A new report by the National Association for Industrial and Office Parks paints a positive picture for commercial real estate in the country, Texas in particular. According to the report, the industry is growing at its fastest pace since 2011, with the figures projected to continue rising through 2015 at least. New construction expenditures in industrial, warehouse, office, and retail spaces posted increases in 2013, with Texas leading in all categories except industrial.
Construction in the hotel industry hasn’t kept up with investor demand, according to this article posted by the CoStar Group. This is also good news for the commercial real estate industry, especially in North Texas, where growth in the hospitality industry is expected to continue as new companies relocate to the area. The CoStar Commercial Repeat Sale Indices also indicated appreciable increases in rental rates as vacancies declined across several national commercial real estate markets.
The latest Emerging Trends survey continues the optimism: “Prospects for almost all types of real estate businesses were rated more optimistically for 2014 than in last year’s survey for 2013.” Projections from Reis, Inc. indicate 2014 will be a pivotal year in the industry’s recovery, with the lowest vacancies, equal completion and absorption rates, and steadily increasing rents.
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