HOUSTON – (By Dale King, Realty News Report) – A new report from CBRE Group finds that three of the top five U.S. markets for office-occupancy job growth are major Texas metros: Houston, Dallas and Austin.
“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 recognition for our diversity and world-class dining scene. People and companies want to be here. With continued job growth, a low cost of living, and abundant talent and office space, Houston is well positioned for office expansion.”
Business-friendly Texas cities, major technology hubs, and several fast-growing southeastern metropolitan areas lead the list of U.S. markets expected to add office-using services jobs most rapidly in the coming year.
“Tech, talent and low taxes continue to propel Texas’s rise as a leading force in the U.S. economy,” said Ian Anderson, CBRE Americas head of office research. “2020 will likely be another year in which companies and people relocate to the Lone Star State, driving growth in Dallas, Houston and Austin ahead of most other regions.”
The CBRE report projects Austin will lead with expected office-using employment growth of 2.6% in 2020. San Francisco follows closely at 2.5%, with Dallas at 2.1% in third place. Houston (1.9%) and Orlando (1.7%) complete the top five.
CBRE’s analysis notes that office occupancy and rents continue to rise as consumer demand supports the economy and job creation. However, the report tempers expectations, observing that “U.S. office-using employment is widely expected to grow again in 2020, albeit at a slower pace than in 2019.”
The study highlights that American economic growth has been strengthened by consumer confidence, helped by a strong stock market, rising home values, and improved average wage growth.
“Consumers drive roughly two-thirds of economic activity in the U.S., often offsetting declines in business confidence caused by global trade tensions and geopolitical uncertainty,” the report states.
CBRE’s Econometric Advisors unit provided forecasts used to pinpoint which markets are expected to generate the largest percentage increases in office-using services jobs—sectors such as technology, professional and business services, and legal occupations—this year. The analysis shows that tech markets are continuing to add jobs despite higher costs and tight labor markets.
“Technology centers will again overcome their high-cost structures and labor constraints to lead office-using job growth in 2020,” the report adds. “Markets with business-friendly environments, low costs, and a quality of life that supports demographic growth will also attract more jobs. These include the Texas powerhouses: Dallas, Houston and Austin.”
CBRE also points to smaller, fast-growing southeastern metros such as Charlotte and Orlando as being well positioned for substantial job gains.
Jan. 22, 2020 Realty News Report Copyright 2020
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