Houston commercial real estate
With a population of over 2,000,000 and occupying an area of over 600 square miles, Houston is the largest city in the state of Texas and the fourth largest in the U. S. A. It is the county seat of Harris County. The combined Houston-Sugar Land-Baytown metropolitan area is the sixth largest in the country and has a total population of over 5,500,000. Commercial Real Estate Trends in Houston
There are several factors that contribute to commercial real estate in Houston maintaining a healthy rate of growth without rising too sharply to discourage investors. The civic administration is business friendly and gives all possible encouragement to the development of trade and industry. The comparatively low cost of living contributes to low business costs.
Undeveloped commercial and industrial real estate can be found in specific locations all over Houston. The city is estimated to have the fifth largest office and eighth largest industrial real estate space in the country, with prices considerably lower than the national average.In the first quarter of 2008 asking annual rate for Class-A office space rental was between $31 and $32 per square foot, lower than that for other cities like New York, Washington D.C., Chicago, Los Angeles, Miami, Boston, etc. The asking annual rental for industrial space was between $4 and $5 per square foot for the first quarter of 2008, again much lower than that for similar cities.
The vibrant economy of Houston stimulates interest in real estate in the city. 26 Fortune 500 Companies of 2008 and 19 of Fortune 100 Fastest Growing Companies of 2007 have their headquarters in Houston. 51 of the 100 largest non-U. S. based corporations in the world have operations in Houston that are not connected to the retail sector.The citys reputation as a prime location for technology has been acknowledged in industrial circles. The educated and qualified workforce of nearly 2,750,000 ensures a steady supply for commerce and industry. Cost of labor is comparatively inexpensive.
The median age of the workforce is just 33, compared to the national median of 36. Transportation facilities for manpower and cargo are excellent. Around 600 miles of freeways and expressways run through the multiple-county metro area, and the state has plans for further development. The air transport system is among the largest for passengers and freight. The Houston railway network has 14 mainline tracks. The 52-mile ship channel links the port to international waters. It is second in the country for total tonnage and tops the list for foreign tonnage.
The Houston software industry and the professional services provide excellent support to industry and trade. Along with these, added business incentives allow local industry to compete in international markets. Over 3000 organizations offer about 250 products in around 200 countries worldwide.
Conclusion
Taking the above factors into consideration, it is apparent that commercial real estate values may not shoot up overnight in Houston, but they will certainly be attractive considering potential industry and trade requirements.
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