Bill Edge, an innovative inner loop realtor, is excited about Houston’s growing prosperity that is a derivative of new development within the Energy Corridor.
This development is focused on:
- Construction along the energy corridor
- New Downtown and Galleria office construction
- Construction of multifamily buildings taller than 5 stories
- Increased new home shortages in meeting the needs of a growing population
- Inadequate warehouse space, with most vacancies to found only in Baytown and along highways leading in and out of Houston.
Shell is adding buildings in the Energy Corridor District. Additional projects currently underway are
Trammel Crow Co.’s 20-story Energy Center Three, and a new multifamily luxury residence.
In 2008 there was a significant downward trend in property values. A number of properties declined in value by as much as 40%. Despite this, construction continued. Today the new buildings are tenanted and the area’s micro economy is thriving.
The Energy Corridor has been a major influence on Houston’s economic turnaround. An annual assessment from commercial properties within the district is used to finance a substantial number of local projects, including urban design, safety, traffic engineering and business development. This brings in more than 2 million dollars per annum in property taxes, which are reinvested in the area. The Energy Corridor has attracted more new construction and development than any other part of Houston.
The district is bounded by both sides of Interstate 10 from Kirkwood to west of Barker Cypress and along Eldridge from north of I-10 to south of Briar Forest. Within its are over 300 energy and engineering firms, including such notable companies such as PB America, Dow Chemical, CITGO, Worley Parsons, Mustang Engineering and B America. All told, 78,000 workers are employed in the Energy Corridor.
While this zone has a concentration of big business, it is not lacking in natural amenities. There are approximately 26,000 acres of parks and 50 miles of trails. There is also a vibrant commercial area providing almost any service tenants, residents and visitors are seeking. Many corporate campuses cover over 1 million sf. A high density green zone is utilized by a substantial number of people, making for best land use practice.
Core Real Estate development has begun the process of purchasing land along Park Row for a business park. Shell is currently adding two 12 story buildings and parking garages at its Woodcreek campus and currently owns buildings ABC and leases additional buildings. The new construction will allow the company to vacate the leased property and be more energy efficient. These new buildings will open in 2014 and 2015.
Trammel Crow Co. has begun work on Energy Center Three. It’s a 20-story, 546,000 sf building planned for completion in 2014.
A luxury residence on 770 N. Eldridge Parkway will include a four story structure with 320 units and central parking. New eating spots and watering holes add to making this an exciting community.
I-10 Project
Recently a 2.8 billion dollar I-10 transportation project was completed. The district worked on the landscape design and maintenance, collaborating with many agencies to minimize traffic disruptions. The district also worked with the city of Houston on the reconstruction of Eldridge Parkway from Memorial Drive to I-10. Another important transportation infrastructure enhancement has been making the corridor pedestrian and cyclist accessible.
Visit the energy district at www.energycorridor.org for more information.
Recent Housing Trends in Houston
- Big drop in multi-family permits in April.
- Banks have tightened lending standards.
- People are more cautious about buying a home.
- People are waiting longer to getting married and have kids.
- People are tired of waiting in traffic for the privilege of living in suburbs.
- Cost of gasoline has changed driving habits.
- People are renting Zip Cars, joining Car-to-Go or bicycling.
While prospects are bright for multi-family housing, single family housing is lagging well behind. Three trends holding down construction are:
- US Government is failing to provide sufficient mortgage assistance.
- Consumers are switching from stores to online buying.
- Office space footage per worker is shrinking, leading to construction declines.
The Current Status of Houston Construction
- Pubic construction has declined 5.4% during the last year, while commercial construction is currently flat.
- Healthcare changes are making hospitals cautious. Minute clinics in drug stores are helping cut costs.
- Railroad expansion and improvements are likely to be flat.
- Construction spending on public works is flat.
- K-12 education declined at a rate of 6%.
- Texas has gained 80,000 new jobs, but unemployment is still growing slightly, according to Dallas News. Even though construction spending went up 14%, construction job gains were only 6%. According to the Association of General Contractors, construction employment has been flat over the past year.
- A 5% increase in supplier pricing is an escalation in material cost that is suppressing construction growth.
Call Bill Edge at 713-240-2949 to see Houston homes in 24 hours or less.
Source: Ken Simonson, AGC of America, Houston Chronicle