HOUSTON | Development Thread II

[Slyfox]

Originally Posted by TexasPlaya

A lot of this stuff is being planned for the rebound/next cycle.

And if that rebound doesn't happen? Will the TMC and other sectors be able to compensate for the new office space? Does Houston have any other major industries (Outside of Medical) that are growing rapidly? (Like Austin with Tech)

[TexasPlaya]

Originally Posted by Slyfox

And if that rebound doesn't happen? Will the TMC and other sectors be able to compensate for the new office space? Does Houston have any other major industries (Outside of Medical) that are growing rapidly? (Like Austin with Tech)

It seems a lot of money is betting a rebound will happen and history has shown it will. I'm not sure how oil prices will stay this low for long term and most of the think tanks still show increased oil consumption and nat gas overtaking coal as the main global fossil fuel energy source.

Not to mention that Houston has become a major global logistic hub and manufacturing hub due to logistics and low energy prices (relatively). Obviously O&G, logistics, and manufacturing are tied to global growth which is waning right now. However, how long until the globe starts growing significantly again?

Lastly, Houston has gained the most (or close to the most) people since 2000 and the slump has caused an institutional boom among education and healthcare. Billions in bonds in new public schools and infrastructure are under construction or will soon to be under construction along with higher education (mostly the University of UH and possibly a new major state research institution by the University of Texas). Houston is playing catch up with it's population boom and lower costs are helping that.

There's certainly a lot of going wrong for Houston right now, but there's reason to be cautiously optimistic that 2017 will be slight stronger and 2018 will be even stronger. A lot of money is betting on that.

[JManc]

There's plenty of affluent empty nesters looking to downsize and be closer to urban amenities as well as young professionals who don't want a big house in suburbia echoing trend across the country.

[JoninATX]

Lets not forget about next year Superbowl in Houston. That will create alot of revenue for the city as well even if it's a rare thing to have. Last one was in 2004.

[Urbannizer]

The Superbowl has spurred a lot of streetscape improvements in and near Downtown, or at least have gotten them to start in time to be finished before then. Some hotels and other city projects have made a push to wrap up in time as well, but I don't think the big game itself has caused new development.

[TexasPlaya]

Originally Posted by JoninATX

Lets not forget about next year Superbowl in Houston. That will create alot of revenue for the city as well even if it's a rare thing to have. Last one was in 2004.

It will be a good thing, but be a small blip overall.

Houston has certainly done its part to reach out and take advantage of the sports business but it could do much more. Personally, I think Houston could be a great city for sports tourism; all the major venues are located along light rail which is centrally located to a lot of retail, bars, and restaurants. Going after FIFA and FIBA (not nearly as big but international) events along with more college bowl games, all star games, etc. would be beneficial.

[skys the limit]

Originally Posted by JoninATX

Lets not forget about next year Superbowl in Houston. That will create alot of revenue for the city as well even if it's a rare thing to have. Last one was in 2004.

There is a natural tendency to think that a major sporting event, like a Superbowl, will bring huge amounts of money and future interest in the hosting city.

Multiple studies over the years show that to be pretty much incorrect.

Just this week the "Houston Press" published an article assessing the impact of Houston's 2017 Superbowl gig and it pretty much pans any expectation of any significant economic benefit from any of the possible scenarios that people tend to think will happen:

"No, Houston Will Not Make a Lot of Money Hosting the Superbowl"
Houston Press, Monday, Feb. 8, 2016

http://www.houstonpress.com/news/no-...r-bowl-8136900

Excerpts:

This also means that we Houstonians will be flooded with a year’s worth of propaganda on just how much hosting the Super Bowl means to Houston. About how hosting the game means that Houston is a major city — like Arlington, Glendale, Santa Clara, East Rutherford and Jacksonville are all "major" cities. The propaganda will also include lots and lots of stories on the economic impact of the game on Houston, about how hosting the game will mean a boost along the lines of $500 million (or greater) to the local economy.
....

