Category: Southeast Texas

HOUSTON OFFICE | Q1 2020 Quarterly Market Report

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EXECUTIVE SUMMARY

Vacancy rate at 21.5%
The overall vacancy rate in the Houston office market was up 20 basis points quarter-over-quarter, and up 70 basis points year-over-year. The vacancy rate for Class A properties is at 22.2%, and Class B at 22.3%. In the first quarter, overall net absorption totaled negative 207,280 sq. ft.—Class A represented positive 207,297 sq. ft. and Class B corresponded to negative 363,773 sq. ft. Of the 3.4 million sq. ft. currently under construction, about 42% of that space has been spoken for. Of the three properties completed in 2020, totaling 300,000 sq. ft., 97% of that space is leased. The overall Houston average asking full-service rent is at $29.33 per sq. ft.—down from year-end 2019’s $29.84 per sq. ft.—while the Central Business District is averaging $39.34 per sq. ft.

Houston economic indicators Houston started 2020 with healthy job gains—led by leisure and hospitality, and health industries. Serviceproviding industries were accelerating, while goodsproducing sectors had slight contractions, with modest to no growth in manufacturing. However, oil and stock markets have been whirling from the impacts of COVID-19 on world economies and a flood of crude from OPEC. As noted in NAI Partners’ Houston Office Market QuickTake, these factors have cast a weighty shadow over the outlook for the region. On a year-overyear basis, Houston grew 2.3% (71,100 jobs). Houston’s unemployment rate was flat at 3.8% in February. For comparison, the February unemployment rate was 3.5% in Texas and 3.5% in the U.S. This data precedes the coronavirus (COVID-19) outbreak in the U.S.

Houston Industrial and Logistics Summit RECAP

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• Waller County in the past was resistant to growth and that has changed since residents have seen the strong tax base which can come from industrial users who need to grow out of Houston; the County realizes now that high-paying jobs can come with industrial development as well; the County has few drainage issues since it has slightly rolling terrain; a new rail-served park is in place; the world’s largest cricket field is coming to Prairie View, emblematic of Houston’s diversity; the conversion from Ag land to industrial tax base can have a huge economic benefit to the County, and the residents have realized the difference this makes
• La Porte works diligently to balance the needs of citizens with needs of industrial users, but available land is dwindling, and remaining tracts in some cases are being hoarded for future use as City Fathers try to get it into ‘best hands’; high tax base from industrial users enables high-end services to local citizens; the City realizes that ‘time is money to developers’ and it makes available meet-ups where a developer can come and sit down with all City department heads in one meeting to determine the level of support for his proposed land use
• Storm surge and inundation was minimal in La Porte during Harvey; nonetheless, attention is being given to future weather issues; a Tri-County cooperative effort has been established including Baytown and Chambers County after severe flooding in the Cedar Bayou watershed from rain and rising water which saw 6-8 feet of water invade a large industrial development which had been recently completed; the cooperative group is seeking regional, state, and federal dollars for future deluge and storm surge prevention, while pre-Harvey there was minimal cooperation

Click to read more at www.rednews.com.

Avison Young releases its First-Quarter 2020 Houston Office Market Report

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Houston, TX — According to Avison Young’s First-Quarter 2020 Office Market Report for Houston, all class property types in the city experienced losses during the first quarter, but suburban class A properties reported positive absorption with 124,310 square feet (sf). “Prior to the pandemic, Houston’s economic fundamentals were healthy, but the energy sector’s recovery struggles have now been compounded with an oil price war,” notes Rand Stephens, Avison Young Principal and Managing Director of the firm’s Houston office. “It’s an uphill battle, but this is an interruption we will learn from and overcome.” According to the report, the pipeline for construction is growing, although limited to 21 buildings totaling 3.8 million square feet (msf), 45% of it is currently released. “These unprecedented times have slowed commerce to a near halt,” comments Avison Young Principal Anthony Squillante. “However, if tenants are willing and able to transact, landlords are likely to offer aggressive concession packages in response to social distancing and work-at-home orders in an effort to keep their building’s occupancy rate up.” Click to read more at www.avisonyoung.us.

