What Challenges Lie Ahead for the Lone Star State?

DFW continued to account for nearly two-thirds of the jobs added during 2016.

DALLAS—As Texas’ economy settles into 2017, the commercial real estate sector is hoping to maintain its stride despite unstable international and domestic market conditions. This is accentuated by the fact that Texas is top in the nation for warehouse construction and the sector supports almost 388,000 jobs and contributes $23 billion to the state’s economy, according to John T. Baird and Sullivan Johnston in an exclusive Avison Young analysis.

Technology, growing medical and bioscience industries, a rebounding energy sector, and an export powerhouse will continue to help the state’s commerce and employment gains. The Urban Land Institute recently released its Emerging Trends in Real Estate Markets to Watch report, which provided a list of 78 cities for overall real estate prospects. Austin was number one on the list for the first time, overtaking second place Dallas-Fort Worth, while San Antonio was 32nd and Houston came in 40th. The rankings, based on a survey of investors, show which US markets are most attractive to buyers and companies.