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Development List For Buildings In Houston


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I read that Houston is only 7th on Emporis for new high rises going up in the country from that Chronicle article yesterday.

 

I didn't see who 1-6 were obviously NY and Chicago but who else I don't know. 

 

I can't find it on Emporis but would be curious why we are so low.

 

Also read that we are only the 10th largest media market, that is important to keep in mind since Census changed how they define a metro area, so it makes us feel like we went up five spots but really not, they just don't count Baltimore/DC and San Francisco/Oakland/others as one MSA anymore.

 

I would like to see if we have a shot of moving up the Media Market size higher than 10, I think we have been at that spot for like 20 years.

 

The statistic is now nearly a year old, and was based on the info available back on January 22nd of this year for cities in North America, not the United States. Toronto was #1, New York was #2 and Chicago was actually #8, just behind Houston.

 

At the time, it was true. Within a month, the number of "under construction" highrise projects had changed, and has grown from 18 at the time of publishing to about 30 as of today. It will likely continue to increase if some of the anticipated projects kick off within the last few months of the year.

 

With regard to the second point, Houston is the 10th largest television market. It is the 6th largest radio market. With regard to the former, it was 10th in the 80s, slipped to 11th in the 90s, then moved back to 10th about a decade ago. Growth has been slow and steady as the former #11 (Detroit) has slipped, with Phoenix now taking that spot. Growth on the radio side has been quicker over the past couple of decades.

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Exactly right, ChannelTwo.  As usual, a Chronicle report requires some clarification.  Just for fun, here is the Top Ten list from Emporis  (again, this is as of the end of 2013).   So, might we move up to No. 3?

 

1.  Toronto                         130

2.  New York                        91

3.  Montreal                         25

4.  Vancouver, BC                23

5.  Calgary                           22

6.  Miami                              20

7.  Houston                          18

8.  Chicago                          14

9.  (tie)  Burnaby, BC           12

     (tie)  Markham, Ontario  12 buildings

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I'm more surprised by Canada's dominance! 6 out of the top 10 and Toronto puts even NYC to shame.

 

Toronto and Vancouver have urban Growth boundaries. In Montreal there is an agricultural law that acts like an Urban Growth Boundary.

 

Burnaby is essentially in Vancouver and Markham is essentially in  Toronto. Maybe they shouldn't be separate on the list.

 

Calgary is trying to curb urban sprawl.

 

Canada will continue to get many towers.

 

I'm more surprised Houston is getting so many towers, though I'm happy to see them.

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Went to see if Greater Houston Partnership Published the November Report yet. Not yet, but the latest figures show Houston has over $25 Billion in construction this year through Sep vs. only $9 Billion through same period last year. Holy Cow Milo Hamilton and Yesss!!!! Gene Peterson that is a lot! and a heck of a lot of growth!

 

I'd like to know how that compares to New York, Toronto, Chicago, and Dallas...wondering if we hit number one in North America this year.

 

http://www.houston.org/pdf/research/quickview/EconomicIndicators.pdf

 

I started looking through the numbers more carefully. It's possible the $25 billion reflects contracts for petrochemical plants. As it is, the permit number for September is stunning - $1.2 billion in one month, which if carried forward would increase the $7 billion annual rate for construction permits to an eye-popping $14 billion (eye-popping, considering $7 billion is itself a record).

 

The only damper is the price of oil, which dropped below $80 a barrel for WTI. It could imply a slowdown in that 4.3% annual increase in number of jobs. I compared that to the rest of the country (using the BLS numbers), and the percentage increase is one of the highest in the country, even compared to small towns. Tomorrow, there may be problems, but right now, it's a party.

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I started looking through the numbers more carefully. It's possible the $25 billion reflects contracts for petrochemical plants. As it is, the permit number for September is stunning - $1.2 billion in one month, which if carried forward would increase the $7 billion annual rate for construction permits to an eye-popping $14 billion (eye-popping, considering $7 billion is itself a record).

 

The only damper is the price of oil, which dropped below $80 a barrel for WTI. It could imply a slowdown in that 4.3% annual increase in number of jobs. I compared that to the rest of the country (using the BLS numbers), and the percentage increase is one of the highest in the country, even compared to small towns. Tomorrow, there may be problems, but right now, it's a party.

youre assumption was correct..

 

 

 

Readers are cautioned that year-to-year comparisons of nonresidential data have become near meaningless because of the billion-dollar contracts for local chemical plant construction that have recently been awarded. McGraw Hill doesn’t provide details on individual contract awards in its data release; therefore, the atypical mega projects can’t be extracted from the total to calculate a more useful year-to-year comparison.

