Austin and Dallas get a lot of attention, but Houston’s commercial real estate market is not to be missed. It’s home to a strong, diversified economy and office and industrial space for every business.
- Houston’s famously resilient economy. Since 2015, Houston has weathered through the oil downturn, a devastating hurricane, catastrophic flooding (3 years in a row), but the economy chugs along. One of the secrets to Houston’s unflappable economy is its diversity. It’s the nation’s energy capital, boasts the 6th largest port in the world and is home to the world-class Texas Medical Center. With so many industries represented on a such a large scale, it’s a strong bet.
- Office vacancy is declining. Unemployment is down, job creation is up and the price of oil is back on the rise. Finally, office vacancy making a steady recovery. Class A space especially has benefitted from “flight to quality,” while B and C have experience absorption loss. The same phenomenon partly explains the affordability of office space in the Houston market. Landlords have worked to retain tenants by offering great tenant improvement packages.
- Houston is one of the top 5 metros in the nation for investment. A recent survey by CBRE ranked Houston #4 as a target for real estate investors, right next to San Francisco and just behind New York and Seattle. It’s a three-spot rise from last year.
- It has all the industrial space you need. Industrial and office spaces are among the most desirable property sectors for investors. The CBRE survey ranked Industrial property #1, with 50% of respondents saying it was their preferred sector. There were nearly 11.2 million square feet of industrial space under construction at the end of the third quarter 2018.
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