Temperature and absorption up in Houston

 

Occupancy is at 94.4% year-to-date through October, down 10 basis points from this time last year. Of the 3.1 million sq. ft. currently, under construction, about half of that space has been spoken for.


Market Highlights

Solid retail absorption. Occupancy is at 94.4% year-to-date through October, down 10 basis points from this time last year. Of the 3.1 million sq. ft. currently, under construction, about half of that space has been spoken for. The Houston retail market has recorded 5.7 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—slightly outpacing the year-to-date activity from one year ago. In addition, the net amount of square feet absorbed stood at 4.3 million, with a new supply delivering 4.4 million sq. ft. to the market this year, of which 72% is occupied. The escalating average asking rate of renting retail space persists at record highs for Houston at $18.67 per sq. ft. on a triple net basis, up 7.3% from this time last year at $17.26 per sq. ft.

Tenth location for Life Time in Houston area. Life Time’s newest $34 million addition, Life Time Greenway, is a 150,000-sq.-ft. resort located at the site of the former Houston City Club at 960 Memorial City Way. Life Time Greenway’s signature feature is a 54,000-sq.-ft. rooftop pool deck said to be the only pool of its kind in the local market. The club also offers a LifeSpa, a LifeCafe, a Kids Academy, dedicated fitness studios, two basketball courts, and an outdoor aquatic center. Life Time operates close to 150 facilities across 39 North American markets.

Home sales rise for a fourth straight month. According to the Houston Association of Realtors, October single-family home sales were up 8.1% year-over-year marking a fourth consecutive positive month. On a year-to-date basis, sales are 4.2% ahead of 2018’s record volume. In addition to continued low mortgage interest rates, buyers profited from a marginally larger supply of homes on the market. The median price of a single-family home reached the highest level ever for an October, climbing 2.1% to $239,900, while the average price rose 1.3% to $298,354. The 30-year fixed mortgage rate fell slightly to 3.69% the week ending November 7, approaching levels last seen in November 2016, according to figures released by Freddie Mac.