Housing and Real Estate Trends for 2018

The evolution of the real estate market is unstoppable with new trends emerging every year.  As the economy shifts into an even higher gear, with more consumers making plans to own homes, there is a lot you can expect. Compared to 2017 and other past years, you can expect 2018 to take you on a long ride in real estate as highlighted by Realtor.com.

Some of the main housing and real estate trends include:

Supply meets demand
From market analysis and after about three years of crushing shortages in homes for sale, especially homes within the consumers’ budgets, predictions for 2018 show that buyers will gain more control over the market as housing supply finally catches up with the buyers’ demands.

Read more at realtybiznews.com

Monthly Review of the Texas Economy

The Texas economy continues to outpace the U.S. economy in job creation. The state gained 306,900 nonagricultural jobs from December 2016 to December 2017, an annual growth rate of 2.5 percent, higher than the nation’s employment growth rate of 1.4 percent.

According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the nongovernment sector added 269,500 jobs, an annual growth rate of 2.6 percent, also higher than the nation’s employment growth rate of 1.6 percent in the private sector.

Texas’ seasonally adjusted unemployment rate in December 2017 was 3.9 percent, lower than the 4.8 percent rate in December 2016. The nation’s rate decreased from 4.7 to 4.1 percent.

Read more at www.recenter.tamu.edu

Commercial Real Estate Pricing Drops Nationally For Ninth Month Straight In January

Commercial real estate pricing entered 2018 on a low note. Nationwide prices fell 0.3% last month, representing the ninth consecutive month of declines. “We edged off historic highs. The declines over the last three quarters have been mild and more of a stagnation than a decline,” Ten-X Senior Quantitative Strategist Chris Muoio said. “Prices have plateaued.”

As prices continue to fall, the industry’s aggressive fundraising efforts have left an abundance of dry powder — cash reserves set aside for investment purposes — in the market.  Billions in capital that is not deployed, coupled with a lack of attractive investment opportunities, has contributed to the slight drop in commercial real estate valuations. 

Read more at: https://www.bisnow.com/national/news/capital-markets/commercial-real-estate-pricing-drops-nationally-as-the-search-for-attractive-assets-persists-84666?utm_source=CopyShare&utm_medium=Browser

Changes In Commercial Real Estate Are Rewriting Landlord Rules For The 21st Century

The digital transformation is more than just another buzzword. As the millennial workforce prepares for middle age, Gen Z is now also entering the workplace and continuing the drive for better technology and mobility. The future of commercial real estate is forcing landlords to evolve and meet a new set of tenant demands.

The entire landscape is evolving as we increasingly see consolidation and specialization in new and upcoming industries. Even finance, which has previously been accused of being slow to adapt to the digital world, is beginning to embrace flexible office space and diverting from its traditional office background. Tenants now have a much longer list of requirements than the traditional amount of square footage based on X amount of square feet per head.

Read more at Forbes.com

Houston’s Main Street among most-expensive in U.S. for office leases

What do the Scanlan Building, Great Jones Building and BG Group Place have in common? 

They’re all located on Houston’s most expensive street for office leases, according to a study by Chicago-based JLL (NYSE: JLL). Central Business District’s Main Street is No. 21 on JLL’s list of the most-expensive commercial leases in the U.S., and it’s the only street in Houston to make the list of 47.

The average full-service rent on Main Street is $44.24 per square foot, which is nearly 45 percent higher than the average rent in Houston at $30.55. However, Main Street’s price is a steal — JLL noted that the average rent on high-profile streets across the U.S. are $48.65 per square foot.

Click to read more at Houston Business Journal. 

The old suburban office park is getting a big reboot

The aging office park is getting a face-lift.

Once a proud symbol of suburban working life now suffering from high vacancy rates in many parts of the country, corporate office parks are being reimagined as sports domes, upscale town houses, retail shops and green gathering spaces, among other possibilities.

“It’s an obsolete model for an office,” said Robert Youngentob of the Maryland-based developer EYA, which has begun constructing upscale town houses in sections of an office park in suburban Bethesda, Maryland, including some that are selling for about $1 million.

Click to read more at Houston Business Journal.