Kim Gatley Sr. Vice President & Director of Research NAI REOC Austin (bio) Got a Commercial Real Estate Need or Question? Ask One of Our Trusted Advisors
…Demand for commercial space and net absorption has increased, although general leasing activity slowed moderately during the third quarter of 2011. In almost all property sectors, occupancy rates are improving, concessions are declining and effective rents are rising in many markets. On the supply side, with vacancy rates relatively high, financing limited and rents below levels necessary to justify new construction, supply pipelines are well below long-term averages. The next three years should see a limited amount of new deliveries, which is a positive for further real estate recovery.
The economy grew at an annual rate of 2.5 percent in the three months ending Sept. 30, the government reported, easing fears that the nation would fall into a second recession but still too slow a pace to cut significantly into the high unemployment rate.
Austin snuck into the top five markets to watch next year, according to annual Emerging Trends in Real Estate report from PricewaterhouseCoopers LLP and the Urban Land Institute. The Capital City was ranked No. 2 on the list following Washington D.C. San Francisco, New York City and Boston rounded out the top five.
“Thriving” is a word commonly associated with the city. While most of the country has wrestled with recession, job losses and housing angst, Austin — along with the rest of Central Texas and even the state as a whole — has been riding a wave of economic well-being. Companies are hiring. The population is growing. And real estate — if not exactly booming — is stable.
Austin’s foreclosure rate was up 0.11 percentage points in June compared with the same month last year, according to data from Core Logic Inc. Despite the slight local uptick, Austin’s foreclosure rate of 1.09 percent was still lower than the national average of 3.46 percent, which was up 0.34 percentage points from June 2010. Austin also fared better than Texas overall, which had a foreclosure rate of 1.46 percent in June, up from 1.35 percent in June 2010.
Nadji explains why Commercial Real Estate has emerged as an attractive alternative amid the recent financial market turmoil and discusses the various drivers supporting market improvement and why apartments are leading the recovery.
Research by Deloitte shows that commercial real estate deal flow and liquidity are going strong despite a sluggish economy. The firm’s “Commercial Real Estate Outlook: Top Five Issues in 2011″report reveals that capital availability, price discovery, and improved fundamentals — driven by alternative financing sources and loan restructuring — are fueling commercial real estate (CRE) recovery.
Finding work may not be quite that simple, but it sure seems that way. While the nation’s job growth has limped along since the economic recovery began two years ago, the Lone Star State is enlarging payrolls in Texas-size fashion. …Read Entire Post
Texas ranked No. 9 in the nation for entrepreneurial activity, according to the State Entrepreneurship Index, a state-by-state measurement of entrepreneurial activity.
