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Houston
EconomicOutlook2019
HOUSTON MSA EMPLOYMENT
JOBS GAINED
2018 73,300
2017 54,200
2016 -2,500
HOUSTON UNEMPLOYMENT
PERCENT (%)
12/2018 3.9
12/2017 4.5
12/2016 5.3
ENERGY: OIL & NATURAL GAS
WTI CRUDE OIL: PER BARREL
2019 EIA Forecast $56.13
2018 EIA Forecast $65.06
2017 $50.79
2016 $43.33
NATURAL GAS: PER MMBtu
2019 EIA Forecast $2.95
2018 EIA Forecast $3.27
2017 $3.10
2016 $2.61
IMPORT / EXPORT TRADE
HAS AIR FREIGHT: IN THOUSANDS METRIC TONS
2018 494.1
2017 458.6
2016 426.7
PHA TOTAL TONNAGE (short tons): IN MILLIONS TONS
2018 40.9
2017 38.3
2016 35.1
(Port stat ist ics exclude leased faci l i t ies)
HOUSTON MSA POPULATION
GROWTH (%)IN MILLIONS
2018 7.06 2.2
2017 6.91 2.1
2016 6.77 2.3
E X E C U T I V E S U M M A R Y
Houston ranked among the top-performing U.S. metros last year and has historically been a top 10 metro leading the nation in population and job growth. According to the U.S. Census Bureau, the Houston-The Woodlands-Sugar Land MSArecorded the 3rd largest year-over-year increase in nonfarm payroll employment,recording an increase of 86,200 jobs or 2.8%. Professional and business servicesadded the largest number of jobs from April 2018 to April 2019, up 22,300. Since the dramatic fall of oil prices that occurred in late 2014, Houston’s economy slowed significantly and grew at a lesser pace in 2015, 2016 and 2017 than its’average annual rate. Even though Houston’s economy experienced acceleratedgrowth in 2017, it was well below Houston’s potential due to the impact of HurricaneHarvey, which paralyzed the city for several weeks in August 2017. Houston’s resiliency to overcome immense devastation led to an up-tick in consumer spendingwithin weeks after the event and within a years time the city was back in growthmode.
Houston has historically been one of if not the top metro in population growth. MetroHouston area, which consists of nine counties, recorded the third largest numericpopulation gains in population growth between July 2017 and July 2018 of 91,689people and added one million new residents between 2010 and 2018, an 18.2%increase. A recent study by the Greater Houston Partnership reports that nearlyone in four residents in the Houston region was born outside of the United States.Metro Houston’s population forecasts show Houston’s population growth to increaseto 7.1 million by 2020.
Houston’s strategic location and core strengths, including an expanding healthcare sector, cutting-edge medical advancements, technological breakthroughs across industries and strong import/export trade activity (No. 1 U.S. port in foreigntonnage), uniquely position it to play a vital role in meeting national and globalmarket demands. Houston has and will continue to stand as a global leaderamong U.S. metros and the world.
HOUSTON, TEXAS
METRO AREA DETAIL
HOUSTON
HARRIS
WA
LLER
AUSTIN
CHAMBERS
LIBERTY
SANJACINTO
MONTGOMERY
FORT BEND
BRAZORIA
GALVESTON
HOUSTON’S ECONOMY BACK ON TRACK
ECONOMIC OUTLOOK 2019ECONOMIC OUTLOOK 2019
12/2017 4.5
2017 6.91 2.1
Population Growth
2018 2,325,502
2017 2,317,445
2016 2,309,752
2015 2,286,630
23 PHILLIPS 66 $114.2
54 SYSCO $ 58.7
86 CONOCO PHILLIPS $ 38.7
89 ENTERPRISE PRODUCTS PARTNERS $ 36.5
94 PLAINS GP HOLDINGS $ 34.1
H O U S T O N T O P 5 F O R T U N E 5 0 0
Houston ranks among the leading metropolitan areas in the U.S. and is the fourth largest city and the fifth largest Metropolitan Statistical Area (MSA) in the nation. Metro Houston area, which consists of nine counties, recorded the third largest numericpopulation gains in population growth between July 2017 and July 2018 of 91,689 people. A minimal decline when compared tothe 93,435 people added between July 2016 and July 2017. Metro Houston’s population forecasts show Houston’s populationgrowth to increase 7.1 million by 2020. On a more long-term basis, demographers project strong population growth for the areaover the next thirty years as domestic and international migration trends favor Houston’s geographical, cultural andeconomic strengths. The median household income for the Houston-The Woodlands-Sugar Land metro area was $63,802 in 2017, up 3.4% from 2016. Houston’s 2017 median household income is more than 7.8% higher than both the median Texas household income and 5.7% higherthan the median U.S. household income. 2018 data will be released in September 2019.
