Houstonomics

TUESDAY MARKET RECAP The Closing Bell 📈 🟩 S&P 500: +0.38% to 7,543.59 🟩 Nasdaq: +0.90% to 26,107.01 🟩 Dow: +0.02% (+9.63 pts) to 52,508.27

Houston Office Market Q2 Update: Leasing slowed to 2.2M SF (-23% QoQ), with H1 activity down ~20% YoY. Yet positive net absorption of 425K SF shows resilience. Flight-to-quality in action: A assets captured 66% of leasing & most gains.

Real average hourly earnings for all private-sector employees increased 0.8% in June (seasonally adjusted). Real average weekly earnings also rose 0.8%, as the average workweek was unchanged.

CPI Cooling Fast Headline CPI dropped 0.4% in June, the largest monthly decline since April 2020. Annual inflation fell to 3.5% (from 4.2%). Core CPI held flat MoM and slowed to 2.6% YoY (from 2.9%).

JPMorgan Chase reported exceptionally strong second-quarter 2026 earnings, driven by a surge in investment banking activity and record revenue across every major business segment.

The NFIB Small Business Optimism Index rose 2.1 points to 97.4, approaching its 52-year average of 98.0. Stronger expectations for business conditions and future sales drove the gain. ▫️Uncertainty eased but remains elevated. ▫️Hiring demand rebounded. ▫️Inflation remains the top concern. ▫️Future pricing pressures may ease. ▫️Business outlook improved. ▫️Capital spending intentions increased. ▫️Credit conditions remain restrictive. ▫️Profitability weakened.

MONDAY MARKET RECAP Stocks slipped Monday after Trump reinstated a blockade on Iranian shipping in the Strait of Hormuz, pushing oil prices higher. • S&P 500: -0.79% to 7,515.34 • Nasdaq: -1.55% to 25,873.18 • Dow: -138 pts (-0.26%) to 52,498.64

@CoyDavidsonCRE Healthcare real estate is not slowing. It is getting more selective. The winners will be outpatient facilities that lower costs, improve access and support higher-value care. Buildings that cannot prove operational value will struggle to attract capital.

Healthcare real estate is shifting away from bigger hospitals. Capital is pouring into outpatient facilities, ambulatory centers, and medical office buildings near patients. Access, affordability, and convenience are now key competitive advantages. knowledge-leader.colliers.com/shawn-janus/mi…

U.S. oil and gas producers increased the active rig count for a fourth consecutive week, adding one rig to reach 581. Oil drilling activity was unchanged at 445 rigs, while natural gas rigs held steady at 126. The total rig count is up 44 rigs, or 8% YoY

Wall Street isn't losing. It's gaining competition. New York remains the financial capital, but Dallas and Miami are capturing new investment, talent and headquarters. The Texas Stock Exchange, Citadel's move to Miami and billion-dollar office projects show finance is becoming a multi-city ecosystem.

U.S. Office Demand Keeps Climbing. Q2 2026 absorption hit 16.9M SF, 7 straight quarters of occupancy gains. The stat that matters most: nearly 3 out of 4 U.S. office markets posted positive absorption at midyear 2026.

THURSDAY MARKET RECAP Markets push higher despite U.S.-Iran tensions. 🟩 Nasdaq Composite: +1.30% to 26,206.89 🟩 S&P 500: +0.81% to 7,543.64 🟩 Dow Jones: +139.02 pts (+0.27%) to 52,487.41

AI driving office demand: The lease underscores how artificial intelligence companies have become a major source of demand for premium office space in gateway markets, particularly New York and San Francisco.

Existing-home sales fell 2.4% in June to a seasonally adjusted annual rate of 4.09 million homes. Home prices reached a record high. The median existing-home price climbed to $440,600. Inventory stands at 4.6 months of supply.

Mortgage Rates Hover in Mid-Six Percent Range The average 30-year fixed-rate mortgage increased slightly to 6.49%, up from 6.43% the previous week but below 6.72% one year ago. The 15-year fixed-rate mortgage rose to 5.82%, compared with 5.79% last week and 5.86% a year earlier.

Initial jobless claims: 215,000, down 2,000 from the prior week's revised level of 217,000. Four-week moving average: 218,750, down 3,750. Continuing claims (insured unemployment): 1.814 million, up 8,000 from the previous week. Insured unemployment rate: Held steady at 1.2%

Retail demand is stronger than many expected. U.S. retail absorbed 10.2 million square feet in Q2 while vacancy held at just 4.4%. The bigger story is supply. Limited construction is giving well located shopping centers real pricing power. Tight supply is doing the heavy lifting.

Mitsubishi Corporation (Americas) has signed a 91,761-square-foot lease at 1100 Louisiana in downtown Houston. 🔗hcre.short.gy/nx3LUk

Houston's housing market is becoming more balanced, not weaker. Inventory has a 5.2 month supply, giving buyers more leverage. Yet single family sales still rose 3.5% and the average home price reached a record $455,159. 🔗 hcre.short.gy/4Yx33e