But as you read the propaganda, know this: Most of the numbers you'll hear are lies. Independent studies looking at Super Bowl hosting economics agree that the so-called economic boom does not exist for cities that host the big game. In fact, it’s becoming more and more common, as the NFL extorts more and more from the host cities, for the cities to lose money on the event. Glendale, the Phoenix suburb that hosted the Super Bowl in 2015, lost between $579,000 and $1.25 million hosting the event. It also lost more than $1 million while hosting the 2008 Super Bowl.

... that this is all a good thing for Houston because seeing the Houston skyline on TV will convince millions of people who have never been to Houston to suddenly decide to visit Houston. Only there’s no evidence that this happens.
....

Businesses don’t suddenly decide to up and relocate to Super Bowl-host cities. There’s no influx of new residents because of the game. Employees don’t get raises because of the extra money made by employers who were able to fleece visitors. Bob McNair will make some money. The National Football League will make a bunch of money. The city of Houston? It won’t make much, if any, money.

Sure, enjoy the increased attention that Houston will receive, but don’t believe the hype. There won’t be an economic boom. The city will not see a sudden influx of hundreds of millions of dollars into its coffers. Odds are that Houston will lose money hosting the game because just about everybody loses money hosting the Super Bowl.
....

[TexasPlaya]

Originally Posted by skys the limit

There is a natural tendency to think that a major sporting event, like a Superbowl, will bring huge amounts of money and future interest in the hosting city.

Multiple studies over the years show that to be pretty much incorrect.

Just this week the "Houston Press" published an article assessing the impact of Houston's 2017 Superbowl gig and it pretty much pans any expectation of any significant economic benefit from any of the possible scenarios that people tend to think will happen:

"No, Houston Will Not Make a Lot of Money Hosting the Superbowl"
Houston Press, Monday, Feb. 8, 2016

http://www.houstonpress.com/news/no-...r-bowl-8136900

Excerpts:

This also means that we Houstonians will be flooded with a year’s worth of propaganda on just how much hosting the Super Bowl means to Houston. About how hosting the game means that Houston is a major city — like Arlington, Glendale, Santa Clara, East Rutherford and Jacksonville are all "major" cities. The propaganda will also include lots and lots of stories on the economic impact of the game on Houston, about how hosting the game will mean a boost along the lines of $500 million (or greater) to the local economy.
....

But as you read the propaganda, know this: Most of the numbers you'll hear are lies. Independent studies looking at Super Bowl hosting economics agree that the so-called economic boom does not exist for cities that host the big game. In fact, it’s becoming more and more common, as the NFL extorts more and more from the host cities, for the cities to lose money on the event. Glendale, the Phoenix suburb that hosted the Super Bowl in 2015, lost between $579,000 and $1.25 million hosting the event. It also lost more than $1 million while hosting the 2008 Super Bowl.

... that this is all a good thing for Houston because seeing the Houston skyline on TV will convince millions of people who have never been to Houston to suddenly decide to visit Houston. Only there’s no evidence that this happens.
....

Businesses don’t suddenly decide to up and relocate to Super Bowl-host cities. There’s no influx of new residents because of the game. Employees don’t get raises because of the extra money made by employers who were able to fleece visitors. Bob McNair will make some money. The National Football League will make a bunch of money. The city of Houston? It won’t make much, if any, money.

Sure, enjoy the increased attention that Houston will receive, but don’t believe the hype. There won’t be an economic boom. The city will not see a sudden influx of hundreds of millions of dollars into its coffers. Odds are that Houston will lose money hosting the game because just about everybody loses money hosting the Super Bowl.
....

Yup. Certainly don't want to be like the last Dallas one and we certainly won't see much benefit.

[Slyfox]

Originally Posted by TexasPlaya

It seems a lot of money is betting a rebound will happen and history has shown it will. I'm not sure how oil prices will stay this low for long term and most of the think tanks still show increased oil consumption and nat gas overtaking coal as the main global fossil fuel energy source.

Not to mention that Houston has become a major global logistic hub and manufacturing hub due to logistics and low energy prices (relatively). Obviously O&G, logistics, and manufacturing are tied to global growth which is waning right now. However, how long until the globe starts growing significantly again?

