HOUSTON--The industry's top institutional investors kicked off this year's RealShare Houston conference on Tuesday at The Houstonian Hotel.

Against the backdrop of an uncertain oil market, the panelists of “Capital Markets and Asset Strategies” are optimistic about investing in Houston.

“There is no shortage of development opportunities here,” Bruce C. Petersen, executive managing director, real estate investments at USAA Real Estate Co., said, referring to The Woodlands' recent success luring corporate campuses.

With ExxonMobil's employment center slated to open there this spring, the community is generating a lot of demand, Petersen said.

Fellow panelist Ron Miller, director, acquisitions at Invesco Real Estate, agreed.

“It's hard to find a market in the country that would outperform [Houston] in any way,” he said.

However, Miller did allude to what turned out to be the conference's proverbial “elephant in the room,” the oil-price quandary: “We have a geopolitical situation which none of us can control.”

Despite the potential challenge to the market, other panelists offered their perspectives on coveted sectors in the area.

Brad Simpkins, senior director, asset management at TIAA-CREF, noted that industrial and retail assets are “the most challenging to get our hands on.”

Brad Davey, vice president at Clarion Partners also concurred: “We continue to look for high-end retail.”

All allowed that grocery-anchored retail is in good standing.

“Get the grocery, sign them, and you can then finance [the asset],” Miller said.

Moderator Steve Pumper, executive managing partner, capital markets and asset strategies at Transwestern, concluded the session by steering the commentary toward multifamily.

To which Pam Boneham, managing director at Cornerstone Real Estate Advisors, echoed the sentiments of most of the participants, as well as the thoughts of anyone who has driven down a street in Houston lately.

“It's remarkable the number of multifamily developments moving forward,” she said.

Instant Insights /

'No Shortage of Development Opportunities' in Houston

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