A NEW HAVEN OF OPPORTUNITY
PKY.COM
- 2 PARKWAY WHY HOUSTON? 04 Intro 07 Economy 21 Office 23 Retail 25 Industrial
Contents
- 3 27 Multifamily 29 Lifestyle 40 Map 42 Parkway 44 Contact
Houston, You are home.
Over the last two decades, there has been a remarkable transformation in Houston.
Today, the nation’s fourth largest city has become a diverse, vibrant metro with talented people who have an undeniable spirit. The Houston economy is strong, the cultures are many, and the quality of life is second to none.
Houston has one of the youngest, fastest-growing, and most diverse populations anywhere in the world. One in four of the region’s 7 million residents is foreign born. From 2010 to 2018, Houston added 1.1 million residents, an 18.3% increase, the fastest rate of population growth among the 10 most populous U.S. metros.
Houston offers a well-developed suite of key global industries - including energy, life science, manufacturing, logistics, and aerospace. As these industries digitize, Houston will become a hotbed of rapid technological development thanks to its access to customers and expertise.
Source: OM - Hou Economy
- 4 PARKWAY WHY HOUSTON?
- 5
- 6 PARKWAY WHY HOUSTON?
Economy
Houston's economy stands as a testament to its resilience, fueled by a diverse array of industries that drive growth and innovation.
As the energy capital of the world, Houston has deep roots in the oil and gas sector, but its economic landscape extends far beyond traditional energy sources. The city's healthcare industry is renowned globally, with world-class medical institutions driving advancements in research, treatment, and healthcare delivery.
Furthermore, Houston's manufacturing sector thrives, supported by a skilled workforce and strategic infrastructure, while its burgeoning technology scene attracts talent and investment, positioning the city as a hub for innovation and entrepreneurship.
Strategically located as a global transportation and logistics hub, Houston's port facilitates trade and commerce on an international scale, contributing significantly to its economic vibrancy.
Despite facing challenges, Houston's economy remains resilient, adaptive, and poised for continued growth and success in the years ahead.
- 7
If Houston were a country, it would rank as the 25th largest economy in the world, between Poland and Argentina.
- 8 PARKWAY WHY HOUSTON?
Best Place For Foreign Business
500 Companies
Most Populous Among U.S. Metros
Source: Greater Houston Partnership #1
26 Fortune
#3
- 9 ECONOMY
Houston added nearly 140,000 residents in 2023, second among U.S. metros in population growth.
The increase equates to a new resident every 3.8 minutes. Since 2020 when COVID-19 constrained population growth, the region has added over 340,000 residents. Population in the 10-county region now exceeds that of 37 and the District of Columbia.
As the most populous city in Texas and the fourth-largest in the United States, Houston continues to attract newcomers drawn to its vibrant communities, thriving job market, and dynamic quality of life.
2012-2022 Population Change
Source: OM - Hou Economy
- 10 PARKWAY WHY HOUSTON?
Dallas/Fort Worth 0 200 400 600 800 1,000 1,200 1,400 1,600 1,464 806 800 645 552 475 470 456 300 1,326 Houston MSA Phoenix Atlanta Washington Miami Los Angeles Charlotte New York San Francisco Population Change (Thousands of People) #2 FASTEST GROWING CITY IN THE U.S.
#1
LARGEST CITY IN TEXAS
#4
LARGEST CITY IN THE U.S.
7.3M in Population
Recovered 155% of jobs lost during COVID
- 11
ECONOMY
The Port of Houston
Generates more than $439B in statewide economic value + $906B in nationwide economic value
Source: OM - Hou Economy
PARKWAY WHY HOUSTON? - 12
Value
Ranked #2 Nationally 60% HOUSTON Back to Work % Across Major Metros 51% 46% 49% 44% 49% 42% LOS ANGELES PHILADELPHIA NEW YORK SAN FRANCISCO CHICAGO WASHINGTON
2ND in Terms of Total Foreign Cargo
($240.1B) 2022
DC
- 13 Diversity
Industry Trade, Transportation & Utilities Professional & Business Services Educational & Health Services Government Leisure & Hospitality Mining, Logging and Construction Manufacturing Finance and Insurance Information Other Services 21.0% 16.5% 13.6% 13.4% 10.1% 8.5% 6.9% 3.4% 1.0% 3.5%
In
ECONOMY
Source: Texas Workforce Commission, December '23, not seasonally adjusted
Houston
employs nearly a third of the nation's jobs in oil + gas extraction
3M workers + more engineers than any other U.S. metro Home to over 4,700 energyrelated firms
- 14 PARKWAY WHY HOUSTON?
