The Houston commercial real estate market forecast is quite unpredictable at this time. Well in years past predictions or much easier to assess, given the immense and extraordinary disruptive events of last year, and into this one, makes it extremely difficult to draw any reasonable conclusions or to forecast the future. However, there are some things that can be assessed in order to gain a basic understanding of what might occur in the near term.
The Houston commercial real estate industry has long been affected in the energy sector, as well as by other important industries. Over the past several months, Houston has also benefited from established businesses relocating away from the northeast and west coast in order to escape high taxes and heavy regulatory burdens. Additionally, the Houston metro area is growing in population as seasoned and young professionals move to the area in order to take advantage of employment opportunities.
Though these factors most definitely benefit the commercial real estate market in Houston, other Dynamics are having a negative impact. These include, but are not limited to: materials shortages, supply chain disruptions, rising inflation, labor shortage, and lingering effects from last year’s shutdowns.
Due to these conflicting events, Houston’s commercial real property market remains in a very uncertain state. Because of this, it is not possible to play out a general forecast in its direction. Further complicating matters is the impending legal actions associated with commercial property owners and tenants, as the moratoriums against evictions and foreclosures are no longer in effect. This could cause a flood of commercial properties to hit the market in a short amount of time, greatly changing the landscape of the commercial real estate market in Houston.