Austin Ranked Best City to Invest in Commercial Real Estate

Austin Ranked Best City to Invest in Commercial Real Estate

Austin has the best prospects for commercial real estate investment this year, a Grubb & Ellis Co. forecast reported today.

The Santa Ana, Calif-based real estate services and investment firm said it expects commercial real estate will continue to falter this year, but at a slower rate, according to the 2010 forecast. Most property types will reach bottom pricing near the end of 2010 with a slow recovery beginning in 2011, officials said.

In a ranking of the top 10 markets for long-term office, industrial, retail and multi-housing investment potential, Austin was listed No. 1. Houston was the only other Texas city to make the list, taking the sixth spot.

“Because commercial real estate lags the labor market, it still has a ways to go before reaching its own low point,” said Bob Bach, Grubb & Ellis senior vice president and chief economist. “The good news is that the freefall we saw in 2009 is over and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again.”

The investment market will see a slight rebound in 2010, according to the forecast, with at least some assets entering the market in 2010. Officials said the shift should prompt increased sales volume of 20 to 30 percent. The report said record-high office vacancy rates will likely continue, reaching as high as 19 percent by the year’s close.

Source: Austin Business Journal : Monday, January 4, 2010

Forbes Ranks Austin #8 for Biz & Careers!

Forbes.com ranks Austin the 8th best place for business and careers in its latest list.
Texas' Capital City rose significantly from 47th on last year's list. Austin was behind cities such as No. 1 Raleigh, N.C. and No. 4 Fayetteville, Ark. The list was ranked according to factors such as cost of doing business and projected employment growth.


Forbes.com cited Austin's projected annual job growth rate of 2.3 percent--the fifth fastest in the country, and its relatively low subprime mortgage exposure.
For its reporting on Austin, Forbes.com spoke with the Charles Schwab Corp., which expanded its Austin presence in 2007 when it purchased the 401(k) Co. "The city of Austin is extremely business-friendly. They have bent over backwards to accommodate us," Glenn Cooper, head of real estate at Schwab, told the news site.


The top 10 cities on the list were as follows:
1) Raleigh, N.C.
2) Fort Collins, Colo.
3) Durham, N.C.
4) Fayetteville, Ark.
5) Lincoln, Neb.
6) Asheville, N.C.
7) Des Moines, Iowa
8) Austin, Texas
9) Boise, Idaho
10) Colorado Springs, Colo.

From Austin Business Journal 4/3/09