Archive for February 4th, 2013
According to an investor survey published by the Urban Land Institute and PriceWaterhouseCoopers, Dallas and Houston are two of the most popular markets for commercial real estate investment in 2013. Dallas shows up at number 9 in the Top 10 CRE markets list, beating Orange County. Houston shows up at number 5, ahead of Boston, Seattle, and Washington, D.C. Integra Realty Resources estimates Dallas has or will have 794,000 SF of office real estate under construction, while Houston has 1,000,000 SF. Compare that to Philadelphia’s 300,000 SF.
The office pipelines for Houston and Dallas signal significant growth, consistent with the ULI’s reports of these markets’ appeal to investors. Obviously, economic vitality and population growth are often a product of numerous factors. Healthcare, technology, education, and other industries are certainly major drivers for the ongoing growth of these cities and their commercial real estate activity. But no one will dispute the fact that the energy sector–in this case, “Big oil”–is fundamental.
Thanks to their proximity to oil assets both on land and off shore, these two cities host operations for some of the biggest energy companies in the world: BP America, Citgo, ConocoPhillips, ExxonMobil, Gexa Energy, and so on. The high concentration of energy interests in these cities has made some of their real estate markets, in the opinion of many, “recession-proof.” Read the rest of this entry »