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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

• The Virginia-based McCann Realty Partners - MRP (804-290-8870) is set to begin developing The Discovery at Shadow Creek, a 345-unit garden-style apartment community with plans from one to three bedrooms, in Pearland (613J).  The multifamily developer purchased the 18-acre site, located across Highway 288 and Discovery Bay Boulevard within the 155-acre mixed-use development The Reserve at Shadow Creek Ranch, from Crosswell Greenwood Commercial Development (713-266-9200).  Joe MacDougall of MacDougall & Co represented MRP, while Mark P. Carroll and Doug Britton represented Crosswell.  Valued at $33 million, construction financing for the apartment community is being provided by Wells Fargo Bank (281-993-3100).
  
  
• Charleston-based Greystar Real Estate Partners (843-579-9400) has completed and opened two apartment communities totaling 624 units in Houston.  Yorktown Crossing (18498), a 312-unit Class A complex located at 15903 Yorktown Crossing Parkway in Bear Creek/Copperfield submarket (408W).  Northgate Oaks (18331), a 312-unit Class A complex located at 14723 T. C. Jester Boulevard in Champions area (331T).  Both the apartment communities consist of one- and two-bedroom units ranging in size from 716 to 1,262 square feet, with rents ranging from $799 to $1395.
  
  
• Midway Companies (713-629-5200) has fully opened The Lofts at CityCentre (17513), a 250-unit Class A complex located at 12808 Queensbury Lane # 112 within the $500 million mixed-use development CityCentre in far west Houston (489D), for rent.  The apartment community consists of one-, two- and three-bedroom units ranging in size from 627 to 1507 square feet, with rents ranging $1010 to $2380.  The property is over 8% occupied and 19% preleased.

The following chart illustrates historical apartment occupancy.

Apartment Sales

• Dalcor Properties (972-769-2002) has purchased Commons on Edgebrook (3968), a 444-unit apartment complex located at 3927 Arlington Square in Pasadena (576G), from CNC Investments (281-444-1585).  The 39-year-old Class-B complex is 52% occupied with average rents of $0.76 per square foot.
  
  
• Dasme Investments LLC (713-688-0801) has purchased Chaparral Villas I (3252) and Chaparral Villas II (3254), two identical apartment complexes totaling 376 units located at 5710-5720 Glenmont Drive in the Gulfton submarket (531B), from United Commercial Bank (415-391-8912).  Both complexes are 39-year-old, Class-B 188-unit complexes with nearly 50% occupancy and average rents of $0.89 per square foot.  David Ching, Jeffrey Fript, Will Balthrope, and Robert Su of Marcus & Millichap represented the buyer and seller in the transaction.
  
  
• Optimum Real Estate (713-850-7889) has purchased Williamstown (3178), a 272-unit apartment complex located at 9200 Bissonnet in the Braeswood area (530S), from Diep Residential LLC. The 32-year-old, 19-building Class-C complex is 92% occupied with average rents of $0.76 per square foot.  Ed Cummins and Clint Duncan of Hendricks & Partners arranged the deal between the buyer and seller.
  
  
• CONTI Organization (972-386-0161) has purchased Villa Adora (3047), a 266-unit apartment complex located at 10534 Beechnut Street in the Alief area (529L), from SunAmerica Life Insurance Co. (214-739-1105).  The 29 year-old, 33-building Class-C complex is 46% occupied with average rents of $0.73 per square foot. Greg Austin, Chip Nash, Jim Hearn, Tom Burns and Jay Gun of Hendricks & Partners brokered the deal.
  
  
• Tomball Apartment Company LLC has purchased Lakewood (1252), a 19-building, 256-unit apartment complex located at 11000 Gatesden Drive in Tomball (329T), from Lakewood AOPL (720-889-9200). The 29-year-old Class-B complex is around 96% occupied with average rents of $0.81 per square foot.  John Fenoglio of Grandbridge Real Estate Capital LLC arranged financing for the transaction.
  
  
• Gurmann Investment (281-445-4566) has purchased Streamside Place (1594), a 200-unit apartment complex located at 5335 W Gulf Bank in the Inwood area (411Q), from Blue Valley Apartments (561-686-3295). The 26 year-old Class-C complex is 40% occupied with average rents of $0.73 per square foot. Will Balthrope, Tommy Lovell and Jeffrey Fript of Marcus & Millichap represented the buyer and seller in the transaction.
  
