July 2016 ©2016, Greater Houston Partnership Page 1

Employment Update — Houston area employment was unchanged in May at 2,995,100 jobs,

the same level at which employment stood in April. The region lost jobs in several sectors,

added jobs in several others, and remained essentially unchanged in a few more. The gains

offset the losses, resulting in the zero net job growth for the month. In the 35 years for which

employment data are readily available, this stasis is unprecedented—Houston recording nei-

ther job gains nor job losses in a month.

Examining job growth over a 12-month period helps to smooth out the impact of seasonal

factors (retail hiring in the fall, education layoffs in the summer) that occur every year, and

helps place current job growth in the context of historical job growth. For the 12 months end-

ing May ’16, the region created 5,100 jobs, a far cry from the 66,400 jobs created in the 12

months ending May ’15, or the 98,500 jobs created in the 12 months ending May ’14.

The most recent 12-month total underscores the weakness in Houston’s economy. If Houston

experiences job losses in June, something that has occurred only twice in the past 35 years,

Houston’s 12-month total may turn negative. That said, the job losses would need to exceed

2,000 to drop Houston into the red for the 12-month total.

Since December ’14, the start of the energy downturn, manufacturing has lost 31,300 jobs,

energy, 24,700 jobs, professional services, 18,200 jobs, and trade, transportation and utilities,

12,100 jobs. Over the same period, hotels, restaurants and bars have added 25,600 jobs, health

-120

-80

-40

0

40

80

120

160

2.4

2.5

2.6

2.7

2.8

2.9

3.0

3.1

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

12

-Mo

mth

Ch

ange

(0

00

s)

Tota

l Jo

b (

00

0s,

00

0s)

s

Source: Texas Worlforce Commission

Metro Houston Nonfarm Payroll Employment

12-Month Change Total Employment

A publication of the Greater Houston Partnership Volume 25 Number 7 — July 2016

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 2

care, 20,100 jobs, government (mainly education) 9,900 jobs, and arts, entertainment and rec-

reation, 6,300 jobs.

Houston’s unemployment rate remained unchanged in May at 4.8 percent. The Texas rate was

also unchanged at 4.2 percent. The U.S. rate dropped from 4.7 in April to 4.5 percent in May.

The Houston rate is now above that of the U.S. The rates are not seasonally adjusted.

On the Bright Side — Despite the current slump, Houston’s long-term outlook remains

bright, according the latest report by The Perryman Group.1 “The Houston-The Woodlands-

Sugar Land MSA has stabilized after adjusting to job losses associated with lower oil prices,”

the report notes. “Although additional fallout may well occur, it appears that the area is set for

stronger growth. Over the long term, oil price recovery will lead to a resurgence in energy

sector businesses, adding to the expansion across the rest of the area economy.”

Perryman forecasts Houston’s real gross area product (GAP) to grow at a 3.35 percent annual

rate over then next 25 years, top-

ping $1.12 trillion in ’40. Almost

1.63 million net new jobs are pro-

jected to be gained over the forecast

period, a 1.70 percent annual rate.

Every sector except agriculture will

add jobs, with wholesale/retail

trade, government (which includes

public education), and services ac-

counting for 85 percent of all

growth. Output will expand in

every sector, with mining, manu-

facturing, and services representing

61 percent of all gains. The forecast

calls for the nine-county metro area

population to reach 9.6 million, about the same level as the present-day population of metro

Chicago.

The report notes that business cycles are inevitable, but that moderate U.S. growth will char-

acterize the long-term, with unemployment rates trending downward and tighter labor markets

in the future. The report also expects the Federal Reserve to slowly raise target interest rates

and the retiring of Baby Boom generation to create skills gaps in some trades and professions.

It also expresses concern that a decline in the labor force participation rate could adversely

affect U.S. living standards in the future. “With a large and growing percentage of the popula-

tion not working, pressure will increase for those who do have jobs to generate output, income,

and tax receipts,” the report notes.

