Office and retail sectors lead commercial real estate market rise in Houston
Those looking to purchase one of many available homes for sale in Houston may see new businesses popping up as more companies are bringing their operations to the city. Recent data from the CoStar Group indicates that Houston's office and warehouse sections are leading the housing market improvement.
"The data we've compiled for the first quarter certainly demonstrates an ongoing recovery and points towards future growth," stated Walter Page, Director of Research for CoStar's Property and Portfolio Research division. "While the retail recovery was less pronounced than in the office and warehouse sectors, we're witnessing positive net absorption across the board."
This report showed that while net absorption experienced a slight decrease when compared to the second half of 2011, rent trends generally improved because more businesses and fewer spaces were being added to the market. The lack of office areas could be a sign that people are looking to take their companies to the area, which could stimulate local economic growth.
Houston and Chicago lead the nation in net absorption, a change in the occupancy rates of commercial rental properties, at 1.6 million square feet. Page notes that he anticipates this trend to continue throughout 2012.
"We forecast completions of retail space to remain depressed for the year," Page said. "In-process construction continues to fall compared to office and warehouse construction, which is rising slightly."
These businesses may look to hire local workers to manage their operations, which could have a dramatic effect on the local economy. This could help improve Houston's employment rate and may also make the city a more attractive option for homebuyers.
The city features an unemployment rate below the national average of 8.3 percent, due in part to the number of jobs available throughout the area. Whether you're an experienced contractor or simply looking to get your foot in the door at a major corporation, Houston will provide plenty of chances to establish your career.
Major industries such as the gas and oil sectors have helped the city remain viable in difficult economic times. Additionally, there are local, state and job training programs to help draw people to the city.
For example, the Texas Economic Development Act of 2001 reduced property taxes for businesses to encourage them to come to cities like Houston. Many companies have taken advantage, which has benefited local residents tremendously, providing job opportunities for families looking to settle in the city.
Now may be the ideal time to bring your family to Houston. You can obtain affordable property with mortgage interest rates below 4 percent, which are nearly half of what they were more than 20 years ago. Pack up your belongings and make the journey to Houston to contribute to this growing city.