Houston Voted Best City Overall For Real Estate Investment

Houston was rated the top choice for overall real estate property investment in the Emerging Trends in Real Estate® 2015 report co-published by PwC US and Urban Land Institute (ULI) based on the city’s ability to respond to real estate’s mega trends such as accelerating urbanization and demographic shifts as well as its attractive livability, recreational and cultural offerings, and employment opportunities.

In past reports, the largest coastal cities such as San Francisco and Manhattan won top honors, but Houston and second-position Austin confirm the trend that investors are looking beyond core markets for investment opportunities.

Investment Beyond the Core Markets
Based on the Emerging Trends report, real estate investors will still pay high prices in the major markets for the stability those investments offer, but they are also indicating a desire to branch out in search of higher yields potentially available outside the core markets. In the case of Houston, investors believe that market growth and real estate activity in 2015 will be driven by the energy sector. Commercial office space in Houston continues to meet the strong 2015 demand.

Emerging Real Estate Trends 2015
In addition to identifying the best cities for real estate investment, the report also identified emerging real estate trends that include:

  1. Cities are awake longer than 9-5, with “18-hour cities” becoming the norm.
  2. Millennials are moving about and spurring investment in urban environments.
  3. Real estate professionals are concerned with the opportunity for job growth in a city especially since there are large numbers of workers retiring that could lead to a gap in the labor force.
  4. The technological boom has led to great real estate potential.
  5. Event risk—global unrest, natural disasters and the like—continues to plague the minds of investors.
  6. The competitive marketplace requires efficiency and effectiveness in service delivery and cost.
  7. The Defined Contribution Real Estate Council has helped to streamline the commercial real estate industry.
  8. Infrastructure investment is down by both the private and public sector.
  9. Housing has skyrocketed yet again.
  10. Investment patterns need to be monitored to ensure the current optimism doesn’t lead to bad investment decisions.

How to Use This Information
Capital Realty Group is always monitoring Houston commercial real estate market trends, and we are enthusiastic about the positive trends for the city. Your business is only as good as your location, and through our REAL-ized visions program, we strive to ensure that you are in the place where your business will function at optimal efficiency. For more information give us a call at 713-452-9000.

What real estate trends have you spotted in Houston?

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This post was written by Capital Realty