Lastly, Houston has gained the most (or close to the most) people since 2000 and the slump has caused an institutional boom among education and healthcare. Billions in bonds in new public schools and infrastructure are under construction or will soon to be under construction along with higher education (mostly the University of UH and possibly a new major state research institution by the University of Texas). Houston is playing catch up with it's population boom and lower costs are helping that.

There's certainly a lot of going wrong for Houston right now, but there's reason to be cautiously optimistic that 2017 will be slight stronger and 2018 will be even stronger. A lot of money is betting on that.

It would be great if Houston could get more alternative energy companies to incorporate in the city as well, it is the energy city after all and one would assume that at some point, perhaps 10 years, perhaps 50 years, "green" energy will overtake fossil fuels.

Same with the city's reputation at the Space City, if they could get Space X, Blue Origin, Virgin Galactic to relocate. You'd think with Texas' low taxes and business friendly environment it wouldn't be that hard.

Good to hear the manufacturing industry is strong there as well.

[Slyfox]

Originally Posted by TexasPlaya

It will be a good thing, but be a small blip overall.

Houston has certainly done its part to reach out and take advantage of the sports business but it could do much more. Personally, I think Houston could be a great city for sports tourism; all the major venues are located along light rail which is centrally located to a lot of retail, bars, and restaurants. Going after FIFA and FIBA (not nearly as big but international) events along with more college bowl games, all star games, etc. would be beneficial.

Kind of replying to all the Super Bowl comments under this one response, however. Realizing major sporting events (like the Olympics or in this case the Super Bowl) may end up costing cities more than they bring in, it is massive publicity. Of course this doesn't work for every city (Just because the SB is in Detroit, doesn't negate the awful weather and high violent crime) however for a city like Houston who seems to be marketing itself as a tourist destination, it could bring in interest from people in regions to look into Houston for a vacation or family trip.

And with this specific comment, Houston is one of a handful of cities offering a wide variety of professional sports teams. (NFL, NBA, MLB, and MLS) With the exception of Hockey the city is home to a team from every major sports league. And to piggy back off that, Houston is one of very few US cities with permanent professional art companies representing every major art form. Not to mention the museum district. The city has a lot to offer in culture that I think a majority of the rest of the country don't realize.

[drummer]

^ I second the art and culture part of it. I grew up in Texas and came to Houston only when I needed to - mostly to see some family in the suburbs. I had to go through Houston to do visa stuff with the Chinese consulate a year or two ago and, to my surprise, I needed to stay a couple nights while some kinks were worked out in the process. I spent my days working remotely, but as there was only so much I could do, I used the time also to check out a handful of museums and restaurants in downtown and the surrounding areas. I was really quite impressed! I had no idea the things that Houston has to offer in the core part of the city. It certainly changed my view on it for the better.

[Urbannizer]

Originally Posted by Urbannizer

The Tanglewood

This is one is actually under construction, and is now being called 'The Hayworth'. Set to open in Spring 2017, 1414 Wood Hollow Dr.

http://hayworthtanglewood.com/

[skys the limit]

Originally Posted by TexasPlaya

Yup. Certainly don't want to be like the last Dallas one and we certainly won't see much benefit.

Yes, the Dallas SuperBowl was handicapped by an act of God - who could ever prepare for a major winter storm of the magnitude that hit that very week, when the weather the week before had been picture card perfect and returned to that the week after.

It would be like Houston having to deal with a major hurricane right in the middle of SuperBowl week .... wouldn't be pretty.

But hopefully everything will fall in place for a great event occurring in 2017.

[Urbannizer]

Retail, office and fitness studios eyed for Yale Street post office site

A Houston developer plans to replace a shuttered U.S. Post Office building in the Heights with a two-story mixed-use development with space for office, shops and restaurants.

The full-acre property was scooped up by MFT Interests last month and the development company is in the planning stages of bringing a low-rise project dubbed Heights Central Station to the corner of Yale and 11th streets, said Glenn Clements, the development group's chief financial officer.

The existing 1970s-era structure will be demolished. The project will include a pair of two-story buildings with office space on the upper floors and retail on the ground. The developers hope to attract professionals and fitness studios in the office space and perhaps two restaurants and up to eight shops at ground level.