1 The Perryman Economic Forecast: Long-Term Outlook for the United States, Texas, Major Metropolitan Areas, and Regions, is

available for purchase from The Perryman Group, 800-749-8705 or info@perrymangroup.com.

$492.7$608.6

$731.5

$861.0

$993.1

$1,123.4

'15 '20 '25 '30 '35 '40

Source: The Perryman Group, Summer 2015 * '09 constant dollars

Real Gross Area Product Forecast, Billions*Houston-The Woodlands-Sugar Land MSA

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 3

U.S. GDP, measured in

’09 dollars, should more

than double, the U.S.

should gain another 63

million residents, and

the economy should

support an additional 62

million jobs by ’40.

Despite the oil indus-

try’s turmoil, the Texas

economy continues to

expand at a modest

pace, the report notes. A

primary reason for the

state’s continued success is the increasingly diverse nature of the economy. On balance, The

Perryman Group’s most recent long-term forecast indicates the Texas economy is likely to

continue to see moderate growth. Ray Perryman, the firm’s president and CEO, expects Texas

GDP, measured in ’09 dollars, to more than double, reaching $3.5 billion in ’40, the state to

add another 12.0 million residents, bringing the population to 39.0 million, and the Texas econ-

omy to create an additional 6.2 million jobs. But he adds a note of caution: “Texas also needs

to deal with unfunded pensions; restructure programs in crisis such as indigent health care,

foster care, and child protective services; improve education at all levels, and make a dent in

infrastructure shortcomings.” Otherwise, he says, the state faces slower growth and the neces-

sity of committing even more resources to public needs.

A Trickle, Not a Gusher — Crude prices appear to have bottomed in mid-February. West

Texas Intermediate, the U.S. benchmark for light sweet crude, fell to $26.19 on February

11 but has traded in the mid-$40s since mid-April. The U.S. Energy Information Admin-

istration forecasts WTI to average $47 per barrel in Q4/16, Wells Fargo, $48.50, and Gold-

man Sachs, $50.

According to the RigData count, a rival to the better-known Baker Hughes count, the U.S.

added 25 rigs in the last week of June. The North American rig count now stands at 450,

up from 396 the last week of May. Baker Hughes shows a more modest increase, up 27

rigs, from 404 in late May to 431 the last week of June.

In its Short Term Energy Outlook for June, the U.S. Energy Information Administration

forecasts global crude consumption to increase by 1.5 million barrels per day in ’16 and

by the same amount in ’17. At the beginning of ’16, the global crude surplus was estimated

at between 2.0 and 3.0 million barrels per day. Energy may have reached a somewhat

mushy bottom, and rather than a bounce back, the recovery will likely be a slow climb.

6.57.0

7.68.2

8.99.6

3.1 3.5 3.8 4.1 4.4 4.7

'15 '20 '25 '30 '35 '40

Source: The Perryman Group

Population and Employment ForecastHouston-The Woodlands-Sugar Land MSA*

Population Employment

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 4

Location, Location, Location2 — More than 10 million square feet of sublease office space

is now in the Houston market. An additional 1 million square feet is expected in Q3/16. The

additional sublease space will push Houston’s effective office vacancy rate above 21 percent.

Sublease rates are increasingly aggressive, notes CBRE, including some instances of market-

ing a $0.0 net rate (operating expenses only), as sublessors try to recoup any costs.

Total absorption remains barely positive for the year,

with 147,000 square feet leased. This time last year, 1.4

million square feet had been leased. Nine of region’s 20

submarkets report year-to-date negative net absorption.

Though the 20 largest sublease listings are offered by

energy companies, the Energy Corridor has absorbed

nearly 300,000 square feet year to date.

Office construction continues to wind down, with only

4.2 million square feet underway in Q2/16 compared

to 11.8 million square feet in Q2/15 and 16.3 million

in Q2/14. Only half of the space under construction is

preleased, potentially throwing another 2 million

square feet of empty space onto the market. Developers

by and large have tabled plans for new office buildings.

