Other new towers in the immediate area include the 35-story Arabella and the 17-story Wilshire — both condominium properties — and SkyHouse, a 25-story rental building. Gables Residential is currently developing a 14-story apartment building just north of the Lennar site. The project, which will have 295 units averaging 1,539 square feet, will be Gables’ first high-rise in the Houston market. River Oaks District, the four-year-old mixed-use development just south of the towers, has its own cache of luxury apartments.
But the market for upscale apartments in this affluent area is slow. Dozens of landlords from the Galleria area through Upper Kirby and West University are offering rental specials to lure tenants. The average rent for a so-called Class A unit in these areas combined is $1,731 per month, down from a high of $1,772 last June, said McClenny, who runs ApartmentData.com.
The high-end multifamily rental market, he said, is still trying to find its footing after experiencing supply and demand imbalances resulting from the energy downturn and Hurricane Harvey.
Occupancy is around 90 percent, but largely because of the rental specials, McClenny said.
Publication: Houston Chronicle