Although Houston’s real estate market has faced challenges, Houston-based Arch-Con Construction has largely avoided the downturn by diversifying its project mix and expanding into other metropolitan areas.
Under CEO Michael Scheurich, Arch-Con has nearly 4 million square feet of commercial projects underway and projected revenue of $300 million for 2017, a 33 percent increase over the previous year. In Houston alone, the company has 25 projects in construction, including Valley Ranch Town Center, a significant retail development in the city’s northeast corridor, and St. Angela Merici Catholic Church, a new 1,000-seat sanctuary in Sienna Plantation. Arch-Con opened a Dallas office in March 2016 and has completed 624,000 square feet of industrial space there, with more than 2 million square feet under construction.
Recently named president of Arch-Con, Jason M. Cooper oversees day-to-day management, including operations and risk management. A Texas A&M graduate, Cooper brings over 20 years of commercial construction experience and has been with Arch-Con for more than six years. He played a key role in the company’s expansion into Dallas and works closely with Scheurich to execute the firm’s growth strategy and enter new markets.
Realty News Report: Your recent appointment as president suggests Arch-Con is growing and changing. How would you describe the company today?
Jason M. Cooper: Arch-Con has enjoyed steady, substantial growth over recent years. In 2016 we opened a Dallas office, now led by Robert Martin, a Dallas native. We also strengthened our healthcare division in Houston, led by Evan Alford, who has significant experience in the Texas Medical Center. Beyond larger and more complex projects, we’re growing our team both in size and in professional development. From project accountants to senior vice presidents, our employees are what make Arch-Con successful, and working with them is the most rewarding part of my new role.
Realty News Report: How closely will you collaborate with Michael Scheurich, who has been president for many years?
Jason M. Cooper: Michael and I have worked closely for the past six years. He founded Arch-Con in 2000 and has been CEO and president since. I joined in 2011 to lead the Office and Industrial divisions. Going forward our relationship will be symbiotic: Michael will continue to set the company’s strategic vision as CEO, while I will focus on executing that vision operationally.
Realty News Report: Arch-Con has traditionally focused on Texas but is now expanding into other states. Which markets look most attractive in the coming years?
Jason M. Cooper: We’re evaluating several markets. Our clients often guide those decisions, and we analyze each market’s economic drivers carefully. We believe strongly in geographic diversification and seek markets with different economic foundations. For example, Houston’s economy is largely tied to oil and gas, while Dallas benefits more from finance and product distribution.
Realty News Report: What is your view on Houston’s property sectors beyond the overbuilt office market?
Jason M. Cooper: The office sector is indeed struggling—sublease availability compounds the problem—and it may take another two to three years to work through current inventory. Retail remains active: while large grocery chains are cautious on new builds, junior-anchored retail centers remain resilient. Industrial looks healthy, with projects growing in scale; buildings in the 350,000-to-500,000-square-foot range and larger are now common, whereas 250,000 square feet used to be considered large. Corporate interiors have slowed but are beginning to rebound. Non-profit projects and hospitality remain strong, and healthcare looks solid as systems restructure and invest in new facilities.
Realty News Report: Are you seeing fewer inquiries for Houston construction projects?
Jason M. Cooper: For Arch-Con, inquiries are roughly on par with last year. Deal flow remains strong, even if the types of opportunities differ. We continue to see repeat clients seeking to work with us, which is encouraging.
Realty News Report: How about other Texas markets—DFW, Austin, San Antonio?
Jason M. Cooper: Other Texas markets are very robust. DFW is entering its fifth year of growth, and indicators suggest that will continue for several more years. Corporate relocations and population growth will sustain construction demand, particularly in hospitality and retail. San Antonio is strong, though smaller than Austin, Houston, and DFW; it was affected by job losses in the Eagle Ford Shale but is recovering. Austin continues to thrive—its appeal to young professionals is fueling growth across many sectors.
Realty News Report: The New York Times reported that hotel construction will be especially strong in Texas over the next few years, with Dallas, Austin, and Houston ranking among the top markets nationally. Do you agree?
Jason M. Cooper: I agree. Population growth in those markets will drive demand for new hotels and other construction tied to expanding communities. Houston’s population growth has slowed compared to its peak during strong oil periods, but it’s still positive. One factor that could temper construction totals is the winding down of heavy industrial projects in chemical plants, which might reduce overall volume in some segments.
Realty News Report: Looking ahead, what is Arch-Con’s long-term outlook? Do you plan to become a national firm?
Jason M. Cooper: The future looks promising. We value both personal and professional growth for our employees and the company. Our philosophy is that if you’re not growing, you’re falling behind. We will continue to expand our presence in Houston and DFW and pursue opportunities in other U.S. markets. With the team we have, there’s no practical ceiling on our potential, and I’m excited to help steer that growth.
Realty News Report: Any final thoughts?
Jason M. Cooper: I’m pleased to announce that Chris Heath has stepped into my former role as senior vice president of the Office and Industrial divisions in Houston. Chris brings more than a decade of industry experience and expertise in tilt-wall construction. He’s an excellent addition to our leadership team.