Metro Houston added nearly 1.3 million residents between ’08 and ’18, a 22.3 percent increase. A little more than half the growth came from migration, a bit less than half from natural increase. Metro Houston created 81,900 jobs, a 2.7 percent increase, in the 12 months ending August ’19, according to the Texas Workforce Commission (TWC). Nonfarm payroll employment was 3,166,900 in August, flat from July, and down from 3,185,200 in June. The drop reflects the temporary loss of jobs associated with education.

Sectors adding the most jobs over the past 12 months were professional, scientific, and technical services (21,100); manufacturing (11,500); other services (9,700); transportation, warehousing, and utilities (8,600); and health care and social assistance (8,200). Employment in oil field services peaked in May and has declined steadily since. This is not surprising given the loss of more than 200 working rigs since the first of the year.

The jobs gained in manufacturing are likely an overestimate given that three-fourths of the gains have been in equipment manufacturing and fabricated metals, sectors closely tied to upstream energy. Houston’s unemployment rate was 3.9 percent in August, down from 4.0 percent in July and 4.4 percent in August of last year. The Texas rate in August was 3.6 percent; the U.S. rate, 3.8 percent. The rates are not seasonally adjusted.

City of Houston building permits totaled $7.2 billion for the 12 months ending August ’19, up 16.3 percent from $6.2 billion for the same period a year earlier. Commercial permit values rose 31.8 percent to $4.4 billion, while residential permit values decreased 1.8 percent to $2.8 billion. The closing spot price for a barrel of West Texas Intermediate (WTI), the U.S. benchmark for light, sweet crude, averaged $56.67 per barrel in September, down 18.7 percent from $70.15 for September last year.


According to reports, the We Company does not have enough operating capital to make it through November, and its lenders are scurrying to put together a bailout.

JPMorgan Chase, who has invested in WeWork for several years, is leading the group and is likely to put up the most capital.

When the We Company was still gearing for an initial public offering, JPMorgan and Goldman Sachs were set to be its financial backers. The two banks had promised to lend $6 billion to WeWork contingent upon the firm raising $3 billion during its IPO.

Since the IPO failed and co-founder Adam Neumann was ousted as CEO, Bloomberg reported that the company had just enough capital to last through the winter.One factor that is potentially pushing WeWork closer to the brink of bankruptcy is a previous bond offering where it promised to keep $500 million in cash on its books. Those bonds have been downgraded to junk status by several credit agencies

The 48-story tower is expected to fetch about $700 million or $650 per SF, according to Real Estate Alert. That sales price would make the building one of the richest deals in Houston’s real estate history..

The building, which opened in 2017, is 94 percent occupied with Unired Airlines, Kirkland & Ellis and Goldman Sachs as tenants. Colvill Office Properties leases the 601 Main at Travis, which is catty-cornered from the historic Rice Hotel building which is now residential lofts.

Peloton Commercial Real Estate has operations in Dallas and Houston.

Two big North Texas real estate players are joining forces.

Dallas-based property firm Peloton Commercial Real Estate is being acquired by JLL, the Chicago-based international real estate services firm.

More than 130 professionals in Peloton’s Dallas and Houston offices will join JLL, which already has a huge presence in the area.

It’s JLL’s second recent major acquisition. It just completed a purchase of Holliday Fenoglio Fowler LP, the Dallas-based investment sales and finance firm.

JLL said its purchase of Peloton will accelerate the growth of the company’s leasing and property management businesses.

 “This is a momentous step in our journey to become a market-leading player in Texas,” JLL’s regional director David Carroll said in a statement. “With the exceptional growth we have seen in those markets, Peloton’s position as a leading provider of leasing and property management services will greatly enhance our business capabilities and breadth of services.

“Just as importantly, we look forward to working with a team of professionals that share JLL’s strong commitment to collaboration and culture.”

JLL already has about 700 people in North Texas.

Terms of the sale were not disclosed, and the transaction is still subject to closing conditions.

Peloton’s founders, Joel Pustmueller and T.D. Briggs, will continue to focus on the D-FW and Houston property markets in their new roles at JLL.

Medical Office Building Sells In Sugar Land       A medical office building changed hands in Sugar Land.  An undisclosed buyer acquired Town Center Medical, a 30K SF medical office building at 16545 Southwest Freeway. The Class-A property is adjacent to Houston Methodist Sugar Land Hospital, a 319-bed general acute care hospital specializing in cardiology, oncology, sports medicine, and women’s care. Built-in 2008, Town Center Medical is fully leased. ENT and Allergy, an ear, nose and throat group, serves as the anchor tenant.  “The Town Center Medical disposition highlights the robust demand for stabilized, on-campus medical office buildings in the Houston Metro area,” Transwestern Commercial Services’ Robby Winston said. “Sophisticated healthcare real estate investors continue to be optimistic about long-term yields from core medical office assets.” Houston Specialists Alliance Ltd. purchased the land in 2006 from Town Center Lakeside Ltd. for $750K, according to Reonomy. The assessed land value now is $1.3M while the total assessed value of the property is $5.3M, according to Reonomy.  Winston, along with Eric Johnson, Lisa Bovermann and Brooks Creech, represented the seller. TCS Houston has executed 522 healthcare transactions during the last 24 months and manages a healthcare portfolio of 69 properties totaling more than 5M SF.

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