The Energy Capital of the World, Houston is the headquarters and the intellectual capital for virtually every segment of the energy industry including exploration, production, transmission, marketing, supply, and technology.
"[Houston is] driving innovation, bringing good jobs to their communities, and boosting the American economy."
-
Bill Gates on Houston becoming the 'Silicon Valley of Energy'
Source: Forbes, 2024 CERAWeek
600+ Exploration + Production Firms 1K+ Oilfield Service Companies
180 Pipeline Transportation Establishments
Source: Greater Houston Partnership
- 15 ECONOMY
- 16 PARKWAY WHY HOUSTON?
Texas Medical Center is the world's largest medical complex
10M Annual Patient Encounters
8TH Largest Business District in the U.S.
Source: Greater Houston Partnership
50M Developed Square Feet
120K+ TMC Employees
- 17
ECONOMY
Houston is the 9TH Best Metro to Start A Business In
- 18 PARKWAY WHY HOUSTON?
Education
In Houston, education is a priority ingrained in the city's fabric. From prestigious universities like Rice and the University of Houston to a vast public school system serving diverse communities, Houston offers a comprehensive educational landscape.
With initiatives like Apollo 20 and a focus on STEM education, the city prepares students for success. Additionally, vocational training programs
3 Tier 1 Universities
Source: Greater Houston Partnership
Highest Standard Of Living For College Graduates
(Among 50 Largest U.S. Commuting Zones)
Source: Stanford Institute for Economic Research (via InnovationMap) - Jan 2022
and cultural institutions enrich lifelong learning opportunities. Houston's commitment to education fosters a thriving environment for academic excellence and personal growth.
Furthermore, Houston's vibrant arts and cultural scene not only enriches educational experiences but also fosters creativity, critical thinking, and cultural appreciation among its residents.
- 19 ECONOMY
Leasing Activity
By Industry
Source: CBRE Research, Q1 2024
* Lease sizes 10,000+ SF
- 20 PARKWAY WHY HOUSTON? 39.3% Energy 11.6% a Medical 6.5% a Other 9.0% a Technology 9.5% a Architectural + Construction 10.9% a Financial Services 13.2% Engineering
Prime Office Tenants Get Pickier Due to Hybrid Work
Willing to relocate into more expensive properties to get a better location and/or more amenities
- 21 Office MARKET SNAPSHOT
Source: Oxford Economics, Q4 2023 1.2M
Source: CBRE
- 22 PARKWAY WHY HOUSTON?
SF of Completions
Net Absorption
SF of Construction 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $Billions 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 Houston Retail Sales
-74.9%
2.9M
Retail Business Healthy in Tight Market Conditions
Retail turnovers + big box vacancies get leased at higher rental rates. Moreover, annual new deliveries increase as South + Far North submarkets produce nearly half of new product.
95% of Houston's retail occupancy rate remains at a record high level
- 23
Retail
MARKET SNAPSHOT
Class A Warehouse /Distribution Asking Rates
Source: CBRE Research, Q1 2024
Source: CBRE 41
- 24 PARKWAY WHY HOUSTON?
Projects Totaling 12.2M
Currently Underway 6.3M SF of Delivered Construsction 36.1% Pre-Leasing
SF
Rate
Q1 Q3 Q1 Q3 Q1 Q3 Q1 2021 2021 2022 2022 2023 2023 $0.85 $0.80 $0.75 $0.70 $0.65 $0.60 6.3% 8.3% VACANCY RATE AVAILABILITY RATE
- 25 Industrial
of
MARKET SNAPSHOT
Persists Amidst Shifting Construction Trends Over 4.4M SF of Positive Net Absorption Recorded in Q1 2024 Roughly 3.8M SF
Pipeline Already Pre-Leased
Historical Average Annual Rent Growth
- 26 PARKWAY WHY HOUSTON?
5K+ Units Deliveries 22K+ Units Under Construction 89.0% Occupancy Rate
Oxford Economics, Q4 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 16% 14% 12% 10% 8% 6% 4% 2% 0% -2%
Growth (%)
Source: CBRE, Q4 2023
Source:
Rental
Multifamily
Pipeline Feeds Strong Demand
Suburban expansion continued to drive development, with the most active submarkets: Katy, The Heights, Cypress/Fairfield, Tomball/Spring, and Montgomery County
Positive absorption for 2023 - a total of 10,805 units, which is slightly below 15 yr average of 12,400
- 27
MARKET SNAPSHOT
- 28 PARKWAY WHY HOUSTON?
