Greater Houston Partnership

1. H-Town Day 2010Understanding Houston’s Past, Present & FutureHouston Association of REALTORS® Thursday, October 21, 2010 Daniel G. Bellow, CRE, SIOR, CCIM President-Houston Jones Lang LaSalle Americas

2. If Houston were a state, it would be larger than… New Jersey = 8,722 Sq. Mi. Houston MSA 10,062 sq. mi. New Hampshire = 9,351 Sq. Mi. Vermont = 9,615 Sq. Mi. 2

3. If Houston were a state, it would be more populous than… Houston MSA Population = 5,867,489 Minnesota = 5,266,214 Wisconsin = 5,654,774 Maryland = 5,699,478 3

4. If Houston were a state, it would have more jobs than… Maryland = 2,492,100 Houston MSA 2,508,000 jobs Arizona = 2,382,300 Colorado = 2,206,100 4

6. 19th in population

7. 20th in jobsIf it were a sovereign nation, Houston would have the world’s 23rd largest economy

8. …its GDP would be larger than… Houston MSA GRP = $325.5 billion Houston MSA GDP = $403.2 billion Belgium = $390.5 billion Malaysia = $386.6 billion Venezuela = $357.9 billion 6

10. Health Care/Biotechnology

11. Electronics and Technology

12. International Business

13. Engineering

14. Chemicals

15. Energy

16. Logistics

17. Corporate Headquarters7

18. Aerospace Home to NASA’s Johnson Space Center 18,000+ employees (3,300 civil, 15,000 contract) Major contractors: Boeing, Lockheed, Raytheon $1.35 billion – Houston’s 2009 total trade in aircraft, spacecraft and parts, up 53.2 percent from 2008 8

19. Health Care Texas Medical Center - the world’s largest 46.0 million gross sq ft physical space 93,500 employees 49 member institutions, including 13 hospitals 21 educational institutions, 71,500 students $7.1 billion capital investment through 2014 5.6 million patient visits annually More than 18,000 international patients 9

20. Electronics & Technology 250+ establishments Major employers include: HP, Benchmark, BMC, Foxconn, Texas Instruments Software development centers include: Texas Medical Center, JSC, Rice, UH, Texas A&M 10

21. International Business $167 billion in trade 3,000+ international companies 92 consulates 22 foreign banks 62 of the 100 largest foreign corporations Over one in five residents foreign-born 11

23. 25 of U.S. top 25 engineering and design firms have Houston offices

24. Operations in every region of the world

25. 86,300 engineers, architects and technicians12

26. Chemicals 40.8% of the U.S. base petrochemical manufacturing capacity 400+ chemical plants 31,000+ employees (refining & chemicals) Comprehensive, developed infrastructure 13

28. More than 3,700 establishments:

29. 30.6% of U.S. jobs in oil and gas extraction

30. 13.7% of U.S. jobs in oil field services

31. 13.5% of U.S. jobs in O&G and construction machinery manufacturing14

32. Logistics – Port of Houston 15th busiest in the world First in the U.S. in foreign tonnage Second in U.S. in total tonnage 220 million tons annually 7,700+ deep draft ships called at Houston Service between Houston and more than 1,000 world ports 15

33. Logistics – Rail One of nation’s busiest rail centers Burlington Northern Santa Fe Union Pacific Texas Mexican Railway 800 miles of mainline track 2,200 trains per week Typical commodities: chemicals, plastics, grain, forest products, coal, minerals and steel 16

35. 8th busiest in U.S.