Houston’s strong economic base continues to be a key factor, driving both domestic and international migration trends. Houston’sFortune 500 rankings increased by one over the previous year. Houston’s MSA ranks fourth among U.S. cities with the most Fortune500 headquarters with twenty-two companies on the 2019 list, following New York (73), Chicago (31) and Dallas-Ft Worth (24). Phillips 66 ranked highest on the list again for Houston-based headquarters on the Fortune 500 list, moving up to 23rd place fromits No. 28 ranking in 2018. Statewide, Texas was the third ranking state with 49 companies on the list, just one less than Californiawith 54 and ten less than New York with 58. All but three of Houston’s 22 companies on the Fortune 500 list are in the energyindustry and the stronger rankings of each company on the list reflect a healthier economy than last year.
Houston area residents are well-educated, with the majority of the population over 25 years of age holding a high school diploma and residents with college/graduate educational studies outnumbering those with less than a high school education. This high levelof educational achievement is not surprising given Houston’s numerous nationally recognized colleges and universities, as well astechnical and trade schools, including Rice University, University of Houston, University of St. Thomas, Texas Southern University, Houston Baptist University, Baylor College of Medicine, San Jacinto College, Lone Star College and Houston Community College. Rice University ranks in the No. 16 spot in U.S. News & World Reports National University Rankings 2019 guide to America’s best colleges, the only Texas college in the top 20.
Bolstered by above-average demographic trends and a strong base of diverse industries, Houston is well-positioned to compete in today’s global markets. Long recognized as the energy capital of the world, with every major energy company represented locally,Houston now stands as a global example of economic diversity. The area is home to a thriving base of industries including medical/biomedical technology, global trade (particularly airborne and waterborne domestic/international cargo), aeronautics, plasticsmanufacturing, electronics, computers, software design and integrated power.
PAGE 2HOUSTON ECONOMIC OUTLOOK
REVENUECOMPANYNATIONAL RANK
in billions
Twenty-two of America’s top
500 companies are head-
quartered in Houston. Four of
Houston’s top five are in the
energy industry.
SOURCES: : U.S. Census Bureau, Greater Houston Partnership; Fortune Magazine
2019 FORTUNE 500 LIST
2018 6,997,384
2017 6,905,695
2016 6,812,260
2015 6,676,565
H O U S T O N M S A
H O U S T O N P O P U L AT I O N
H O U S T O N C I T Y
Employment Sector
HOUSTON ECONOMIC OUTLOOK
Houston ranked as the “Top Metros Where Young
Adults are Moving” January 2019 by The Brookings institute
&
Houston ranked #1 “2019’s Most Diverse Cities
in the U.S.” April 2019 by The Langston Co.
S E L E C T M A J O R A R E A
EMPLOYERS
SOURCES: U.S. Bureau of Labor Statistics
PAGE 3
H O U S T O N M S A A N N U A L J O B G R O W T H
Houston’s employment sector is large and diverse, with over 3.1 million non-farm payroll jobs reported in January 2018. Houston added 73,300 jobs in 2018, above the historical average growth of 50,000 to 60,000 jobs. Looking forward, Houston’s short-term job market is expected to see above normal growth, as the Greater Houston Partnership has forecast 71,000 jobs for 2019.
According to the U.S. Bureau of Labor Statistics, Houston’s industry sectors that posted annual gains of jobs in 2018 include construction, oil and gas, manufacturing, wholesale trade, financial activities, professional and business services, transportation, healthcare and social assistance, government, arts/entertainment/recreation, accommodation and food services, and other services. Industry sectors that registered annual job losses during the same time period include retail trade and information.
According to the The Associated General Contractors of America, the Houston MSA has the largest annual construction job gains between December 2017 and December 2018.
106,900
91,000
21,500
-110,500
50,500
82,900
117,500
90,000
116,700
-2,500 -2,400
54,20073,300 71,000
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 *2019
Houston-The Woodlands-Sugar LandAnnual Job Growth
Energy Downturn
Shale Gas & Oil
*projected
The Great Recession
Layo s began middle of Q1 2015
Oil prices fall beginning of Q4 2014
Business ClimateHouston has long been recognized among the most competitive U.S. cities for corporate relocation and expansion activity. Houstonis the top-ranked metro for Economic Growth Potential in Business Facilities' 14th Annual Rankings Report, released in July 2018. Inaddition, Chief Executive Magazine (for the twelfth straight year) named Texas the “2017 Best State for Business.” In addition to itsdiverse industries and educated/skilled workforce, a key factor underscoring Houston’s business appeal is the fact that it is one ofthe least expensive major U.S. cities in which to conduct business. Significant benefits include the absence of state or city incometaxes, no state property tax, as well as a moderate cost of living index.
