Ray’s Buzz: O’Connor & Associates Land Forecast Luncheon-Speaker: Davis Adams, Managing Director, JLL

• As infill development continues in multi-family and retail, land prices continue to rise
• Increasing density equals increasing traffic on our streets-we are all noticing that
• Houston area population has grown from 6 to 7 million in last ten years, and is projected to grow by 3 million more in the next 10-15 years…the equivalent of moving the combined populations of Austin and San Antonio into Greater Houston-how will all the cars fit?
• In spite of our hearty growth rate, the DFW Metroplex is growing just a little bit faster
• Oil industry technology continues to lower the cost of producing oil & gas, which has mixed results for the Houston economy
• Infill land prices are ranging from $80-120 in The Heights and from $20-35 in nearby Garden Oaks

Click to read more at www.rednews.com.

Ray’s Buzz: All Systems Go In The Industrial Market

United State Industrial Market-Takeaway:
All monitored US markets have industrial rates in the single digits, and occupancies are expected to remain high ongoing. E-commerce warehousing demand to accommodate sorting, distribution, and logistics is strong and we are seeing higher (even multi-story) warehouses as developers work with tenants to meet their evolving needs. Labor markets are tight and will get tighter, resulting in rising wages. Asked rents are rising and this may offset projected rising interest rates over time. Industrial remains the most attractive segment to lenders and investors alike. Click to read more at www.rednews.com.

Ray’s Buzz | May 2019


Takeaway: Graduate students presented what their generation wants in their city, and seasoned developers present three mega-projects currently in planning which will deliver to the Millennials what they want.

● Active lifestyle
● Walking and public transport, life less dependent on the automobile; more protection for pedestrians and cyclists
● Public places for human interaction such as shops and restaurants
● Healthy food
● Safe neighborhoods
● Quality healthcare availability at reasonable cost
● Office space designed to please users; more work from home
● Workspace customized for productivity and comfort, fewer private offices
● Flex time; more open space; consideration of tending to family needs during the week
● Rethinking how people use space; dedicated office space will shrink going forward
Click to read more at www.rednews.com.

Ray’s Buzz | April 2019

CCIM Luncheon
Speaker: Ed Emmett, Former County Judge-Harris County

Takeaway: Governance in Harris County has evolved in a way that is unique to any city of our size in the world: Houston, 32 other municipalities, and a population living in the unincorporated areas, which, if it were one city, would be the fifth largest in the U.S. This creates governmental / administrative challenges for us, moving forward.

● To ensure its growth would not be choked by a ring of smaller cities, Houston years ago annexed the highways leading into the city throughout the county, and created an Extra Territorial Jurisdiction (ETJ) which froze all existing small municipalities and prevented them from expanding ● Many citizens in the Houston area prefer to live in the suburbs for the schools and for larger, more affordable homes
● Expansion of subdivisions in the ETJ is done by forming legal taxing entities – not cities- called Municipal Utility Districts (MUDs) which build utilities and roads which are to the specifications of Houston but which remain ‘in the county’, not in Houston.
Click to read more at www.rednews.com.

Ray’s Buzz – March 2019

No indications of recessions this year or next
● Houston & Texas economies much stronger than
national economy by many indicators
● Turn off TV and read books the rest of your life-TV and
especially cable news are nothing but propaganda designed
to upset you and sell advertising
● Above all don’t make business decisions based on what you
hear on TV
● Top one-third of home market experiencing slow sales,
while bottom third is booming
● Wages are averaging 3% growth
● There is high consumer confidence, and the current
expansion is in 116th month, the second longest in history
Click here to read more at www.rednews.com.

Ray’s Buzz – February 2019

CCIM January Luncheon
Speaker: Patrick Jankowski, Sr. V.P. Research-Greater Houston Partnership

Takeaway: No recession in sight for the Houston or for the national economy.

• Oil prices need to find their ‘sweet spot’ for both the Houston and
the national economies
• ‘Recession’ is defined as two consecutive quarters of negative
growth-in spite of the negative things in the news these days, a
recession does not appear to be indicated any time soon
• In fact, the economy is still expanding locally and nationwide as
measured by all indicators
• The US economy expanded by creating 312,000 jobs last month,
which is strong, and more jobs = more consumer buying power
• The US economy last month showed 3.9% unemployment, which is
tantamount to full employment
• Consumer confidence is still rising; consumer debt is at a low point, so
if a recession were to come we would be in good shape to handle it
Click to read more at www.rednews.com.