Population growth, high retail demand, and port activity continue to drive industrial leasing

activity. Despite a few big-box leases, 84 percent of deals in Q2/16 were for less than 100,000

square feet. Developers delivered 1.6 million square feet of industrial space in Q2/16 and 4

million year to date, but the vacancy rate has held steady at 5.5 percent. Of the 11.2 million

square feet of space under construction, 8.4 million square feet is preleased.

Houston absorbed 1.5 million square feet of retail

space in Q2/16, the most in any quarter since

Q4/07. Average occupancy grew 0.4 points to

94.2 percent. More than 3 million square feet is

under construction, equivalent to 1 percent of the

current inventory. Sites once slated for multifam-

ily projects are now available for retail develop-

ment, giving rise to more mixed-use develop-

ments.

The multi-family market absorbed 1,694 units in

June and 8,436 over the past 12 months. Inventory has grown by 21,600 units over the past 12

months. Overall occupancy stands at 89.7 percent, down from 91.4 percent in June ’15. On a

square foot basis, average rental rates have grown 1.5 percent since last June. Class B, C and

2 CBRE, Colliers JLL and Transwestern provided the data included in this section of Economy at a Glance.

Occupancy – Houston Apartment Market Property Type Avg. Occupancy % Class A Stable 90.8 Class A Lease Up 22.7 Class B Stable 93.3 Class B Lease Up 45.3 Class C 93.5 Class D 91.2 Note: “Stable” means the property has been operating more than 13 months; “lease up” means less than 13 months. Source: Apartment Data Services

Office Submarkets YTD Positive Absorption: Allen Parkway, Clear Lake, Energy Corridor, Far West, Greater Pearland, Katy Free-way, Kingwood, Med Center/South Main, Southwest Freeway, West Belt, Westchase Negative Absorption: Downtown, East, FM 1960, Greenspoint/North Belt, Greenway Plaza, North, North Loop, West Loop/Galleria, The Woodlands

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 5

D properties continue to perform well, while properties in lease-up are dragging down overall

Class A occupancy rates.

Population Shift Continues — Hispanics moved closer to becoming Houston’s largest racial

or ethnic group in’15, now representing 36.5 percent of the region’s 6.6 million residents, ac-

cording to recent estimates by the U.S. Census Bureau. Since the ’00 Census, Houston’s His-

panic population has grown by more than 403,000 residents, accounting for 54.7 percent of the

region’s growth. The region’s Anglo population grew by 142,000, accounting for 19.2 percent

of the region’s growth. At current growth rates, Hispanics likely will overtake Anglos as the

largest ethnic group in the Houston metro area within the next two years.

The region’s Asian population now exceeds half a million residents, or 7.6 percent of the metro

total, up from 4.9 percent in ’00. Blacks’ share of the metro population has held steady at 16.9

percent over the past decade and a half. Anglos’ share of the population has fallen from 48.9

percent in ’00 to 37.4 percent today.

A few additional observations: Austin, Chambers, Liberty and Montgomery are the only metro

counties with Anglo majorities. One in four residents of Waller County is black. One in five

residents of Fort Bend is Asian. Harris County has more Hispanics than any of the other eight

metro counties have people.

