My Lake Conroe Blog Lake Conroe Real Estate Information

COMMERCIAL ARTICLE FOR December 5, 2010

Sales statistics for the traditional shopping day after Thanksgiving dubbed as “Black Friday” are rolling in ever so slowly. So far sales have indicated only a slight rise in consumer spending. To tell the truth, spending was only up 0.3% from “Black Friday”, 2009. However, in perspective, a little increase is better than no increase at all…right? This does mean that consumer confidence is on a positive upswing. And, for real estate to be steady, consumer confidence MUST be on the rise!
Commercial real estate??? How is it doing? Speaking at the 2011 Executive Economic outlook, hosted by Frost Band and Ernst & Young, Dr. Mark Doutzer, Real Estate Center Chief Economist claims, “The boat is moving from choppy waters to calmer seas.” He also mentioned that the country is slowly adding jobs, manufacturing is up and corporate profits are rising, which usually leads to hiring.
We join forces with Dr. Doutzer. While we do not know about other parts of the country (excluding what the media has to report), we certainly can say that lately our commercial team has seen a substantial amount of activity.
We have been working on ground leases for at least two businesses to relocate. Also, we have been meeting with a large international corporation regarding construction of a family sports complex to the area. Another oil company has expressed interest in purchasing land to construct an eighteen thousand square foot building which will house fifty employees.
Several meetings with builders and developers have taken place. Other meetings are scheduled before the first of the year. Builders have contacted us to say that sales are good and inventory is running low. What music to our ears! Developers in Montgomery County certainly have the dirt builders need to build their inventory! New home construction has without a doubt been at an all time low for the past three years. Production of new homes is like gulping ice cold lemonade on a hot, hot summer day! How refreshing! What a boost for the real estate industry!
A couple of established businesses are looking for either a permanent location (instead of leasing) or to build larger buildings. All of these calls have come to us in the last couple of weeks!
Convenience store developers have been expressing renewed interest in purchasing land to construct new stores. Actually, drive by League Line Road at Highway 75 North. Demolishing of the old Bob Wills night club has begun. A nice Shell convenience store will be built on this site.
Think about it! Businesses, developers, etc. do not choose an area unless they have confidence that it will grow and prosper!
Remember when we wrote: “In our opinion, commercial real estate is making a comeback, albeit a slow climb. We do not believe it will spike 50% per year, but, will remain steady.” Both of us stand firm on that belief!
Call us today!