  
• Venterra Realty (832-300-1500) has purchased Champion Woods (1425), a 176-unit apartment complex located at 6830 Champion Plaza in the Champion West area (370F), from Michael Stevens Interests (281-496-4141).  The 26 year-old Class-B complex is 91% occupied with average rents of $0.87 per square foot.
  
  
• Axiom Equity Investments II, LLC, an entity of Van Nostrand Family Investments (713-664-1522 & 713-501-7759) has purchased The Lenox (2380), a 164-unit apartment complex located at 6014 Winsome Lane in the Galleria area (491T), from Laurels Lenox LP.  The 38-year-old Class-B complex is 96% occupied with average rents of $1.03 per square foot.  Brandon Brown of LMI Capital arranged financing for the transaction.
  

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Single-Family Housing

MLS home sales decreased in August as 4,328 existing homes were sold, compared to 4,928 homes sold last month, according to the Houston Association of Realtors (HAR).  Sales for August 2009 were down 8.3% from August 2008.  The median price of an existing single-family home sold in August was $155,000, up 4.0% from the same time last year, while the average home price – $202,477 – was down 1.6% from the August 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 increased about 0.36% in August to 1,375 from 1,370 in July but down over 3% from August 2008.  Realtor co-op sales represented 61.9% of gross sales for the month, up 3.7% from August 2008.  Traffic decreased over 16% from last year to 15,521 in August 2009.  The inventory of completed speculative homes (1,078) is down nearly 41% from August last year.  There are 1,805 spec homes under construction, which is down nearly 18% from August 2008.  Overall, the 2,883 specs (both completed and under construction) are down 28.2% from August 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 August to a seasonally adjusted annual rate of 429,000, 0.7% above the revised July sales rate of 426,000 but 3.4% below the August 2008 figure, according to a release by the U.S. Department of Commerce.  The median sales price in August was $195,200.  Privately owned housing starts were at a seasonally adjusted annual rate of 598,000 in August 2009, which is 1.5% above the revised July estimate but 29.6% below the revised August 2008 rate.  Privately owned housing completions were at a seasonally adjusted annual rate of 760,000 in August, 5.5% below the revised July figure and 25.3% below the revised August 2008 figure.

The National Association of Home Builders/Wells Fargo Housing Market Index, a monthly measure of builder confidence, increased to 19 in September, 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 two points to 18, the index measuring sales expectations for the coming six months decreased to 29, and the index measuring the traffic of prospective buyers is currently at 17, up one point from the revised August figure.

According to the National Association of Realtors (NAR), 5,100,000 existing homes were sold in August 2009, down 2.7% from July sales but up 3.4% from the 4,930,000 homes sold in August 2008.  The median sale price was $177,700, which represents a 12.5% decrease from sale prices last year.

According to the most recent report by RealtyTrac, 358,471 foreclosure filings — default notices, auction sale notices, and bank repossessions — were reported during the month of August 2009.  This figure is down about 0.5% from the previous month but up 18% from August 2008.  Texas remains among the nation’s 27 highest states in total foreclosure filings in August 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 215 private single-family houses and 3 private multifamily buildings in August.  Demolition permits were issued for 60 private single-family houses and 3 multifamily structures.  In addition, 207 permits were issued for privately owned non-residential construction totaling $95,470,890 and 156 permits were issued for public non-residential construction.  Additions, alterations, and conversions totaled $79,258,212 for the private sector and $2,130,851 for the public sector.

Cost of Construction*
	2007	2008	2009
Month of August	$404,550,306	$286,445,711	$257,369,013
Year-to-Date	$3,825,440,705	$4,078,945,605	$2,706,836,514

*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 83.07% (Class A = 85.64%; Class B = 81.55%; Class C = 80.34%; Class D = 77.55%).  The citywide quarterly multi-tenant office rental rate is $20.59 per square foot (Class A = $24.01; Class B = $18.50; Class C = $15.03; Class D = $11.17).
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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 noted for the month of September.
  

The following chart illustrates historical office occupancy.

