Southwest US Shines in Integra's 2002 Survey

"If you want to generalize, Texas is a good buy in comparison to the rest of the country," Ben Loughry, Integra's managing director in Fort Worth, tells GlobeSt.com.

Houston's standing as the nation's top CBD market was slightly surprising given the impact of Enron's bankruptcy, David Dominy, Integra's leader in the Energy City. But, he quickly adds, word on the street is that Enron's three million sf has been accounted for and could, for the most part, be wiped out from new opportunities such as the Conoco Inc. and Phillips Petroleum merger.

Dominy believes the stability of other markets, in comparison to Texas' stable economic climate, contributed to the strong positioning in the 12th annual survey. The fact is the Southwest US made a strong showing overall of the MSAs put under Integra's microscope.

Texas, as those here know, is reaping the benefits of lucrative defense contracts, diversification, pro-business legislation, low-cost utilities and abundant energy in comparison to states like California.

Texas and the Southwest have plenty of reason to smile at the numbers. In the multifamily sector, Houston ranked third, with a forecast for 10% value growth in the next two years. San Antonio came in fifth, with a 9% value growth, and Dallas, eighth and 7.40%.

Houston also copped a third-place slot in the retail sector and again a 10% value growth. Dallas was fifth, with 4% growth and Austin, sixth and also a 10% growth.

Phoenix led the pack in the industrial sector, but was not accorded a projected value growth. Dallas took third place, with a 6.10% growth; Fort Worth, sixth, 6%; Las Vegas, eighth, 7%; and Houston, ninth, 6%.

Houston was the only Southwest city to cop a top ranking for its CBD. Value growth is projected at 15% over the next two years.

The suburban office market pushed San Antonio to third place, with a 20% value growth; Houston, sixth, 10%; and Las Vegas, seventh, 5.50%.

Five of the Top 10 in "growth by % change" category went to the southwest: Austin, 2; Las Vegas, 4; Phoenix, 5; Fort Worth, 7; and Albuquerque, 9.

--Annual growth by absolute change: Dallas, 4; and Phoenix, 10.

--Population growth: Austin, 3; Las Vegas, 4; Phoenix, 5; and Salt Lake City, 10.

--Household growth: Las Vegas, 3; Phoenix, 4; Austin, 5; and Salt Lake City, 10.

--Employment growth: Austin, 3; Phoenix, 4; Las Vegas, 5; and Salt Lake City, 9.

--Average income growth: Fort Worth, 7, and Austin, 8.

--Financial, insurance and real estate employment trend growth: Austin, 3; Phoenix, 5; Las Vegas, 7; and Salt Lake City, 10.

--Services employment: Austin,5; Phoenix, 7; and Salt Lake City, 8.