According to Emerging Trends in Real Estate® 2015, co-published by PwC US and the Urban Land Institute (ULI), the sustained performance of the U.S. commercial real estate industry is expected to continue in 2015, fueled by improving fundamentals and robust investor appetite – both domestic and foreign.
ULI Global Chief Executive Officer Patrick L. Phillips pointed to the continued rise of markets other than the largest coastal cities as top choices for overall real estate prospects. Houston and Austin, which are ranked first and second, respectively, topped San Francisco as favorites for 2015.
In regard to the Houston market, the report went on to say:
- Houston's real estate market has caught the eye of global investors worldwide, with one calling the Bayou City the "perfect storm for commercial real estate," according to a new report from the Urban Land Institute and PwC.
- The Emerging Trends in Real Estate 2015 report ranked Houston the nation’s No. 1 market to watch next year. That's up from No. 2 in 2014 and No. 5 in 2013.
- Houston ranked No. 1 in both investment and development prospects, and it came in second to Austin for homebuilding prospects.
- When looking at specific property types, the Bayou City also took the top spot in the industrial and retail sectors, and it ranked No. 2 for office and multifamily. Its hotel sector ranked No. 4 nationwide.
- Not surprisingly, investors cite the energy industry as a major driver of Houston's growth in 2015.
You may read the complete report here
