WASHINGTON – (By Ralph Bivins, Realty News Report) – Austin was ranked No. 1 out of 80 cities for overall real estate prospects in 2020 in the Emerging Trends in Real Estate report co-published by ULI and PwC.
Dallas-Fort Worth ranked sixth; San Antonio ranked 24 and Houston trailed the Texas metros, sliding to No. 42.
The Emerging Trends report is an annual research piece based on hundreds of interviews with leaders in commercial real estate development, finance and brokerage, along with fund managers, lenders and advisors.
This year, Houston declined in the rankings, after being No. 37 in 2018, primarily because real estate professionals are concerned about a lack of stability in the economy. Houston’s economic recent downturn in 2015 and 2016 left a sour taste in their mouths. Although the Houston office market has some soft spots, other property types are healthy and investors are making plays in Space City.
“Our survey respondents, however, cannot shake the evidence of Houston’s greater-than-average economic volatility,” the report said. On the bright side, Houston is ranked as the No. 3 market in the nation for home building. Multifamily is also performing well as the city continues to gain population.
Austin also is gaining population at a rapid pace and is attracting a significant amount of capital. Apple is building a $1 billion campus in north Austin; a major airport expansion is underway and a number of new developments are under construction in downtown Austin and a major multi-building redevelopment of the Austin American-Statesman campus is planned.
At a press luncheon in Washington where the Emerging Trends report was first unveiled last week, PwC’s Mitch Roschelle said Austin’s growth continues to be enhanced by a popular lifestyle. Austin is experiencing tremendous population growth – and increasing traffic issues.
Behind Austin, Raleigh/Durham ranked No. 2 in the nation, followed by Nashville, Charlotte and Boston.
With Dallas at No. 6, the top 10 cities were rounded out by Orlando, Atlanta, Los Angeles and Seattle.
The Emerging Trends report was released during ULI’s Fall Meeting in Washington.
The ULI conference’s opening reception was held at The Wharf, a 3.2 million SF mixed use project on the shore of the Potomac River. The Wharf has a mile-long cobblestone promenade on the river has restaurants, a performance hall, three hotels and two office buildings. The project was developed by a partnership of Hoffman & Associates and Madison Marquette.
Sept. 23, 2019 Realty News Report Copyright 2019
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