Houston, Texas – USA
Houston has made headlines in recent years for its employment generation. In the 12 months ending in July, the Houston metro area added 97,700 jobs, a 3.6% increase in employment. Houston is among the country’s most important emerging cities, with the largest amount of job growth of any major metro area – driven in large part by the energy industry.
Houston’s active investment market indicates that commercial real estate investment continues to follow jobs. Houston has historically been considered a secondary investment market, but in a 2012 year-end survey by the Association of Foreign Investment Real Estate (AFIRE), Houston was named the fifth most attractive investment market in the world. Houston is now well-positioned as a gateway city
Demand in the Houston market continues to outpace supply, translating into rising rental rates. Investors are drawn to Houston due to its relatively low-cost properties that yield high returns. Houston’s construction boom will deliver more than 10 million square feet of new product, which could lead to a wave of investment activity in the coming years. While the Houston economy continues to perform better than other major U.S. metros, investment activity is projected to remain active.