Office Sales

• AFG Properties Ltd. (281-340-8900) has purchased Sugar Land Business Park (17888), a 29-year-old 11,400-square-foot Class C office building located at 12999 Jess Pirtle Boulevard in Sugar Land (568G), from Parada-Johnson LLC (608-273-3373).  Keith Lloyd and Tony Ricci of Grubb & Ellis represented the seller, while Larry Indermuehle and Jennifer Raymond of Indermuehle & Co. represented the buyer.
  

Office Leases

• Seahawk Drilling (713-369-7300) has leased 56,000 square feet on the 27th and 28th floor of 5 Greenway Plaza (746), a 912,000-square-foot, Class A office building located in Greenway Plaza area (492X), from Crescent Real Estate Funding III LP (713-840-1170).  The 36-year-old building is nearly 88% leased with asking rents at $17.00 per square foot.  Steve Burkett and David Bale of Jones Lang LaSalle represented the tenant, while Preston Young and Brad Fricks of Stream Realty Partners LP represented the landlord.

• SKH Management (713-782-1075) has renewed its lease of 21,395 square feet at 7700 San Felipe (423), a 100,000-square-foot, Class-B office building located in the Galleria sector (490R), from Memorial DAR Ltd., an entity of Unilev Management Corp. (713-850-7878).  The 30-year-old building is nearly 76% leased with asking rents at $20.00 per square foot.  SKH Management was represented in house, while Kristen Rabel, Louann Pereira, and Steve Rocher of CB Richard Ellis represented the landlord.

• StarTex Power (713-357-2800) has expanded its lease to a total of 20,038 square feet at Phoenix Tower (804), a 618,000-square-foot, Class A office building located at 3200 Southwest Freeway in Greenway Plaza area (492X), from Franklin Street Properties (781-557-1300).  The 25-year-old building is over 67% occupied with asking rents at $27.68 per square foot.  Randy Wilhelm and Mary Dadura with NAI Houston represented the tenant, while Paula Bruns with Hines represented the landlord.
  
  
• Logica (713-954-7000) has leased 17,956 square feet at Westchase Park (17178), a 269,000-square-foot, Class A office building located at 3600 W Sam Houston Pkwy S in Westchase sector (489Z), from Simmons Vedder Partners (713-626-9102).  The newly built building is now 38% leased with asking rents at $22.50 per square foot.  Logica is shifting its North America headquarters to this location by December.  Reggie Beavan and Laura Kelley of Jackson & Cooksey represented the tenant, while Jeff Pace of Simmons Vedder Partners was represented the landlord.
  
  
• HDR Engineering Inc. (281-272-0554) has leased 14,240 square feet at Executive Plaza (418), a 306,000-square-foot Class B office building located at 4605 Southwest Freeway in the Galleria area (491Z), from EP Office Holdings LP, an entity of Cypressbrook Co. (281-364-1777).  The 38-year-old building is nearly 96% leased with asking rents at $17.50 per square foot.  Steve Burkett and Courtney Goodall of Jones Lang LaSalle represented the tenant, while John Hornbuckle and Rick Grimm represented the landlord in-house.
  

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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 82.97% (Regional = 87.76%; Community = 86.43%; Neighborhood = 80.91%; Strip = 77.00%).  Occupancy is down 0.62 points over the last quarter and down 1.13 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 September.
  

The following chart illustrates historical retail occupancy.

Retail Sales

• Joseph Dow has purchased Trading Fair II (54867), a 38-year-old, 153,000-square-foot retail center located at 5515 South Loop E in southeast Houston (534N), from Trading Fair Houston (713-731-1111).  Adrian and Billy Combs of Combs Commercial represented the seller, while A. David Schwarz III, Carlos Bujosa, Joseph Mims, and Stephen Hausser of McDade, Smith, Gould, Johnston, Mason and Company represented the buyer.
  

Retail Leases

• Antiques on 8 (713-896-7994) has leased El Nagger Fine Arts (3405), a nine-year-old, 45,000-square-foot retail center located at 5455 W Sam Houston Pkwy N in far northwest Houston (449C), from El Naggar Fine Art Furniture Inc. (713-856-6141).  The tenant was represented in-house, while Charlotte Blocker Farshchi and Hossein Farshchi of The Winzor Group represented the landlord.
  
