News

Four Big Land Trends

Houston can’t stop talking about all the development underway, but none of that would be possible without a heckuva lot of land deals. (At least until we figure out how to build floating apartments.) McAlister Real Estate land broker Chris Hutcheson filled us in on the four biggest new trends in his world.

1) Multifamily Isn’t Alone Anymore

Chris (here between his teammates Matt Herring and James Kadlick) tells us he’s got 20 deals working now in every sector of real estate development—multifamily, single-family, office, infill patio homes, retail, and industrial. (He says land is definitely hot when every sector is going strong.) Multifamily is still the strongest, and pricing for those tracts is double and sometimes triple what it was a few years ago.

2) Hello, Retail!

It was the last shoe to drop on the development front, but retail’s back now, Chris says. He’s got multiple retail sites under contract. He’s even seeing big box activity (and not just the grocers and Walmart that have dominated for the past few years) along the Grand Parkway between I-10 and 290 and in the booming suburban residential pockets. And for the first time in years, he’s getting calls from strip center guys who want six to 10 acres.

3) Single-Family Goes Smaller

But it’s not indicative of a slowing sector. Chris says his team has been primarily busy with suburban single-family land sales. They closed 1,500 acres last year, and have 1,000 acres (six or seven deals) under contract now. Most of the activity is on the west side of town, from Fort Bend up to Cypress and everything in between. Whereas a few years ago, homebuilders were snatching up 1,000-acre sites, now most of Chris’ activity is assembling 50 to 300 acre tracts. (It’s not that builders want smaller projects; that’s just all that’s left.) Pictured is a larger single-family deal the McAlister team’s done recently, 320 acres between I-10 and 290 in Katy.

4) Infill is in Demand Across Property Types

Chris says single-family buyers are snapping up one- to three-acre infill tracts to put down higher-end patio homes. Shady Acres, Midtown, the Heights, and the Medical Center are the hottest and have seen land prices double in two years. Often infill calls for mixed-use—Chris’ team just sold six acres at the NWC of Richmond and Post Oak, pictured, to such a buyer. (Chris suspects it’ll go office or multifamily.) He tells us it was a great location, but still was a challenging deal that took three years to close. The big hurdles: Metro’s Uptown right-of-way project and multiple easements involving several adjacent property owners.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Houston Newsletters
Related Stories

16K SF Restaurant, Event Space Opens At 5POP Office: The Houston Deal Sheet

SpaceX Sues Texas AG, Grimes County Over Terafab Project Information

Houston Healthcare's Race For Space Hits A Data Center Roadblock

3,500-Home Margaritaville Active Adult Community Coming To Texas City: The Houston Deal Sheet

Houston Industrial Supply Boom Tempered By Lack Of Equity

Houston Firm Hires Former Floor & Decor Exec As President Of New Offering

Northmarq Hires Prominent Houston Retail Team Away From CBRE

LaSalle IM Buys Stake In 1.5M SF CityWest Office Campus: The Houston Deal Sheet

Houston Suburb MPC Developers Lean On Flexible Financing

Alliance Building Houston-Area Complex Amid Declining Multifamily Construction

Efficiency, Speed And Experience: What CRE Needs To Know About The New Texas Business Courts

How Pearland, Texas, Is Redefining Workforce Development