Developers Can Survive Oil Depression By Diversifying
Office development has screeched to a halt, but Howard Hughes is unfazed—it started clearing the site for its first-ever self-storage project yesterday, and is gearing up an expanded multifamily focus. That kind of diversification is one way developers are making it work. That's why we're excited to host Bisnow’s New Construction & Development event Aug. 12 starting at 7am at the Royal Sonesta.
Howard Hughes EVP Peter Doyle (a speaker at our event, he's pictured in Hughes Landing) tells us the firm has two tracts in The Woodlands for self-storage, where it plans to build 60k SF. It’ll break ground in two to three weeks when the sites are cleared. Howard Hughes was drawn to the property type because it ties in well with residential/multifamily activity, is in great demand across the US, and gets low cap rates when sold. It plans to build self-storage in its master planned communities nationwide, and Peter tells us it could expand beyond its communities if the properties do well.
Howard Hughes is also pushing forward on multifamily developments, Peter says. Hughes Landing’s One Lakes Edge (pictured) was the firm’s first self-performed apartment project, and it has its second and third planned in Maryland and Vegas. It’s also looking into building a second multifamily tower in Hughes Landing, which Peter says would probably be 250 to 400 units and could break ground in about six months. Howard Hughes is loving the niche, and Peter tells us it’s considering building age-restricted senior living projects as well. Join us for Bisnow’s New Construction & Development event Aug. 12 starting at 7am at the Royal Sonesta. Sign up here.