HOUSTON – (By Dale King, Realty News Report) – Three of the top five office-occupancy job growth markets are in major Texas cities — Houston, Dallas and Austin, says a new report from the CBRE Group.
“Houston is the fourth largest metro in the U.S. for Fortune 500 headquarters,” said Jason Presley, senior vice president at CBRE in Houston. “We consistently receive national press for our diversity and world class dining scene. People and companies want to be here. And with continued job growth, low cost of living, and a healthy availability of talent and office space, Houston is primed for office growth.”
Business-friendly Texas cities, tech hubs and high-growth southeastern metropolitan areas top the ranks of U.S. markets angling to expand their base of office-use services jobs the fastest in coming years.
“Tech, talent and low taxes continue to fuel Texas’s rising status as an inevitable, leading force in the U.S. economy,” said Ian Anderson, CBRE Americas head of office research. “2020 will be another year where companies and people from around the country relocate to the Lone Star State, leaving most of the rest of the country in envy of the growth in Dallas, Houston and Austin.”
The CBRE report says Austin tops the list with anticipated office-use employment growth of 2.6% in 2020. Dallas (2.1%) ranks third, just behind San Francisco (2.5% projected growth). Houston (1.9%) and Orlando (1.7%) round out the roster-topping quintet.
The document points out that office occupancy and rents continue to rise as consumer activity boosts the economy and job growth. It did chill its white-hot projection by stating that “U.S. office-using employment is widely expected to grow again in 2020, albeit at a slower pace than in 2019.”
The analysis said American economic growth “has been enhanced by the health and optimism of consumers, buoyed by a record-high stock market, rising home values and stronger average wage growth.”
“Consumers drive about two-thirds of economic activity in the U.S., generally offsetting any reduction in business confidence from global trade tensions and geopolitical concerns.”
CBRE analyzed the forecasts of its Econometric Advisors unit to identify which markets are expected to generate the largest percentage growth in office-using services jobs – such as tech, professional and business services, legal and others – this year. It found that job growth in tech markets continues to defy high costs and tight labor supplies.
The commercial real estate firm’s analysis adds: “Technology centers will once again defy their high-cost and tight-labor constraints to lead office-using job growth in 2020. Markets in business-friendly environments with low costs and a standard of living that supports strong demographic growth also will attract more jobs. These include the Texas juggernauts of Dallas, Houston and Austin.”
“Smaller high-growth southeast metros like Charlotte and Orlando also are poised for significant job growth.”
Jan. 22, 2020 Realty News Report Copyright 2020
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