Current Houston Commercial Real Estate Climate
Houston, Texas is a hotbed of real estate activity, and a city that's growing and developing all the time. It's not just residential properties that are being purchased, either. Commercial properties are quite popular, even in uncertain times, because they're longer-term investments that can provide revenue in leaner years. It's not a secret that the pandemic has caused a slow-down in many industries and markets, but Houston is still doing fairly well in terms of its commercial real estate. Before investing, though, it's important to know what to look for and consider what might bring in the best revenue, both now and in the future.
The Commercial Market in Houston
Right now, the commercial market in Houston isn't limited to smaller or larger sales when it comes to what's hot. Both single-family homes that are going to be rented out and large commercial properties into the millions of dollars are being bought and sold as investors continue to look for great deals that can add value to their portfolios. Strong growth isn't always the case with a real estate market, and a lot of investors try to buy when things are quieter in order to make sure they can get good deals. With the pandemic, now can be a good time to choose investment in commercial real estate options.
What Kinds of Properties Are Selling?
Retail centers are among the properties that are struggling, with a lot of businesses closing up and tenants pulling out of leasing due to decreased business. But retail will come back again and some investors are considering purchasing these kinds of properties because they can hold them until better times. Whether that provides good value or not, though, generally depends on the investor and how much they want to invest in a property that won't be bringing them significant revenue for some time. Properties that are selling well currently tend to be smaller, because many investors are keeping more of their money close at hand for the time being.
What's Trending, and What's Desired?
Properties that are doing well and in demand include workspaces for those who are working from home, so they can get out of their houses and experience a workplace environment while still practicing social distancing. People are cautiously returning to interacting with one another, but they also have to be careful about it for safety reasons. Properties that are naturally set up for pandemic life, such as larger, more open properties, can be good choices. Companies moving into spaces will want that open feel and investors should be looking for that, as well.
Consider the Bottom Line
While the news isn't all good, that's to be expected during a difficult time for the entire country. Still, the Houston market remains strong and secure, with growth being seen. Some investors are holding off on getting into the market because they're unsure what will happen next, but they may end up losing out to those who are going ahead with their plans to purchase commercial real estate at the present time. Since more growth is expected in commercial real estate in Houston's future, it's important for real estate investors to remember that they may want to get into the market when it's a little bit quiet, as opposed to later when growth becomes stronger again and prices may continue to rise. Now is a good time to invest.