If you are involved in commercial real estate in Houston, Texas, you may be watching the market closely to see how 2016 will compare to last year. After all, many realtors, developers, contractors, property managers and others have businesses at stake. The Houston Business Journal reports that commercial real estate will be booming for some, but whether or not you reap the benefits depends on several factors.
If you have an interest in the retail market, tenant turnover could be a problem, experts say. The success of businesses will depend on their abilities to capitalize on one of two factors. The combination of convenience and value are always in style. However, more and more, people want experiences rather than things. Your tenants will have to find ways to offer cost effective products and services if they want to thrive.
Unfortunately, the market is not so auspicious for office space. Experts expect office real estate to continue the downward trend of 2015. Some say property owners may be better off selling some of their assets. Be aware that existing or new tenants may be reluctant to take on a long-term lease. However, if you are willing to negotiate, it could be that you will reap benefits.
You may not be surprised to hear that the best news is for those who are involved in the petrochemical market, since the oil industry is such a key player in Houston. Authorities in the field believe that the expansion of the Panama Canal is one factor that will help drive the increase.