The commercial Realtors in the area have become used to this revolving door effect that suppliers, and service companies seem to go through from year to year, but it also effects the housing market as well. When highly paid sales staff, and management move into town, they are only there for the duration as well. This causes a vacuum throughout all markets, and it will never cease as long as those empty facilities and office buildings depend on what auto owners are paying at the pump currently.

Ironically, when auto fuel prices go up so drastically it creates a hardship on every resident in Houston, but at the same instance thousands of jobs are create d at the same time. When a family is already paying six hundred dollars or more in gas bills each month, adding a couple of hundred to that rivals most home mortgages. Until prices go back down for many it will mean waiting on buying a home in Harris, Fort Bend, and Montgomery counties.

South of Houston there are even more shuttered industrial real estate properties for lease, and for sale, since the shuttle project has been discontinued at NASA. New opportunities should open up for these properties once space exploration gets back on track. As technology advancements shift, create, and evolve older properties can be repurposed, but for those owners, it is just not coming in quick enough to pay their monthly notes. As the Internet takes up and nullifies older technologies that were traditionally in brick and mortar scenarios, people will have to rethink, and restructure the commercial side of all real estate markets.

For the time being, the commercial and industrial property owners are grateful for that spike in what we pay at the corner gas station, as it keeps them alive a little while longer. There is one industry that is not hurting right now, and that is the apartment realty game. There are over 500,000 apartments in the Metro area, and they are at ninety percent capacity. Once developers can start borrowing money to build new rental communities landlords will have to be competitive once again.

Houston’s commercial real estate includes office space, warehouse, manufacturing, distribution, research and development space. Although some five million square feet of additional industrial space has been added to Houston’s commercial real estate sector this past year (2009,) and an additional one million square feet is under construction or scheduled for construction so far this year, vacancy rates continue to rise, and many new projects are on hold.

This year could be a perfect time for companies now in a position to purchase or lease commercial space to take advantage of the many concessions sellers and landlords are willing to offer, particularly before demand eventually begins to equal supply. Tenants looking to sublease space are another source of supply that expanding companies can look to for discount rental agreements.

With nearly 1,000 office buildings in Houston offering concessions for leasing or subleasing office space, many young companies with limited budgets now have the opportunity to establish an office presence in prime locations they might ordinarily have been priced out of. Now is a particularly opportune time to negotiate a lease, since projections appear to be favorable for a strong revitalization of the Houston commercial marketplace towards year end. And don’t overlook the fact that in many cases landlords are competing with their own tenants who could be subleasing their space at substantially lower rates

The state of commercial delivery companies is a big benchmark on how the economy is doing, when business is good drivers are being hired, more fuel is purchased, and additional tractor-trailers are being sold and leased at a higher rate. Just keeping an eye on the national job boards for over the road drivers will be the revealing truth.

One area that is plaguing the revitalization of filling new jobs in the Houston area, is the fact that there is not enough rental housing to accommodate the average fifty thousand per year population increase in the Harris, Fort Bend, and Montgomery County areas. Residential real estate in this case dictates the amount of people that a corporation can bring when setting up a new division, or moving their head quarters to the region. After all, a receptionist making twelve dollars an hour can ill afford a two thousand dollar a month apartment as a single mother with two children.

Two thousand eleven will see a modicum of increased leasing, and buying of commercial properties, and that growth should maintain through two thousand twelve. The estimates are that two thousand thirteen will be the big come back year, and the energy industry will mainly be pushing property owners back in to the black ink.

The oil and gas industry which makes up a large part of Houston’s income, and when business is up for them, all the ancillary companies that support them will grow at the same time. More attorneys, engineering, fabricating, and design companies all puff up and need more office space when this occurs. Of course the only downside is that when the prices of a barrel of oil takes a tumble, those support companies start seeing a decrease in orders, and layoffs are at hand.

Overall all Houston has been much more stable than other cities near their size, and people are still moving here in droves to start new jobs, or being relocated due to cost of doing business being lower in Texas than most other states. This fact alone should be an indication that stable and slightly rising commercial occupancy number are better than the alternative.

The Houston commercial real estate market of Jersey Village is home to many struggling commercial centers, but the other side of this area, along Highway 290 in Northwest Houston, is home to what some industry experts say is the hottest new commercial center in Houston.

A Move to the Northwest

Generally speaking, it appears as if the Houston commercial real estate market is extending towards the Northwest and North areas of the city. Most industry experts, such as Kim Kobriger, of Lewis Realty Advisors, say that the growth “is a natural evolution – you always have a migration outwards from a city.”

