Archive for January, 2015

Houston: Commercial Property, Office Space Trends and Statistics

January 12th, 2015

For several decades, Houston has been considered one of the most successful economies in the southern United States. In fact, and according to Forbes, Houston is the third best place to do business in the country. The city’s bustling and highly diverse economic scene is largely driven by the energy industry, and other important sectors include manufacturing, research and development, aerospace, information technology, and health care.

Being one of the most important corporate centers in North America, the city of Houston is well equipped to accommodate the real estate needs of existing and prospective businesses. This article looks at the most important trends affecting the commercial property market in Houston, having a special focus on the office market.

Key trends and developments in the Houston commercial property market

Generally speaking, over the past five years the Houston commercial real estate market has been characterised by high activity and construction levels and by increasing absorption rates. By the third quarter of 2014, the local market had absorbed 4.4 million square feet of office space, and by the end of the year a further 17.3 million sq ft of space were under development. The vast majority of new office developments were geared towards the needs of the energy sector, having a significant amounts of floor space being built at the city’s ExxonMobil campus and having a large number of pre-lease transactions closed by multinationals like BHP, Shell, and Nobel Energy.

Due to increased demand, citywide rental rates have been steadily climbing, and during 2014 alone they grew by an average 10.6 per cent. Higher increases were evident in commercial properties in the city’s business district. Vacancy rates have decreased from 12.9 per cent in 2013 to 11.9 per cent in 2014. While year-on-year leasing activity levels decreased during 2014, the figures are set to increase once again during the following 12 months. Read the rest of this entry »

Spotlight on Business in Dallas

January 5th, 2015

The city of Dallas has become renowned for its plentiful job opportunities, low tax rates and affordable housing. Young college graduates and established professionals alike find the idea of working in this bustling city an excellent choice.

Several major industries have helped make Dallas a powerful business city in the U.S. and in recent years, Houston and Dallas have attracted thousands of new residents. Some of the key industries in the city include information services, goods manufacturing, telecommunications, media, logistics and food manufacturing.

Over 80,000 companies have made their home in Dallas, and many Fortune 500 companies have also chosen to place their main headquarters in Dallas. High-tech start-ups are growing increasingly attracted to Dallas due to it’s favorable tax laws and low rental rates.

Major Industries & Key Economic Drivers in Dallas

Other industries that make up the economic base of Dallas include finance, aviation and international trade. In downtown Dallas, you can find the offices of several major finance firms. Dallas is an excellent place for young professionals to seek opportunities in investment banking or law, with several large law firms having offices located in the high-rise buildings in downtown Dallas. Over 342,000 Dallas residents are currently employed in the professional and business services field.

The state of Texas is home to fifty two Fortune 500 corporate headquarters, with Dallas itself boasting an impressive seven Fortune 500 company headquarters including AT&T, Energy Transfer Equity, HollyFrontier, Southwest Airlines and Texas Instruments.  Read the rest of this entry »