It is often misquoted that the most important value indicators of real estate are location, location and location. The true value indicators should actually be timing, location and opportunity. A viable project should have all three of these vital aspects:
1. Timing – Locally we are quickly approaching one of the best real estate markets in the past thirty years because of pent up demands, lack of inventory and accelerated commercial growth. The occupancy rate for office, warehouse, retail and residential is at an all time high in The Woodlands area. The demand for space is spilling over in to areas to the North, West and South. These areas just a short time back were under-utilized and in turn undervalued. New project areas are impacted by commercial and residential growth in demand in the Conroe, Magnolia and Spring addresses as well as The Woodlands. Investment purchases should first be tied to timing of other projects. Like small retailers who want to go into centers with anchor tenants like large grocers that draw customers to them so it is with Exxon campus development, Anadarko’s expansion, the Conroe Airport expansion and changes in traffic patterns to investment property purchasers. The number one rule is timing. Exxon’s attraction to ancillary business partners and vendors will impact the area with an estimated 30,000 additional jobs needing homes, office space, dining and shopping. The time is right for real estate investors as never before.
2. Location – In the previous four years we have seen a massive build up in the Town Center area of The Woodlands, around the FM 2920 area, 1488 & 2978 in Conroe to the North. These identified areas are the hot spots with growth radiating in all directions from there. Of course Exxon campus under construction will be one large center of activity for the next five years. The Conroe Airport will generate another hot spot of activity. Residential neighborhoods in Conroe, The FM 2920 corridor South of Exxon and west to Tomball is experiencing unprecedented activity. The Woodlands and Magnolia are in the line to experience and be impacted with a major shift in value because of the under supply of inventory and the growing demand.
3. Opportunity – Even though investors can show up at the right time and at the right time location successful investing is still tricky. Everywhere I look I see opportunities Today it is very difficult to find development and investment capital. The lack of capital available for development projects has stymied growth and at the same time accelerated the values for existing projects. Alternative financing, that is other than banks, are funding opportunities that make sense and where developers are strong enough. It is now time for investors to consider which opportunities make sense for their investment strategies. Seek the advice of knowledgeable, seasoned and experienced Realtors that specialize in Investment and Development properties and seize the moment.