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.

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Office broker: This submarket is the best Class A value in Houston

Greenspoint is down, but it’s not out.

The embattled submarket, which has technically been known as the North Houston District since late 2016, is no doubt facing an uphill battle. In 2015, it lost its largest Class A office tenant, Exxon Mobil Corp. (NYSE: XOM), which dumped 2.2 million square feet of Class A office space onto the market when it consolidated employees in Springwoods Village.

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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.

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Why this Austin multifamily firm is investing in Houston

John Latham is on the hunt for apartments to invest in Houston.

In October, the CIO of The PPA Group purchased the Austin-based multifamily firm’s first Houston apartment: Cypress Ridge, a 252-unit garden-style complex built in 1980 near FM 1960 and Interstate 45 northwest of Houston. The PPA Group is now under contract to purchase its second Houston property, a 200-unit apartment complex nearby, set to close this month.

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Houston commercial real estate brokerages buck hiring trends, continue growth

The energy downturn has not stopped the city’s largest 25 commercial real estate brokerages from hiring licensed professionals, according to HBJ research.

Of the 25 brokerages ranked on HBJ’s 2017 Largest Commercial Real Estate Brokerages List, 56 percent — or 14 firms — have added more brokers and agents since last year. Only six companies reported a loss in licensed professionals with an average loss of only about four brokers. The remaining brokerages reported consistent broker and agent counts with last year.

Click to read more at Houston Business Journal.