrease of nearly 16.8%.  Online demand for workers increased in 12 of the 28 major U.S. metro markets.

According to the October 2009 Architecture Billings Index, developed by the American Institute of Architects, October reported an index of 46.1, up 3 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 58.5.

Bank of America Center (106), a 1,255,666-square-foot, Class A office tower, has been awarded LEED™ Gold certification for Existing Building: Operations and Maintenance Green Building Rating System™ by the U.S. Green Building Council.  This 56-story, 26-year-old multi-tenant property is located at 700 Louisiana Street in Central Business District (493L).  Last renovated in 2001, the property features energy efficient design, effectively uses the natural resources, and operates in a sustainable and environmentally sound manner.  It is owned by a joint venture of M-M Properties and an affiliate of General Electric Pension Trust, advised by GE Asset Management (203-708-3193).  Designed by renowned architect Phillip Johnson and partner John Burgee, the property is managed by Hines Interests (713-237-5657) with expert assistance of Kirksey Architecture (713-850-9600) and leased by PM Realty Group (713-209-5823).

Williams Tower (478), a 1,514,911-square-foot, Class A office tower, has been awarded LEED™ Gold certification for Existing Building: Operations and Maintenance Green Building Rating System™ by the U.S. Green Building Council.  With six Energy Star® labels and a current Energy Star® rating of 85, the property is 34% more energy efficient which saves $1.33 per square foot in energy costs annually when compared to the national average office building.  This 64-story, 27-year-old multi-tenant property, located at 2800 Post Oak Boulevard in the Galleria sector (491U), was designed by renowned architect Phillip Johnson and partner John Burgee for developer/owner Hines Interests (713-237-5657).  Since then, it is being managed and leased by Hines and also serving as the Houston-based firm’s headquarters.

Houston witnessed several new appointments to executive-level positions of its commercial real estate firms, during the month of November.  The real estate trio Michael Palmer, Aaron Howes, and John Simons, all three previously with CB Richard Ellis, have joined Studley Houston (713-522-5300) as Senior Managing Director and Corporate Managing Directors, respectively.  Doyle Toups and Dustin Gillioz have joined NAI Houston (713-629-0500) as Senior Vice President and Associate, respectively, in the firm’s Industrial Brokerage Services division.  Ed Cummins, previously with Hendricks & Partners, has joined Transwestern Commercial Services (713-270-7700) as Senior Vice President, Multifamily Investment Sales division.  Allison Koborssi, previously with Sealy and Co., has joined Southwest Realty Advisors (713-464-6045) as part of the firm’s Industrial Brokerage Services team.  Bill McGrath, with American Spectrum Realty Inc (713-706-6200) since September 2000, has been promoted as Director of Operations and will oversee all leasing and management operations of the firm in the Texas region.  Jeffrey I. Burck, with the Houston office of Brookfield Properties (212-417-7000) since 2007, has been promoted as Regional Vice President and will serve a two-year term overseeing the activities of the seven IREM chapters in Texas and Oklahoma.  Jerry Goldstein, with the Houston office of Marcus & Millichap (713-452-4200) since May 1994, has been awarded the position of First Vice President Investments.  Nann Pearce, Chief Financial Officer at FKP Architects (713-621-2100), has been promoted as Principal.  Houston Human Resource Management Association (713-426-2646) has added Matthew Trietsch, Senior Associate of Walter P Moore (713-630-7300), to the board of directors.  Suntech Building Systems (281-897-8188) has appointed Christine Hemmen as project manager.

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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