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Agreed, all is not well, and I sense 2016 will be BRUTAL for America.

bruh, you're being trolled so hard its ridiculous. we all wish the best for Houston, but you've got to be realistic with everything thats been going on lately in the real estate/development sector. are you not familiar with what CREguy is saying? he's pretty spot on with whats taking place in the local industry. and btw the country doesn't facing the same problems Houston is facing.. I'm not sure why you tried to turn it around into "brutal for America" because plenty of places in the country are thriving. unfortunately, we are no longer one of them.

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Lol, BS...direct from a troll. Things have slowed in Houston, but it's still growing and doing better than most, it's not all gloom and doom as you've bought. That's not reality, that's 'stinking thinking,' like someone miserable with their head in the clouds. Some are hurting, but some are hurting everywhere throughout America. I said America because the US economy hasn't thrived in years (it's barely holding/maintaining) and is very shaky near collapse (see: 2016). Up until recently, Houston was very hot, but the oil matter has caused it to cool to more in sync with the slower US economy, not die as you so pessimistically surmise. BRUTAL for America in 2016 sounds about right...that's when all the bubbles will probably burst, and America will slide, Houston of course, included.

 

Keep it on topic please, and take the off topic stuff to the off topic section.

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Hmmm, that's weird, I looked through the forum and couldn't find where it said that.

i dont think it was ever downsized. the first news articles quoted it as being a 30 story tower, and thats what this most recent article linked/referred back to.. but according to documents posted later in this thread it will be 39 stories. but who knows, maybe they changed the design and it is down to 30?

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More new construction is delivering that is very little pre-leased or even 0% pre-leased and more subleases flood the market every week.

 

It will ramp back up eventually, but right now some folks are really hurting.

 

Is there really that much office construction being delivered with 0% pre-leased, or even very little pre-leased?  Serious question.

 

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http://www.bizjournals.com/houston/print-edition/2016/01/15/to-build-or-not-to-build-multifamily-developers.html

 

The article is behind a paywall, but an illustration on the map from the link indicates Hanover is closing on the land for this development next month.  I suppose they could always hold it for a little while while fears about the Houston market shake out as new inventory is delivered in multifamily this year.

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Wouldn't starting construction in a "relatively cheaper" environment be advantageous to builders? Why build when everybody is building? This way you are first to market when the local economy has rebounded a few years, no?

In theory, that would be sensible. However, the pall of the 1980's hangs over a lot of development decisions. Hanover's Montrose tower is topping out and should have units online soon. If Hanover can demonstrate relatively robust demand for that project, some of the concerns of lenders regarding overbuilding might be assuaged and construction financing might get freed up for this one.

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That is why Kirby Thor Equities will be starting to rise.  The New York firm were they received financing know how many people live within 15 miles.  Which is a lot of money per capita.      

 

The capital markets are closed for Houston multi-family development.  There is zero appetite in today's environment.  Banks are terrified of all things energy right now, including Houston.  It took forever for Thor to get construction financing, and they got it from Bank of the Ozarks which has a reputation for extremely lax lending practices. 

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Wouldn't starting construction in a "relatively cheaper" environment be advantageous to builders? Why build when everybody is building? This way you are first to market when the local economy has rebounded a few years, no?

Construction costs really have not fallen as much as one might think, and the equity has pretty much all dried up for Houston MF at this point.  I would be very surprised if Hanover was able to secure an equity provider, this definitely seems like a hold to me.  Anything energy-related is a no no right now.  We had a meeting at our office the other week and we talked about a developer who was recently trying to get financing for a larger-scale project.  He did a control 'F' and deleted the word "Energy" throughout his entire proposal.

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Construction costs really have not fallen as much as one might think, and the equity has pretty much all dried up for Houston MF at this point.  I would be very surprised if Hanover was able to secure an equity provider, this definitely seems like a hold to me.  Anything energy-related is a no no right now.  We had a meeting at our office the other week and we talked about a developer who was recently trying to get financing for a larger-scale project.  He did a control 'F' and deleted the word "Energy" throughout his entire proposal.

 

Did he talk about how -efficient the building was, with low  costs?

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