Houston

Economic
Outlook
2018
 HOUSTON ECONOMIC OUTLOOK 2018

Houston’s Economy
Back On Track EXECUTIVE SUMMARY
HOUSTON MSA EM P LOY M E NT
Houston ranked among the top-performing U.S. metros last year and has J OBS G AI NED
historically been a top 10 metro leading the nation in population and job growth. 2018 estimated 45,500
In March, The Brookings Institution ranked Houston 5th best performing
2017 estimated 29,700
metropolitan area by change in growth, 2010-2015, in it’s 2017 Metro Monitor.
2016 18,700
According to the U.S. Census Bureau, Texas suburbs, including Houston’s,
made up half of the country’s 10 fastest growing cities between 2015 and 2016. 2015 200
The Texas Demographic Center’s Fast Growth Scenario projects the HOUSTON U NEMPLOY M E NT
Houston-The Woodlands-Sugar Land MSApopulation to growth 2.3% in 2018.
PERCENT (%)
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 11/2017 4.3
its’ average annual rate. Even though Houston’s economy saw accelerated growth 11/2016 5.2
in 2017, it was well below Houston’s potential. Future growth forecasts are 11/2015 4.8
promising as local economists forecast about 45,000 jobs or slightly more in 2018
and expect that number to increase annually through 2021. HOUSTON MSA POP UL AT I ON
IN MILLIONS G ROW TH (%)
Houston’s economy was jolted in August 2017 when Hurricane Harvey slammed
2017 6.93 2.3
the Texas Gulf Coast and dumped over 50 inches of rain over a three-day
2016 6.77 2.3
period. The event caused widespread flooding, destroying homes, businesses and
infrastructure. Further, the historical rainfall totals caused supply chain 2015 6.62 2.5
interruptions, halted distribution logistics and shut down the Port of Houston,
ENERGY: OIL & NAT URAL G AS
manufacturing plants and retail stores for at least a week. Houston area retail
W TI CRUD E O I L: PER BAR REL
spending rose the week leading up to the event and then plummeted 58.7%
the week after. The good news is that Houston’s resiliency lead to an uptick in 08/2017 $56.54
consumer spending within weeks after the event, mostly caused by area residents 08/2016 $51.97
purchasing replacement items damaged by the storm. 08/2015 $37.19
08/2014 $59.29
HOUSTON, TEXAS N ATU RAL G AS: PER M M Btu
METRO AREA DETAIL SAN
JACINTO 12/2017 $2.82
12/2016 $3.59
MONTGOMERY
LIBERTY 12/2015 $1.93
WAL

AUSTIN HARRIS 12/2014 $3.48

ERL

CHAMBERS

IMPORT / EXPORT T RAD E

HOUSTON FORT BEND
GALVESTON
HA S A IR F R E IGHT: IN THO USANDS M E TRI C TO NS

BRAZORIA 2017 455.8

2016 426.7
2015 475.2
2014 446.5
Houston’s strategic location and core strengths, including an expanding PHA TOTA L TON N AGE ( short tons): I N M I LLI O NS TO NS
healthcare sector, cutting-edge medical advancements, technological breakthroughs
2017 38.3
across industries and strong import/export trade activity (No. 1 US port in
foreign tonnage), uniquely position it to play a vital role in meeting national and 2016 35.1
global market demands. Houston has and will continue to stand as a leader 2015 36.1
among U.S. metros and the world. 2014 37.8
(Port statistics exclude leased facilities)
HOUSTON ECONOMIC OUTLOOK PAGE 2

Population Growth
H O U S T O N P O P U L AT I O N
A S O F J U LY 1

2016 2,303,482
2015 2,284,816
2014 2,243,999
2013 2,204,406
2017 population releases May 2018

