The document discusses trends in the Houston commercial real estate market and retail industry. It notes that Houston has experienced strong annual job and population growth. Holiday retail sales are forecast to increase 3.6% in 2016 compared to the 10-year average of 2.5%. Online and mobile shopping continue to be growth areas. Several planned and recently acquired grocery-anchored developments in the Houston area are highlighted. NewQuest Investment Company, a buyer of grocery-anchored properties, is also summarized.

1. The Houston
Commercial Real
Estate Markets
What’s Ahead for 2017
December 2016

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3. PAGE
MetroStudy
Houston Economy
Annual Job Growth

4. PAGE
U.S. Consumer Sentiment Index
Source: www.sca.ir.umich.edu “Surveys of consumers Thomson Reuters University of Michigan”

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Retail Trade Sales
Source: U.S. Census

6.  NRF expects sales in the months
of November and December to
increase a healthy 3.6% to
$655.8 billion.
 The holiday sales forecast is
significantly higher than the 10
year average of 2.5%.
 The U.S. Department of
Commerce announced that final
Q3 2016 e-commerce sales
increased 15.6%.
Forecast
Source: www.nrf.com “NRF Forecasts Marginal Sales Gain This Holiday Season”
 Online and mobile continue to be
a leading area of growth for
retailers.
 In this economy savvy, cost-
conscious consumers go to the
web to do their research and get
the best bang for their bucks.
 In addition to researching with
their peers are saying online
about products and gifts this
holiday season, consumers will
use the buy online pick-up in
store option, retailers’ aps and
mobile website.
Online / Mobile Shopping
 Retailers are expected to hire
between 725,000 to 800,000
seasonal workers.
 14% year-over-year increase
from 2013.
 Retailers operate more than 3.7
million U.S. establishments that
support one in four U.S. jobs –
42 million working Americans.
Seasonal Employment
Holiday Sales

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Kroger 3rd Quarter Highlights
 Kroger's adjusted earnings per diluted share was $0.40 for the
quarter.
 Identical supermarket sales growth, without fuel, was 0.1% in
the third quarter.
 Achieved 52(nd) consecutive quarter of positive identical
supermarket sales
Reports Record Second Quarter Earnings Per Share
Source: www.ir.kroger.com “Quarterly Results”

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Population Growth
Source: State of Texas – Texas Department of State Health Services
529,120
384,522 388,990
713,749
533,342 544,961
557,045
569,189
581,612
566,887
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Population Growth by Year

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Planned Grocery Anchored Developments 2014 & Future
25.0% market share
24.8% market share
22.2 % market share
Houston – area
Market Leaders
Source: www.bizjournals.com/houston – “The Business
Journal Interview with Bill Breetz of Kroger”
2014 & Beyond
Store Openings

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Grand Morton Town Center

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Grand Morton Town Center

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Grand Morton Town Center
 NEC & SEC Grand Parkway & Morton Ranch | Katy
 Anchored by Wal-Mart with Future Grocer opportunity
 89 acre project
 $50 million

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The Shops at Katy Reserve

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The Shops at Katy Reserve
 1681-1737 FM 1463 | Katy
 Anchored by Kroger Marketplace
 282,000+ SF project
 $30 million

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Grand Parkway Town Center

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Grand Parkway Town Center
 SWC Highway 249 & Grand Parkway | Tomball
 Anchored by Grocer & Club Store
 500,000 SF project
 $150 million

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Kingwood December 2016 Acquisition

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Kingwood December 2016 Acquisition

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Marketplace at Ninety-Six

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Marketplace at Ninety-Six
 NEC & SEC Highway 96 & Hobbs | League City
 Anchored by Kroger Marketplace
 270,000 SF project
 $30 million

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■ Over $1.69 billion in assets and over 100 employees
■ 6,706,902 SF of projects owned by NewQuest
■ 12,135,000 Total building SF leased and managed by NewQuest
■ 6.86+ Million SF of shovel-ready un-built property inventory
■ Total units – 1,062 including ground leases
■ 87% occupancy.
Company Highlights

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NewQuest Investment Company is a buyer of value-add to core-plus neighborhood grocery-anchored properties and power centers
nationwide. The company leverages the team’s experience to acquire and operate grocery-anchored shopping centers in the top 60
markets nationally, as well as select college towns and resort communities. The company provides institutional partners with attractive
risk-adjusted returns to provide a stable, current income yield with upside potential.
The Village at Aspen Park | Conifer, CO
Company Highlights

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Who We Are – NewQuest Crosswell
Non-Credit Franchisor & Franchisee Build-to-Suit Solutions
NewQuest Crosswell provides Build-to-Suit development programs geared toward high growth, non-credit retailers, restaurants,
service and healthcare providers. NewQuest Crosswell also invests capital in experience operators through joint ventures.
As a turnkey build-to-suit developer, NQC acts as a single source of responsibility for both delivery and financing. NewQuest
Crosswell is self-funded and the capital we invest is our own. Our ability to finance the development coupled with our expertise to
manage the development process allow clients to focus on what they do best – operate their core business.
OUR PROCESS:
■ Site search and feasibility analysis to pinpoint the optimal location
■ Capital resources to assume pre-development risks in acquiring property
■ Quick, on-the-ground response to fast-track permitting and approvals
■ Value-added building design and engineering to maximize facility
■ Financial fortitude to deliver the most cost-competitive project
■ Flexible leasing solutions to create the best scenario for each client
■ In-place procedures for a smooth, hassle-free move-in
NewQuest Crosswell takes pride in our process and strives to build long-term
relationships with our clients to continually service their real estate development needs.

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Who We Are

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