Memorial City Development
Hartman Income REIT has prime office space available at 11811 North Frwy, located just 1 mile from Exxon Mobil & ten minutes from IAH. For leasing info, click here.
We did some good old fashioned digging yesterday and found a gem—MetroNational is gearing up its latest office development in Memorial City.
Tenants of the Bally Fitness Shopping Center
at 9801 Katy Freeway (built in '01, 49k SF) temporarily shut down on Nov. 1 in preparation. MetroNational declined to comment on its plans, but Le Peep confirmed for us that the center will be demolished and an office tower will be constructed on the 3.4-acre
site. It was informed there will be a 14 to 16-month
construction process, and then Le Peep will reopen as ground-floor retail
in the tower. We've learned the tailor in the center has also snagged a spot in the new project. Not returning is former anchor Bally's: The local stores were purchased by Blast Fitness, which closed this location—among others around town—this February. (What are they doing with old treadmills? We've got some new clothes but nowhere to hang them.)
Me Generation Defines Student Housing
By 2030, a quarter of the population
will be Baby Boomers
and they won't accept the traditional nursing home
facility. They'll look for home-based community services or active-living
retirement communities. (No more bingo; bring Grandma an Xbox One.) Marcus & Millichap national seniors housing group investments VP Doug O'Toole
tells us most investors didn't even consider seniors housing properties an asset class a few years back. But, in the next six years
, seniors 75 and older
are projected to leap 18% to 23 million
. Even more astounding is the wave of boomers that will follow. In Texas, the 60 and older
population will increase 50% by 2040
That's leading to demand for more assisted living and dementia facilities
than ever before; the dementia
need alone is expected to grow 50-fold
in the next 30 years. Houston is doing its part to keep up: We have 1,172 units
of assisted living and dementia facilities being permitted, the most
of any US city. Doug says the Baby Boomer population will demand better care through more proficient facilities in a home care environment.
What he anticipates are seniors staying home longer
or moving into facilities that won't mirror the nursing home concept.
Doug (here with his two sons; he has four daughters, too) and his seniors housing team have several
skilled-nursing and assisted-living facilities listed
; he tells us it's a seller's market
and they wish they had more product. There's huge demand, the money is available, and interest rates are low. Seniors housing projects, on average, get higher returns
than traditional multifamily, Doug says. Seniors and healthcare properties may be more management intensive
, but the payoff can be huge
. (There's new potential tenants every day, thanks to Father Time.) It is not an asset for the faint of heart, but when done right, the long-term gains can be significant, he says. Well-run properties earn high-end returns; and supply is constrained because construction is behind the curve.
Is Tenant Rep Evolving?
CBRE managing director Trevor Hightower
(who leads the firm's "occupier" or tenant rep group) says the times, they are a'changin. Business is becoming more sophisticated
; it's no longer sufficient to only know the marketplace
(buildings/owners/pricing) and negotiate great deals. Now tenant reps need to understand the inner workings
of companies as well as any private equity pros. His team solves backwards
to real estate, leaving it until the end of deals, after they understands clients' mission and objectives—and that often involves multiple services (capital markets, workplace strategy, and labor analytics, to name a few).
When thinking about "where the ball's going to be" (above, he's playing linebacker
at the Air Force Academy), Trevor sees a few trends that will shape the industry: collaboration, globalization,
. The top brokers of the future will have very strong online brands
, he says. He also predicts continued consolidation
in the brokerage industry over the next few decades. Much like the energy industry's "great crew change," there is incredible opportunity for the next generation of brokers, who in 10 years will move into roles of great significance
in this city.
Skanska's Houston team went back to school. Here are its Lauren Webb
, Kelly LaCalli
, Laura Flores-Urquidi
, Asmir Ibisevic
, and Brittany Ginther
at JR Harris Elementary School. Skanska presented the results of its school supply drive, more than $2,500
for the local Communities in Schools
program. (Black composition notebooks are the seniors housing of school supplies: filled with stories and always in demand.)
Until I am measured, I am not known, yet how you miss me when I have flown. What am I? Tell Catie Dixon, catie@bisnow..