City Ranks 4th in Nation for CRE Investors
America’s 4th largest city by population is also the 4th most popular city for commercial real estate investors, according to CBRE’s 2018 Americas Investor Intentions Survey.
With industrial assets winning favoritism from at least half of investors nationwide, it’s no wonder that the Houston industrial sector has seen explosive growth in recent months. CBRE Senior Vice President Tom Lynch commented saying, “The Houston industrial market is unique due to the different drivers, population growth, container traffic and petrochemical expansion. Most markets do not have the diversity of needs like Houston or the geographic footprint that Houston serves.”
A strong office market replies, however, with a “healthy but modest” prediction of “800K SF of Class-A absorption in Houston this year.” Landlords in the area are beginning to offer higher than average tenant improvement allowances to encourage tenants to build out space by helping to offset the cost. Because of this, Bisnow reports that Houston “is among the most affordable markets in the U.S. and Canada for office users to build out space.”
With the industrial and office sectors leading the charge, Houston commercial real estate is poised for an exciting 2018. Belvoir looks forward to going places with you in the coming year.