Helping the Helpers: Houstonians Step Up to Assist Frontline Workers

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In times of trouble, parents often turn to the reassuring advice of Fred Rogers: “When I was a boy and I would see scary things in the news, my mother would say to me, ‘Look for the helpers. You will always find people who are helping.’” We are certainly in times of trouble, and we don’t have to look far to find the helpers. Within our own neighborhoods, there are individuals who have stepped up to assist. In particular, several individuals are mobilizing to help those who are themselves “helpers”: the frontline workers combatting coronavirus in their jobs every day. In the Memorial area, for instance, The Houstonian Hotel offered free barbeque to-go to first responders at an event this week. Throughout the day, Houston Police and Fire Department personnel drove through the hotel’s entrance while hotel staff placed the barbecue meals in their vehicles. “Like most Houstonians, we wake up every morning and ask ourselves what we can do,” Hotel General Manager Steve Fronterhouse said in a statement. “We respect these men and women and know it’s a small gesture, but it is certainly something that’s heartfelt for us.” In Bellaire, resident Samir Mehta enlisted his friends Jennifer Cross and Kristi Coffey to organize a sustained effort to bring lunch and dinner to frontline healthcare workers at several local hospitals. It all started with just one meal. Click here to read more at www.thebuzzmagazines.com.

Local Food Rescue Nonprofit, Hess Corporation & Sysco Now Serving Houston’s Hospitality Industry

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FOR IMMEDIATE RELEASE: April 7, 2020

Second Servings of Houston teams up with Hess Corporation and Sysco to distribute 10,000 chef-prepared meals every week beginning April 9th

HOUSTON, TEXAS (April 7, 2020) – With the COVID-19 crisis upon us, Second Servings is devoting time and resources to a new group of Houstonians in need: hospitality workers. Partnering with long-time supporters, Hess Corporation and Sysco, Second Servings announces the “Dinner’s On Us” Program focused on providing take-home chef-prepared family meals to furloughed and unemployed hospitality workers in Houston. “We saw the impact first-hand last month, when we rescued valuable perishable food from hotels, event venues, business cafeterias, schools and restaurant kitchens that were forced to close,” Second Servings Founder Barbara Bronstein said. “We created this program because we wanted to help the people who serve the community and donate surplus food to us all year
long.” Beginning Thursday, April 9, Second Servings will distribute 10,000 meals, prepared by Hess Corporation’s Food Services team, each week to unemployed hospitality staff, such as restaurant workers, hotel housekeepers and convention service workers. Every Tuesday and
Thursday from 10 a.m. – 12 p.m., the meals will be distributed in a contact-free drive-through procedure by Second Servings’ volunteers at 702 Avenida De Las Americas, Houston, TX, 77003 in the LAM parking lot. The freshly prepared and frozen family meals serve 7-8 people and will feature hearty comfort food, such as chicken ‘n biscuits, red beans, and rice and penne pasta with sausage. Sysco Houston is donating and discounting the food being prepared, as well as providing storage assistance. “The global COVID-19 pandemic has brought the travel and hospitality sectors to a near halt,” Hess Corporation Global Dining Manager Randy Fournier said. “The consequences have been devastating for hotels, restaurants and others in the hospitality industry. In keeping with our values, Hess is pleased to provide some relief when needed most to those who typically serve others.

The J. Beard Real Estate Company facilitates sale of 5 acres of land to Geronimo Adventure Park

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The Woodlands, Texas (April 3, 2020)

Diana Gaines of The J. Beard Real Estate Company has recently represented DL Lincoln Distillery, LLC, in the sale of five acres of vacant land to Holland’s Road, LLC. The land is located at 6753 FM 2920, Spring, Texas, which is off Lee Road and FM 2920, west of Kuykendahl. The property will be used as expansion to the adjacent eight acres under construction for Geronimo Adventure Park, which is slated to open Summer 2020. The park will be an adventure experience for families, groups and individuals. It will feature 16 zip lines across three zip line courses, including a beginner course, a course with an aerial park and a 555-foot tandem zip finale, and a course with a 42-foot free fall jump station finale. For more information go to: www.geronimoadventurepark.com. The seller, DL Lincoln Distillery, makes Cotton Hollow Whiskey. They moved their production to Bardstown, Kentucky. Cotton Hollow’s first batch was sold in Texas in 2014 and Texas continues to be Cotton Hollow’s largest market. For more information go to: www.cottonhollowwhiskey.com. The J. Beard Real Estate Company, LP, headquartered in The Woodlands, TX, is a commercial real estate brokerage firm that offers services which encompass leasing, brokerage, site acquisition, property management, development, consulting, and landlord/tenant representation services. The firm is considered an industry leader in commercial real estate with a primary focus on the Greater Houston market, including Montgomery County and North Houston. To learn more about The J. Beard Real Estate Company, visit www.jbeardcompany.com.