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 ten counties, grew by more than 125,000 people between
July 2015 and July 2016, making it the second fastest growing metropolitan region in the country. Despite the fall in oil prices,
Metro Houston’s population gain remains solid. Forecasts show Houston’s population growth to be between 1.5% and 2.3% in 2018.
On a more long-term basis, demographers project strong population growth for the area over the next thirty years as domestic and
international migration trends favor Houston’s geographical, cultural and economic strengths. According to the U.S. Census
Bureau, Houston had a net gain of 18,666 new residents in 2016, which is low compared to the 40,817 resident net gain in 2015.
The median household income for the Houston-The Woodlands-Sugar Land metro area was $61,708 in 2016, down 0.4% from
2015. Houston’s 2016 median household income is more than 9.0% higher than both the median Texas and U.S. household incomes.

2017 FORTUNE 500 HOUSTON TOP 5 FORTUNE 500

N ATION A L R A N K COMPA N Y REVENUE
Twenty of America’s top 500 in billions
companies are headquartered 34 PHILLIPS 66 $72.4
in Houston. Four of 57 SYSCO $50.4
115 CONOCO PHILLIPS $24.4
Houston’s top five are in 122 ENTERPRISE PRODUCTS PARTNERS $23.0
the energy industry. 141 PLAINS GP HOLDINGS $20.2

Houston’s strong economic base continues to be a key factor, driving both domestic and international migration trends, although
Houston’s Fortune 500 rankings prove to be less impressive than last year, with three Houston companies falling off the 2016
list. Houston still ranks third among U.S. cities with the most Fortune 500 headquarters with twenty (20) companies on the 2017 list,
following New York with a total of sixty-eight (68) and Chicago with thirty-four (34). Phillips 66 ranked highest on the list again
list again for Houston-based headquarters on the Fortune 500 list, however fell from its No. 30 ranking with $87.2 billion in
revenue to a No. 34 ranking with $72.4 billion, a drastic 20.4% decrease in revenue. Statewide, Texas was the No. 3 ranking state
with fifty (50) companies on the list, just three less than California and four less than New York with fifty-five (55). All but
three of Houston’s twenty (20) companies on the Fortune 500 list are in the energy industry and the weakened rankings of each
company on the list reflect the negative effects that low oil prices have on Houston energy companies.
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
level of educational achievement is not surprising given Houston’s numerous nationally recognized colleges and universities, as well
as technical 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. 14 spot in U.S. News & World Reports National University Rankings 2017 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,
plastics manufacturing, electronics, computers, software design and integrated power.

SOURCES: : U.S. Census Bureau, Greater Houston Partnership; Fortune Magazine

HOUSTON ECONOMIC OUTLOOK PAGE 3

Employment Sector

SELECT MAJOR AREA

EMPLOYERS

Houston’s employment sector is large and diverse, with over 3.0M non-farm payroll jobs reported in November 2017. In 2017,
Houston only added an estimated 29,700 jobs, which is one-half of the historical average annual job growth. Looking forward,
Houston’s short-term job market is expected to see lower than average growth. The Greater Houston Partnership has
forecasted 45,500 jobs for 2018.
According to the U.S. Bureau of Labor Statistics, Houston’s industry sectors that posted annual losses of jobs between November
2016 and November 2017 include construction, information and wholesale trade. Industry sectors that registered annual job
gains during the same time period include mining and logging, manufacturing, finance and insurance, real estate and rental leasing,
professional business services, educational services, health care and social assistance, accommodation and food services,
other services and government. Job growth in mining and logging is a good indicator that Houston energy industry companies
may be putting the worst of the energy downturn behind them.