36. 48.5 million in ’09

37. Air cargo

38. 11th busiest int’l hub

39. 336.8 million metric import tons in ’09

40. 11 international carriers

41. 67 destinations

42. 10 domestic carriers

43. 110 domestic destinations17

44. Houston Business Cycle Real GDP July ‘08 We’re somewhere here. March ‘09 Time 18

45. Where Houston lost jobs Houston jobs lost from the month of peak employment to the month of employment trough. 19

46. Houston jobs recovered so far Shaded part indicates Houston jobs gained in recovery so far. 20

47. The Recession… A back of envelope calculation 21

48. The Recession… A back of envelope calculation 22

49. Houston Purchasing Managers Index Sep`10 53.6 Neutral = 50 March `09 39.0 Source:National Association of Purchasing Management - Houston, Inc. 23

50. North American Rig Count Sep`10 1,655 June `09 895 Source:Baker Hughes 24

51. HAS Passengers (12-month total, millions) Aug`10 49.0 M August `09 47.6 M Source:Houston Airport System 25

52. Single-Family Home Sales (12-month total) Sept `10 53,399 August `09 51,667 Source:Houston Association of Realtors 26

53. Motor Vehicle Sales (12-month total, thousands) Aug `10 235,504 December `09 218,700 Source:InfoNation, Inc. 27

54. Payroll Employment (thousands, seasonally unadjusted) Aug `10 2.511 M Jan `10 2.479 M 49,000 private sector jobs added since Jan ‘10 Source:Texas Workforce Commission GREATER HOUSTON PARTNERSHIP Houston.org 28

55. What does the future look like for Houston?

56. What does the future look like for Houston? What will the recovery look like? Not like ’07 – ’08 More like ‘05 – ’06 30

57. What does the future look like for Houston? What will the recovery look like? ’07 – ’08 was not “the norm” $145 barrel oil Price more than doubling in 12 months 100,000 jobs per year Almost double historical pace $240 billion in foreign trade Up nearly 50 percent from three years earlier 50,000 single family starts Up nearly 50 percent from three years earlier 31

58. What does the future look like for Houston? ‘05 and ’06 are more like the “norm” You can expect . . . $75 – $85 barrel oil Slightly above historic trend 50,000 – 60,000 jobs per year Significantly fewer jobs created in ’10 Job growth returning in ’11 32

59. What does the future look like for Houston? ‘05 and ’06 are more like the “norm” $180 - $190 billion in foreign trade Growth returns as the economy rebounds No distortion from inflated commodity prices 20,000 – 25,000 single family starts Tighter lending standards = fewer new homes 33

60. Gross Regional Product * 2000 Constant Dollars Source:The Perryman Group, Spring/Summer 2010 34

61. Population & Employment Source:The Perryman Group, Spring/Summer 2010 35

62. Ratings of the Houston Area As a Place to Live (1996-2010) Source:Stephen L. Klineberg / Rice University

63. Belief in the “American Work Ethic” (1982-2010) Source:Stephen L. Klineberg / Rice University

64. Houston Region Rankings “#3 Cities with the Strongest Economies” Brookings Institution - June 2009 “Top 10 Cities to Find a Job” U.S. News & World Report - August 2009 “World Capitals of the Future” Forbes.com - September 2009 “#7 World’s Smartest Cities” Forbes.com - December 2009

65. Houston Region Rankings “#3 Best Housing Markets” Forbes.com - February 2010 “Largest Population Gain” U.S. Census Bureau - March 2010 “#4 Cities Where the Recession is Easing” Forbes.com - March 2010 “#3 Best Cities for Job Growth” New Geography and Forbes: Large Cities Ranking 2010 Best Cities for Jobs - April 2010

66. Houston Region Rankings “Top Destination City” U-Haul International - April 2010 “Home to 25 Fortune 500 Headquarters” Fortune - April 2010 “Top U.S. Manufacturing Cities” Manufacturers’ News Inc. - May 21, 2010 “Best Cities for Young Professionals” Forbes.com - June 17, 2010

67. H-Town Day 2010Understanding Houston’s Past, Present & FutureHouston Association of REALTORS® Thursday, October 21, 2010 Daniel G. Bellow, CRE, SIOR, CCIM President-Houston Jones Lang LaSalle Americas 41