’15 Racial and Ethnic Breakdown - Houston Metro Area

Geography White Black Native

American Asian

Pacific Is-lander

Two or More Races

Hispanic Total Popu-

lation

Austin 18,626 2,624 97 146 3 308 7,759 29,563

63.0% 8.9% 0.3% 0.5% 0.0% 1.0% 26.2% 100.0%

Brazoria 170,027 45,264 1,166 21,803 132 5,108 102,812 346,312

49.1% 13.1% 0.3% 6.3% 0.0% 1.5% 29.7% 100.0%

Chambers 26,069 3,223 152 495 16 398 8,510 38,863

67.1% 8.3% 0.4% 1.3% 0.0% 1.0% 21.9% 100.0%

Fort Bend 248,046 144,146 1,524 137,645 336 11,718 172,672 716,087

34.6% 20.1% 0.2% 19.2% 0.0% 1.6% 24.1% 100.0%

Galveston 185,874 41,659 1,174 10,889 194 4,943 77,492 322,225

57.7% 12.9% 0.4% 3.4% 0.1% 1.5% 24.0% 100.0%

Harris 1,405,412 839,956 9,193 317,035 2,619 58,854 1,904,959 4,538,028

31.0% 18.5% 0.2% 7.0% 0.1% 1.3% 42.0% 100.0%

Liberty 52,484 8,193 329 478 31 1,023 17,116 79,654

65.9% 10.3% 0.4% 0.6% 0.0% 1.3% 21.5% 100.0%

Montgomery 364,212 24,697 2,014 14,275 379 7,717 124,265 537,559

67.8% 4.6% 0.4% 2.7% 0.1% 1.4% 23.1% 100.0%

Waller 20,810 12,325 175 409 9 527 14,401 48,656

42.8% 25.3% 0.4% 0.8% 0.0% 1.1% 29.6% 100.0%

Total 2,491,564 1,122,088 15,824 503,175 3,719 90,596 2,429,988 6,656,955

37.4% 16.9% 0.2% 7.6% 0.1% 1.4% 36.5% 100.0%

Source: U.S. Census Bureau Note: The six racial categories are non-Hispanic only.

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 6

SNAPSHOT — HOUSTON’S KEY ECONOMIC INDICATORS

Building Permits — City of Houston building permits totaled $595.7 million in May ’16,

down 0.2 percent from $597.0 million in May ’15, according to the City’s Department of

Public Works & Engineering Planning & Development Services. Year-to-date, city building

permits totaled $2.7 billion, down 15.6 percent from $3.1 billion from the same period in ’15.

Inflation — The cost of consumer goods and services as measured by the Consumer Price

Index for All Urban Consumers (CPI-U) rose 1.0 percent nationwide from May ’15 to May

’16, according to the U.S. Bureau of Labor Statistics. Core inflation (all items less the volatile

food and energy categories) increased 2.2 percent since May ’15.

Home Sales — Houston-area home sales strengthened in May as the supply of homes grew

and prices remained stable. Local realtors sold 7,343 homes in May, a 10.0 percent increase

from the 6,678 sold in May of last year, according to the Houston Association of

REALTORS®. Year-to-date home sales totaled 28,737, a 3.6 percent increase from the 27,740

sold over the same period last year. The average and median sales prices for single-family

homes sold in May were unchanged from a year ago.

Purchasing Managers Index — The Houston Purchasing Managers Index (PMI), a short-

term leading indicator for regional production, registered 45.8 in May, up from 44.2 in April,

according to the Institute for Supply Management-Houston (ISM-Houston). Readings below

the neutral point of 50 typically signal contraction over the coming three or four months. With

the May reading, the PMI has signaled economic contraction in Houston for 17 consecutive

months.

Vehicle Sales — Houston-area auto dealers sold 22,047 vehicles in May ’16, a 34.2 percent

decrease from the 33,517 sold in May the previous year, according to TexAuto Facts, pub-

lished by InfoNation, Inc. of Sugar Land. Through the first five months of ’16, local dealers

sold 127,002 vehicles, down 17.7 percent from the 154,394 sold over the comparable period

in ’15.

Patrick Jankowski and Jenny Philip

contributed to this issue of Houston: The Economy at a Glance

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 7

STAY UP TO DATE!

