Miller says the market looks very attractive to investors when compared to every other investment market in the country. The year finished with more than 40 transactions, carrying values of nearly $641 million and encompassing 7.5 million sf. "Compare that to the 30 buildings sold in 2000 representing just over 5.8 million sf and $630 million in sales," he says.
Miller cites the sales of the Fluor Daniel Facility, One Sugar Creek Place, the Decorative Center and Phoenix Tower as transactions that aided the stellar performance. Sales for 2001 averaged $103 per sf for class A, $63 per sf for class B, and $38 per sf for class C,according to Miller. Cap rates were 9.4% for class A product, 10.4% for class B and 11.6% for class C. When compared to other markets, like Dallas with two million sf of negative absorption, Miller says Houston is a glowing exception and "one of the very few places you can underwrite to today's tougher standards.
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