Commercial Real Estate Growth Expected in Southwestern United States
According to a new report from NAI Global, commercial real estate markets in the Southwestern region of the United States are particularly well-positioned to benefit from U.S. population growth and strong local economies. The report cites large working and immigrant populations, attractive quality of life offering, and moderate climates as key factors supporting continued corporate expansions and relocations to the region.
The following are select market highlights from the report:
Denver - Increasing profits continue to drive commercial real estate leasing and investment. The completion of a new rail system serving downtown districts, as well as increases in employment, contributed to strong performance in 2006.
Los Angeles - Long Beach - Santa Ana: In addition to its thriving entertainment, aerospace, technology, fashion and tourism industries, Los Angeles is the largest manufacturing center in the United States. It is estimated that the area will add 100,000 jobs between 2007 and 2009.
San Diego - Carlsbad - San Marcos: Home to dozens of military institutions, biotechnology, and computer sciences companies, approximately 65% of San Diego's population is between the ages of 18 and 65. The diversity of the local economy and low unemployment has supported demand for office space and new construction activity.
Las Vegas - Paradise Metropolitan Area: Though high construction costs and land prices are slowing development, the commercial real estate market is expected to continue to flourish. The hotel market, in particular, continues to thrive, with roughly $28.3 billion in expansion expected through 2010.
Dallas-Fort Worth Metropolitan Area: The job base continues to grow. At the geographical center of five oil-abundant regions, Dallas is the headquarters to some of the world's largest companies, including ExxonMobil, 7 Eleven, Frito Lay and Texas Instruments.
Houston Metropolitan Area - Known for its energy industry, the city is actually one of the most economically diverse in the region. The many biomedical, aerospace, petrochemical, engineering, and banking and financial services companies located in Houston support a growing local economy. The city is second only to New York City in Fortune 500 headquarters.
Phoenix Metropolitan Area - Over the past two decades, the local economy has rapidly diversified. In recent years, a large number of high-tech and telecommunications companies have relocated to the area. Phoenix also benefits from seasonal tourism stemming from its large golf industry and warm winters.
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The following are select market highlights from the report:
Denver - Increasing profits continue to drive commercial real estate leasing and investment. The completion of a new rail system serving downtown districts, as well as increases in employment, contributed to strong performance in 2006.
Los Angeles - Long Beach - Santa Ana: In addition to its thriving entertainment, aerospace, technology, fashion and tourism industries, Los Angeles is the largest manufacturing center in the United States. It is estimated that the area will add 100,000 jobs between 2007 and 2009.
San Diego - Carlsbad - San Marcos: Home to dozens of military institutions, biotechnology, and computer sciences companies, approximately 65% of San Diego's population is between the ages of 18 and 65. The diversity of the local economy and low unemployment has supported demand for office space and new construction activity.
Las Vegas - Paradise Metropolitan Area: Though high construction costs and land prices are slowing development, the commercial real estate market is expected to continue to flourish. The hotel market, in particular, continues to thrive, with roughly $28.3 billion in expansion expected through 2010.
Dallas-Fort Worth Metropolitan Area: The job base continues to grow. At the geographical center of five oil-abundant regions, Dallas is the headquarters to some of the world's largest companies, including ExxonMobil, 7 Eleven, Frito Lay and Texas Instruments.
Houston Metropolitan Area - Known for its energy industry, the city is actually one of the most economically diverse in the region. The many biomedical, aerospace, petrochemical, engineering, and banking and financial services companies located in Houston support a growing local economy. The city is second only to New York City in Fortune 500 headquarters.
Phoenix Metropolitan Area - Over the past two decades, the local economy has rapidly diversified. In recent years, a large number of high-tech and telecommunications companies have relocated to the area. Phoenix also benefits from seasonal tourism stemming from its large golf industry and warm winters.
Read full report »
