What's Up In Montgomery County?

What's Up in Montgomery County? - Strong Demand and Smart Delivery Propel the Regional Real Estate Market to New Heights

By Ross Foldetta, The Foldetta Group, Commercial Real Estate Services
Featured in GROWTH Magazine, September, 2007

Over the last seven years, the Greater Houston area has experienced spectacular growth in regional commercial real estate markets. The various product types have been attracted to sites predominantly based upon geographic dynamics related to industry, population patterns, and transportation improvements. In general, oil production continues as a major force in the evolution of commercial real estate development and it impacts everything from traditional industry to home and retail sales.

If you have traveled along the Sam Houston Toll Road or near Intercontinental Airport over the last two years, you couldn’t help but notice warehouse and distribution centers emerging along these vital transportation corridors. New office developments have sprung up and will continue to do so, from downtown to the suburbs. Furthermore, there is a retail explosion near every major intersection and along every arterial roadway, especially where new or existing subdivisions appear. In this regard, the north side has experienced consistently fast-paced growth and Montgomery County, in particular, appears to be positioned to continue its rapid expansion.

Transportation improvements are always a key indicator of future real estate growth. One can simply look at the programming for new roads (and improvement to existing roads), as well as the school districts’ growth models to predict and plot the future of real estate development activities on the horizon. Even individuals not involved in the real estate profession can see the proliferation of retail development on suburban corners throughout the Greater Houston area. While there are still many viable opportunities for new development, some developers are focused on re-development in more urban locations due to excessive competition in the suburban markets.

“Flocking” downtown demonstrates that larger developers and purchasers are encouraged to build upon the proven foundation of the central business district. Additionally, some retail developers are finding ‘diamonds in the rough’ near to downtown, in evolving or neglected environments with in-fill potential; rather than paying the premiums associated with “hot” markets or fighting the battles associated with excessive development. In contrast, near Hewlett-Packard, off SH 249 and Louetta, a 45-acre portion of the H-P campus was recently purchased for redevelopment. This project is expected to add another 650,000 SF of office space in five buildings to the northern market—space that will compete directly with The Woodlands for tenants seeking high-quality amenities such as those found at Vintage Park, the sophisticated new lifestyle center by Giorgio Borlenghi, and his Interfin Companies. Vintage Park is scheduled to open for business early 2008.

To view the rest of the article click here or download the September 2008 issue of GROWTH Magazine at http://growthb2b.com/ where Ross Foldetta is featured in the cover story as a Top Player of Commercial Development.