HOUSTON MSA ANNUAL JOB GROWTH

Houston ranked 1st HOUSTON/SUGAR LAND/BAYTOWN ANNUAL JOB GROWTH

on Money’s “Best City For 150,000

118,800 118,200

College Graduates” (May 2017) 100,000

94,000
83,100 90,400
LAYOFFS BEGIN
MIDDLE OF Q1 2015

AND 50,000
50,300
45,500

A Top 10 Metro in 0
21,300

200
18,700
29,700

The Kauffman Index 2017 -50,000

“Startup Activity” OIL PRICES FALL
START OF Q4 2014
-100,000
Metropolitan Area and -110,500

THE GREAT RECESSION ENERGY DOWNTURN

City Trends -150,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018*
*projected

SOURCES: U.S. Bureau of Labor Statistics

HOUSTON ECONOMIC OUTLOOK PAGE 4

Business Climate
Houston has long been recognized among the most competitive U.S. cities for corporate relocation and expansion activity. Houston
ranked third among the nation’s top ten largest metro areas enriched by facility project investment from corporations in 2016,
according to Site Selection. In addition, Chief Executive Magazine (for the twelfth straight year) named Texas the “2017 Best State for
Business.” In addition to its diverse industries and educated/skilled workforce, a key factor underscoring Houston’s business
appeal is the fact that it is one of the least expensive major U.S. cities in which to conduct business. Significant benefits include the
absence of state or city income taxes, no state property tax, as well as a moderate cost of living index.

H O U S T O N / S U G A R L A N D / B AY T O W N M S A 2 0 1 7
GROSS METROPOLITAN PRODUCT $491.3 BILLION

Port Houston Energy Industry Airport System Texas Medical NASA /Johnson
 Ranked No. 1 U.S.  Global Energy  Ranked No. 10 U.S. Center Space Center
Foreign Tonnage Capital Airport Passengers  World’s Largest  1,700-acre Complex
 Ranked No. 2 U.S.  4,500+ firms  54.7M Passengers Medical Complex  Major Employers
Total Cargo Value in the region in 2017 (1,345 Acres) > The Boeing Company
 Largest Gulf Coast  40 percent of the  455,800 metric tons  106K Employees > Lockheed Martin
container port nation’s base of Air Freight in 2017  59 Member Institutions > Jacobs Engineering
petrochemical  8M+ Patients Annually > Oceaneering Space
 16K International Systems
capacity
Patients Annually > Raytheon Company
SOURCES: Federal Reserve Bank of Dallas; Port Houston; Fly2Houston.com; Greater Houston Partnership; TMC, NASA/JSC

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
are further enhanced by the presence of 91 foreign consulate offices in Houston. As of 2017, 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.

S E AT T L E

T R AV E L T I M E F R O M H O U S T O N
CIT Y D ISTA N C E AIR RA I L T RU C K
in hours NE W YO R K
C H I C AG O
Atlanta 793 miles 2.5 66 13
D ENV E R
Chicago 1,090 miles 2.5 86 18
Denver 1,119 miles 2.5 60 17
LO S A NG E L ES
Los Angeles 1,550 miles 3.5 90 24
AT L A NTA
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
H O USTO N M I A MI

SOURCES: mapquest.com, Official Airlines Guide, BNSF Railway, Union Pacific Railroad, and Greater Houston Partnership Research Department
HOUSTON ECONOMIC OUTLOOK PAGE 5

Global Energy Capital

Houston 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
just over a decade, the number of Houston-based energy trading companies has tripled, with petrochemical capacity in the area
nearly four 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.
According to BP’s 2017 Statistical Review of World
HISTORIC CRUDE OIL PRICES Energy, global energy consumption increased 1.0% in
2016, below the 10-year average of 1.8%. North
$120 America consumed 21% in 2016 while Europe and
$100 Dec 2017: $57.88/bbl Eurasia’s consumption was 21.6% and Asia Pacific
Dec 2013: $97.63/bbl consumed 42.0%. Based on the report, oil remains the
$80 world’s leading fuel. In 2016, 33.3% of global energy
consumption was oil, followed by coal at 28.1% and then
$/ bbl

$60 by natural gas at 24.1%.