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HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 8

HOUSTON MSA NONFARM PAYROLL EMPLOYMENT (000) Change from % Change from

May '16 Apr '16 May '15 Apr '16 May '15 Apr '16 May '15

Total Nonfarm Payroll Jobs 2,995.1 2,995.1 2,990.0 0.0 5.1 0.0 0.2

Total Private 2,601.0 2,601.6 2,604.2 -0.6 -3.2 0.0 -0.1

Goods Producing 537.5 540.6 565.5 -3.1 -28.0 -0.6 -5.0

Service Providing 2,457.6 2,454.5 2,424.5 3.1 33.1 0.1 1.4

Private Service Providing 2,063.5 2,061.0 2,038.7 2.5 24.8 0.1 1.2

Mining and Logging 87.3 88.6 100.7 -1.3 -13.4 -1.5 -13.3

Oil & Gas Extraction 50.4 50.4 53.2 0.0 -2.8 0.0 -5.3

Support Activities for Mining 36.6 37.1 46.1 -0.5 -9.5 -1.3 -20.6

Construction 219.0 219.5 216.3 -0.5 2.7 -0.2 1.2

Manufacturing 231.2 232.5 248.5 -1.3 -17.3 -0.6 -7.0

Durable Goods Manufacturing 147.5 148.5 167.8 -1.0 -20.3 -0.7 -12.1

Nondurable Goods Manufacturing 83.7 84.0 80.7 -0.3 3.0 -0.4 3.7

Wholesale Trade 169.1 169.8 173.0 -0.7 -3.9 -0.4 -2.3

Retail Trade 306.0 305.2 297.4 0.8 8.6 0.3 2.9

Transportation, Warehousing and Utilities 137.1 137.3 138.8 -0.2 -1.7 -0.1 -1.2

Utilities 16.1 16.1 15.8 0.0 0.3 0.0 1.9

Air Transportation 21.8 21.8 21.9 0.0 -0.1 0.0 -0.5

Truck Transportation 25.0 24.8 26.0 0.2 -1.0 0.8 -3.8

Pipeline Transportation 10.9 10.8 10.5 0.1 0.4 0.9 3.8

Information 31.3 31.4 32.5 -0.1 -1.2 -0.3 -3.7

Telecommunications 14.1 14.1 14.0 0.0 0.1 0.0 0.7

Finance & Insurance 96.2 95.9 95.5 0.3 0.7 0.3 0.7

Real Estate & Rental and Leasing 57.1 56.1 55.6 1.0 1.5 1.8 2.7

Professional & Business Services 457.0 460.1 470.3 -3.1 -13.3 -0.7 -2.8

Professional, Scientific & Technical Services 211.5 217.0 217.5 -5.5 -6.0 -2.5 -2.8