Lifestyle
Houston, Texas, proudly embraces diversity as a cornerstone of its identity. With vibrant communities representing a myriad of cultures, ethnicities, and backgrounds, the city is a melting pot of perspectives and experiences. From its rich culinary scene to its diverse neighborhoods, Houston fosters inclusivity, weaving a vibrant tapestry of culture and opportunity for all who call it home.
Houston's lifestyle is a dynamic fusion of culture, entertainment, and outdoor adventure. Year-round festivals celebrating food, art, and music ensure there's never a dull moment in the Bayou City. Residents can explore eclectic neighborhoods like Montrose and The Heights, each offering its own unique charm, or indulge in shopping at upscale boutiques. For sports enthusiasts, cheering on the Astros at Minute Maid Park or catching a Rockets game at the Toyota Center is a quintessential Houston experience.
Moreover, the city's proximity to the Gulf Coast provides abundant opportunities for beach getaways and water sports. Whether savoring culinary delights at a food truck festival or kayaking along Buffalo Bayou, Houston's lifestyle embodies an enticing blend of excitement, diversity, and Southern hospitality.
- 29
Cost of Living Comparison
- 30 PARKWAY WHY HOUSTON? 20 Most Populous U.S. Metros % Above/Below U.S. Average New York (Manhattan, NY San Francisco, CA Boston, MA Los Angeles, CA Seattle, WA Washington, DC San Diego, CA Miami, FL Chicago, IL Denver, CO Philadelphia, PA Detroit, MI Dallas, TX Phoenix, AZ Atlanta, GA Houston, TX Tampa, FL Minneapolis, MN St. Louis, MO 127.8 69.5 48 47.3 45.7 45.3 41.7 15.3 13.4 8.8 2.7 2.4 2.2 1.7 -2.0 -4.8 -7.2 -11.3 -4.7
-4.7% BELOW THE NATIONAL AVERAGE COST OF LIVING
Source: Greater Houston Partnership
17.8% Below National Average in Housing Costs
7.3M Residents
257 Residents Move to Houston Daily
Source: OM - Hou Economy
- 31 LIFESTYLE Race/Ethnicity Houston MSA Source: Greater Houston Partnership #2 Youngest Major Metro 37.3 Median Age 145 Languages Spoken Houston Today Mirrors the U.S. in 4 Decades 38.8% Hispanic 3.7% Other 32.7% White 16.7% Black 8.1% Asian
Houstonians dine out more than residents of other major cities — 6.9x per week compared to the national average of 4.9x
11 Nominations for the James Beard Award (Elsewhere, Dallas has 8, San Antonio has 5, and Austin 9)
10,000 Restaurants representing cuisine from more than 70 countries + American regions
- 32 PARKWAY WHY HOUSTON?
Source: Visit Houston
- 33
Alcohol Sales
LIFESTYLE
Source: Texas Bar Tab
Theater District
A 17-block area in the heart of Downtown, is home to Houston's 9 professional performing arts organizations
2M Visitors Annually
Source: Visit Houston
12,948 seats for live performances +
1,580 movie seats — Second to NYC in the U.S.
- 34 PARKWAY WHY HOUSTON?
Museum District
19 museums, galleries, cultural centers, and community organizations dedicated to promoting art, science, history, and culture
8.7+ Visitors Annually
Source: Visit Houston
The Houston Museum District is one of the largest museum campuses in the country. Most are walking distance of one another.
- 35
LIFESTYLE
- 36 PARKWAY WHY HOUSTON?
Professional Sports
- 37
81 Home Games41K Person Capacity 2 World Series Championships 8 Home Games72K Person Capacity 7 AFC South Division Championships 41 Home Games19K Person Capacity 2 NBA Championships 4 Western Conference Titles 2 MLS Cup 2 U.S. Open Cup 22K Person Capacity Per Game 1 NWSL Challenge Cup 22K Person Capacity Per Game LIFESTYLE
- 38 PARKWAY WHY HOUSTON?
