The Texas commercial real estate market forecast is unclear at this time. Because so many important dynamic factors are in a state of unusual disruption, predicting how the commercial real estate industry will react in the next few months or the long-term is nearly impossible. However, we can look at certain factors in order to better understand what’s happening in the commercial real estate market in the state of Texas.
The commercial real estate industry in Texas has both benefited and suffered from influential elements that continued to disrupt its normal cycles. For example, one huge benefit that the commercial real estate market in Texas has enjoyed is the number of companies relocating from the northeast and west coasts. These businesses, escaping high tax rates and heavy regulation are moving in, which bolsters the commercial real estate industry.
Additionally, near historic low-interest rates have also benefited the commercial real estate market, driving up demand for office space, retail shops, professional offices, industrial locations, and more.
But, the commercial real estate market is likewise experiencing heavy disruption due to supply chain abnormalities, shortage of materials and supplies, and a labor shortage as well. Additionally, the moratorium on foreclosures and evictions has been lifted, which could result in a flood of commercial properties coming onto the market in hey very short amount of time, which would have a negative impact on values, but might help to meet the higher demand.
For all these reasons, it isn’t possible to forecast the commercial real estate market in Texas, at least for the next few to several months.