Tag Archive | "Houston"

Houston Real Estate Eyes Recovery

The commercial real estate sector in Houston has shown impressive signs of growth in the past few months. It looks as if the city will soon see office expansions and commercial real estate development throughout the upcoming year.

The commercial real estate growth that is taking place in Houston is largely due to the booming energy industry. Oil prices have increased, and there has been a boom in shale exploration. As such, the city has regained every job that is lost during the recession, and will likely add many more throughout this year.

In the last year alone, nearly two million square feet of commercial real estate was purchased. That number looks to grow even larger this year, as companies like Exxon Mobil look to expand their offices even further.

Part of the growth can be attributed to companies looking to take advantage of deepwater drilling and shale drilling opportunities. Companies such as Nexon, a Canadian energy company, have opted to relocate to Houston to take advantage of the drilling possibilities.

Office costs have seen significant improvement in the last twelve months, increasing from fifty-eight dollars per square foot just two years ago to two hundred and twenty-four dollars per square foot last year. One of the most recent commercial building sales in Houston went for a record five hundred and twenty-four dollars per square foot.

With job growth on the rise, there is no doubt that Houston will be home to one of the fastest growing and strongest housing and commercial real estate markets in 2012.

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Housing Market in Houston Finishes 2011 with Gains

While years prior have been very difficult for the Houston residential real estate market, things are finally starting to look up for the city. Analysts are now considering Houston to be a healthy property market after December of 2011 marked the seventh straight month of price and sale increases.

The residential real estate market in Houston posted its first yearly average price increase from 2010 to 2011 since the real estate crisis began.

Residential property analysts are attributing the increase to a variety of different factors. Housing inventory in Houston reached its lowest level in two years in December of 2011. The decreased supply will likely lead to increased demand and positive growth in property pricing in Houston, particularly as single-family home sales continue to increase each month. The median sales price for December hit a new all-time high in the city of Houston. The positive increase in both sales and pricing is a very good indicator that the housing market in the city has regained its health.

Both single-family home and condominium rentals increased in December in Houston as well. With the inventory of homes for sale reaching its lowest point in over two years, the market is outpacing the rest of the country.

While there is much to be celebrated about Houston’s housing market, there are still some concerns over foreclosure sales. They accounted for a fifth of all property sales in Houston, which is still rather high. Analysts believe that once foreclosure sales decrease, housing prices will rise even further.

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Houston Property Market Grows for Sixth Straight Month

While the residential real estate markets of many Southwestern cities have experience immense struggles in the past few years, Houston’s residential property market has demonstrated strong growth in the last six months.

The most recent reports indicate that home sales in November increased yet again in November. As a result of the increased sales, overall inventory has fallen and the housing market is looking healthier than it has since before the real estate crash crippled the industry.

Home sales were up more than eleven percent from a year earlier, and all but one sector has experienced growth. The only market to see a decline in sales was the luxury market, where houses are priced at five hundred thousand dollars or greater. Ironically, the numbers are entirely opposite in many other markets, in that the luxury market is the only sector that has experienced any kind of increase.

Part of the reason for Houston’s overall housing market growth is that the economy in the city is showing strong signs of stabilization. More than eighty thousand jobs were added in the city, and more are expected in the near future. Consumer confidence is also up in Houston, which is another contributing factor to the improvement in the residential real estate market.

Prices are still down from previous years due to the increase in foreclosures on the market. However, as inventory continues to decrease, prices will likely increase beyond their 2010 levels. Inventory levels are already at their lowest point in almost twenty-four months, and will continue to drop in the coming months.

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Houston’s Louisiana Street Named One of the Nation’s Most Expensive

With yearly rents averaging over thirty-five dollars per square foot, Louisiana Street in Houston, Texas has been named one of the most expensive streets in the United States. The street includes the ING Clarion skyscraper that is home to Goldman Sachs, the US Attorney’s Office, and Dynegy. The skyscraper is the most expensive in the city of Houston, valued at five hundred and fifty million dollars.

Other streets and developments within the city of Houston are looking to catch up to Louisiana Street. With the construction of many close-in retail properties, urban centers are able to demand higher rent prices than ever before. Many urban centers generate high amounts of pedestrian foot traffic, making them ideal for retailers. Various retails, such as Michaels, Walmart, Sports Authority, and more are all looking to lease property in the higher end urban areas of Houston.

Although Louisiana Street made the list as being one of the most expensive streets in the country, it pales in comparison to the top three. Sand Hill Road in Menlo Park, California has been ranked as the most expensive. Rents on that street run as high as one hundred and fourteen dollars per square foot. Fifth Avenue in New York City comes in at number two, with rents topping ninety-seven dollars per square foot. Finally, Greenwich Avenue in Greenwich, Connecticut ranks at number three, with rents costing as much as ninety dollars per square foot.

Despite not being in the top three, it is clear that properties on Louisiana Street are in high demand, and surrounding streets are certainly benefitting, and coming close to matching the higher rent figures.

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