Houston’s Energy Corridor region is one of the most sought after locations in the country when it comes to commercial real estate. This has been proven by the actions of Dornin Investment Group, a firm based in California, as it has just purchased an office building from Downtown Properties.
The building is over 105,000 square feet and is yet another statement of intent from Dornin, as it has previously owned buildings in West Loop and Galleria and has already announced that it intends to make more purchases in Houston before the end of 2013.
Moody Rambin is based in Houston and has just begun work on its huge Town Centre I project, a 10-story building that will offer 250,000 square feet of space. The project is slated to be completed by the final quarter of 2014. It is a Class A office building that is part of the Town Centre Complex, a project that includes a parking garage with 1,390 spaces and a 22,000 square-foot community theatre/auditorium.
Town Centre I will have energy-efficient construction and building systems and will be LEED certified upon completion. The theatre will have 220 seats and a special 75-seat black box theatre. The company also plans to create the 100,000 square-foot Town Centre II building in the future. The property will be managed and leased by Moody Rambin and Kirskey Architecture has been hired as architect for both Town Centre projects.
If you are involved in the hotel business in Greater Houston, the next few years is likely to be a boom period. Reports predict that demand for hotel rooms in Houston will increase by around 4 percent per year for at least the next 4 years. This means more hotels will be built in the area, which should provide yet another boost to the commercial real estate industry in the city. Future projects of this nature include a Holiday Inn flagship, a 166-room SpringHill Suites, and a 250-room JW Marriott.
Other commercial real estate developments have been credited with aiding in this boom; this includes the 1,000-room Marriott Marquis convention centre hotel and the new corporate village in Springwoods Village, which is being developed by Exxon Mobil Corp. Hotel occupancy rates have risen to almost 70 percent, an increase of 15 percent, on recessionary rates. Industry experts say that average occupancy rates of above 65 percent are an indication that new rooms need to be added and this rate will be breached every year until 2017 at the very least.
That’s all we have from this month’s Houston commercial real estate review. As you can see, things continue to look positive for investors in the industry.
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