HOUSTON ECONOMIC OUTLOOK
HOUSTON
SEATTLE
DENVER
LOS ANGELES
CHICAGO
MIAMI
NEW YORK
ATLANTA
As a major transportation hub with two major airports, a world-renowned port and superior rail and road infrastructure, Houston facilitates the interconnection of global business locations. Business alliances with major U.S. and international markets arefurther enhanced by the presence of 90 foreign consulate offices in Houston. As of 2018, Houston still ranks third in the U.S. – following New York and Los Angeles – in foreign consulate representation.
Houston’s ability to foster continued expansion in future-growth industries responsible for generating high quality, well-paid jobs across all business sectors has placed it in the top tier among U.S. cities. With its numerous business advantages, Houston is well-positioned to successfully compete in today’s global marketplace.
Atlanta 793 miles 2.5 66 13
Chicago 1,090 miles 2.5 86 18
Denver 1,119 miles 2.5 60 17
Los Angeles 1,550 miles 3.5 90 24
Miami 1,188 miles 2.5 NA 20
New York 1,631 miles 2.5 NA 20
Seattle 2,443 miles 5.0 60 36
T R AV E L T I M E F R O M H O U S T O N
H O U S T O N -T H E W O O D L A N D S - S U G A R L A N D M S A 2 0 1 8
GROSS METROPOLITAN PRODUCT $580 BILLION (estimate)
TRUCKRAILAIRDISTANCECITY
in hours
SOURCES: mapquest.com, Official Airlines Guide, BNSF Railway, Union Pacific Railroad, and Greater Houston Partnership Research Department
L A N D M S A 2 0 1
LION (estimate)
- S U G A R
CT $580 BIL
L
LL
H O U S T O N -T H E
GROSS METR
E W O O D L A N D S -
ROPOLITAN PRODUC
Port Houston
Ranked No. 1 U.S.
Foreign Tonnage
Ranked No. 2 U.S.
Total Cargo Value
Largest Gulf Coast
container port
Energy Industry
Global Energy
Capital
4,500+ firms
in the region
42 percent of the
nation’s base
petrochemical
capacity
Airport System
Ranked No. 10 U.S.
Airport Passengers
58M Passengers
in 2018
540,000 metric tons
of Air Freight in 2018
Texas Medical Center
World’s Largest
Medical Complex
(1,345 Acres)
106K Employees
61 Member Institutions
8M+ Patients Annually
16K International
Patients Annually
NASA / Johnson Space Center
1,700-acre Complex
Major Employers
>The Boeing Company
>Lockheed Martin
>Jacobs Engineering
>Oceaneering Space Systems
>Raytheon Company
SOURCES: Federal Reserve Bank of Dallas; Port Houston; Fly2Houston.com; Greater Houston Partnership; TMC, NASA/JSC, statista
PAGE 4
Global Energy CapitalHouston is internationally recognized as the global energy capital, with virtually every segment of the energy industry represented in the region. It is also known as the global center for integrated power, a fast-growing new sector of the energy industry. In justover a decade, the number of Houston-based energy trading companies has tripled, with petrochemical capacity in the area nearlyfour times larger than the nearest competing U.S. site. All major oil and gas companies have extensive operations in the area,including ExxonMobil, Chevron, BP America, Citgo, Conoco, Phillips66, Shell Oil Company, BHP Billiton, El Paso Corp., TOTAL,BG Group, LyondellBasell, Halliburton, Occidental Petroleum, Petrobras, Marathon Oil, Anadarko Petroleum, Transocean, Apache,Hess Corporation, Newfield Exploration, Enterprise Products Partners and Plains All American Pipeline.