$40

$20

$0
1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

H I S T O R I C N AT U R A L G A S P R I C E S
$14
Dec 2017: $2.81/MMBtu
$12 Dec 2005: $13.05/MMBtu
$10
$/ M M B t u

$8

$6

$4

$2

$0
1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

The U.S. Energy Information Administration’s (EIA) Annual

Energy Outlook released in January 2017 indicates
U . S . R O TA R Y R I G C O U N T S overall U.S. energy consumption will grow at an average
annual rate of 0.2% through 2040. West Texas
2100
Intermediate crude oil prices increased from $51.97 per
Nov 2017: 911
1900
Sept 2008: 1,935 barrel in December 2016 to $57.88 per barrel in
17 00 December 2017. The average price in 2016 was $43.33
R ig Co u n t

per barrel and the EIA predicts the average price to

1 500
rise to $48.83 per barrel in 2017 and $49.58 per barrel
1 300 in 2018.
1100 The Henry Hub natural gas prices are projected to
900 rise from an average of $3.05 per MMBtu in 2017 to $3.29
per MMBtu in 2018.
7 00
The U.S. rotary rig count increased annually by 57% to
0
911 rigs in November 2017, from 580 in September
1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2016. Year-over-year oil and gas exploration are up in the

U.S. by 80% and 109%, respectively.
SOURCES: Energy Information Administration; West Texas Intermediate; Baker Hughes; BP
HOUSTON ECONOMIC OUTLOOK PAGE 6

Petrochemical & Plastics Industry

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/SugarLand/Baytown 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 2016, 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.

MAJOR HOUSTON REGION ENERGY INDUSTRY

CHEMICAL PLANTS
JAN 2018 U.S. crude prices climb after data shows
Air Liquide USA
drop in supplies
Air Products
Baker Petrolite Corporation JAN 2018 Frackers could make more money than ever
BASF Corporation in 2018, if they don't blow it
Bayer Material Science
BP Texas City JAN 2018 Keystone XL Pipeline obtains enough shipper
Celanese
commitments to proceed
Chevron Phillips Chemical
JAN 2018 Permian Basin will drive record U.S.
DowDuPont production in 2018
ExxonMobil Chemical
Goodyear Tire & Rubber Company DEC 2017 Houston energy company Talos Energy LLC
INEOS Olefins & Polymers to move, expand HQ
LyondellBasell Industries
Lubrizol Corporation DEC 2017 Cabot to sell Eagle Ford assets for $765M in
Marathon Petroleum
cost-saving push
Oxy DEC 2017 15 firms leading the way on Energy Blockchain
Phillips66
Rohm and Haas Texas
Shell Chemical OCT 2017 Boom in American LNG is shaking up the
Solvay Chemicals, Inc energy world
Total Petrochemicals USA
Valero Refining Co
SEP 2017 U.S. oil stockpiles grow 4.6 million barrels

SEP 2017 Magellan, Valero form JV to partner on

$820 million marine terminal near Houston

SEP 2017 U.S. oil company cash flow, production climbed

in second quarter, EIA says

SEP 2017 DowDuPont opens massive ethylene and

plastics plant in Freeport

SEP 2017 Permian could top out in 2021 unless tech

overcomes geology, Wood Mac says

SEP 2017 Hurricane Harvey delays parts of

Chevron Phillips petrochemical expansion
SOURCES: Energy Information Administration; Greater Houston Partnership SOURCES: Oil & Gas Journal; Houston Business Journal; Houston Chronicle
HOUSTON ECONOMIC OUTLOOK
PAGE 7

