Henry S. Miller releases their 45th Annual Trends Report
DALLAS, TX – – Today Henry S. Miller released its 45th Annual Trends Report which details data and expert insights into the real estate market for the year ahead, and the report predicts that 2014 will be another great year for Texas commercial real estate. The Texas real estate market is thriving across the board, with the only major concern being lack of supply due to developers being on hold during the recession.
“We find ourselves in a favorable real estate market post-recession with low interest rates, especially here in Texas, making it an ideal time to invest,” said Greg Miller, president and CEO of Henry S. Miller Companies. “As we all know the market is always evolving, so we continue to reposition our real estate portfolio to make room for new investments and development projects.”
Henry S. Miller’s Annual Trends Report summarizes 2013 trends and a 2014 outlook on the commercial real estate trends throughout Texas. The report provides investors with projections from Henry S. Miller leaders at the state and local level for 2014 and beyond. For further details and the complete findings, you can download the Henry S. Miller Annual Trends Report here.
CORPORATE REAL ESTATE SERVICES: Dallas-Fort Worth continues to be a draw for attracting corporate headquarters and regional consolidations. In 2013, the office market again outpaced most major metropolitan areas in terms of net absorption with approximately 5 million square feet, according to Xceligent. Leasing was strong, vacancies are down and rental rates up. An additional good sign for 2014 is that new construction is substantially pre-leased multi-tenant projects or build-to-suit single tenant facilities that are offering energy efficient and technologically superior buildings.
HOSPITALITY REAL ESTATE SERVICES: According to hospitality.net, the tourism industry recovered ahead of the rest of the economy, which should lead to a bright 2014 for the lodging industry in the United States. Below average supply coupled with above average demand and occupancy will fuel Average Daily Rate (ADR) growth to a projected 4.2 percent over last year and the Revenue Per Available Room (RevPAR) should increase roughly 5.7 percent.
RETAIL REAL ESTATE SERVICES: Although the overall U.S. retail real estate will continue a slow, steady recovery in 2014, Texas will outpace most of the country. Dallas-Fort Worth has been one of the top performing regions for net absorption in neighborhood and community centers during 2013 and this trend is expected to continue this year. The majority of the baseline forecasts also show increased demand for retail space in 2014. Texas, and metropolitan areas like Dallas-Fort Worth, should continue to attract retailers, grocers and restaurant concepts for high-quality space in prime sub-markets. In the major markets such as Dallas-Fort Worth, the primary driver of anticipated rent growth will be lack of supply, as retail construction levels remain at historic lows.
INDUSTRIAL REAL ESTATE SERVICES: In 2013 we experienced a 20 percent drop in our vacancy rate, moving from the low 9 percent range to almost 7 percent. Landlords are feeling good again and lease rates are escalating. With the continued gains in job growth, it looks like we’ll see a good year in 2014.