Drive around the Galleria area and inside the Loop are you’re likely to see almost a dozen construction cranes, big ones, assembling the new multi-family units sprouting up in Houston like weeds.
The rents at The Tower in the Museum District can set you back a pretty coin: up to $7,750 a month for a two bed-two bath. And the amenities, including the 6th floor swimming pool with views that take your breath away, are total top notch.
Perhaps it is establishments such as the Tower, or Tower envy, fueling the explosion of new apartment buildings and condos on prime real estate inside the 610 Loop.
Economist Ray Perryman likens Houston to a three-legged stool.
“Basically it’s the energy sector, activity at the port, and the health sciences- bio industry, and all three of those are doing extremely well right now,” Perryman tells KTRH News.
Employees are going to need a place to live, and an easy commute is a bonus, for all those office buildings that are also going in as Houston surpasses previous records for the issuance of building permits. 50 office buildings under construction currently, and plans for another 114 are being bandied about.
Perryman says the profitability of the city’s major industries is feeding into the frenzy. “With that comes a lot of growth, a lot of demand for new space, and credit conditions are freeing up a bit and you’re seeing more development taking place. So Houston is really in the middle of a good economic time right now,” he says.
Growing pains are limited to Houston. The Woodlands is still expanding as the biggest commercial real estate development in North America – the Exxon Mobile campus – is starting house what will be a 10,000 person workforce. The complex will be fully functional and hopping with activity in 2016. Office space in the Woodlands is at 4.6% vacancy.