Port Houston
Port Houston’s market strength and strategic location produces
a winning combination for business growth and increased industrial
development. The economic impact of Port Houston is significant,
accounting for more than 1.2 million jobs and an economic value of
$265 billion for the region. Port Houston generates $5 billion in
state and local tax revenue annually and provides $56.5 billion in
personal income and consumption expenditures.
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 46% of the Texas market share by tonnage and
95% market share in containers by total TEUs in 2016, 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 68%
of U.S. Gulf Coast container traffic in 2016.
Port Houston handled 38.3 million tons of cargo in 2017, up from 35.1
million tons in 2016. In 2016, the Port Commission approved an
aggregate capital budget of $314 million for various infrastructure
projects. Current capital improvement projects include adding
or improving motorized and non-motorized transportation infrastructure,
sanitary and storm-water sewer infrastructure, city facilities and
other key projects. The projects are taking place at Turning Basin Wharf
23, Turning Basin South, BCT Wharf 3, BCT East End and C1, and
the Bayport Wharf 2. One of the future projects will improve mobility
and logistics, constructing 6,500 feet of rail across SH 146 to
connect with the existing rail line to within 900 feet of the Container
Freight Station Road in the Bayport Intermodal Facility.
2017 market share statistics were not published at the time this
report was written. This page will be updated when the new statistics
are released.
Photo source: www.porthouston.com

Port Houston
Total Tonnage Handled 2013-2017
Total Tonnage
40,000,000

30,000,000

20,000,000

10,000,000

-
2013 2014 2015 2016 2017
HOUSTON ECONOMIC OUTLOOK PAGE 8

NASA/Johnson Space Center

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.
NASA’s long-term plans involve deep space exploration; and Texas and Houston will play critical roles along the way. JSC’s
workforce represents 11,000 jobs, including civil servants and contractor personnel employed on-site or in facilities in the area. JSC
has a huge economic impact on Houston and Texas with a total requested 2018 budget of $4.7 billion, which designates $1.4 billion
for the 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 assembly
flights. MCC also manages all activity on board the international space station. JSC serves as the lead NASA center for the
International Space Station – a U.S.-led collaborative effort of 16 nations and the largest, most powerful, complex human facility to
ever operate 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’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 area’s well-integrated mainline
railroads and trucking system.

At right: In the Houston MSA, an extensive freeway system spans 747 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 - 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 allowing more flexibility when deciding where to work and 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

STREET FROM TO PROJECT DESCRIPTION TOTAL EST COMP DATE

1 US 290 I-610 Mueschke Rd Widen mainlanes and HOV lane through 13 separate projects $4.7 B Fall 2018
2 Gulf Frwy @ I-610 I-610 E I-45 N Construct direct connector from I-610 eastbound to I-45 $44.2 M OCT 2023
3 Pierce Elevated I-10 I-69 Remove existing Pierce Elevated and construct parkway connectors into CBD $158.1 M TBD, in planning
4 Highway 288 US 59 Interchange Pearland Add toll lanes, 8 direct connectors at Beltway and I-610 interchanges $815 M Spring 2019
5 I-610 @ US 290 Old Katy Rd Ella Blvd Reconstruct US 290/IH 610 interchange w/ direct connectors/managed lanes $282 M Fall 2018
6 Gulf Frwy, Galveston Co Highway 96 Deats Rd Widen to 8 main lanes and 2 two-lane frontage roads $121.7 M NOV 2021
7 North Frwy, Harris Co Crosstimbers Airline Reconstruct frontage roads $6.3 M TBD
8 US 59, Fort Bend Co Highway 99 FM 2919 Widen to 6 main lanes and 2 frontage road lanes through separate projects $18.6-$66 M Late 2020
9 I-610 at US 59 I-610 I-610 Reconstruct I-610 main lane bridge within the interchange at US 59 S $46.7 M TBD, in bidding
10 Highway 225, Harris Co Beltway 8 Battleground Rd Improve illumination $5.1 M TBD, in planning
HOUSTON ECONOMIC OUTLOOK PAGE 9

Airport System
The 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
in 2017, carrying more than 54.7 million passengers and 455,805 metric tons of air freight, a 6.8% increase from 2016. 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.

