East Houston Goes Boom; Elan Heights Begins Leasing


Photo: telwink via Swamplot Flickr Pool


7 Comment

  • I hope last year’s flood event pics are included in the Elan Heights promo materials. The only saving grace for this complex is location/views.

  • @HAG I think I remember Elan Heights bragging that the flooding events didn’t reach even the first floor of their living spaces, which is exactly why they have so many levels of parking. It did what it was designed to do in a major flooding event so, yeah, they probably will include it in the promo materials.

  • What happens to east Houston once the construction projects that employ thousands wrap up and they employ merely hundreds? What happens — as appears to be recently indicated in the data — as feedstock production begins to decline and local feedstock demand increases to reflect the new refining capacity such that crack spreads are affected? And then there are the big question marks for the futurist-minded. What happens as public policy or technological change undermines the demand for hydrocarbon-based services? What happens next in emerging markets? And how will those factors affect employment or incomes for the plant workers if at all?

    Whether in west Houston or east Houston, if I were investing I would give the real estate markets a chance to settle out. They’re very turbid.

  • Pre-leasing for October doesn’t strike me as a great money move in this market.
    I guess the upside of leasing at Elan Heights is that you would have a new car every few years – if well-insured.

  • @TheNiche, I will address some of your questions.

    As far as your question about construction workers goes, the timeline for expansion is about ten years. It will probably reach peak construction employment in about 3 to 5 years and then decline to zero over the succeeding five to seven years. There are 137 refineries in Houston and only four utilize crude oil as a feedstock. The other 133 utilize natural gas and its by products as feed stock. Also, a big chunk of the construction is related to the prospect of increased trade via the widened Panama Canal. Things are not as bad as your questions suggest.

  • The construction projects are projected to last for about 2-4 years. If oil has not come back up in price by the time they are done we’re ALL screwed.

  • That said I don’t disagree with your final statement about letting the markets settle out a bit. In 2 years we will have a much clearer picture about where Houston (east and west) real estate is heading.