Last month, we highlighted the positive effects of a local technology cluster on commercial real estate fundamentals. Data from metros with a large technology base indicated above-average rent growth and occupancy gains over the past several years.
However, technology is not alone in its preeminence among economic sectors. Energy firms are also performing well despite the economic gloom that pervades much of the country. An analysis of energy-centric metros confirms that, much like multifamily and office buildings in tech-oriented metros, property fundamentals are benefitting from the influence of local energy firms.
Seven metros were classified as having a strong energy cluster, all of which are found in Oklahoma and Texas. The group includes Austin, Dallas, Fort Worth, Houston, Oklahoma City, San Antonio and Tulsa. This analysis focuses solely on primary metropolitan areas. As a result, many smaller towns in Texas and North Dakota—think Odessa, Texas, or Bismarck, N.D.—that would fit this description are not included.
Read more...CRE Fundamentals in Energy Markets Are Outperforming All Others NREIonline.com
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