What Did Houston CRE Learn From Hurricane Harvey? Industry Leaders Speak One Year Later
What Did Houston CRE Learn From Hurricane Harvey? Industry Leaders Speak One Year Later
Lee & Associates - Houston principal Josh Cheatham and his family
Q: How has Houston rebounded from Hurricane Harvey?
Lee & Associates Principal Josh Cheatham: “As someone whose home flooded, I certainly felt the impact of Hurricane Harvey. I have been fortunate enough to get back in my home, but I know neighbors, businesses and commercial real estate owners still dealing with renovations and the overall loss the storm caused. I recently read an article indicating one in five multifamily developments that flooded during the storm are still not fully repaired. Although people continue to struggle with the aftermath, I believe great strides have been made over the past year. Houston is a strong and resilient community that will come out ahead in the long run."
Q: What did the storm reveal about Houston’s CRE market?
Lee & Associates Principal Josh Cheatham: “The extensive amount of [office] sublease space on the market turned out to be a blessing in disguise for many businesses affected by the storm. Several of these spaces were plug-and-play operational and provided tenants with short-term lease options while they dealt with locations being shut down or severely impacted by the storm. The short-term space needs of multiple tenants around town also provided a boost to the growing coworking office space environment. Companies like TechSpace and WeWork experienced a surge in occupancy after the storm.”
Q: What are the major lessons the CRE industry learned as a result of Harvey?
Lee & Associates Principal Josh Cheatham: “In today’s high-paced global economy, most businesses cannot afford to be down five minutes, much less five days. I believe it is imperative all businesses and property owners in the Houston area have a detailed disaster recovery plan in place to prepare for natural disasters and minimize downtime.”