A I R PA S S E N G E R S
D OMEST I C & IN T E R N AT IO N A L

International Domestic
6 0,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000.000

-
2016

2017
2007

2008

2009

2010

2011

2012

2013

2014

2015

IAH Air Freight Statistics & Trends

 IAH ranked 12th largest air cargo hub
in the U.S.
 IAH has 880,000 square feet of cargo area
GEORGE BUSH INTERCONTINENTAL AIRPORT/HOUSTON (IAH), situated with capacity to handle up to 454,000 tons
twenty-three miles north of downtown Houston, is the nation’s 12th busiest
 IAH 2017 air freight cargo exceeded
airport serving 42 million passengers in 2017 and offering more than
445,266 metric tons
190 domestic and international destinations, including non-stop direct flights
to major cities in Europe, Mexico, Latin America and Asia. IAH is served  IAH has state-of-the-art facilities to globally
by 29 scheduled passenger airlines and numerous charter airlines. The airport transport time-sensitive products
has 880,000 square feet of cargo area with capacity to handle up to  Houston is a major gateway for import-export
454,000 tons of cargo. In 2017, the airport handled 445,266 metric tons of trade and is expected to see continued growth
cargo, an increase of 7.2% from the previous year. Currently, IAH has
five terminals, no takeoff and landing curfews and ample land to expand its  IAH is the 12th busiest U.S. airport, serving
facilities as requirements demand. The scope and quality of IAH facilities nearly 42M passengers in 2017.
make it one of the top U.S. airports for international air cargo traffic.
WILLIAM P. HOBBY AIRPORT (HOU) is located seven miles southeast of
downtown Houston and is the 33rd busiest commercial airportin the U.S.,
handling over 13.2 million passengers in 2017. Hobby Airport also serves as a
major regional center for corporate and private aviation, with four passenger
airlines offering scheduled service to approximately 60 destinations within the
the U.S., Mexico, Latin America and the Caribbean. There are 250 private
aircraft based at Hobby, including 91 corporate jets and five fixed-base operators
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. In June 2015, the city of Houston was approved by the FAA to
build and operate a licensed, commercial spaceport.
The Houston Spaceport will be a launch site for spacecraft and is now one
of ten cities in the country holding an approved spaceport license by the FAA.
It is currently in the first development phase.
Photo source: fly2houstonspaceport.com

SOURCES: Airport Council International; Houston Airport System

HOUSTON ECONOMIC OUTLOOK PAGE 10

Texas Medical Center TEXAS MEDICAL CENTER

The Texas Medical Center (TMC) – the world’s largest medical

center – represents one of Houston’s major economic drivers and
core industries with an estimated regional annual economic
impact of $35 billion, according to a Bauer Business Focus interview
with TMC’s CEO Robert Robbins. TMC is also one of Houston’s
largest employers with 106,000 employees, including physicians,
scientists, researchers and other advanced degree professionals
in the life sciences. The internationally-renowned 1,345-acre TMC
Member Institutions
is the world’s largest medical complex of member institutions,
 Baylor College of Medicine including leading medical, academic and research institutions, all
 CHI St. Luke’s Health of which are non-profit and dedicated to the highest standards
 Children’s Memorial Hermann of research, education and patient preventive care. Over 50,000
 City of Houston Department of Health and Human Services students, including more than 20,000 international students,
 Coleman HCC College for Health Services are affiliated with TMC, including college and health profession
 DePelchin Children’s Center graduate programs. More than 8 million patients visit TMC each
 Gulf Coast Regional Blood Center year, including approximately 16,000 international patient visits.
 Harris Health System Overall, the complex covers over 18 miles of public and private
 Health Science Center Texas A&M University streets and roadways, with 50M SF of existing patient, education
 Houston Academy of Medicine and research space. TMC has continued to grow and expand
 Houston Hospice over the past several decades with the majority of growth occurring
 Houston Methodist in the past ten years. The Center is located in the 110-acre
 Institute for Spirituality and Health University of Texas Research Park, a joint effort between the
University of Texas Health Science Center, M.D. Anderson
 LifeGift
and General Electric Healthcare. TMC spends billions of dollars
 MD Anderson Cancer Center - World’s largest cancer center
on research and charity care annually.
 Memorial Hermann
 Menninger Clinic
 Michael E. Debakey High School for Health Professions
 Michael E. Debakey Veterans Affairs Medical Center
290 IAH
 Nora’s Home
249
 Prairie View A&M University I-45 59 8
90
 Rice University KATY
I-10 8
 Ronald McDonald House Houston
 Sabin Vaccine Institute
I-10
610 CBD SHIP
6 GALLERIA CHANNEL
8
 Shriners Hospital for Children
610
GAL
H 225
PASADENA
BAY

