HOUSTON RETAIL DECEMBER 2015 RECENT RETAIL LEASES Katy/Cinco Ranch :: Planet Fitness 20,000 SF new lease at Katy Ranch Crossing Spring Creek :: HCTRA 10,000 SF new lease at Northland Shopping Center Inner Loop/River Oaks :: Roka Akor 6,591 SF new lease at 2929 Weslayan RECENT RETAIL SALES Pearland/Manvel :: Brazos Mall 684,000 SF Buyer: Centennial Real Estate Co, Atlantic Creek RE Partners & The Northshore Property Group joint venture Seller: StreetMac Asset Managers, LLC & Five Mile Capital joint venture RETAIL IN THE NEWS Popular barbecue joint to open its largest location in Houston area link to story Houston Business Journal, December 9, 2015 Massive Sugar Land development signs Alamo Drafthouse as first tenant link to story CultureMap Houston, December 8, 2015 Post Oak bus lanes causing ‘concern and panic’ in retail, jeweler says link to story Houston Business Journal, December 7, 2015 RETAIL LEASE STATISTICS Source: CoStar - Houston retail buildings 5,000 SF and greater Retail Market Indicators SUBMARKET TOTAL RBA (SF) DIRECT VACANT (SF) DIRECT VACANCY RATE OVERALL VACANCY RATE SF UNDER CONSTRUCTION Q3 2015 NET ABSORPTION East (Pasadena/Galena Park, Channelview/Beaumont & Baytown/Chambers) 13,202,770 910,078 7.9% 7.9% 9,900 42,944 Inner Loop (CBD, Bellaire/West U, Galleria/Uptown, River Oaks, Heights & East End) 26,900,078 1,155,846 4.3% 4.3% 80,510 39,778 North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North & The Woodlands/Montgomery) 57,177,727 2,866,424 6.0% 6.1% 61,000 78,626 Northeast (Near Northeast, Atascosita, Kingwood & Liberty County) 12,735,240 553,055 7.3% 7.5% 57,000 (101) Northwest (NW Oaks, Spring Branch, Willowbrook, Jersey Village, Copperfield, Fairfield, Cypress/Bridgelands, Far Katy North, Far NW & Tomball/Spring Cypress) 56,901,541 2,916,441 6.1% 6.2% 978,260 214,045 South (Pearland/Manvel & Near South) 13,679,963 713,999 6.2% 6.2% 174,060 (54,285) Southeast (Gulf Frwy/Pasadena, Baybrook/Clear Lake & Old Pearland/Alvin) 50,829,708 2,999,034 5.9% 6.0% 519,097 45,684 Southwest (Sharpstown/Southwest Central, West Oaks, Sugar Land/Stafford & Richmond/ Rosenberg) 34,575,448 1,978,639 6.7% 6.8% 259,525 (35,048) West (Memorial, Westchase, Energy Corridor & Katy/Cinco Ranch) 38,533,935 1,926,015 5.0% 5.2% 162,822 156,538 Total - Houston 304,536,410 16,019,531 6.4% 6.5% 2,302,174 488,181 Source: Costar - Houston retail buildings 5,000 SF and greater Retail Sales Statistics HOUSTON MSA UNITED STATES QUARTER TO DATE LAST QUARTER (Q3 2015) TRAILING 12 MONTHS LAST QUARTER (Q3 2015) TRAILING 12 MONTHS Volume ($ Mil) $193.1 $341.7 $1,698.3 $19,586.1 $90,375.7 No. of Properties 18 41 167 1,753 7,282 Total SF 1,496,733 3,023,645 10,479,099 101,204,307 438,476,413 Average Price/SF $212 $138 $185 $208 $214 Average Cap Rate (Yield) 6.6% 7.3% 7.0% 6.6% 6.6% Source: Real Capital Analytics MARKET WATCH Overall Vacancy Rates Asking Rental Rates (NNN) Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 $16.50 $16.75 $17.00 $17.25 $17.50 $17.75 $18.00 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0%
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HOUSTON RETAILDEcEmbER 2015
Recent RetAIL LeAses
Katy/Cinco Ranch :: Planet Fitness20,000 SF new lease at Katy Ranch Crossing
Spring Creek :: HCTRA10,000 SF new lease at Northland Shopping Center
