According to a number of experts in the industry, the Houston commercial real estate market is the best in the country at this moment in time. Indeed, the residential market in Houston is also on the rise when compared to all others in the United States. On the commercial side of things, vacancies are down and rents are up while developers have started to create a host of large and expensively constructed projects. Businesses have a real desire to be located in The Woodlands or the Energy Corridor but since these locations are almost full, they need to look elsewhere.
By the end of 2012, the Class A office building vacancy rate in Houston fell below 9%, its lowest level in over 4 years. Critics are trying to suggest that there are too many new office buildings being created and a quick look over the city’s skyline shows an amazing amount of cranes in operation. However, developers in Houston are being extremely disciplined and experts believe that suggestions of overbuilding are wide of the mark.
The office market is likely to get even stronger during 2013 and well into 2014 as the city is one of the country’s leading lights when it comes to job creation. There is of course some bad news as well with Continental Airlines’ abandonment of its office in downtown Houston a black mark during 2012. Although the city’s office market has thus far fought its way through some rough patches, there may be more on the horizon: Exxon Mobil is leaving its 1 million square foot tower block with the process set to begin next year.
The commercial real estate market in Houston is growing because of an increase in the number of jobs being created. If the city was to experience a downtown in job creation, it is likely that commercial real estate would suffer. Although environmental regulations could be an issue, it seems as if Houston will retain its status as one of the country’s energy centers and this alone should guarantee an increase in jobs.
Even though Exxon is leaving Houston, it is certain that the space it is vacating will be snapped up in record time. Additionally, Exxon is moving just 30 miles away to The Woodlands so the Houston area does not suffer as a whole. At this moment in time, there is simply no better place in the United States when it comes to commercial real estate investment and with Houston continuing to grow; it is likely that the market will continue to bask in the city’s glow.
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My name is Jenny and I enjoy writing about topics related to commercial real estate, such as how to pick a good commercial real estate agent and how to purchase Montgomery County commercial real estate.