 St. Dominic Village SUGAR LAND

59
BELLAIRE I-45

288
 Texas Children’s Hospital - World’s largest children’s hospital HOU 146

and #1 in U.S. News & World Reports “Americas Best Hospitals 8 EFD
RICHMOND
2017-2018” for Pediatric Cardiology & Heart Surgery LEAGUE CITY

 Texas Heart Institute TEXAS MEDICAL CENTER LOCATION

 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 Texas Medical Center Houston MSA Health Care
 University of Houston  World’s Largest Medical  128 Hospitals
 University of St. Thomas Complex (1,345 Acres &  18,681 Hospital Beds
 UT Health 50M Developed SF)  16,070 Licensed Physicians
 UTMB Health  8th Largest Business District  299,600 Health Care
in the U.S. & Social Assistance jobs
The University of Texas M.D. Anderson Cancer  106,000 Employees  2.3% Annual Employment
 8.0M Patients Annually Growth between December
Center in the Texas Medical Center, ranked
 9,200 Patient Beds 2016 and December 2017
#1 in U.S. News & World Reports “America’s  180,000+ Annual Surgeries
Best Hospitals 2017-2018” for cancer care.  13,600+ Annual Heart Surgeries
HOUSTON ECONOMIC OUTLOOK PAGE 11

Biosciences & Biotechnology

Biotechnology 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. Between
2005 and 2015, the Texas Emerging Technology Fund (TET) allocated more than $205 million in funds
to 145 early-stage companies and $127 million in grant matching and research superiority funds to Texas
universities. In 2015, the TET was replaced with a new program called the Governor’s University Research
Initiative and the TET Fund was relocated under the management of the Texas Treasury Safekeeping Trust
Company. In 2016, the Governor’s University Research Initiative (GURI) grant program recruited nine top
researchers to lead cutting-edge research in Texas universities to spearhead new breakthroughs in science,
technology, engineering, mathematics and medicine. The GURI grant awards total $34.3 million with
one-to-one matching grant commitments from each university. In November 2017, the Governor’s office
awarded two grants, each totaling $3 million.
The state-funded Cancer Prevention and Research Institute of Texas (CPRIT) has invested $1.63 billion through
more than 1,056 grants since 2010. CPRIT funding has attracted nearly 100 cancer researchers and 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, pharmaceuticals,
nutraceuticals, genetics/genomics, biodefense and infectious diseases, stem cell research and oncology.

B I O S C I E N C E S
 JAN 2018 Dunn awards support breakthrough research to scientists at Rice University and other GCC institutions
 SEP 2017 Prepping for Mars, NASA launches new biosciences center
 SEP 2017 Texas A&M researchers receive more than $9 million in grants for cancer efforts
 SEP 2017 Device accurately identifies cancer in seconds during surgery
 AUG 2017 Alzeca receives $11M for Early Alzheimer’s Detection Technology
 AUG 2017 Research reveals how estrogen regulates gene expression, according to study at Baylor
 AUG 2017 ViraCyte, LLC in Houston, receives $8.99M grant from Cancer Prevention and Research Institute of Texas
 JUN 2017 Texas Biomed and UT Health Houston to team on $4.4M tuberculosis vaccine study