HOUSTON ECONOMIC OUTLOOK$
/b
bl
SOURCES: Energy Information Administration; West Texas Intermediate; Baker Hughes; BP
H I S T O R I C C R U D E O I L P R I C E S
$0
$20
$40
$60
$80
$100
$120
$/M
MB
tu
H I S T O R I C N AT U R A L G A S P R I C E S
$0
$2
$4
$6
$8
$10
$12
Dec 2018: $4.04/MMBtu
Dec 2005: $13.05/MMBtu
According to BP’s 2018 Statistical Review of World Energy, global primary energy consumption increased 2.2% in2017, up from 1.2% in 2016 and the highest since 2013.North America consumed 20.5% in 2017 while Europe and Eurasia’s consumption was 21.8% and Asia Pacificconsumed 42.5%. Based on the report, oil remains theworld’s leading fuel. In 2017, 34.2% of global energyconsumption was oil, followed by coal at 27.6% and thenby natural gas at 23.4%.
The U.S. Energy Information Administration’s (EIA) Annual Energy Outlook released in January 2018 predicts that theU.S. will become a net energy exporter in 2020 and willremain so through the projection period 2050. Further,increasing energy efficiency across end-use sectors will keep U.S. energy consumption relatively flat even as the U.S. economy expands. Also, natural gas and NGPLs willhave the highest production growth of all fossil fuels. NGPLswill account for almost one-third of cumulative U.S. liquidsproduction during the projection period.
West Texas Intermediate crude oil prices increased from$50.80 per barrel in 2017 to $65.23 per barrel in 2018.The EIA projects $62.79 per barrel for 2019.
The Henry Hub natural gas prices are projected to rise from an average of $3.10 per MMBtu in 2017 to $3.27 perMMBtu in 2018. The EIA projects an average of $2.89 perMMBtu for 2019.
The U.S. rotary rig count increased annually by 16.6% to 1,083 rigs in December 2018, from 929 in December 2017. U.S. upstream oil and gas capital expendituresincreased 23% in 2018 and is only expected to increase2% in 2019.
PAGE 5
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$ 14
Dec 2018: $49.52/bblDec 2013: $97.63/bbl
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Rig
Co
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t
U . S . R O TA R Y R I G C O U N T S
0
700
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1700
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2100 Dec 2018: 1,083 Dec 2011: 2,019
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Petrochemical & Plastics Industry
Air L iquide USA
Air Products
Baker Petrol i te Corporat ion
BASF Corporat ion
Bayer Mater ia l Science
BP Texas Ci ty
Celanese
Chevron Phi l l ips Chemical
DowDuPont
ExxonMobi l Chemical
Goodyear Tire & Rubber Company
INEOS Olefins & Polymers
Lyondel lBasel l Industr ies
Lubrizol Corporat ion
Marathon Petroleum
Oxy
Phi l l ips66
Rohm and Haas Texas
Shel l Chemical
Solvay Chemicals , Inc
Tota l Petrochemicals USA
Valero Refining Co
M A J O R H O U S T O N R E G I O N
C H E M I C A L P L A N T S
Texas is the largest chemical-producing state, generating $172 billion in annual revenue. Houston is a global leader in manufacturing petrochemicals, with the Houston Ship Channel recognized as the largest petrochemical complex in the U.S. The Houston-The
Woodlands-Sugar Land region operates the largest petrochemical plants, including Bayport Industrial District, Battleground Industrial
Complex, Bayport Shipping Terminal and the Houston Ship Channel.
Today, the chemical industry employs more than 100,000 workers directly with another 500,000+ related jobs in Texas and about
half of those jobs are in the Houston region. In 2018, Texas led the nation in crude oil production, with 27 petroleum refineries
producing more than 36% of the nation’s crude oil production. Houston accounts for over 42% of the nation’s base petrochemical
capacity.
According to the EIA, Texas leads the nation in fossil fuel reserves and is the nation’s leading natural gas producer, accounting for
approximately 28% of total U.S. natural gas production.
Based on data from Port Houston, the development of shale oil and gas increased the demand for container shipping and will
increase future exports of plastics and chemicals.
HOUSTON ECONOMIC OUTLOOK
SOURCES: Energy Information Administration; Greater Houston Partnership SOURCES: Oil & Gas Journal; Houston Business Journal; Houston Chronicle
MAY 2019 OTC attendance down for 5th consecutive year
MAY 2019 There’s tremendous room for growth in offshore oil & gas
MAY 2019 Guyana comes to Houston, seeking partners to develop newfound oil wealth
MAY 2019 Crude oil prices rise on EIA’s lower oil inventory
MAY 2019 Occidental steals Chevron’s thunder in battle for Anadarko
MAY 2019 Energy companies woo young workers with relaxed culture, tech
MAY 2019 Exxon plans to invest up to $100M over 10 years in lower- emissions R&D
MAY 2019 Exxon OKs $2B Baytown Chemical expansion project
APR 2019 Houston co. starts construction on $170M wind farm
APR 2019 Houston LNG co. nears completion on export project
APR 2019 Bahrain oil minister explores Houston for tight oil partner
APR 2019 French energy giant Total invests $700M in Houston LNG co.
