Houston commercial real estate is diverse in many ways from a melting pot of culture to a favorable business climate catering to some of the largest industries such as manufacturing, energy, medicine, aerospace, and technology.
Houston has a robust commercial real estate industry. A recent report from StorageCafe positioned Metro Houston as the number two city in the U.S. for its real estate activities across commercial and residential sectors over the last decade. (Mistretta, 2022)
Houston’s Big Draw
Growth and success are fueled by a large pool of skilled labor and professionals, an evolving business climate, proximity to rail, and interstate highways, and four deep-water seaports. This strategic location helps companies reduce transportation and distribution costs locally and on imported goods.
Despite the turbulent last few years, Houston has built 44 million sf. of office space and new industrial construction has surpassed 153 million Sq. Feet. (Mistretta, 2022)
The surge in e-commerce led to the construction of more warehouses and distribution spaces to enable direct-to-consumer deliveries. Amazon.com has opened 4 Houston area delivery centers totaling over 760,000 square feet. In addition, over 2,000,000 square feet of fulfillment and a sort center are also part of the strategic plan. (Pulsinelli, 2021) This growth is fueling the creation of new jobs and a demand for housing.
Houston’s Growing Areas for Commercial Spaces
Port of Houston
While there are many exciting things about Houston’s commercial real estate, the Port of Houston is one of the biggest attractions. It’s the largest port in the U.S. in inter Texas tonnage and the second-busiest overall tonnage. (Wikipedia, 2021)
Commercial spaces in and around the Port of Houston have increased exponentially because of the Port expansion plans, making it more lucrative for businesses to trade efficiently and sustain growth.
The Woodlands
The Woodlands features a job environment with business-friendly tax benefits and a lucrative commercial real estate inventory that is attracting homeowners and businesses to the region.
The Woodlands also boasts top medical centers to five major world-class hospitals, including Memorial Hermann, Houston Methodist The Woodlands Hospital, The Woodlands Medical Center, CHI St. Luke’s Health – The Woodlands, and Lakeside Hospitals, Texas Children’s Hospital, and MD Anderson Cancer Center.
From retail to medical and a number of Fortune 500 Headquarters, growth of this north Houston hub of opportunity is happening at a record pace.
Houston Commercial Real Estate Beyond 2022
Companies are continuing to plan for a return to the office. Employees demand competitive wages, an affordable cost of living as well as cultural and retail amenities.
Access to specific spaces, work materials, and resources are the primary reasons to be in the office, particularly for the consumer goods, government/defense, and science industries. Client meetings and maximizing individual productivity are also strong in-office drivers. (Pogue McLaurin & Benkert, 2022)
Employers are shifting policies allowing for flexibility with return-to-work strategies, optimizing current worker resources.
Image Source – Gensler Research Institute 2021
It’s a challenging yet exciting time for companies.
It makes sense for commercial real estate owners and landlords to devise better strategies and a new design approach that offers a flexible office footprint with optimal functionality. Redesigns of current spaces and thinking outside of the norm are required to stay profitable.
We also expect to see a growing demand for amenity rich commercial properties that feature modern conveniences and upgraded technology capabilities.
Landlords and Tenants in Today’s Commercial Real Estate
Having commercial real estate representation that is local and understands the current Houston market is critical. Flexibility and responsiveness are key to finding a real estate partner that not only gets your business, but also understands the wants and needs of your people.
Oliver Commercial Real Estate Understands Agility and Growth
We know that owning or leasing a commercial property is more than just a business commodity. It represents your company’s ethos, and we know what that’s worth.
Our commercial spaces are in growing areas of Houston, from the Houston Ship Channel to The Woodlands. Our team of qualified agents and property managers will do a needs analysis with you to deliver the best possible solution.
Some of our services include:
- Commercial and Industrial Space Brokerage – executive suites, office condos, mixed-used offices, warehouse spaces and acreage
- Property Management
- Construction services for renovation and build-outs
- HOA Representation for Condominium Owners
Oliver CRE can assist you with all your commercial real estate needs. Contact us at (281) 558-1111 to schedule an appointment.
Works Cited
Mistretta, A. J. (2022, March 7). Report: Houston 2nd most active real estate market in the nation over last decade . Greater Houston Partnership. Retrieved April 3, 2022, from https://www.houston.org/news/report-houston-2nd-most-active-real-estate-market-nation-over-last-decade
Pulsinelli, Olivia. “Amazon to Open Four More Houston-Area Delivery Stations, Add over 300 Jobs.” Bizjournals.com, 2021, www.bizjournals.com/houston/news/2021/03/24/amazon-new-local-delivery-stations.html.
Pogue McLaurin, J., & Benkert, S. (2022, January 6). How are companies and employees planning for the future of the office? Gensler. Retrieved April 3, 2022, from https://www.gensler.com/blog/how-are-companies-planning-for-the-future-office?e=media
Wikipedia, S. (2021, November 9). Port of Houston. Wikipedia. Retrieved April 3, 2022, from https://en.wikipedia.org/wiki/Port_of_Houston
