HOUSTON–(BUSINESS WIRE)–#DealSikes–Houston’s improving economy is providing momentum for commercial
property values during the first months of 2019, according to Deal
Sikes, a leading Houston-based valuation firm.
“Commercial property in the Greater Houston area is showing strength
across the board,” said Mark Sikes, principal with Deal Sikes. “Job
growth is strong, unemployment is low and there is sufficient demand to
absorb the wave of new construction.”
Sikes noted that the Houston area unemployment rate recently fell to 3.1
percent, the lowest it has been since 1981, according to the Texas
Workforce Commission.
“In general, economic conditions in the first quarter have translated
into increased demand and rising real estate valuations. There is an
emerging trend for broad-based appreciation in commercial property
values,” Sikes said.
The Harris County Appraisal District reported that 89 percent of the
commercial properties in the county showed increased valuations for tax
purposes in 2019. HCAD valuations were unchanged in only 5 percent of
the commercial properties and only 6 percent decreased in value. It was
the most widespread set of increases in commercial property valuations
by HCAD in over a decade. By comparison, only 19 percent of Harris
County’s commercial parcels had tax appraisal increases in 2010 when the
economy was soft.
“Tax appraisals have no use in developing individual valuations, but the
HCAD statistics point to a pronounced trend for increased property
prices in the Houston area,” Sikes said. “That trend should carry
forward into 2020.”
Most sectors of Houston’s commercial real estate market are in a healthy
growth-mode in 2019, said Matthew Deal, principal with Deal Sikes.
“Industrial real estate is exceptionally strong and many developers are
responding with active development and acquisition programs. Multifamily
and retail are also healthy sectors,” Deal said. “The Houston office
market has stabilized and taken significant steps toward a recovery.
Overall, the Houston real estate market appears to be in the midst of
another excellent year.”
Deal Sikes provides valuation and counseling services for real estate
firms, governmental agencies, law firms, and investors across the
region. www.DealSikes.com
Contacts
Mark Sikes or Matthew Deal 713-662-3500
