Texas Triangle real estate markets best in U.S. going into 2024
Industrial sector a bright spot, with 17M sf in development pipeline
Real estate in the Texas Triangle is magnetic, according to the Urban Land Institute.
Austin has the fifth-best real estate market in the nation going into 2024, the Austin Business Journal reported, citing the ULI’s Emerging Trends in Real Estate study, which compiled data and insights from over 2,000 industry experts to analyze shifts in the market and make predictions for the coming year.
Austin’s ranking, down from No. 3 last year, reflects the city’s status as a “magnet city,” attracting both people and companies. Over recent years, Austin has seen significant investments from major corporations, such as Tesla and Samsung, which have drawn substantial business to the area.
The city’s industrial sector is thriving, with 17 million square feet of industrial space under construction in the third quarter of 2023. While that’s down 19 percent year-over-year, there’s still a whopping 124 million square feet of industrial inventory across the metropolitan area.
Austin’s population has surged from 790,390 in 2010 to an estimated 974,447 in July 2022, according to the U.S. Census Bureau. Suburbs like Georgetown, Leander and Liberty Hill have also experienced explosive growth, contributing to the metro’s industrial market.
Austin’s office sector, as in many cities, is still struggling in a post-pandemic world. Remote-work trends, high interest rates and a tough lending environment has led to record-high office vacancies, with the downtown area being the epicenter of these challenges. Some newly built office towers in downtown Austin are completely vacant.
While downtown office occupancy levels may not return to pre-pandemic heights, foot-traffic and overall activity is on the rise. Downtown visits in Austin now stand at 73 percent of their 2019 levels, compared to a national average of 74 percent, the outlet reported, citing data from from the University of Toronto School of Cities and the Institute of Governmental Studies at UC Berkeley.
Other major markets in Texas also have a bright outlook for 2024. Dallas-Fort Worth ranked third on the ULI’s list, while San Antonio and Houston ranked eighth and 11th, respectively. Like Austin, all of these cities were dubbed “magnets.”
Original Article by: Quinn Donoghue, The Real Deal