The Lamar Hunt family, which owns the Kansas City Chiefs football team among other diversified holdings, is making a play for Houston industrial real estate. Dallas-based Hunt Southwest Real Estate Development plans to develop a speculative building that will contain up to 509,600 square feet at 17440 U.S. 59 in Humble near Bush Intercontinental Airport. The site was purchased from JM Texas Land Fund No. 2 LP for an undisclosed sum. “We really looked all over the Houston metro area for the right site for our first development in the Houston area,” said T. Preston Herold, senior vice president of Hunt Southwest. “It’s tough to find a well-priced and well-located industrial site in the Houston area. We think we found one with the 59 Logistics Center site.” Click to read more at www.mysanantonio.com.
Vacancy rate at 21.6%: The vacancy rate in the Houston office market was close to unchanged quarter-over-quarter, up 10 basis points from Q2 2019. The amount of vacant office space on the market is approximately 51.1 million sq. ft.—comprised of 47.6 million sq. ft. of direct space and 3.5 million sq. ft. of sublease space. The Central Business District vacancy rate is at 24.9%, up slightly from this time last quarter at 24.7%, while the Energy Corridor vacancy rate is at 32.7%, down 70 basis points from 33.4% in Q2 2019. Net absorption moved into positive territory at 58,000 sq. ft. compared to this point last quarter when the total was negative 700,000 sq. ft. The increase was primarily due to significant move-outs in Q2 2019 that included HP vacating 260,000 sq. ft. at 11403 Compaq Center W. Dr. and BP vacating nearly 195,000 sq. ft. at Three Eldridge Place in the Energy Corridor. Of the almost 2.5 million sq. ft. currently under construction—57% of which is being constructed downtown, about 35% of that space has been spoken for. The overall Houston average asking full-service rent has steadily grown over the past years to its current rate of $29.32 per sq. ft., while the Central Business District is averaging $41.41 per sq. ft. Click to read more at www.naipartners.com.
When Gensler employees come to work at the company’s new downtown offices, they’ll be able to set up in one of at least six workspaces. If they’re feeling stressed out, they can step into a “wellness room” to decompress. Those who bike to work will be able to take an elevator straight into the office, which will have its own bicycle storage. “A lot of people ride their bikes to work and it seems like we’re getting even more, so we decided to accommodate a large number of bikes in the work area,” said Gensler’s Vince Flickinger, who was part of the team that designed the company’s new space in 2 Houston Center. The architecture firm signed a lease earlier this year for 50,000 square feet on two floors of the building at 909 Fannin, part of the larger Houston Center office complex on the eastern end of downtown. The company will relocate from Pennzoil Place once construction on the new space is complete. Click to read more at www.houstonchronicle.com.
When the commercial real estate firm Cushman & Wakefield looked across the United States and Canada for the “coolest” neighborhoods, Montrose made the top 20. That, says Cushman & Wakefield, makes it prime property. For Houstonians, the announcement may feel obvious. Certainly it’s not news that Montrose is cool? Bob Marley and the Wailers took over a floor of the Plaza Hotel (later Tradition Bank Plaza) in the ’70s, cooking Rasta gumbo as the magazine Texas Monthly got its start in the same building. It was, and still is, Houston’s haven and political center for the LGBTQ community. Beyoncé went to high school there. But for Cushman & Wakefield, the neighborhood’s culture and walkability is of special appeal as retail fights e-commerce to bring customers into stores. “Ignore cool at your own peril,” wrote Cushman & Wakefield when it first started scouting cool neighborhoods in 2016. Click to read more at www.mysanantonio.com.
Houston, TX — According to Avison Young’s Third Quarter 2019 Office Market Report for Houston, the city’s market returned to positive absorption levels after experiencing losses in the previous quarter. Direct net absorption returned to a positive 327,151 square feet (SF). “The local employment growth has been an economic bright spot for Houston,” notes Rand Stephens, Avison Young Principal and Managing Director of the company’s Houston office. “Larger tenants may be downsizing their space and leaning towards efficiency, but they are not downsizing their employee numbers.” According to the report, the direct vacancy rate was a repeat of the previous quarter’s 16.4%, but it is a drop from the year-over-year rate of 16.9%. Overall, the third quarter has shown relaxed leasing activity, a limited construction pipeline and a minimal dip in average asking rates. Click to read more at www.avisonyoung.com.
The Cane Island Parkway exit along Interstate 10 in Katy is tough to miss. A new Buc-ee’s, which boasts the world’s longest car wash, draws a seemingly endless flow of traffic off the freeway. Less eye-catching to the casual traveler, but much more interesting to commercial real estate professionals, is what’s next door: West Ten Business Park, Parkside Capital’s 460-acre master-planned development. Parkside recently sold the final 17.26 acres of West Ten to Insite Realty, a Houston-based commercial real estate company, and joint-venture partner Principal Real Estate Investors. “We were very excited to have the opportunity to buy this site,” says Rives Nolen, Vice President at InSite Realty Partners. Nolen went on to say, “It’s a well-established business park, and we think Parkside did an excellent job of creating an attractive corporate environment for businesses, clients, and visitors. The park has direct access to and from Interstate 10 via the Cane Island Parkway interchange and offers an abundance of amenities, including new roads, utilities in place and attractive landscape features. It also offers convenient access to nearby restaurants, hotels, shopping and, of course, Buc-ee’s.” Click to read more at www.rednews.com.