45 million square feet of office and mixed-use space predicted by 2030
The latest land use and demographics study from CDS Market Research forecasts a 59 percent increase in office, industrial/warehouse and retail space for The Energy Corridor by 2030, foretelling the continuing desire to conduct business in what has become one of the nation’s hottest urban centers.
This year alone, office and mixed use space will hit the 28.4 million square feet mark. By 2030, that space in The Energy Corridor is expected to reach 45.2 million square feet, according to the CDS report.
In just 16 years, there will be nearly 150,000 people working in The Energy Corridor, CDS says, a 64 percent boost from today’s 91,000 jobs. Last year, The Energy Corridor became Houston’s second largest employment center after downtown.
The number of people choosing to live in The Energy Corridor will increase to nearly 27,000 from 21,735, a 24 percent jump. CDS predicts an additional 2,700 housing units will be built in the next 16 years. About $217 million worth of apartments and townhomes are now under construction in The Energy Corridor, including Alliance Apartments, Alexan Enclave, Grayco Townhomes and Grayco Apartments.
Construction cranes are now putting the floors on some 4.1 million square feet of office buildings under construction in The Energy Corridor. A staggering 8.4 million square feet of offices are set to begin construction in the very near future.
Many of the offices planned or under construction have been spurred on by the extension of Park Row by The Energy Corridor District, which entered into a Chapter 380 economic development agreement with The City of Houston to facilitate the project. Office and mixed use space is expected to double by 2030, from the nearly 12 million square feet of space now found along Park Row. Multi-family apartments and townhomes will also grow along Park Row by 1,500 units near the Addicks Park and Ride, the CDS report notes.
Perhaps one reason The Energy Corridor continues to attract energy companies is that nearly 43 percent of architects and engineers in the Houston metropolitan area live within a 30-minute drive time of the Energy Corridor, according to the CDS report. That’s significantly higher than all employed persons living within the same drive time. More than 1.1 million employed people live inside that 30-minute drive zone.
Healthcare will also play a significant role in The Energy Corridor’s near future, CDS reports.
Two hospitals opened in 2010, Texas Children’s Hospital West Campus, which is already expanding, and the Methodist West Houston Hospital. Combined, both hospitals represent more than $500 million worth of development – and have coined a new healthcare destination for Houston, the Texas Medical Center-West Campus.
Joining these hospitals soon will be The University of Texas M.D. Anderson Center, which owns 35 acres of land in the Central Park development along Park Row, just north of Interstate 10. Construction on that healthcare facility is set to begin in 2017.
The hospitality business in The Energy Corridor saw increases in both revenue and occupancy, CDS says. With 3,460 rooms, revenue for hotels and motels rose more than 15 percent in 2013, bringing in $97 million in revenue. More than 600 additional rooms are planned, including a Doubletree by Hilton, Courtyard by Marriott, Hampton Inn & Suites and Spring Hill Suites.
To read more about robust growth in The Energy Corridor, both present and future, visit here.