After Amazon’s September announcement to construct its new headquarters, dubbed Amazon HQ2, cities and regions across the continent completed and submitted Phase I bids by the October 19 deadline. According to Amazon, the company received 238 proposals from states, regions and provinces throughout North America. With a plan to establish this second headquarters, Amazon offers one location in North America the opportunity to reap great benefits from its continued expansion. But does Houston have a realistic shot at being a contender for the new headquarters? Amazon’s Investment and Requirements Amazon plans to invest $5 billion to construct the new base and add as many as 50,000 new jobs. Amazon has stated a need for 500,000 plus SF by 2019 with a view to an additional 8,000,000 SF in the following years. The site also requires a metropolitan area with over 1 million residents and a stable, business-friendly culture. HQ2 also needs to be within 30 […]
A Down Market in Houston Houston’s commercial real estate market continues to be slightly down, reflecting a national trend. Industrial and retail properties have fared better than the office market which has been slow to rebound. At the same time, Houston’s premier office buildings are still outperforming the market. Houston’s commercial real estate market closely follows energy market trends. Because of this, low oil prices affect the city. Global oil futures continue to trade below $50 a barrel. As a result, energy companies make cutbacks like reducing their workforces. A decrease in the number of employees leads these companies to place commercial spaces on the market resulting in higher vacancy rates. At the same time, there are positive factors buoying Houston’s commercial real estate market: The completion of several large projects in the construction pipeline that had been put on hold due to the energy slump The creation of 45,300 jobs between May 2016 and May […]
“Leading is taking someone’s unique gifts and helping them contribute to the world.” “Excellence has its own pattern. You learn nothing about excellence by studying your failures.” “When you take bad and invert it, you just get ‘not bad.’ Good is something so much better.” “People on your team want two things: 1) Make me feel apart of something bigger than me. 2) Make me feel special.” “People say they want feedback, but they don’t. They want attention.” “I believe God blessed us with unique gifts and work is a space to discover those unique gifts and spread them to the world.” The GreenEfficient management team attended the Global Leadership Summit in August of 2017.
A weakened energy market combined with slow job growth hasn’t done the Houston office market any favors. Over the past few years, Houston has struggled, but now the area is seeing signs of stabilization due to a decrease in available sublease space and a decline in energy sector layoffs. A Year of Fluctuations – Q1 2016 to Q1 2017 At the end of Q1 2016, the Houston office market had a 15.3 percent vacancy rate. The average vacancy rate rose by 100 basis points during Q1 2017 for an 18.5 percent vacancy rate. So from Q1 2016 to the end of Q1 2017, the vacancy rate rose by 320 basis points. Although vacancies rose across the board, this rate is not the same throughout the metro area. In suburban Houston, the Q1 2017 Class A vacancy rate was 20.5 percent, up from 16 percent in Q1 2016. Houston’s CBD (central business district) had a Class […]
Probably the most common misunderstanding I hear when trying to help other leaders is that they believe there is a universal rule that leaders always must delegate authority. This common fallacy comes from weak readers who turn into weak leaders. Yes, the reading effects the leading. In more averagely-run organizations, the employees (or stakeholders) are not very well vetted. That means the leader has little idea about their true capacity, their strengths, and their integrity. Without clarity in these areas, how do we know who is worthy of delegated authority? (Note: there is a significant difference between delegated authority and delegated work. Think through the difference.) In leadership, we must find 3 attributes or 3 qualities in the environment before delegating any authority. Without all 3 qualities in place, never trust the person and definitely do not trust the team. These attributes include: 1 Healthy Culture – The teams’ culture must be healthy. Their incentives […]