Market Square Tower:
Don’t Rent Here Without Reading This
Located across Market Square Park at 777 Preston St, Market Square Tower is a 40-story, 463-unit, lease-only luxury highrise.
Located across Market Square Park at 777 Preston St, Market Square Tower is a 40-story, 463-unit, lease-only luxury highrise.
Market Square Tower is Downtown Houston’s latest multi-family highrise development with luxurious amenities.
Luxury amenities include poker rooms, cantilevered pool, screening room with lie-flat recliners, and a wrap-around rooftop with amazing views of the Houston skyline and Buffalo Bayou Park.
Market Square Tower is designed by Jackson & Ryan Architects. The building is located on a city block bound by Milam, Preston, Louisiana and Congress.
Market Square Tower is located within Downtown Houston. Downtown is home to over 30 residential lofts and condos. Buyers and renters will benefit from a good Downtown realtor who has sold numerous properties in the area.
Market Square Tower is one of eleven new residential lease highrise buildings being added to Downtown Houston.
Prior to the construction of these new eleven buildings (that were planned during the 2012-2014 oil boom) there were 2,899 downtown residential units (housing approximately 3,800 residents).
These eleven new downtown lease-only buildings are adding 2,729 new residential units (housing approximately 3,500 people).
In addition, seven more downtown residential towers are planned (but have not broken ground as of the time of this writing) bringing an additional, planned 3,200 residents.
Candidly, I think many of these seven planned downtown Houston highrise buildings that have not broken ground will not make, since Houston’s downtown real estate market changed dramatically from 2014 to 2016.
However, supply is still doubling, while demand stays flat.
As you’ll see the in 10 year Downtown Houston lease trends below, rental prices peaked in mid 2015. Lease prices started falling in late 2015 and have fallen further in 2016.
One of the challenges that Market Square Tower (or any new luxury downtown Houston residential building) faces is that they are pricing their rental units at a 40% plus premium to last year’s rental rates (which had the highest all-time ever lease rates).
This is a 50%+ premium to the current rental rates, while supply of downtown rental inventory is planned to double.
Typically, when supply increases and demand decreases, prices do not rise by 50%.
Even if Market Square Tower deserves a 50% premium over downtown Houston lease rates, it’s likely that downtown Houston rental rates will fall and all lease prices should be adjusted.
Market Square Tower is a lease only downtown residential high rise building.
One of the challenges that new luxury downtown rental highrises have, is that the average price to purchase a downtown Houston condo or downtown Houston loft for sale is less than $275,000.
When luxury lease prices (like Market Square Tower Houston) offer condo rentals costing in excess of $6,000 per month, and ownership costs for nearby Houston condos for sale are less than half those rates, the question is “Will people be willing to pay a premium lease rate, versus purchasing a condo and upgrading the unit to the owner’s tastes?”
For example, spending $85,000 per year on a rental at Market Square Tower may be less advantageous than buying a $300,000 condo at Franklin Lofts, Bayou Lofts, Hermann Lofts, Commerce Towers, Kirby Lofts, Rise Lofts, or The Edge (all a short distance away from Market Square Tower).
Here’s a collection of current downtown Houston lofts & condos for sale:
Market Square Tower offers a tremendous amount of amenities, including:
Level 4 Amenities
Rooftop Amenities
Other Amenities
Resident Services
However, a recent study in conjunction with Houston Condos That Have Been Investments showed that over 81% of all building residents did not use a single building amenity over a 45-day period (excluding building staff services like concierges, porters, valet, etc.)
This implies several things:
In addition, “cool” building amenities (e.g. glass bottom pools overlooking a park) typically have higher maintenance costs as they’re harder to maintain.
Before signing a lease agreement for any luxury downtown Houston rental, I’d highly encourage you to view all Houston condos and lofts for sale to compare monthly rental rates versus ownership costs.
As featured on Fox News in the Morning, Houston Business Journal and Houston Magazine, Paige Martin, a consistent Top Producing Broker-Associate and head of the Houston Properties Team, is ranked as one of the top residential real estate agents in the world.
Paige’s recent awards include:
Paige works with a tremendous number of buyers and sellers within Houston, earning praises like “Paige Martin is the best Houston condo realtor I know.” Read more about client feedback and ratings here.
For a specific recommendation of neighborhoods, homes or properties based upon your personal style, goals & price point, please contact Paige Martin, head of the Houston Properties Team & Broker Associate at [email protected] or 713-384-5177.
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