APR 2019 Marathon Petroleum to spend $1.2B on Houston-area refinery project
MAR 2019 Houston has more open oil and gas jobs than any other city in Texas
MAR 2019 Texas added 10,000 clean energy jobs in 2018, trails only California
E N E R G Y I N D U S T R Y H E A D L I N E S
PAGE 6
Total Petrochemicals USA
Port HoustonPort Houston’s market strength and strategic location along the 52-
mile-long Houston Ship Channel produces a winning combination for
business growth and increased industrial development. The economic
impact of Port Houston is significant, producing more than 1.35 million
jobs and an economic value of $339 billion for Texas. Port Houston
generates $5.7 billion in state and local tax revenue annually.
Port Houston is recognized as the No. 1 U.S. port in foreign waterborne
tonnage and is the No. 3 ranked U.S. port in terms of total foreign cargo
value. Having 45% of the Texas market share by tonnage and 96% market
share in containers by total TEUs in 2018, it is clear that Port Houston is
a key player in this significant statewide recognition. The Port is the
largest Gulf Coast container port, handling 69% of U.S. Gulf Coast
container traffic in 2018.
Port Houston handled 40.9 million tons of cargo in 2018, up from 38.3
million tons in 2017. In 2016, the Port Commission approved an
aggregate capital budget of $314 million for various infrastructure
projects. Current capital improvement projects include Bayport rail
spur and container yard construction, improvement of existing
drainage system tied to IH-610 feeder road at the Turning Basin
terminal,rehabilitation of Barbours Cut container yard and Wharf 3,
construction of electrical infrastructure and lash dock demolition and
annual pavement replacement and wharf and RTG crane painting for
both terminals. Some of the future projects include further rehabilitation
of wharves, adding a fire boat dock at Bayport’s west end, expansion of
gate facilities and construction of a maintenance facility at Barbours Cut,
construction of 42 acres of container yard and port road expansion and
drainage at Bayport.
HOUSTON ECONOMIC OUTLOOKPAGE 7
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2014 2015 2016 2017
Total Tonnage
Port HoustonTotal Tonnage Handled 2014-2018
Photo source: www.porthouston.com
2018
NASA/Johnson Space Center
NASA’s long-term plans involve deep space exploration; and Texas and Houston will play critical roles along the way. JSC’s work-force represents 11,000 jobs, including civil servants and contractor personnel employed on-site or in facilities in the area. JSC hasa huge economic impact on Houston and Texas with a total requested 2018 budget of $4.7 billion, which designates $1.4 billion forthe International Space Station, $1.2 billion for the Orion Multi-purpose Crew Vehicle, $731.9 million for the Commercial Crew Program, $210 million for Advanced Exploration Systems and $1.7 billion for the Commercial Cargo Program.
The Mission Control Center (MCC) at Johnson Space Center directs all space missions, including international space station assemblyflights. MCC also manages all activity on board the international space station. JSC serves as the lead NASA center for the Inter-national Space Station – a U.S.-led collaborative effort of 16 nations and the largest, most powerful, complex human facility to everoperate in space. JSC leads the way to deep space exploration by integrating science and engineering to develop how we travel, work, explore and live in deep space. Next stop, Mars!
Mobility Infrastructure
HOUSTON ECONOMIC OUTLOOK PAGE 8
Houston’s location in the south-central U.S. strategically places it equidistant from the nation’s major population centers – New York (1,631 miles) and Los Angeles (1,550 miles). Connection to major national and international locations is facilitated through Houston’s excellent transportation infrastructure, which includes the George Bush Intercontinental Airport, William P. Hobby Airport, Ellington Field, Port Houston and the well-integrated mainline railroads and trucking system serving the area.
In the Houston nine-county MSA, an extensive highway system spans 1,798 center-line miles. The Grand Parkway’s extension linking Hwy 290 to I-45 and I-45 to Hwy 59 - segments F-1, F-2 and G on the map to the right - opened to traffic in the first quarter of 2016, adding 38 miles of tolled roadway. Once the entire project is completed, the Grand Parkway will mark Houston’s third outer loop, improving Houston’s traffic flow immensely and thus allowing more flexibility when deciding where to work and where to live. Segments H, I-1 and I-2B are next up for expansion, with construction expected to be completed in 2021.