It really only makes sense that the area along Highway 290, in the Cy-Fair region, is growing by leaps and bounds because it possesses the space to accommodate new housing and commercial development. The Jersey Village area, on the other hand, does not possess this kind of space, thereby limiting new development and, ultimately, population growth.

Limited Growth in Other Areas

Jason Gaines, of Global Fund Investments, says: “There is not a lot of raw land to add housing.” The lack of growth in the Jersey Village area then leads to a large percentage of tenant vacancies.

Often times, the vacancies in many commercial centers are caused by an anchor store leaving the area. Because anchor stories are bigger name companies, they usually draw in customers to the area.

Case in point: the Jersey Village area has seen a dramatic impact on its commercial real estate business over the last few years as a result of the lack of anchors.

On the other side of the spectrum, the area along Highway 290 has been a boom for commercial development over the last five years. The hot spots are slowly moving toward Houston’s Northwest corner and, as result, residents with higher income levels are moving there and further spurring growth.

There are many terms used when discussing Houston commercial real estate, so it is important that you understand these terms and how they can affect your real estate deal.

1. Appraisal – An appraisal in an important first step when purchasing Houston commercial real estate, and is required for the sale of any type of property, commercial or otherwise. An appraisal will include a written report by a state-licensed professional and will include a detailed analysis of the property in question. The appraisal will include a value, as determined by the appraiser, and the reasoning behind the analysis.
2. Broker – A broker is usually always necessary when dealing with a commercial property and during a real estate transaction. All brokers must be licensed by the state, and most brokers work on a commission basis, which is usually paid by the seller.
3. Concessions – Concessions is usually the term used by brokers when speaking of benefits given to the seller to close a lease deal. As a seller, you may offer to remodel or upgrade the commercial space, or offer the tenant a reduced rent for a period of time.
4. Lien – A lien is a legal claim against a property that is made by a creditor. A property owner may have a lien on their property if they fail to pay a debt. As a buyer, your ability to purchase a property can be compromised if the property has liens against it.
5. Sale-leaseback – A sale-leaseback is the term used when an owner of a property sells the property to an investor, who then leases back the property to the original owner. Many times, this allows the owner of the property to free up capital, while allowing the investor to receive tax breaks and a guaranteed return.

17Seventeen McKinney and Saint Ann Court are latest additions to Uptown Houston’s already bustling office market. Located just a few blocks away from one another, both towers are a fine example of the value of building in Houston’s Uptown district. The Uptown real estate market, which is rebounding nicely after the fiasco of 2009, is becoming the hot spot for business and commerce – and the developers of 17Seventeen McKinney and Saint Ann Court are counting on it.

The doors of both of these buildings have opened, yet some construction does still remain. Builders of both projects expect the construction’s finishing touches to be wrapped up in just a few weeks.

17Seventeen McKinney

Work began on 17Seventeen McKinney, which is a 361,000-square-foot building, nearly two years ago, when the economy and the real estate market were booming. Although the developer plans to fill up this building rather quickly with tenants, 17Seventeen McKinney will certainly be one of the last projects for some time in Uptown due to tight credit restrictions.

17Seventeen McKinney, which was designed by Dallas architectural firm Good Fulton & Farrell, is a striking high-rise tower which boasts a concrete, steel and glass exterior. The ground floor of the building features a beautiful interior of polished wood and stone, and decorated works of art by local artists line the walls.

One of the most impressive spaces in the building, however, is seven floors off the ground. The seventh-floor, one-acre garden connects the office tower to the apartment building next door, thereby providing an “oasis in the sky” for the tenants of the building and the residents of the neighboring apartment building.

Saint Ann Court

Saint Ann Court, which is the product of developer Harwood International, is now at 70 percent capacity. This 26-story office tower is now the tallest office in Uptown. Some of the current tenants include: the Boston Consulting Group, McGuire, Craddock & Struther, Francis Enterprises and Daniel Sheehan & Associates.

Some of the impressive amenities of Saint Ann Court include a glass-floored lounge, a concierge desk and striking, vintage, Japanese samurai art covering the walls.

There are a number of things that an experienced agent will understand when selling your luxury property. For example, he or she will understand that selling a luxury home isn’t like an average real estate venture. It requires an understanding of financing and preferred features, and that’s just the beginning.