Houston Livestock Show + Rodeo 2.5M VISITORS ANNUALLY Buffalo Bayou Park 1.8M VISITORS ANNUALLY NRG Stadium 5.6M VISITORS ANNUALLY Shell Energy Stadium 225K VISITORS ANNUALLY Discovery Green 1.5M VISITORS ANNUALLY Houston Zoo 2.4M VISITORS ANNUALLY Minute Maid Park 1.5M VISITORS ANNUALLY Museum of Fine Arts Houston 1.6M VISITORS ANNUALLY
HTX Attractions Source: Greater Houston Partnership
- 39
Parks + Recreation
Acres of Total Park Space
Among U.S. Most Populous Cities in Total Acreage of Park Land
Total Parks LIFESTYLE
Source: Greater Houston Partnership 52K+
1ST
366
HOUSTON MAP OVERVIEW
^ CYPRESS
< KATY
SPRING BRANCH
MEMORIAL
GARDEN OAKS
LAZYBROOK/ TIMBERGROVE
GREATER HEIGHTS
MEMORIAL VILLAGES
GALLERIA/ UPTOWN
WESTCHASE
BELLAIRE
RIVER OAKS
WASHINGTON
WEST U
MONTROSE
< SUGARLAND
- 40 PARKWAY WHY HOUSTON?
OAKS
GREATER HEIGHTS
NORTHSIDE
MONTROSE MIDTOWN WASHINGTON EADO
EAST END DOWNTOWN
TOYOTA CENTER SHELL ENERGY STADIUM
MUSEUM DISTRICT
TEXAS MEDICAL CENTER
NRG STADIUM THIRD WARD FIFTH WARD
WILLIAM P. HOBBY AIRPORT
GEORGE BUSH INTERCONTINENTAL AIRPORT ELLINGTON
PEARLAND >
AIRPORT
- 41
Why Parkway?
CITYWESTPLACE
Houston, TX citywesthouston.com
Parkway was formed when Midway and Parkway, two nationally recognized firms with over 100 years of collective experience, partnered to form a privately owned, fully diversified real estate investment, operations, and management firm. Coupling Midway’s strength in creating uniquely transformational real estate projects, enduring investments, and asset diversification with Parkway’s investment acumen, market breadth, and capital relationships has positioned the new company for accelerated growth and investment in the Sun Belt markets and beyond.
Parkway brings in-depth development and ownership experience across the asset classes: OFFICE
INDUSTRIAL RETAIL
MULTIFAMILY HOSPITALITY
MEDICAL OFFICE
LAND DEVELOPMENT
Headquartered in Houston, Parkway has a presence in 13 markets across Texas, Florida, Georgia, Virginia, Arizona, Colorado, and California. With a combined 45 million square feet of assets under management, including developments in progress1, Parkway offers a comprehensive suite of specialized commercial real estate solutions including: Investments and Acquisitions, Property Operations and Management, Financial Operations and Compliance, Strategic Leasing and Advisory (Retail and Office), Asset and Portfolio Management, Marketing and Creative, and Development (in partnership with Midway).
With a proven track record of industry-leading results, Parkway’s increased scale, efficiency and financial strength will serve as a force multiplier to drive enhanced stakeholder value through market cycles.
1As of 09.30.2023
- 42 PARKWAY WHY HOUSTON?
Get to Know Us
Created from 2 nationally recognized firms
100+ years of collective experience
$14B+ assets acquired, developed or sold
40M+ square feet of assets under management, including developments in progress
Company leadership has more than 200 years of combined experience
Presence in 13 markets across Texas, Florida, Georgia, Virginia, Arizona, Colorado, and California
- 43
CITYCENTRE
Houston,
BUFFALO HEIGHTS
TX Houston, TX
RETAIL LEASING
Lacee Jacobs Senior Managing Director
832.504.9289
LJACOBS@PKY.COM
Laura Harness Senior Director
713.463.4642
LHARNESS@PKY.COM
Abby Fraher Associate
346.509.6128
ABBY.FRAHER@PKY.COM
Gideon Perritt Associate
713.463.4654
GIDEON.PERRITT@PKY.COM
- 44 PARKWAY WHY HOUSTON?
OFFICE LEASING
Eric Siegrist
Managing Director
713.255.7847
ESIEGRIST@PKY.COM
Rima Soroka
Senior Director
713.255.7474
RSOROKA@PKY.COM
JP Hutcheson
Senior Director
713.255.7846
JPHUTCHESON@PKY.COM
Amanda Nebel
Senior Director
713.255.7828
ANEBEL@PKY.COM
- 45 CONTACT US
PKY.COM