Why investors are scooping up Class B office buildings

As more and more tenants embark on a citywide flight to quality, investors are scooping up older Houston-area office buildings and renovating them back to relevancy, per a Marcus & Millichap report on the Bayou City’s office market.

Local and regional buyers are interested in properties valued at under $10 million, per the report, and are staying cognizant of the amount of energy-related tenants in a property they’re considering buying.

Click to read more at Houston Business Journal.


Houston riskiest market nationally for multifamily investors

Houston is considered the riskiest multifamily market nationally for apartment investors, according to a new report.

MPF Research calculated the risk level and probability of a rent recession in apartment markets across the country. The multifamily arm of Carrollton, Texas-based Realpage (Nasdaq: RP) looked at a variety of factors, including rent, absorption, occupancy rates, inventory and local economic trends, over a period of nearly 20 years.

Click to read more at Houston Business Journal.


Is Houston’s office market really in recovery?

Since the presidential election, one local real estate economist said he sees national enthusiasm everywhere. The promise of new jobs and less regulation has both individuals and corporations optimistic for 2017, even in Houston, according to Mark G. Dotzour, a real estate economist who presents his findings across the country.

Click to read more at Houston Business Journal.


Luxury apartments to rise next to Memorial City Mall

Houston-based MetroNational, which owns the 265-acre Memorial City mixed-use development, will soon add luxury apartments adjacent to Memorial City Mall.

The eight-floor, 327-unit midrise will be at the northwest corner of Barryknoll Lane and Memorial City Way, currently a parking lot just southwest of the mall. The project is slated to break ground this month, and apartments are expected to open in the summer of 2019, according to a statement.

Click to read more at Houston Business Journal.


Houston ranks as second fastest-growing economy in U.S.

The Houston metropolitan area saw the second highest-growth in its gross metropolitan product, according to a new study from the Brookings Institute.

The Houston area grew 28 percent between 2010 and 2015, trailing only the San Jose, California, area, which grew nearly 36 percent over the same time period. San Jose’s growth was due in large part to its information and professional service sectors, while Houston’s energy, wholesale trade and hospitality sectors contributed to its growth, according to the 2017 Metro Monitor study from the Brookings Institute.

Click to read more at Houston Business Journal.