As land prices rise, retail and multifamily go head-to-head

If a retail developer and a multifamily developer are in a bidding war for a prime tract of land, put your money on the multifamily developer.

More often than not, apartment developers can far outbid retail developers for land, sometimes bidding twice as much as a retail developer could. It’s for a simple enough reason – apartments have more revenue streams stacked atop one another than a one- or two-story retail development – but these bidding wars are leading to the development of more mixed-use projects in Houston.

Click to read more at Houston Business Journal.

These are Houston’s long-term commercial real estate strengths and challenges

Though there’s a few more weeks left in 2017, the year has proved itself as one of the most eventful for Houston’s commercial real estate market.

Hurricane Harvey sent demand for the city’s multifamily and hotel sectors skyrocketing as displaced Houstonians continue to seek out temporary lodging. Houston’s industrial market, in large part due to an influx of demand from e-commerce giants like Amazon and others, has maintained a vacancy rate of less than 5 percent and established Houston as a formidable distribution hub. Meanwhile, the city’s office market continues to buckle under the weight of its 10 million square feet of available sublease space.

Click to read more at Houston Business Journal. 

New Upper Kirby director: ‘We’re scraping the tip of the iceberg’ on reimagining the district

Though the Upper Kirby District’s longtime executive director recently announced her retirement, the district’s new leader, Travis Younkin, is stepping up to the plate with no shortage of improvements underway.

Jamie Brewster retired on Nov. 1 after leading the district for 30 years. Under her tenure, the Upper Kirby corridor was reimagined as a luxe, upscale district with plenty of fine dining and retail. Last year, the district’s $25 million investment into the 5.6-acre Levy Park at 3801 Eastside St. was unveiled and added performance space, activity lawns, a dog park and space for a restaurant. Brewster also oversaw more than $75 million in roadway and drainage improvements.

Click to read more at Houston Business Journal. 

These are the largest blocks of direct office space available in downtown Houston

If you’re looking for a new office space in Houston’s Central Business District, you have plenty of choices.

The 15 largest spaces available for direct leases range from 1,314,350 square feet to 182,129 square feet. In total, there was 8.2 million square feet available for direct leases in the district, as of Sept. 29.

Click to read more at Houston Business Journal.

Houston brokers see a potential slowdown in retail developments in 2018

Houston may see a slowdown in retail development in 2018 – but that probably isn’t a bad thing.

“Two years ago, there was no end in sight (to retail developments),” said Jason Baker of Baker Katz LLC. “That seems to have changed a bit.”

The Houston market is currently sitting on a retail vacancy rate of 5.6 percent, according to research from NAI Partners, so less development is welcome as retail tenants continue to figure out how to adapt in the age of Amazon and the rise of e-commerce.

The city’s retail occupancy rate is currently at 94.4 percent, and demand is still high, so a slowdown in retail developments means sustained rent rates and occupancy, Baker said.

Click to read more at Houston Business Journal. 

These are Houston’s largest industrial leases so far in 2017

A slew of factors – the city’s booming petrochemical business, more demand from distribution users and even Hurricane Harvey – have all contributed to Houston’s robust pipeline of industrial leases signed so far in 2017.

The 10 largest industrial leases signed in Houston in 2017 as of Oct. 17 account for nearly 4 million square feet of leased space. 

A slew of tenants – retailers, third-party logistics companies, a global automotive brand and plenty of companies tethered to the energy and petrochemical industries – fueled the city’s biggest deals. And while the Port Houston area absorbed many of the leases, there were plenty of deals closed in the northwest Houston area.

Click to read more at Houston Business Journal.