How the energy sector is ramping up CRE investments in Houston, and reasonable rents drive investors to Philadelphia
Oct 24, 2014
Here are the news stories you might have missed this week:
Houston Business Journal: Houston named No. 1 real estate market to watch in 2015
Investors worldwide have targeted Houston as the next big U.S. market for commercial real estate. The city was recently ranked by the Urban Land Institute and PwC as the top market for investment and development prospects, the second hottest market for office and multifamily, and fourth for hotel investment. Much of this growth is due to Houston’s booming energy sector, which continues to encourage international investors to place their bets on the Lone Star State. Find out why Houston is the top market for investors at BizJournals.com.
Financial Buzz: Philadelphia commercial real estate booms
The City of Brotherly Love is no longer living as the little brother of Washington D.C. and New York City in the commercial real estate game. Surging CRE demand and falling vacancy rates are pushing real estate prices to record highs, and putting Philly back on the map. CRE sales doubled to $1.4 billion in the first half of 2014, and the city’s average capitalization rate sits at 7.5%. Plus, office rents in Philadelphia are expected to increase, while New York rates are predicted to remain stagnant. Read more about the emerging Philadelphia market at FinancialBuzz.com.
Crain’s Detroit Business: Financing commercial real estate is getting faster, easier in Detroit
Detroit has spent years finagling complex financing plans for projects slated to re-establish the bankrupt city, but today, developers are having less trouble securing that financing. A recent rise in demand for retail and multifamily space is re-encouraging lending from banks and government agencies. With average rent rates on the rise and multifamily demand increasing, Detroit’s CRE market is finally crawling back. To read more about lending in Detroit, visit CrainsDetroit.com.
Silicon Valley Business Journal: Silicon Valley sprawls east: How tech jobs, housing and transit are shaping a megaregion
The next tech hotbed could be popping up right next door to Silicon Valley. The Tri-Valley area of the East Bay, just northeast of Silicon Valley, is beginning to attract new startups in the technology and health care sectors. The region’s strong base of corporate tenants, highly educated workforce, rapidly growing population, and economic ties to Silicon Valley have some investors believing the Tri-Valley area will become the next innovation center for the region. If expansion continues at its current rate, expect to see a 24-million resident “Megaregion” appear in the next few decades. Read about Silicon Valley’s expansion at BizJournals.com.
Author: Raymond T. Cirz