  
• Houston Bread Bakery (713-666-2163) has leased 220 Murphy Road (53447), a 42,000-square-foot retail center located in far southwest Stafford (569Q), from Zoya Enterprises (281-275-2710).  Jarret Venghau and Ryan Fuselier of Jones Lang LaSalle represented the tenant, while Bryan Tully and Richard Glass of The National Realty Group represented the landlord.
  
  
• 99 Ranch Market (713-932-8899) has leased 30,000 square feet at Williams Trace Shopping Center (2229), a 26-year-old, 359,000-square-foot community shopping center located at 3300 Hwy 6 South in far southwest Sugar Land (568Z), from Beeson Properties (713-622-5595).  Heather Nguyen of NewQuest Properties represented the tenant, while Shawn Ackerman of Henry S. Miller represented the landlord.
  

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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 81.47% (Flex = 81.63%; Bulk = 81.26%; Manufacturing = 79.68%, Service = 78.31%, Distribution = 71.89%, R&D = 46.96%).  Occupancy is down 1.50 points over the last quarter and down 0.44 points over the second quarter 2008.  The overall quarterly rental rates decreased $0.01 ending at $0.43 per square foot (Flex = $0.47; Bulk = $0.35; Manufacturing = $0.40, Service = $0.56, Distribution = $0.36, 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 September.
  

Industrial Sales

• The Manchehr Khoshbin Revocable Trust has purchased Greenbriar Business Park 1 (676), a 29-year-old, 65,000-square-foot office/warehouse complex located at 15701-15731 W Hardy Road in far north Houston (373P), from Hartman Income REIT (713-467-2222).  Mike Spears, Robert McGee, Thomas Leger, and Jay Jenckes of The National Realty Group represented the buyer, while Michelle Malveaux from Hartman Income REIT represented the seller.
  
  
• Scott H. Ferguson of Ferguson Trucker Center (713-237-0044) has purchased Ferguson Truck Center (37678), a 20-year-old, 18,150-square-foot office/warehouse facility located at 3625 Jensen Drive in north Houston (454W), from Rosemary Crawford.  Jesse Cantu of Realty Associates represented the buyer, while Clay Pritchett and Troy Collins of Holt Lunsford Commercial represented the seller in the deal.
  

Industrial Leases

• House of Forgings (281-443-4848) has leased 70,485 square feet at Cypressbrook Air Center Bldg B (5859), a three-year-old, 140,000-square-foot distribution center located at 16684 Air Center Boulevard in far north Houston (373L), from Cobalt Industrial REIT (972-893-7000).  John Hornbuckle of Cypressbrook Co. brokered the deal.
  
  
• Metals Supply Co., Ltd. (713-330-8080) has leased 70,000 square feet at 1755 Federal Rd (1833), a 1,015,000-square-foot manufacturing facility located within Greens Port Industrial Park, Complex 21B in southeast Houston (496R), from Greensport Ship/Channel Partners, LP (713-455-8457).  The 21-year-old facility is about 73% leased.  Coe Parker, John F. Littman, and B. Kelley Parker of Cushman & Wakefield represented the landlord.
  
  
• Ram Tool & Supply Co. (713-454-1234) has leased 61,229 square feet at Southport Business Park Bldg 7 (37286), a 28-year-old, 116,000-square-foot warehouse located at 5921-5937 South Loop Freeway East in south Houston (534P), from The Realty Associates Fund VI, LP (617-476-2700).  John Simons of CB Richard Ellis represented the tenant, while John Kruse of Holt Lunsford Commercial represented the landlord.
  
  
• Precise Steel Corp. (713-673-6300) has renewed its lease of 34,733 square feet at Warehouse Fabrication Facility (1309), a 44-year-old, 132,000-square-foot warehouse located at 1335 Boyles in southeast Houston (494M), from Cidema Three, LP (508-529-0074).  Keith Henderson represented the tenant in-house, while Christopher Klein of Colliers International represented the landlord.
  
