Oil’s fall isn’t the end of Texas real estate, and why you should be counting cranes
Jan 23, 2015
Here are the news stories you might have missed this week:
The Dallas Morning News: Oil price plunge could change attitudes about real estate lending and investing in North Texas
While the oil price plunge is keeping consumers happy, the drop is causing concern among much of the Texas real estate community. And while the dip might give lenders and investors room for alarm, industry leaders have one piece of advice to share: Texas is a big place, and not every Texan city is the same. While energy sector leasing has accounted for 80 percent of office growth in the last four year in Houston, only about 5 percent of Dallas’ recent office growth comes from the energy sector. The moral of the story: Take time to understand the differences in the Lone Star marketplace, and the factors causing growth. See what local Texans are saying about their market at DallasNews.com.
Real Estate Weekly: Leasing rooftops for solar will be a hot trend for 2015
Energy companies are getting into the roofing game. Utility firms across the country are seeking commercial roof space to complete solar array installations in order to satisfy green-energy requirements. As the solar sector continues to grow, energy companies will be exploring new ways – and spaces — to install solar arrays, creating new opportunities for commercial property owners. Leasing roof space is an attractive way to turn an area of little value into a moneymaker, so many in the industry have their eyes on the rising demand for solar. To learn more about this 2015 trend, visit REW-Online.com.
Commercial Property Executive: Economy watch: The benefits of low inflation
The consumer price index (CPI) dropped 0.4 percent in December, and this means good things for the commercial real estate market. Low inflation can shrink property operating costs and soften the pressure of wage growth, all while driving up consumer sentiment, which can benefit retail properties. It’s also worth noting that inflation has little impact on rent levels, which is mostly driven by landlord supply and tenant demand. Read more analysis at CPExecutive.com.
GlobeSt.com: Crane counts show multifamily dominates
Here’s one way to analyze a real estate market — count the cranes that dot the skyline. A new metric, North American RLB Crane Index, measures construction activity in nine major U.S. cities by counting cranes. The inaugural report stated that there are more cranes appearing in major metropolises, and this means greater construction activity in the coming year. The study also linked crane activity to multifamily development in top-tier cities like Boston, Chicago, Denver, Honolulu, Los Angeles, New York, and Seattle. Read more about this new metric at GlobeSt.com.
Posted by: Raymond T. Cirz