Planned & Ongoing Road Construction Projects
NASA’s Johnson Space Center (JSC) is located on over 1,700 acres in the Clear Lake area of Houston. It was first established in 1961 and later renamed in 1973 in honor of the late President Lyndon B. Johnson, a native Texan. JSC is one of NASA’s largest research and development facilities and mission control for all U.S. manned space flight communications, including the International Space Station and Exploration Programs. From the early space exploration projects Gemini, Apollo and Skylab, came the historic moment when the first word from the moon was “Houston,” and deservedly so, as it took a 15,000-member team in Houston to develop, test and put into action what millions around the world watched on television in 1969. Since its inception, JSC continues to make significant advances in science, aeronautics, technology, engineering and medicine.
STREET FROM TO PROJECT DESCRIPTION TOTAL
EST. DATE OF
COMPLETION
1 US 290 IH 610 Mueschke Rd Widen mainlanes and HOV lane through 13 separate projects $4.7 billion 2019
2 Gulf Freeway @ IH 610 IH 610 E IH 45 N Construct direct connector from IH 610 eastbound to I 45 Northbound $44.2 million October 2023
3 Pierce Elevated IH 10 I 69 Remove existing Pierce Elevated and construct parkway connectors into CBD $158.1 million TBD, planning stage
4 Highway 288 US 59 Interchange Pearland Add toll lanes, 8 direct connectors at Beltway and I-610 interchanges $815 million Spring 2019
5 Post Oak Blvd I-610 Richmond Ave Reconstruct Post Oak Blvd to include dedicated bus lanes $196 million Spring/Summer 2019
6 Gulf Freeway, Galveston Co Hwy 96 Deats Rd Widen to 8 main lanes and 2 two-lane frontage roads $121.7 million November 2021
7 North Freeway, Harris Co Crosstimbers Airline Reconstruct frontage roads $6.3 million TBD
8 US 59, Fort Bend Co Hwy 99 FM 2919 Widen to 6 main lanes and two frontage road lanes through separate projects $18.6 to $66 million Late 2020
9 I-610 at I-69 I-610 I-610 Reconstruct IH 610 main lane bridge within the interchange at US 59 S $46.7 million TBD, bidding stage
10 Highway 225, Harris Co Beltway 8 Battleground Rd Improve illumination $5.1 million TBD, planning stage
Airport SystemThe Houston Airport System (HAS) is one of the world’s leading multi-airport facilities and includes George Bush Intercontinental Airport, William P. Hobby Airport and Ellington Field. HAS ranked 10th nationally and 29th internationally in passenger volume in2018, carrying more than 58 million passengers and 539,856 metric tons of air freight, an 18% increase from 2017. The Houston Airport System is directly responsible for more than 230,000 jobs and has a local economic impact of more than $27 billion annually.
GEORGE BUSH INTERCONTINENTAL AIRPORT/HOUSTON (IAH), situated twenty-three miles north of downtown Houston, is North America’s 15thbusiest airport serving 43.8 million passengers in 2018 and offering more than180+ domestic and international destinations, including non-stop direct flightsto major cities in Europe, Mexico, Latin America and Asia. IAH is served by28 scheduled passenger airlines and numerous charter airlines. The airporthas 880,000 square feet of cargo area with capacity to handle up to 454,000 tons of cargo. In 2018, the airport handled 504,740 metric tons of cargo, an increase of 13.3% from the previous year. Currently, IAH has fiveterminals, no takeoff and landing curfews and ample land to expand itsfacilities as requirements demand. The scope and quality of IAH facilitiesmake it one of the top U.S. airports for international air cargo traffic.
WILLIAM P. HOBBY AIRPORT (HOU) is located seven miles southeast of down-town Houston and is the nation’s 36th busiest commercial airport, handlingover 14.5 million passengers in 2018. Hobby Airport also serves as a majorregional center for corporate and private aviation, with four passengerairlines offering scheduled service to approximately 65+ destinations withinthe U.S., Mexico, Latin America and the Caribbean. There are 250 privateaircraft based at Hobby, including 91 corporate jets and five fixed-baseoperators serving the airport.
ELLINGTON FIELD (EFD) is located 15 miles southeast of downtown Houston and supports the operations of the U.S. Coast Guard, Texas Air National Guard, Texas Army National Guard, NASA and a variety of general aviation tenants. Ellington has three state-of-th-art active runways and accommodatesmore than 4,000 general aviation operations per year. In June 2015, the city ofHouston was approved by the FAA to build and operate a licensed, commercialspaceport. The Houston Spaceport will be a launch site for spacecraft and isnow one of ten cities in the country holding an approved spaceport license bythe FAA. It is currently in the first development phase.
