HOUSTON–CBRE's Ryan Epsteinshares his thoughts on Houston being one of the premier apartmentmarkets in the country. In this exclusive Q&A, he talks aboutmajor trends, the market's future and Exxon's impact.

|

GlobeSt.com: What do you think will be some of the majormultifamily trends in 2014?

|

Epstein: On the transaction side, it's allabout new construction as the first wave of merchant-built productwill be coming to market. This is the latest generation of newapartment development, and much of it is concentrated in the moreurban markets.

|

GlobeSt.com: How would you say the multifamily markethas changed over the last five years?

|

Epstein: The multifamily market has become apreferred asset class for institutional capital, and we have alsoseen many more renters by choice today than in previous years.These are tenants who can afford to buy a home, but who choose torent for the convenience of living near their workplace as well asfor the resort amenities that these new properties provide.

|

GlobeSt.com: Is there are particular project that youare watching with a lot of interest?

|

Epstein: There are several great projects inHouston, but I think the development activity has changed mostdramatically in the Heights area. This has become one of thehottest submarkets in Houston in terms of rent growth anddemand.

|

GlobeSt.com: It seems at least once a week there is somemultifamily or hotel news regarding the Energy Corridor, especiallythe area right around the new Exxon Mobil campus. What is thegeneral sentiment among industry leaders about thisarea?

|

Epstein: Exxon is anticipated to bring morethan 10,000 jobs to this area. Needless to say, the impact on thesubmarket will be tremendous. The Woodlands has already seenincredible rent growth before the campus' opening, so it will beexciting to see what happens with multifamily once the Exxon campusis fully delivered.

|

GlobeSt.com: Do you think there is a chance ofoverbuilding around Exxon Mobil?

|

Epstein: Many residents will choose to liveclose to where they work, as has been the trend for manyyears. I believe any apartments in the area that are easilyaccessible will do very well.

|

GlobeSt.com: Where do you see the marketheaded?

|

Epstein: Not surprisingly, Houston is becomingone of the premiere apartment markets in the country because of ourcontinued job growth. The fundamentals of this market aresuccessful from virtually every angle. Unless something unforeseenhappens, I see great things on the horizon for Houston'sfuture.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.