CoStarGroup|1331LStreet,NW,Washington,DC20005|costargroup.com|877-498-4425|©2017CoStarRealtyInformation,Inc.
HoustonFloodingandthePotentialImpactonCommercialRealEstate• Houstonranksasthe6thlargestMSAinthecountrybytotalSFofcommercialrealestatespace,
withmorethan1.6billionSF(or232SF/capita).OnlyChicago,NewYork,LosAngeles,Dallas-FortWorth,andAtlantahavemorerentablebuildingarea(RBA).
• About27%ofHouston’sGLAmaybeunderwatertoday,representinganestimated$55billioninpropertyvalue.Therearemorethan12,000propertiescontaining433millionSFlocatedinthefloodplain.Thisincludes167,281apartmentunits,60millionSFofoffice,and73millionSFofretailspace.Inaddition,11hospitalbuildings,includinga1.1millionSFbuildingattheTexasMedicalCenterfallwithinthe100-yearfloodplain.
Figure 1: Buildings in the FEMA Designated Floodplain
• Only9millionSFofspace,including4,000apartmentsarewithinadesignatedfloodway,andprobablyinundatedwithfloodwaterstoday.However,175millionSFislocatedinthe100-yearfloodplain,including72,000apartmentunitsand20millionSFofofficespace,andarelikelyseeingsomeincursionofwatertoday.Another225millionSFsitsinthe500-yearfloodplainandisalsoatsomeriskofflooding.
CoStarGroup|1331LStreet,NW,Washington,DC20005|costargroup.com|877-498-4425|©2017CoStarRealtyInformation,Inc.
Figure 2: Exposure by Floodplain
• Ofthe$55billionatrisk,apartmentassetsaccountfor$16billion,including$6.8billioninthe100-yearfloodplain.Themostvaluableoftheseassetsarelistedbelow.
• ThesubmarketthatwillbemostimpactedislikelytobeSouthwestHouston.ThishighlydensesectionofHoustonishometomorethan66,000apartmentunits,ofwhich,nearly30%areestimatedtobeimpacted.Theinventoryismostlyworkforcehousingand1980svintagegardenstyle(2-3story)construction.WithinSouthwestHouston,theBraeburn,GreaterFondrenandSharpstownneighborhoodshavethehighestnumberofunitsthatareinthe100-yearfloodplain.EachoftheseneighborhoodsbordersBraysBayou,oneoftheriverwaysthatsnakesthroughsouthwestHoustonandhasoverflowedasaresultofthetorrentialrainlevels.
Source: FEMA; CoStar Group
0
50
100
150
200
250
Floodway 100 Year Risk ReducedDue to Levees
500 Year
RBA Exposure By Fema Floodplain Designation (Millions SF)
1 7694484 ★★★★ 7 7631335 ★★★★ 13 7408022 ★★AMLI 2121 Braeswood Place Luxor Park & Rancho Verde Apartments2121 Allen Pky, Houston 3838 N Braeswood Blvd, Houston 5801 W Sunforest Dr, Houston431 Units 340 Units 828 Units$106,955,200 Estimated value $77,626,250 Estimated value $69,155,024 Estimated value
2 8038031 ★★★★ 8 8037172 ★★ 14 7156867 ★★Artesian on Westheimer Blue Bell Village Rancho Verde Apartments13099 Westheimer Rd, Houston 9660 Veterans Memorial, Houston 6000 W Sunforest Dr, Houston660 Units 592 Units 332 Units$101,961,412 Estimated value $77,376,140 Estimated value $67,917,700 Estimated value
3 8026329 ★★★★ 9 1565518 ★★★★ 15 8317675 ★★★★★The Lanesborough Lakeside Place Archstone Toscano1819 S Braeswood Blvd, Houston 201 Wilcrest Dr, Houston 2900 N Braeswood Blvd, Houston733 Units 734 Units 474 Units
$92,303,008 Estimated value $74,857,627 Estimated value $66,056,088 Estimated value
4 966705 ★★★ 10 1150683 ★★★ 16 9250199 ★★★★Nob Hill Apartments Brompton Court Elan Med Center5410 N Braeswood Blvd, Houston 7510 Brompton Rd, Houston 7010 Staffordshire St, Houston1,326 Units 793 Units 281 Units
$85,143,661 Estimated value $74,234,473 Estimated value $63,336,001 Estimated value
5 1589316 ★★★★ 11 966715 ★★★★ 17 7770555 ★★★★Camden Vanderbilt Village at Piney Point Village on the Lake7171 Buffalo Speedway, Houston 8600 Woodway Dr, Houston 19200 Space Center Blvd, Houston894 Units 912 Units 612 Units
$82,330,219 Estimated value $70,825,528 Estimated value $61,904,576 Estimated value
6 5881247 ★★★ 12 9395438 ★★★★ 18 6358268 ★★★★Palm Beach Estates Market Square Tower The Ranch at Shadow Lake16818 City View Pl, Houston 777 Preston St, Houston 2920 Shadowbriar Dr, Houston881 Units 463 Units 624 Units
$82,201,265 Estimated value $70,706,945 Estimated value $61,398,550 Estimated value
CoStarGroup|1331LStreet,NW,Washington,DC20005|costargroup.com|877-498-4425|©2017CoStarRealtyInformation,Inc.