Clements said MFT wants the project to have a "retro feeling" to it."We're building it in 2016 but it will look like 1916," he said. Construction is slated to begin later this year and they hope to have the shell of the buildings completed by mid-2017.

[weatherguru18]

Originally Posted by skys the limit

Yes, the Dallas SuperBowl was handicapped by an act of God - who could ever prepare for a major winter storm of the magnitude that hit that very week, when the weather the week before had been picture card perfect and returned to that the week after.

It would be like Houston having to deal with a major hurricane right in the middle of SuperBowl week .... wouldn't be pretty.

But hopefully everything will fall in place for a great event occurring in 2017.

Funny but Houston isn't totally immune to nasty winter weather in February. In fact the biggest snowstorm in Houston history hit on Valentines Day, 1895. 2 FEET of snow was reported in many parts of Houston with the official tally downtown at a smooth 20 inches. Galveston had 15 inches. It didn't stop there, Beaumont, which may have briefly held the title for the state's biggest 24 hour snowfall, recorded over 30 inches. Snow drifts in Houston were as high as 6 feet deep. Frozen Point on Galveston Bay got it's name from the conditions observed that day. So much snow fell in Houston that day and night that it was still on the ground over a week later, even as temperatures rebounded into the 60s and 70s.

[Urbannizer]

Originally Posted by skys the limit

Yes, the Dallas SuperBowl was handicapped by an act of God - who could ever prepare for a major winter storm of the magnitude that hit that very week, when the weather the week before had been picture card perfect and returned to that the week after.

It would be like Houston having to deal with a major hurricane right in the middle of SuperBowl week .... wouldn't be pretty.

But hopefully everything will fall in place for a great event occurring in 2017.

There's no record of a hurricane existing during the month of February, leaving the chances of that ever happening very, very slim. Our chances of it snowing is even higher.

[Urbannizer]

Light Rail Lofts

327-unit affordable housing complex proposed for 4510 Main St. in Midtown.


https://www.google.com/maps/place/45...uIDkIQxB0IHTAA

[Urbannizer]

Originally Posted by Urbannizer

Light Rail Lofts

327-unit affordable housing complex proposed for 4510 Main St. in Midtown.


https://www.google.com/maps/place/45...uIDkIQxB0IHTAA

Affordable Housing Project on Tap for Midtown

Plans for a 327-unit "Light Rail Workforce Housing" complex at 4510 Main were presented to the City Council's Housing and Community Affairs Committee on Tuesday. The project, including some ground-floor retail, would target renters who earn up to 120 percent of the local median family income, currently $69,300.

"The goal is to preserve affordable housing before the gentrification wave," said Jocklynn Keville, spokeswoman for the city's Housing and Community Development Department. "These inner-Loop areas are becoming out of reach."

City Council later this year will consider allotting $3 million for the land acquisition and pre-development costs. If approved, developer Cantell-Anderson Cloudbreak Communities would build the project with city financing.

[TexasPlaya]

Originally Posted by Urbannizer

Affordable Housing Project on Tap for Midtown

I like the idea but would much prefer this be focused on student housing in this particular location.

[Urbannizer]

Washington Heights Mixed-Use Finally Underway

A hotly anticipated mixed-use project in the Washington Heights is finally moving forward.

Demolition has begun on a 280,000-square-foot refrigerated warehouse on 15 acres on Studemont Street south of Interstate 10, which was purchased in late 2013 by Houston-based firms Capcor Partners and Kaplan Management.

Demolition began roughly 30 days ago and should wrap up in around 30 to 45 days, said Josh Aruh, managing partner at Capcor. Houston-based M.G. Excavators Inc. is completing the excavation. Plans call for a mixed-use project, dubbed Studemont Junction, which will be composed of up to 400 upscale apartments, as well as retail such as grocers, restaurants and health care.

The developer for Studemont Junction is Edifis Group, a separate company owned by Aruh. Shaw MacIntyre, vice president of Houston-based Streetwise Retail Advisors, which is handling the leasing for Studemont Junction, said the project should be complete around early 2017.