Yearly Archives: 2020

Houston has, for the most part, survived the oil downturn, but some areas are still in recovery.

Though Houston’s commercial real estate market is doing well overall, the office sector is still struggling with high vacancy rates.

Eli Gilbert, director of research at commercial real estate firm JLL in Houston, said this has to do with oversupply and jobs lost during the downturn.

Also, companies have learned to be more efficient with less space.

“Looking at the overall vacancy rate,” he said, “particularly in the office market, in the future, a higher value that has historically been seen may become the new normal for the region.”

The office vacancy rate is currently around 20%, with estimates placing the amount of vacant office space between 50 and 60 million square feet, according to the Greater Houston Partnership’s 2019 Employment Forecast.

Gilbert said population growth is the main driver for the other commercial real estate sectors, which include industrial, retail and multi-family.

The industrial market, in particular, is benefiting from an increase in online sales and demand for distribution centers.

If you ask the most powerful women in commercial real estate if they ever imagined they would work in such an industry, most say not in their wildest dreams. We know, we asked. Honorees at Bisnow’s Inaugural Houston Power Women event may not have planned to end up working in real estate, but they have helped evolve an old school industry into one that is attracting new talent from every walk of life. Bisnow/Catie Dixon Transwestern Executive Managing Director Jan Sparks, JLL Senior Managing Director Susan Hill, city of Houston Deputy Director of Economic Development Gwen Tillotson, The Richland Cos. CEO Edna Meyer-Nelson, Veritex Bank Senior Vice President Rhonda Sands, Laughlin Consulting Group CEO Elke Laughlin “It boils down to building a team of individuals that are culturally different in race, gender and age,” JLL Senior Managing Director Susan Hill said. “Real estate is no longer owned by a high net worth private family. Commercial real estate looks different; your team needs to look different.”  That diversity can lead to business success. Commercial Real Estate Women’s recent white paperbacks up what women in Houston are seeing locally. Companies in the top 25% for gender diversity are 15% more likely to have returns above industry median, according to CREW. Women now occupy 43% of commercial real estate positions industry-wide.  “Diversity is more than race or gender, it’s ideas, it’s background. You need a team with different ideas and different ways of communicating to make sure you’re getting the best from everybody,” Veritex Bank Senior Vice President Rhonda Sands said.  Bisnow/Catie Dixon Bisnow Houston Power Women: The Richland Cos.’ Edna Meyer-Nelson and JLL’s Susan Hill surrounded by the Richland Cos. team — Nancy Baugher, Jody Merritt, Clay Steadman, Josephine Duncan, Angie Steadman, Jennifer Theriot and Raven Burleson “It boils down to building a team of individuals that are culturally different in race, gender and age,” JLL Senior Managing Director Susan Hill said. “Real estate is no longer owned by a high net worth private family. Commercial real estate looks different; your team needs to look different.”  That diversity can lead to business success. Commercial Real Estate Women’s recent white paperbacks up what women in Houston are seeing locally. Companies in the top 25% for gender diversity are 15% more likely to have returns above industry median, according to CREW. Women now occupy 43% of commercial real estate positions industry-wide. Today, for the most part, women are playing on the same field as men in Houston’s commercial real estate sector. Many women and some of Bisnow’s honorees are outearning their male counterparts. As heavy-hitters and C-suite executives, Houston’s power women have not only changed the landscape of one of the most male-dominated industries, they are leaving a lasting legacy for the next generation.