HOUSTON ECONOMIC OUTLOOK
SOURCES: Airport Council International; Houston Airport System
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A I R PA S S E N G E R S
DOMESTIC & INTERNATIONAL
-
10,000.000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000International Domestic
IAH Air Freight Statistics & Trends
IAH is the 15th busiest North American airport,
serving nearly 43.8M passengers in 2018
IAH has 880,000 square feet of cargo area
with capacity to handle up to 454,000 tons
IAH 2018 air freight cargo exceeded
504,740 metric tons
IAH has state-of-the-art facilities to globally
transport time-sensitive products
Houston is a major gateway for import-export
trade and is expected to see continued growth
PAGE 9
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Photo source: bayareahouston.com
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Houston Spaceport
Texas Medical Center
HOUSTON ECONOMIC OUTLOOK
T E X A S M E D I C A L C E N T E R
Member Institutions
Baylor College of Medicine
CHI St. Luke’s Health
Children’s Memorial Hermann
City of Houston Department of Health and Human Services
Coleman HCC College for Health Services
DePelchin Children’s Center
Gulf Coast Regional Blood Center
Harris Health System
Health Science Center Texas A&M University
Houston Academy of Medicine
Houston Hospice
Houston Methodist
Institute for Spirituality and Health
LifeGift
MD Anderson Cancer Center - World’s largest cancer center Memorial Hermann
Menninger Clinic
Michael E. Debakey High School for Health Professions
Michael E. Debakey Veterans Affairs Medical Center
Nora’s Home
Prairie View A&M University
Rice University
Ronald McDonald House Houston
Sabin Vaccine Institute
Shriners Hospital for Children
St. Dominic Village
Texas Children’s Hospital - World’s largest children’s hospital and #1 in U.S. News & World Reports “Americas Best Hospitals 2018-2019” for Pediatric Cardiology & Heart Surgery
Texas Heart Institute
Texas Medical Center YMCA
Texas Southern University
Texas Women’s University
John P. McGovern Museum of Health and Medical Science
The Texas Medical Center Library
Thermal Energy Corporation (TECO)
TIRR Memorial Hermann
University of Houston
University of St. Thomas
UT Health
UTMB Health
The University of Texas M.D. Anderson Cancer Center in the Texas Medical Center, ranked #1 in U.S. News & World Reports “America’s Best Hospitals 2018-2019” for cancer care.
The Texas Medical Center (TMC) – the world’s largest medicalcenter – represents one of Houston’s major economic drivers and core industries with an estimated regional annual economic impactof $25 billion. TMC is also one of Houston’s largest employers with106,000 employees, including physicians, scientists, researchersand other advanced degree professionals in the life sciences. Theinternationally-renowned 1,345-acre TMC is the world’s largestmedical complex of member institutions, including leading medical,academic and research institutions, all of which are non-profitand dedicated to the highest standards of research, educationand patient preventive care. Over 50,000 students, includingmore than 20,000 international students, are affiliated with TMC,including college and health profession graduate programs. Morethan 10 million patients visit TMC each year, includingapproximately 16,000 international patient visits.
Overall, the complex covers over 18 miles of public and private streets and roadways, with 50M SF of existing patient, education and research space. TMC has continued to grow and expand over the past several decades with the majority of growth occurring in the past ten years. The Center is located in the 110-acre University of Texas Research Park, a joint effort between the University of Texas Health Science Center, M.D. Anderson and General Electric Healthcare. TMC spends billions of dollars on research and charity care annually.
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Texas Medical Center
World’s Largest Medical Complex (1,345 Acres &
50M Developed SF)
8th Largest Business District in the U.S.
106,000 Employees
10M Patients Annually
9,200 Patient Beds
180,000+ Annual Surgeries
13,600+ Annual Heart Surgeries
Houston MSA Health Care
128 Hospitals
9,200 Patient Beds
16,070 Licensed Physicians
336,600 Health Care
& Social Assistance jobs
2.4% Annual Employment
Growth between 2017-2018
TEXAS MEDICAL CENTER LOCATION
PAGE 10
Biosciences & BiotechnologyBiotechnology and the life science industry continue to expand in the Houston region with more than 100 institutions and companies attracting over $2.2 billion in research and development funding annually. In April2018, the Texas Medical Center (TMC) announced the launch of TMC3, a new multi-institution research campusthat will foster collaboration amid a culture of competition. The 37-acre expansion is expected to include about1.5 million square feet of shared research space among the founding institutions which include TMC, BaylorCollege of Medicine, Texas A&M University Health Science Center, the University of Texas M.D. Anderson CancerCenter at Houston and the University of Texas M.D. Anderson Cancer Center. A multi-story building will resemblethe double helix shape of a DNA strand and will feature core laboratories, restaurants, retail and commercialspace. Groundbreaking for the new research campus is expected to begin in the first quarter of 2020 with anestimated completion expected in 2022. The new campus is expected to have a $5.2 billion impact on the city ofHouston and is projected to create 30,000 new jobs.
