Southeast & Texas Ranked as Most Favorable for Commercial Building
Washington, DC, January 21, 2021-The Southeast and Texas offer the most favorable conditions for commercial construction, claiming seven of the top ten markets in CBRE’s inaugural Development Opportunity Index, according to McMorrow Reports.
In order, the top ten cities for development opportunity are Atlanta, Georgia; Dallas, Texas; Phoenix, Arizona; Orlando, Florida; Denver, Colorado; Seattle, Washington; Raleigh, North Carolina; Austin, Texas; Houston, Texas; and Miami, Florida.
“U.S. construction activity is expected to bounce back in 2021, after a slowdown in 2020 due to challenges brought by COVID-19, including temporary work stoppages and difficulty sourcing various materials from abroad. Since the start of the pandemic, momentum has varied across commercial real estate sectors-development largely progressed in the multifamily and industrial & logistics sectors, but activity slowed-and in some cases stalled-for retail, hotels and speculative office development.
“‘We expect to see an uptick tenant fit-out projects in 2021 as employers redesign and reconfigure spaces to accommodate new standards in health, wellness and safety,’ said Jim Dobleske, CBRE global president of project management. ‘Costs, however, aren’t likely to change much; markets with high costs of land and labor won’t get much cheaper, if at all.’