Business booms in Katy

KATY – The Katy Area Economic Development Council has seen the vacancy rate drop steadily until it reached 3.5 percent at the end of 2012, down from 12 percent in 2010. Transwestern’s Houston Metro Outlook for first quarter 2013 listed the vacancy rate for the I-10/Energy Corridor submarket as 5.8 percent.

A low vacancy rate can be a catalyst for the development and construction of new buildings, said Lance LaCour, CEO of the EDC. Construction is underway on multiple developments in Katy, including a 12,000-sf professional and retail space near the Katy Mills mall and a 47-acre development at I-10 and Westgreen Blvd.

“Including parts of the Energy Corridor that are located in Katy ISD, we have more than 2.5 million sf of spec office buildings under construction,” said LaCour.

Officials with the Energy Corridor Management District project an additional 9 million sf of office development in the Energy Corridor by 2025. The types of buildings most in demand are Class A and Class B office buildings between 10,000 and 50,000 sf.

The Katy area economy includes more than 9,000 companies, more than 200 of which are headquartered there, including BP North America, Mustang Engineering, WoodGroup, Diamond Offshore and Academy Sports and Outdoors.

“Katy’s economy has always been focused on energy,” LaCour said. “A lower vacancy rate means companies are expanding and consolidating to move into available space. In most cases, new jobs will be created.” The impacts of the relocating energy companies can be seen in the Katy area’s increasing commercial developments.