Figure 3: Apartment Properties by Floodplain
Figure 4: Count of Apartment Units in 100-Year Floodplain by Submarket
• Anadditional5millionSFofspaceisunderwaywithinthefloodplain,including3,144apartmentunits.Thisrepresentsaboutone-quarterofthe25millionSFofcommercialreal
Source: CoStar
0 5,000 10,000 15,000 20,000
KatySoutheast Montgomery County
Outlying Montgomery CountyWoodlands
BaytownHeights
Neartown/River OaksInner Loop East
Lake Houston AreaWestchase/Woodlake
Bear Creek/CopperfieldBriar Forest/West Memorial
Northwest HoustonBrookhollow/Inwood
Greenspoint/IAH AirportSouth Galveston County
AliefMedical Center/West University
Southeast HoustonSouthwest Houston
Apartment Units Exposed to 100-Year Floodplain
Unit Count
CoStarGroup|1331LStreet,NW,Washington,DC20005|costargroup.com|877-498-4425|©2017CoStarRealtyInformation,Inc.
estateunderconstructioninHouston(whichincludesmorethan12,000apartmentunits).Mostoftheapartmentbuildings(totaling1,170units)underwaywithinthe100-yearfloodplainareconcentratedneartheMedicalCenter.
• ThemostimpactedofficesubmarketisGreenspoint,whichhaselevatedvacanciesafterthe departureofExxonMobilinlate2015.Here,some3.5millionSFfallswithinthe100-Year floodplain.
Figure 5: Office Inventory in 100-Year Floodplain
• TheAddicksandBarkerReservoirsremainathighriskofbreaching,withreportsthatwaterisseepingoverthetopoftheAddicksdam.Thearmycorpsofengineershasbeenreleasingwatertopreventtheearthendamssupportingthesereservoirsfromfailing,sendingincreasedwaterflowsthroughtheBuffaloBayou.TheBayourunswesttoeastandcrossesthroughWoodlake,RiverOaks,theEnergyCorridor,MemorialPark,Briarforest,andUptownPark.Therearesome117buildingsthatarewithinaquarterofamilefromthebayou,totaling17millionSF.Morethan2.5millionSFisathighrisk,locatedwithinthe100-yearfloodplainandismadeupofmostlyofficepropertiesintheEnergycorridorandPostOakneighborhoods.
BaytownGreenway PlazaNorthwest OutlierLiberty County
Northwest NearSan Felipe/VossSouth
WestchaseConroeWest BeltSouthwest OutlierNortheast Outlier
WoodlandsI-10 EastCBDPost Oak ParkFM 1960/Hwy 249Northeast NearRiverway
Source: CoStar
0 1,000,000 2,000,000 3,000,000 4,000,000
Kingwood/HumbleSouthwest/Hillcroft
FM 1960/I-45 NorthWoodlands
I-10 EastCBD
Post Oak ParkFM 1960/Hwy 249
Northeast NearRiverway
NASA/Clear LakeGreenspoint/IAH
South Main/Medical CenterNorth Loop West
Gulf Freeway/PasadenaKaty Freeway West
MidtownNorthwest Far
Southwest Beltway 8Southeast Outlier
BellaireGreenspoint/N Belt West
Office Inventory Exposed to 100-Year Floodplain
SF
CoStarGroup|1331LStreet,NW,Washington,DC20005|costargroup.com|877-498-4425|©2017CoStarRealtyInformation,Inc.
Figure 6: Properties within One-Quarter Mile of the Buffalo Bayou