Contracts for mega projects will skew the data over the next several years. They also overshadow other components of the nonresidential sector (office, retail, hotel, warehouse, education, health care, etc.) making it difficult to gauge construction activity in these areas. Residential data, however, is not subject to mega-project announcements, so year-to-year comparisons are more meaningful. GHP will continueto report both nonresidential and residential data, but readers are advised that the chemical plant construction awards will distort the data for some time.

http://www.houston.org/pdf/research/narratives/mc_graw_hill_construction/mcgraw_hill_contracts.pdf

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My thought of the day: what complimentary buildings do you think will be added once all these new residential mid-rise, high-rise buildings go up and are occupied?

 

1. Grocery

2. Restaurant

3. Shopping

4. Rail to get to those things

 

What is needed most say in Downtown for example?

 

It seems to me that retail has really not taken off yet - has been subdued and I wonder if we should expect a mini boom of complementary stuff for the denser core.

 

Groceries will definitely be sought - whether bodegas or something on the order of HEB. There's a food desert in a corridor from 288 through downtown up through the Northside, and with home prices increasing in those neighborhoods, the stores should see plenty of demand.

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Greater Houston Partnership just published the Nov Issue of Economy at a Glance.

 

http://www.houston.org/pdf/research/quickview/Economy_at_a_Glance.pdf

 

It is all about the price of oil and the possible impact on Houston, this is a sobering issue folks, Houston may be on the cusp of a down cycle impacting all our shiny new buildings.

 

Great article. I think Houston is well equiped to handle what could be coming for us. Seems like we are in a much much better position than in the 1980's.

 

I can see the Office market cooling off (hopefully after Capitol Tower and 6 Houston Center). But it did say class B and C buildings will be more affected. So - I hope that doesnt put a damper on the existing announced buildings.

 

In terms of residential, I think Houston will continue to grow here... Not just houses, but big apartment buildings are likely still in the works. Right now, construction is delayed because of so many projects coming down the pipeline. Maybe we can stabalize this going forward.

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This is actually the time when the GHP is supposed to distinguish itself, by marketing Houston to businesses in other parts of the country (or the world) that are looking to expand. There is enough momentum in the petroleum industry to attract players from other places to the Houston area, but it's a harder sell to attract non-petroleum manufacturers, wholesale trade and service enterprises. Houston has a port and a medical center, both of which should be selling points for businesses looking to expand. And all the new petrochemical plants should support secondary manufacturing of products made with the plastics and related materials being produced. There could be opportunities.

 

And the overheated market for land and construction materials may get a chance to cool down.

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Meanwhile, a differing opinion: Houston may benefit from lower oil prices. The sweet spot is between $55 and $90 a barrel. Chevron Phillips is planning a second major expansion at Bayport, and they need cheap oil...

 

http://blog.chron.com/primeproperty/2014/11/why-lower-oil-prices-are-good-for-houston/

 

I'm not sure if I can trust anything that says that downstream is exploration and production.  No, that is upstream.

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Wonder if inside Loop will ever say the end of an era, the last trailer park inside the Loop in Houston has closed similar to the last Drive In Movie theater is gone or something like that.

 

Fort Worth actually has a very nice three-screen drive-in complex situated just north of Downtown and south of the Cats' ballpark. That actually could work one one of those vacant Northside or East End lots.

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Farb Montrose? Swamplot reports this is what will take the place of the Hollywood Vietnamese, which will be a memory by the day after Thanksgiving...

 

http://swamplot.com/apartment-block-planned-for-montrose-and-fairview-replacing-hollywood-vietnamese-and-parking-lots/2014-08-14/

 

hollywood-vietnamese-sign.jpg

Edited by toxtethogrady
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Farb Montrose? Swamplot reports this is what will take the place of the Hollywood Vietnamese, which will be a memory by the day after Thanksgiving...

 

http://swamplot.com/apartment-block-planned-for-montrose-and-fairview-replacing-hollywood-vietnamese-and-parking-lots/2014-08-14/

 

hollywood-vietnamese-sign.jpg

 

 

Here's the thread:

 

http://www.houstonarchitecture.com/haif/topic/30882-new-apartment-building-for-fairview-and-montrose-hollywood-vietnamese-closing/?p=484168

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Incidentally, if some of you are wondering why your favorite project isn't going up as fast or as soon as you hoped, Bloomberg might have an explanation...

 

"...At Houston-based Camden Property Trust (CPT), one of the biggest U.S. apartment owners, half of 14 projects under construction or being leased for the first time are as much as six months behind schedule because “we don’t have enough workers,” Chief Executive Officer Ric Campo said. Competitors are so brazen that recruiters will venture onto Camden work sites, he said.

