Houston Business Journal
The Westchase District, which sits on Beltway 8 between Terry Hershey Trail and Brays Bayou, saw a host of new development in 2016. Most notably, it saw the opening of Houston-based Phillips 66's (NYSE: PSX) new campus, which spans 1.1 million square feet. The district also welcomed a new Whole Foods that's double the size of the area's previous Whole Foods, as well as a 46,000-square-foot technology-facing co-working space at 2101 CityWest Blvd.
But Jim Murphy, general manager of the Westchase District, said his sights are set on bringing more Class A apartment communities to the area. There's an "unmet demand of several thousand units" in the area, he said, considering that the area saw net employment growth last year. Westchase could support up to 7,000 new Class A apartment units, according to research from CDS [Community Development Strategies] provided by the Westchase District.
That's in stark contrast with the city's overall Class A apartment market. According to a Marcus & Millichap report, Class A apartment occupancy rates have fallen from the 90th percentile during the recent energy boom to 80.1 percent in the third quarter — dragging Houston’s entire multifamily market down. As of November, occupancy rates have now fallen for six straight quarters amid the oil slump, according to Transwestern.
Murphy said the Westchase District has approximately 16,000 multifamily units excluding condos. Last year, 550 apartment units delivered in Westchase, he said, and another 250 units are set to deliver soon. It's unclear if any of the units are part of Class A communities.
In an effort to recruit more residents to Westchase, several projects focusing on green space are underway.
One of such projects is set to kick off soon. The district is working with The Office of James Burnett to start Wilcrest Park, a "blank canvas" of three acres alongside Wilcrest Drive. The park will be planned throughout much of 2017 and built in 2018, Murphy said, and will include a dog park, play grounds, senior fitness options, potentially a space for food trucks and more. Murphy said it'll be the "first park like this in the region."
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That's in stark contrast with the city's overall Class A apartment market. According to a Marcus & Millichap report, Class A apartment occupancy rates have fallen from the 90th percentile during the recent energy boom to 80.1 percent in the third quarter — dragging Houston’s entire multifamily market down. As of November, occupancy rates have now fallen for six straight quarters amid the oil slump, according to Transwestern.
Murphy said the Westchase District has approximately 16,000 multifamily units excluding condos. Last year, 550 apartment units delivered in Westchase, he said, and another 250 units are set to deliver soon. It's unclear if any of the units are part of Class A communities.
In an effort to recruit more residents to Westchase, several projects focusing on green space are underway.
One of such projects is set to kick off soon. The district is working with The Office of James Burnett to start Wilcrest Park, a "blank canvas" of three acres alongside Wilcrest Drive. The park will be planned throughout much of 2017 and built in 2018, Murphy said, and will include a dog park, play grounds, senior fitness options, potentially a space for food trucks and more. Murphy said it'll be the "first park like this in the region."
Read the Study
Link to Article
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