Legal Services 23.4 23.7 24.3 -0.3 -0.9 -1.3 -3.7

Accounting, Tax Preparation, Bookkeeping 23.6 25.9 22.5 -2.3 1.1 -8.9 4.9

Architectural, Engineering & Related Services 65.6 66.5 71.8 -0.9 -6.2 -1.4 -8.6

Computer Systems Design & Related Services 33.2 33.5 33.3 -0.3 -0.1 -0.9 -0.3

Admin & Support/Waste Mgt & Remediation 210.4 207.9 216.4 2.5 -6.0 1.2 -2.8

Administrative & Support Services 198.7 196.2 205.2 2.5 -6.5 1.3 -3.2

Employment Services 76.5 76.0 81.1 0.5 -4.6 0.7 -5.7

Educational Services 58.4 58.6 55.9 -0.2 2.5 -0.3 4.5

Health Care & Social Assistance 325.2 323.9 310.2 1.3 15.0 0.4 4.8

Arts, Entertainment & Recreation 35.0 33.0 32.5 2.0 2.5 6.1 7.7

Accommodation & Food Services 284.2 284.1 270.3 0.1 13.9 0.0 5.1

Other Services 106.9 105.6 106.7 1.3 0.2 1.2 0.2

Government 394.1 393.5 385.8 0.6 8.3 0.2 2.2

Federal Government 28.3 28.1 27.8 0.2 0.5 0.7 1.8

State Government 73.7 74.6 72.9 -0.9 0.8 -1.2 1.1

State Government Educational Services 40.5 41.0 40.0 -0.5 0.5 -1.2 1.3

Local Government 292.1 290.8 285.1 1.3 7.0 0.4 2.5

Local Government Educational Services 205.7 205.3 199.6 0.4 6.1 0.2 3.1

SOURCE: Texas Workforce Commission

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 9

Houston Economic Indicators

A Service of the Greater Houston Partnership

Most Year % Most Year %

Month Recent Earlier Change Recent Earlier Change

ENERGY

U.S. Active Rotary Rigs June '16 417 861 -51.6 492 * 1,155 * -57.4

Spot Crude Oil Price ($/bbl, West Texas Intermediate) May '16 46.83 59.27 -21.0 37.43 * 51.89 * -27.9

Spot Natural Gas ($/MMBtu, Henry Hub) May '16 1.92 2.85 -32.6 1.97 * 2.83 * -30.4

UTILITIES AND PRODUCTION

Houston Purchasing Managers Index May '16 45.8 46.1 -0.7 46.1 * 46.3 * -0.4

Nonresidential Electric Current Sales (Mwh, CNP Service Area) May '16 4,954,117 4,919,243 0.7 22,524,218 21,911,100 2.8

CONSTRUCTION

Total Building Contracts ($, Houston MSA) May '16 1,025,830,000 1,505,200,000 -31.8 5,825,510,000 7,522,068,000 -22.6

Nonresidential May '16 326,540,000 732,445,000 -55.4 2,308,510,000 3,013,192,000 -23.4

Residential May '16 699,290,000 772,755,000 -9.5 3,517,000,000 4,508,876,000 -22.0

Building Permits ($, City of Houston) May '16 595,692,428 596,954,584 -0.2 2,653,812,012 3,145,907,862 -15.6

Nonresidential May '16 384,363,386 414,981,705 -7.4 1,666,705,458 2,034,041,660 -18.1

New Nonresidential May '16 172,028,704 279,544,525 -38.5 595,533,836 1,165,194,217 -48.9

Nonresidential Additions/Alterations/Conversions May '16 212,334,682 135,437,180 56.8 1,071,171,622 868,847,443 23.3

Residential May '16 211,329,042 181,972,879 16.1 987,106,554 1,111,866,202 -11.2

New Residential May '16 126,881,862 163,549,276 -22.4 754,612,138 1,014,014,229 -25.6

Residential Additions/Alterations/Conversions May '16 84,447,180 18,423,603 358.4 232,494,416 97,851,973 137.6

Multiple Listing Service (MLS) Activity

Property Sales May '16 8,703 8,123 7.1 34,694 33,759 2.8

Median Sales Price - SF Detached May '16 225,000 224,900 0.0 212,998 * 206,960 * 2.9

Active Listings May '16 35,416 30,162 17.4 33,899 * 28,802 * 17.7

EMPLOYMENT (Houston-Sugar Land-Baytown MSA)

Nonfarm Payroll Employment May '16 2,995,100 2,990,000 0.2 2,986,880 * 2,976,460 * 0.4

Goods Producing (Natural Resources/Mining/Const/Mfg) May '16 537,500 565,500 -5.0 543,680 0 573,060 * -5.1

Service Providing May '16 2,457,600 2,424,500 1.4 2,443,200 0 2,403,400 * 1.7

Unemployment Rate (%) - Not Seasonally Adjusted

Houston-Sugar Land-Baytown MSA May '16 4.8 4.4 4.8 * 4.3 *

Texas May '16 4.2 4.3 4.3 * 4.3 *

U.S. May '16 4.5 5.3 5.0 * 5.6 *

TRANSPORTATION

Port of Houston Authority Shipments (Short Tons) May '16 3,606,185 4,202,952 -14.2 18,374,985 20,712,778 -11.3

Air Passengers (Houston Airport System) May '16 4,635,438 4,674,242 -0.8 22,058,072 21,664,886 1.8