Inner Loop/River Oaks :: Roka Akor 6,591 SF new lease at 2929 Weslayan
Recent RetAIL sALes
Pearland/Manvel :: Brazos Mall 684,000 SF Buyer: Centennial Real Estate Co, Atlantic Creek RE Partners & The Northshore Property Group joint ventureSeller: StreetMac Asset Managers, LLC & Five Mile Capital joint venture
RetAIL In tHe neWs
Popular barbecue joint to open its largest location in Houston area link to storyHouston Business Journal, December 9, 2015
Massive Sugar Land development signs Alamo Drafthouse as first tenant link to storyCultureMap Houston, December 8, 2015
Post Oak bus lanes causing ‘concern and panic’ in retail, jeweler says link to storyHouston Business Journal, December 7, 2015
RETAIL LEASE STATISTICS
Source: CoStar - Houston retail buildings 5,000 SF and greater
Retail Market IndicatorsSUBMARKET TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
OVERALL VACANCY RATE
SF UNDER CONSTRUCTION
Q3 2015 NET ABSORPTION
East (Pasadena/Galena Park, Channelview/Beaumont & Baytown/Chambers) 13,202,770 910,078 7.9% 7.9% 9,900 42,944
Inner Loop (CBD, Bellaire/West U, Galleria/Uptown, River Oaks, Heights & East End) 26,900,078 1,155,846 4.3% 4.3% 80,510 39,778
North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North & The Woodlands/Montgomery)
Northwest (NW Oaks, Spring Branch, Willowbrook, Jersey Village, Copperfield, Fairfield, Cypress/Bridgelands, Far Katy North, Far NW & Tomball/Spring Cypress)
56,901,541 2,916,441 6.1% 6.2% 978,260 214,045
South (Pearland/Manvel & Near South) 13,679,963 713,999 6.2% 6.2% 174,060 (54,285)
Southeast (Gulf Frwy/Pasadena, Baybrook/Clear Lake & Old Pearland/Alvin) 50,829,708 2,999,034 5.9% 6.0% 519,097 45,684
Southwest (Sharpstown/Southwest Central, West Oaks, Sugar Land/Stafford & Richmond/Rosenberg)
34,575,448 1,978,639 6.7% 6.8% 259,525 (35,048)
West (Memorial, Westchase, Energy Corridor & Katy/Cinco Ranch) 38,533,935 1,926,015 5.0% 5.2% 162,822 156,538
Total - Houston 304,536,410 16,019,531 6.4% 6.5% 2,302,174 488,181 Source: Costar - Houston retail buildings 5,000 SF and greater
Retail Sales StatisticsHouSTon MSA unITEd STATES
QuARTER To dATE
LAST QuARTER (Q3 2015)
TRAILIng 12 MonTHS
LAST QuARTER (Q3 2015)
TRAILIng 12 MonTHS
Volume ($ Mil)
$193.1 $341.7 $1,698.3 $19,586.1 $90,375.7
No. of Properties
18 41 167 1,753 7,282
Total SF 1,496,733 3,023,645 10,479,099 101,204,307 438,476,413
1. CBD2. Bellaire/West University3. Galleria/Uptown4. Inner Loop/River Oaks5. Heights6. East End
West
1. Memorial2. Westchase3. Energy Corridor4. Katy/Cinco Ranch
nORtH
1. Near North2. FM 1960 & I-453. Greens Point/North Belt4. Spring Creek5. Far North6. The Woodlands/Montgomery
sOUtHWest
1. Sharpstown/Southwest Central2. West Oaks3. Sugar Land/Stafford4. Richmond/Rosenberg
nORtHWest
1. Northwest Oaks2. Spring Branch3. Willowbrook4. Jersey Village5. Copperfield6. Fairfield7. Cypress/Bridgelands8. Far Katy North9. Far Northwest10. Tomball/Spring Cypress
nORtHeAst
1. Near Northeast2. Atascocita3. Kingwood4. Liberty County
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 38 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
Transwestern was founded in Houston, Texas in 1978, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern’s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years.