How to Find a Quality Agent to Sell your Luxury Houston Real Estate

• Ask the agent about his or her understanding of the local market – Your agent should have a firm understanding about the local market in which your luxury Houston home is located. There are many agents out there; many of whom are anxious for listings, so before you agree to sign a contract with an agent, ask him or her to provide you with information about the local market, and to also provide you with a referral list of local clients that the agent has worked with over the past year. Real estate is highly different, even between markets within Houston, so only move forward with an agent who has a proven track record of listing luxury homes in your area of Houston.
• Make sure the agent specializes in luxury properties – Luxury properties are worlds apart when it comes to real estate. From private, gated communities to high-rise condominiums, luxury homes in Houston often come equipped with features and amenities that typical homes simply do not. An agent who has experience dealing with luxury properties in Houston will also have a better strategy for pricing and showing your home.
• Make sure your agent has connections in the industry – The connections your agent has in the real estate market is often crucial to selling a luxury Houston property. Many luxury properties are not even listed on the MLS; therefore, it is up to your agent to properly market your luxury home so that other agents and luxury buyers know it is for sale.
• Make sure your agent has experience - Your agent must have experience in the industry to be able to sell your luxury home. Without it and you are simply a learning tool for an inexperienced agent. If your agent doesn’t have a proven track record in the industry then you need to find someone who does.

There are many entrepreneurs and business owners who are looking for Houston office space for rent. However, what differs from today’s renters is that these people are looking for an office space that will inspire them. And the four walls and rows of cubicles just aren’t cutting it anymore.

From Home Offices to Less Traditional Office Space

Although we have seen a fair amount of entrepreneurs and small business owners making the shift to home offices, there are still a number of them who are looking for Houston office space for rent. However, what remains constant is that they are looking for a comfortable environment that doesn’t scream corporate environment and instead speaks of their appreciation of calming, quiet spaces where they can be the most efficient.

As a result, many landlords are tailoring spaces to suit their tenants. They realize that, instead of being concerned about how many cubicles can fit into one office space, they are looking for a creative community where businesses can thrive and work together.

No Cookie Cutter Offices Found Here

Some of the unique space that are being created look nothing like the corporate headquarters with the fake plants in the lobby; instead, they often reflect open bay environments, where the ceilings are soaring and the interiors are as far from cookie cutter as you can get.

With the office space market in Houston still quite stagnant, landlords are doing more to accommodate these new office concepts, while business owners and entrepreneurs are searching through the large inventory of Houston office space for rent for their perfect office environment.

It is not uncommon to see quite extraordinary office environments in Houston; from light art installations to meditation gardens and waterfalls, nothing seems to be out of the question when it comes to striving for that Zen office space.

A Negative Net Absorption Nightmare

In fact, according to statistics from CB Richard Ellis Inc. Houston’s office market saw a negative net absorption of nearly 2.74 million – the largest loss since 1986.

In laymen’s terms, there was almost three million square feet less office space rented out in 2009 than 2008. That means loads of empty buildings and a lot of empty pockets.

New Construction at a Minimum

New construction has all but come to a halt, although there is another 2.4 million square feet of office space due to hit the market this year. After that, however, there are no new developments expected in the upcoming year.

The Houston commercial real estate update showed the biggest loss of the fourth quarter of 2009, when the office market loss one million square feet of rentable space.  Nearly 805,000 square feet of this space occurred in the suburbs.

CB Richard Ellis Inc. studies 17 submarkets, and the only areas that saw a positive net absorption for the last quarter of 2009 were: Katy Freeway, Greater Pearland,  East, Energy Corridor, and Clear Lake.

Overall, the Houston office market has a vacancy rate of about 16 percent at the end of 2009.

As a result of the high vacancy rates in Houston, lease rates tumbled in hopes of luring in renters. The last time lease rates decline in Houston was the second quarter of 2005, according to CB Richard Ellis.

Last year was one of change for the commercial real estate market in Houston, as things came to a grinding halt due, in part, to lower oil prices and the poor national economy. As a result, commercial vacancies were way up in Houston, and rental prices began to free fall.

A Different Picture in 2010

Jump ahead to 2010, however, and many analysts are painting quite a different picture. With lenders now willing to once again begin lending, and with interest rates still near historic lows, many individuals have given much thought to the advantages of purchasing commercial real estate in Houston.

The next few months in Houston will be an interesting time for commercial real estate, as many investors are expected to jump into the ring and take advantage of low prices.

Houston is also expected to experience more job gains in 2010, thereby spurring a need for commercial space.  As more job gains materialize, a population growth will also likely ensue, thereby lifting the Houston economy, as well as the real estate market in whole.

As Houston continues to offer more jobs, it will continue to weather the national economic storm – and come out ahead.

Because of overbuilding last year, many building owners and developers are now anxious to sell or lease, thereby providing great opportunities for both renters and real estate investors. In other words, everyone seems to be coming out ahead in 2010.

What we can expect in 2010:

• A stronger demand for housing, due to an increase in population
• An increase in demand for commercial real estate, due to an increase in job opportunities
• A growing economy and a steady real estate market, buoyed along by a strong energy and healthcare sector