Domestic Passengers May '16 3,660,524 3,798,857 -3.6 17,373,294 17,534,164 -0.9

International Passengers May '16 974,914 875,385 11.4 4,684,778 4,130,722 13.4

Landings and Takeoffs May '16 65,216 67,853 -3.9 319,673 328,755 -2.8

Air Freight (metric tons) May '16 25,929 33,424 -22.4 152,195 177,015 -14.0

Enplaned May '16 12,605 17,851 -29.4 75,729 92,536 -18.2

Deplaned May '16 13,324 15,573 -14.4 76,466 84,479 -9.5

CONSUMERS

New Car and Truck Sales (Units, Houston MSA) May '16 22,047 33,517 -34.2 127,002 154,394 -17.7

Cars May '16 7,925 13,427 -41.0 46,716 63,806 -26.8

Trucks, SUVs and Commercials May '16 14,122 20,090 -29.7 80,286 90,588 -11.4

Total Retail Sales ($000,000, Houston MSA, NAICS Basis) 4Q15 31,941 35,393 -9.8 112,143 125,047 -10.3

Consumer Price Index for All Urban Consumers ('82-'84=100)

Houston-Galveston-Brazoria CMSA May '16 214.505 210.283 2.0 214.113 * 210.755 * 1.6

United States May '16 240.236 237.805 1.0 238.331 * 235.790 * 1.1

Hotel Performance (Houston MSA)

Occupancy (%) 4Q15 64.3 68.2 68.6 * 72.0 *

Average Room Rate ($) 4Q15 106.40 106.61 -0.2 108.56 * 106.88 * 1.6

Revenue Per Available Room ($) 4Q15 68.37 72.66 -5.9 74.51 * 76.98 * -3.2

YEAR-TO-DATE TOTAL or

YTD AVERAGE*MONTHLY DATA

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 10

Sources Rig Count Baker Hughes Incorporated Spot WTI, Spot Natural Gas U.S. Energy Information Admin. Houston Purchasing Managers National Association of Index Purchasing Management – Houston, Inc. Electricity CenterPoint Energy Building Construction Contracts McGraw-Hill Construction City of Houston Building Permits Building Permit Department, City of Houston

MLS Data Houston Association of Realtors Employment, Unemployment Texas Workforce Commission

Port Shipments Port of Houston Authority Aviation Aviation Department, City of Houston Car and Truck Sales TexAuto Facts Report, InfoNation, Inc.,

Sugar Land TX Retail Sales Texas Comptroller’s Office Consumer Price Index U.S. Bureau of Labor Statistics Hotels PKF Consulting/HospitalityAsset Advisors International Postings, Foreclosures Foreclosure Information &Listing Service

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 11

-150

-120

-90

-60

-30

0

30

60

90

120

150

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

12

-Mo

nth

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ange

(0

00

)

No

nfa

rm P

ayro

ll Em

plo

yme

nt

(00

0)

Source: Texas Workforce Commission

Nonfarm Payroll Employment, Houston MSA

12-Month Change Total Payroll Employment

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

420

460

500

540

580

620

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Serv

ice

-Pro

vid

ing

Job

s (0

00

s)

Go

od

s-P

rod

uci

ng

Job

s (0

00

s)

Source: Texas Workforce Commission

Goods-Producing and Service-Providing EmploymentHouston MSA

Goods-Producing Jobs Service-Providing Jobs

HOUSTON—THE ECONOMY AT A GLANCE

July 2016 ©2016, Greater Houston Partnership Page 12

3

4

5

6

7

8

9

10

11

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

% C

ivili

an L

abo

r Fo

rce

Source: Texas Workforce Commission

Unemployment Rate - Houston, Texas and U.S.

Houston Texas U.S.

0

2

4

6

8

10

12

14

16

0

20

40

60

80

100

120

140

160

'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Nat

ura

l Gas

, $ /

MM

Btu

WTI

, $ b

arre

l

Source: U.S. Energy Information Administration

Spot Crude and Natural Gas PricesMonthly Averages

WTI Natural Gas