WASHINGTON – (By Ralph Bivins, Realty News Report) – Austin topped a list of 80 cities for overall real estate prospects in 2020, according to the Emerging Trends in Real Estate report co-published by ULI and PwC.
Dallas-Fort Worth placed sixth, San Antonio came in at 24, and Houston trailed other Texas metros, falling to 42.
The Emerging Trends report is an annual study based on hundreds of interviews with leaders in commercial real estate development, finance and brokerage, along with fund managers, lenders and advisors.
Houston’s slide in the rankings—down from 37 in 2018—reflects lingering concerns among real estate professionals about economic stability. The memory of the 2015–2016 downtown still influences investor sentiment. While some segments of Houston’s office market show weakness, other property types remain healthy and investors continue to place bets in the city.
“Survey respondents, however, cannot shake the evidence of Houston’s greater-than-average economic volatility,” the report noted. On a positive note, Houston ranks third nationally for home building, and multifamily remains strong as the city continues to add residents.
Austin’s rapid population growth is attracting significant capital. Apple is building a $1 billion campus in north Austin, a major airport expansion is underway, multiple downtown developments are under construction, and a large multi-building redevelopment of the Austin American-Statesman campus has been announced.
Speaking at a press luncheon in Washington where the Emerging Trends report was unveiled, PwC’s Mitch Roschelle highlighted Austin’s strong lifestyle appeal as a key driver of growth. The city is experiencing substantial population increases and the associated traffic challenges that come with it.
Raleigh–Durham placed second in the nation, followed by Nashville, Charlotte and Boston.
With Dallas at sixth, the rest of the top ten included Orlando, Atlanta, Los Angeles and Seattle.
The Emerging Trends report was released during ULI’s Fall Meeting in Washington, where industry leaders gathered to discuss market outlooks and development trends.
The ULI conference’s opening reception was held at The Wharf, a 3.2 million-square-foot mixed-use development on the shore of the Potomac River. The Wharf features a mile-long waterfront promenade, restaurants, a performance venue, three hotels and two office buildings. The project was developed through a partnership between Hoffman & Associates and Madison Marquette.
Sept. 23, 2019 Realty News Report Copyright 2019
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