“We have had situations where people have pulled up and said ‘Hey, I’ll pay you $100 cash right now if you come to my job,’” Campo said. He estimated that labor costs are helping boost building expense 5 percent to 15 percent.

Signing Bonuses

Jockeying for Houston workers goes beyond energy, according toRay Perryman, president of Waco, Texas-based economic consultant Perryman Group. Construction and even restaurant employees have received signing bonuses, he said by e-mail..."

 

http://www.bloomberg.com/news/2014-11-19/wages-poised-to-rise-as-signs-emerge-of-improved-u-s-job-market.html

 

In other words, if you can swing a hammer (or master a nail gun or a cordless screwdriver), they need you.

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Incidentally, if some of you are wondering why your favorite project isn't going up as fast or as soon as you hoped, Bloomberg might have an explanation...

 

"...At Houston-based Camden Property Trust (CPT), one of the biggest U.S. apartment owners, half of 14 projects under construction or being leased for the first time are as much as six months behind schedule because “we don’t have enough workers,” Chief Executive Officer Ric Campo said. Competitors are so brazen that recruiters will venture onto Camden work sites, he said.

“We have had situations where people have pulled up and said ‘Hey, I’ll pay you $100 cash right now if you come to my job,’” Campo said. He estimated that labor costs are helping boost building expense 5 percent to 15 percent.

Signing Bonuses

Jockeying for Houston workers goes beyond energy, according toRay Perryman, president of Waco, Texas-based economic consultant Perryman Group. Construction and even restaurant employees have received signing bonuses, he said by e-mail..."

 

http://www.bloomberg.com/news/2014-11-19/wages-poised-to-rise-as-signs-emerge-of-improved-u-s-job-market.html

 

In other words, if you can swing a hammer (or master a nail gun or a cordless screwdriver), they need you.

 

Yea just make sure you don't hire someone who's going to burn down the whole apartment!

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1398273456000-INSIDE-JOHN-OLIVER-jy-3885

 

AND NOW

ANOTHER THING HOUSTON HAS A SHORTAGE OF:

 

This morning's BisNow contains this little tidbit:

"Here’s our moderator, BURY principal Steve Eklund with Seeberger Associates’ Perry Seeberger. Steve says development timelines have been brutal—on day one in his office, he’s already a month behind. Availability of labor is a huge problem, and construction costs are up about 7% again this year, and projected to do the same in 2015."

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1398273456000-INSIDE-JOHN-OLIVER-jy-3885

 

AND NOW

ANOTHER THING HOUSTON HAS A SHORTAGE OF:

 

http://www.bizjournals.com/houston/print-edition/2014/11/28/my-kingdom-for-a-welder-how-houston-will-fill.html

 

"The Houston region needs to fill almost 300,000 jobs in the next three years in what is known as the "middle-skills" market — people who need additional training, but not necessarily university degrees — and the rush is on to find solutions. There are more new partnerships between education and the energy sector than ever before, industry and college officials contend.

 

Many of these jobs pay close to $100,000 within a few years, but filling them represents arguably the biggest challenge facing the energy and petrochemical booms.>>"

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Since GFR gets kicked around a lot on HAIF, I thought this item from Swamplot was noteworthy. A restaurant is moving into a space at the ground floor of the Mosaic:

 

http://swamplot.com/fine-dining-coming-to-hermann-park-east/2014-12-01/

 

FINE DINING, 24-HOUR ROOM SERVICE AND BUTLERS TOTING WINE COMING TO MOSAIC ON ALMEDA RD.

 

davis-st-restaurant-mosaic-almeda.jpg

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  • 2 weeks later...

1398273456000-INSIDE-JOHN-OLIVER-jy-3885

 

AND NOW

ANOTHER THING HOUSTON HAS A SHORTAGE OF:

 

http://www.bizjournals.com/houston/print-edition/2014/11/28/my-kingdom-for-a-welder-how-houston-will-fill.html

 

"The Houston region needs to fill almost 300,000 jobs in the next three years in what is known as the "middle-skills" market — people who need additional training, but not necessarily university degrees — and the rush is on to find solutions. There are more new partnerships between education and the energy sector than ever before, industry and college officials contend.

 

Many of these jobs pay close to $100,000 within a few years, but filling them represents arguably the biggest challenge facing the energy and petrochemical booms.>>"

 

Wow! You'd think with all of the people pouring into the region daily that there'd be enough people to fill those positions. Houston is just on fire!

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  • The title was changed to Development List For Buildings In Houston

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