The state-funded Cancer Prevention and Research Institute of Texas (CPRIT) has invested $1.63 billion throughmore than 1,056 grants since 2010. CPRIT funding has attracted nearly 100 cancer researchers and their labs to Texas and prompted $910.8 million in follow-on investment in CPRIT-supported companies. Leading research efforts in the area represent established and emerging industries, including nanotechnology, pharma-ceuticals, nutraceuticals, genetics/genomics, biodefense and infectious diseases, stem cell research and oncology.
Outside of the TMC, Black Forest Technology Park, located in The Woodlands (30 miles north of downtownHouston), is a long-standing major research center designed specifically for scientific, research and biotechnology companies. Other established business parks/organizations geared toward biotechnology commercialization in the Houston region include the Genesis Biotechnology Park and BioHouston, Inc. Genesis Biotechnology Park comprises 16 innovative life science companies and researchers located just south of the TMC. The Park was developed to increase venture capital interests in Houston and is committed to supporting start-up companies by providing tenant options for shared office, wet laboratory space (including equipment) and flexible leases. BioHouston, Inc., a non-profit corporation founded by Houston-area academic/research institutions, is actively leading a broad-based effort to strengthen Houston’s position as a global competitor in life science and biotechnology. BioHouston’s Resource Center, the first incubator facility serving theHouston life sciences community, is housed at the Genesis Biotechnology Park, adding a key component to ongoing commercialization efforts. The Center is specifically designed to serve start-up biotech and life sciences companies by offering access to shared laboratory space, research resources and networking opportunities with a community of biotech entrepreneurs.
The BioScience Research Collaborative built by Rice University is an innovate-space where scientists andeducators from Rice University and other TMC institutions work together to perform leading research thatbenefits human medicine and health. Shortly after opening in 2010, the National Space Biomedical ResearchInstitute (NSBRI) and Baylor College of Medicine’s Center for Space Medicine joined the Collaborative. Funded by NASA in collaboration with Baylor College of Medicine, the NSBRI is studying and solving the health risks and problems related to long-duration spaceflight.
From its base of cutting-edge research, Houston has taken the next step in its evolution as a primary life- science cluster by creating an environment conducive for private companies to develop and market life science products. With key initiatives in place to bring together the public and private sectors, as well as significant improvements to the scope of services and incentives available to private companies, the infrastructure is in place to capitalize on Houston’s strong research base and convert it into commercialized product. With this process now in motion, the biotech future in Houston looks bright.
HOUSTON ECONOMIC OUTLOOK
B I O S C I E N C E S
MAY 2019 TMC3 Campus to unite science, medicine and tech experts
APR 2019 Houston, one of the fastest-growing life science communities
MAR 2019 Houston ranks 2nd in emerging life sciences in the U.S.
NOV 2018 State-of-the-art lab space delivers at Texas Children’s Hospital
OCT 2018 MD Anderson Immunologist Jim Allison Awarded Nobel Prize
SEP 2018 Texas Medical Center partners with U.K. trade department for life sciences research
MAY 2018 Houston, China to partner on biotech innovation
APR 2018 Texas Leaders Aim to Launch Houston as top Biotech Hub
PAGE 11
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Lisa joined Colliers in 2010 as Director of Market Research bringing 26 years of commercial real estate experience to the firm. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 27 market reports annually which include quarterly reports on Houston’s retail, office, industrial and medical office properties. Further, she prepares statistical ownership reports for various clients as well as an annual Houston Economic Overview. Lisa also creates PowerPoint market presentations, trade journal articles, and other marketing materials in support of the company's business endeavors. She works with senior management in planning the company's marketing strategy and public relations support for local and national conferences, luncheon meetings, recruitment programs, and special events. Lisa works closely with the company's brokers to develop effective custom market research material specific to both existing and potential clients.
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LISA R. BRIDGESDirector of Market Research | Houston
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