Outside of the TMC, Black Forest Technology Park, located in The Woodlands (30 miles north of downtown
Houston), 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 the Houston 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 and
educators from Rice University and other TMC institutions work together to perform leading research
that benefits human medicine and health. Shortly after opening in 2010, the National Space Biomedical Research
Institute (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 a 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.
 ADVANTAGE
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global
real estate services company with 15,000 skilled professionals operating in 68 countries.
With an enterprising culture and significant employee ownership, Colliers professionals
provide a full range of services to real estate occupiers, owners, and investors worldwide.
Services include strategic advice and execution for property sales, leasing, and finance;
global corporate solutions; property, facility, and project management; workplace
solutions; appraisal, valuation, and tax consulting; customized research; and thought
leadership consulting.

Colliers professionals think differently, share great ideas, and offer thoughtful and
innovative advice that help clients accelerate their success. Colliers has been ranked among
the top 100 global outsourcing firms by the International Association of Outsourcing
Professionals for 12 consecutive years, more than any other real estate services firm.

For the latest news from Colliers, visit Colliers.com

or follow us on Twitter: @Colliers and LinkedIn

SECTORS REPRESENTED
Our philosophy
O FF I C E

I N D USTR I A L

LAND

R E TA I L

H E A LTH C A R E

M U LTI FA M I LY

H OTE L

revolves around the fact

that the best $105B
TRANSACTION VALUE

possible results come

from linking our global
enterprise with
local advisors who 2B
understand your SF UNDER MANAGEMENT

business, your market,

and how to
integrate real estate
into a successful $2.6B
IN REVENUE

business strategy.

396
OFFICES

15,000
PROFESSIONALS

SIOR

340
ACCREDITED MEMBERS

COLLIERS INTERNATIONAL GLOBAL LOCATIONS 68

COUNTRIES
HOUSTON ECONOMIC
ECONOMIC OUTLOOK
HOUSTON OUTLOOK
LISA R. BRIDGES
LISA R.ofBRIDGES
Director Market Research | HOUSTON
Director of Market Research | HOUSTON

DIR +1 713 830 2125

DIR
FAX +1
+1 713
713 830
830 2125
2118
FAX +1 713 830 2118
lisa.bridges@colliers.com
lisa.bridges@colliers.com

Lisa joined Colliers in 2010 as Director of Market Research bringing

Lisa joined Colliers in 2010 as Director of Market Research bringing
26 years of commercial real estate experience to the firm. Lisa
26 years of commercial real estate experience to the firm. Lisa
initiates proactive market research projects to further the business
initiates proactive market research projects to further the business
goals of the company. She writes and prepares 27 market reports
goals of the company. She writes and prepares 27 market reports
annually which include quarterly reports on Houston’s retail, office,
annually which include quarterly reports on Houston’s retail, office,
industrial and medical office properties. Further, she prepares
industrial and medical office properties. Further, she prepares
statistical ownership reports for various clients as well as an annual
statistical ownership reports for various clients as well as an annual
Houston Economic Overview. Lisa also creates PowerPoint market
Houston Economic Overview. Lisa also creates PowerPoint market
presentations, trade journal articles, and other marketing materials in
presentations, trade journal articles, and other marketing materials in
support of the company's business endeavors. She works with
support of the company's business endeavors. She works with
senior management in planning the company's marketing strategy and
senior management in planning the company's marketing strategy and
public relations support for local and national conferences, luncheon
public relations support for local and national conferences, luncheon
meetings, recruitment programs, and special events. Lisa works
meetings, recruitment programs, and special events. Lisa works
closely with the company's brokers to develop effective custom market
closely with the company's brokers to develop effective custom market
research material specific to both existing and potential clients.
research material specific to both existing and potential clients.

Accelerating success.
Accelerating success.

COLLIERS INTERNATIONAL
COLLIERS INTERNATIONAL

1233 W. Loop South

1233 W. Loop South
Suite 900
Suite 900
Houston, Texas 77027
Houston, Texas 77027
Main +1 713 222 2111
Main +1 713 222 2111