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Real Estate Bisnow
   
January 16, 2013 
 
 
Houston:
We Have Greystar

Kirksey Architects is a sponsor of our Future of The Energy Corridor event on Feb. 1. Click here to learn more about this Houston-based company dedicated to great architecture and all things sustainable. To register for our event, click here.

 
With the 392-unit Elan Avenue R slated to open in May and a 281-unit Elan Med Center Houston project coming this fall, Greystar multifamily giant founder Bob Faith tells us Texas job growth is driving demand for more product here. (There are too many people coming to town, they can't all sleep on couches.)

 

Bob Faith
Bob says the tightening cap rates on acquisitions of core multifamily properties in core markets are chasing capital to development in high-barrier-to-entry markets, hence the 7,586 units across 24 properties Greystar now has under development in the US.
 
Brookfield Mini3 HOU
Elan Avenue R construction
He tells us Greystar remains very bullish on Texas. “We continue to see strong job growth and population growth, which is driving demand and absorption for new product." Texas job growth is strong right now with Houston, Dallas, Austin, and San Antonio forecasted to have over 3% growth in employment over the next three years. "The turbocharged energy industry is keeping growth in high gear,” he says. Last year, Greystar opened the 300-unit Woodlands Lodge. Pictured: Elan Avenue R construction. (From this angle that building looks like a "2." Coincidence or DaVinci Code conspiracy?)

Breaking Records
 
Paul Coonrod
Stream Realty managing director Paul Coonrod offered some reasons foreign investors love us: office rents and sales prices are surpassing historic highs. Top tier Class-A CBD product is now over $30 NNN, and core product in the Galleria, Westchase, and The Woodlands are close to that, an all-time high for those areas. Top tier product in eight of the nine major submarkets have vacancy below 5%, again hitting records in many areas. Stream’s hoping to reap the benefits: It added 11 office buildings totaling 2.3M SF in 2012.
Ralph Tullier
Stream managing director Ralph Tullier tells us The Woodlands is the most active retail market today, thanks to growth around the Exxon campus. He thinks West Houston will be the next hotbed because of the strong energy sector and expansion of the Grand Parkway and Energy Corridor. Leasing inside the Loop has remained strong, and new retail corridors are popping up in the Heights, Midtown, and along Westheimer. There’s been limited new construction, but he expects that will ramp up this year as anchor and junior tenants get more active and mixed-use projects kick off.

Energy Corridor District Heats Up
 
Lisa and Clark Martinson
As the general manager of the Energy Corridor District, Clark Martinson (his wife Lisa is seen here tolerating his off-hours silliness) oversees the district's involvement in master planning, transportation, parks and trails, public safety and business development. He coordinates with property owners and companies representing more than 20M SF of office and mixed-use space and more than 78,000 jobs. Since its creation in 2001, property values in the district have more than tripled, from $600M to over $2B with $1B more planned or under construction. During this time period, other governmental agencies have invested over $469M in public infrastructure. The Energy Corridor District works to create a high-quality environment where young families want to live and where more global energy companies want to locate. For more info on our sponsor, click here. And check out our event on the submarket Feb. 1.

Houston in Top 5
 
Jim Fetgatter
For the first time ever, we’re among the top five cities targeted by foreign investors. (Take that, Decatur, Illinois!) Houston was ranked fifth globally and fourth nationally in the latest survey of the Association of Foreign Investors in Real Estate. AFIRE CEO Jim Fetgatter (here, visiting Shanghai) says energy and tech are considered the top drivers of the next economic wave, thus the lift for cities like Houston and San Francisco.
 
US
Houston made significant leaps this year: In 2011, it was ranked seventh domestically and wasn’t mentioned in the global list. New York remained at the top of both rankings. Foreign investors showed a lot of confidence in the US in general; we were overwhelmingly first-ranked in providing opportunities for capital appreciation. 55% called it the most stable and secure real estate investment option. 81% of respondents plan to increase their US portfolio, and four of the top five global markets are US cities.

Upcoming Bisnow Events!
 
Friday, Feb. 1, 7:30am-10:30am. Bisnow's Houston Future of the Energy Corridor. Hear experts talk about the area with over 20M SF of office space and another 13M SF projected by 2030. Register today.
 
Hamsters are like cigarettes, perfectly harmless until you put one in your mouth and light it on fire. Send news to Catie Dixon, catie@bisnow.com.
 
 
 
 
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