  
• Valves and Fitting of Houston (713-880-3013) has leased Atlas Architectural Metal (4450), a 45-year-old, 32,000-square-foot office/warehouse facility located at 1301 Greengrass Drive in west Houston (452W), from 1301 Greengrass LP (713-461-5600).  Richard Glass of The National Realty Group represented the tenant, while 1301 Greengrass LP represented themselves in transaction.
  
  
• Massey Industries (713-928-5281) has leased 117 N. Palmer (6361), a 49-year old, 28,000-square-foot manufacturing facility located in southeast Houston (494N), from 117 Palmer Ltd., an entity of Ava Limited (832-428-1141).  Travis Land and Michael Keegan of NAI Houston represented the tenant, while Barrett Gibson with Gibson & Granello Realty Partners represented the landlord.
  
  
• SCP Distributors (713-783-0882) has renewed its lease of 25,058 square feet at Bldg 5 I West Park Business Centre (5774), a 27-year-old, 75,000-square-foot warehouse located at 3924-3938 Dunvale Road in southwest Houston (490Y), from Teachers Insurance and Annuity Association of America – TIAA-CREF (832-681-7400).  Pool Development represented the tenant, while Edward Bane and John Kruse of Holt Lunsford Commercial represented the landlord.

• Terrapin Tire Inc. (713-688-9500) has renewed its lease of Interpark Rankin Business Park 5 (6100), a 22-year-old, 25,000-square-foot warehouse located at 1922-1924 Rankin Road in far north Houston (373L), from 1029 Interpark Rankin Associates, an entity of California Global Investments  (415-922-7381).  Patrick Rollins of CB Richard Ellis represented the tenant, while Tommy Brummett of Brummett & Co represented the landlord.

• Wind Turbine & Energy Cables (201-242-9906) has leased 22,500 square feet at 3341-3373 Rauch (971), a 40-year-old, 83,000-square-foot office/warehouse facility located in northeast Houston (495C), from First Industrial Texas LP (713-681-0885).  Conrad Bernard and David Munson of Boyd Commercial represented the tenant, while Blake Gibson of Colliers International represented the landlord.

• The Subsea Co. (281-324-0558) has leased 14,000 square feet at Brittmoore-Clay Industrial Park (36983), a 14-building, four-year-old, 236,000-square-foot warehouse facility located at 4525-4555 Brittmoore Road in far northwest Houston (449G), from Brittmoore Investments LLC (713-660-6000).  Andrew Sowell and Clay Peeples of Boyd Commercial represented both the tenant and landlord in the negotiations.

• Disaster America of Texas (281-931-8880) has leased 13,674 square feet at Transcentral Business Park (37379), a 28,500-square-foot office/warehouse facility located at 16554 Air Center Boulevard in far north Houston (373L), from Transcentral Associates.  The tenant was represented in house, while Will Hedges and Glynn Mireles of CB Richard Ellis represented the landlord.

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Vacant Land

• Richter Family Limited Partnership (210-432-5746) has purchased 5 acres of land, located at Woodridge Forest Commercial Reserve in Kingwood in Montgomery County (296U), from TVMS Land Investment, Inc. (281-240-9300).  Coe Parker, John F. Littman, and B. Kelley Parker of Cushman & Wakefield represented the buyer, while Roddy McAlpine of McAlpine Interests represented the seller in the negotiations.
  
  
• Service King Paint and Body, LLC (972-960-7595) has purchased 4.5 acres of land, located across Highway 288 and Hughes Ranch Road in Pearland (613M), from James and Barbara Dixon.  Troy Bryant of Ardent Realty Group represented both parties.
  

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Economic & Financial News

The total number of nonagricultural wage and salary jobs in the ten-county Houston area decreased by about 4,000 jobs to 2,516,700 in August 2009, according to the U.S. Department of Labor.  This month’s total is 95,100 fewer jobs than the 2,611,800 jobs at this time last year.  Of nonagricultural employers, the Education and Health Services sector posted both the largest gain over the month at 2,200 jobs and the largest year over year increase, which added 1,600 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 August 2009 were $351.4 billion, an increase of 2.7% from July but 5.3% below August 2008.  Retail trade sales in August were up 3.0% from July but 6.0% below last year’s level.

