The report is based on interviews with real estate investment experts around the world and is prepared in association with PricewaterhouseCoopers.
Austin has had a strong showing the past four years, but the outlook for 2015 is the best ever, especially for a secondary market. For specific sectors, Austin is ranked No. 2 for investment, No. 4 for development and No. 1 for homebuilding.
Of particular note is the fact that Austin ranked No. 1 for office investment and development — which has to be good news to active office developers includingEndeavor Real Estate Group, Cousins Properties, HPI Real Estate Services and Investment, Stream Realty Partners, Karlin Real Estate Group, Ryan Cos. andBrandywine Realty Trust. All have major office projects under construction.
The market that beat out Austin in all sectors is neighboring Houston. Dallas/Fort Worth came in at No. 5 while San Antonio was way down the list at No. 23.
“Austin has been a favorite of survey respondents for a number of years,” the report states. “Survey respondents and interviewees like the industrial base, the appeal to the millennial generation and the lower cost of doing business in Austin.”
Supply concerns potentially could have a negative impact for investors of industrial, hospitality and multifamily properties, the report added.
Austin also earns kudos for the strong representation of investors and developers that are locally based.
“The availability of capital and an active local development community should guarantee a steady flow of investment opportunities in 2015,” the report concludes.
The one sector where Austin lags behind is in industrial product. Austin is not a distribution hub and likely won’t become one, given transportation infrastructure weaknesses and the fact that no major east-west interstate highways cross through the area.
By: Jan Buchholz at Austin Business Journal