In the year 2006 the real estate market of Houston continued to grow, because of strong demand based on construction and active leasing from new rising retailers.
In the year 2006 the real estate market of Houston continued to grow, because of strong demand based on construction and active leasing from new rising retailers, according to news published by Business Journal.
Houston's real estate sector growth has resulted due to well-built market of construction, big-giant retailers like Target & Lowe and Wal-Mart are into new expansion to build large set-ups. Target plans to build- three new big stores in Houston area in 2007 & 2008 at League City, Magnolia and Westheimer & Eldridge.
The overall construction in 2006 added about four Million sq feet of retail space and outpaced 2005's total three Million sq feet space. The real estate market also saw retail demand for redeveloped space, a sign of growing market’s strength.
As per a research analyst at RNCOS, "The real estate market of Houston is benefited by an improving economy and a strong housing view, and with these factors 2007 will also be one more strong year".
The Houston housing market is a major driver of retail demands & retail sales, and sustains to report good activity. The new home begins for 2007 are estimated to reach 50,000 levels that would be the strongest new-starts market ever. The Houston real estate market recorded about 48,000 starts in the year 2005, which to was a record.
"As we enter 2007 with sustained strength in the local economy and job growth, which will further the real estate market for the benefit of both buyers and sellers..." said Rob Cook, HAR chairman in MySA.com.
Demand and construction for office space is still rising. Contacts characterize the Houston market as "the healthiest we've seen in a long time." Dallas contacts say the large blocks of space have become more limited, thereby shifting the pricing power to the landlord.
"On the operating side, owners can expect another year of modest rent increases," says Bach, VP with Grubb & Ellis. In 2006, he says, asking rent increases across the nation averaged 3.5 percent, as told to Kent360.
The Houston's office market keeps on reflecting the health of the job market, happening in the business services and professional sectors, as the demand of energy continues to drive Houston's biggest industry. In addition, Houston's office construction marked up during the forth quarter of 2006.
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