Personal income increased $19.3 billion, or 0.2%, while Disposable Personal Income (DPI) increased $15.5 billion, or 0.1%, in August 2009, according to the Bureau of Economic Analysis.  Personal Consumption Expenditures (PCE) increased $129.6 billion or 1.3% in August 2009.  Meanwhile, the U.S. Department of Labor reports that the seasonally adjusted Consumer Price Index (CPI) for urban consumers increased 0.4% in August 2009, while it is 1.5% lower than August 2008.

The latest Conference Board Survey indicates that the Consumer Confidence Index decreased to 53.1 in September 2009, down 1.4 points from August.  The index is an indicator of consumers’ overall assessment of current conditions, relative to a figure of 100 in 1985, the base year.  The Index of Leading Economic Indicators increased 0.6% in August, following a 0.9% increase in July and 0.8% 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 increased 0.8% in August 2009 from previous month but is down 10.7% from the August 2008 level.  Output in the manufacturing sector increased 0.6%, output at mines increased 0.5%, and output of utilities increased 1.9% in August.  The rate of industrial capacity utilization was 69.6% in August, which is up 0.6% from July’s revised level but down 0.5 points compared to the previous year’s level.

Freddie Mac reports that the 30-year fixed-rate mortgage (FRM) averaged 5.06% in September 2009, down 0.13 points from August and down 0.98 points from one year ago.  The average for the 15-year FRM averaged 4.49% in September 2009, down 0.12 points from August and down 1.15 points from August 2008.

The Bureau of Economic Analysis (U.S. Department of Commerce) reports that third 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 0.7% in the second quarter of 2009.  This decrease in GDP in the second quarter primarily reflected negative contributions from residential and nonresidential fixed investment, exports, private inventory management, and personal consumption expenditure (PCE).

The U.S. Department of Commerce reports that construction spending during August 2009 was estimated at a seasonally adjusted annual rate of $941.9 billion, which is 0.8% above the revised July 2009 estimate.  The current figure is 11.6% below the August 2008 estimate of $1,066.1 billion.  Private residential construction was at a seasonally adjusted annual rate of $249.5 billion in August, 4.7% above the revised July estimate of $238.3 billion.

The Baker Hughes count of active domestic rotary rigs stands at 1,009 for September 2009.  The current rig count is down 49.9% from last year’s figure of 2,014 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 97.9 in August, down 0.2 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 22nd consecutive month below 100.

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Potpourri

According to the monthly Monster Worldwide, Inc. employment index, online job demand decreased by 2 points in the month of September, against the increase of 7 points in August.  The index currently stands at 119 and is 41 points below September 2008, a decrease of nearly 25.6%.  Online demand for workers increased in 8 of the 28 major U.S. metro markets.

According to the August 2009 Architecture Billings Index, developed by the American Institute of Architects, August reported an index of 41.7, down 1.4 points from the previous month (any score above 50 indicates an increase in billings).  Both the project inquiries index and the inquiries for new projects score was 55.2.

2000 St James Place (444), a 335,027-square-foot, Class B office building owned and managed by Cameron Management (713-333-1001), has been awarded LEED-EB v2.0 Gold for Leadership in Energy and Environmental Design for Existing Buildings by the U.S. Green Building Council.  Sustainable features currently at the property include water efficiency, innovation and design features, new energy and atmosphere systems, and 1.71 acres of landscape.  Located in Galleria/Uptown submarket (491P), this 12-story, 32-year-old multi-tenant office building was last renovated in 2006.

Houston witnessed several new appointments to executive-level positions of its commercial real estate firms, during the month of September.  Charles Fertitta Jr. has joined Colliers International (713-830-2135) as Senior Vice President, Office and Industrial divisions.  Suan Tinsley has rejoined Fingers Co. (713-864-3313) as Vice President of Operations.  Todd D. King, formerly in principal and partnership roles with Opus West Corporation and Transwestern, has joined Vantage Houston Inc. (713-780-4300) as Executive Vice President, Business Development.  Alejandro Colom has joined Brave/Architecture (713-524-5858) as Associate Principal, public sector projects.  Steven Otermat has joined Martin Fein Interests (713-683-4810) as Vice President and Controller.  Faron Wiley of CB Richard Ellis (713-881-0900) has been titled first Vice President, Industrial Brokerage.

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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