A Guessing Game: How Long Will This ‘Up’ Cycle Last?
Commercial real estate experts say that the market typically works on a seven- to 10-year cycle, and with our current cycle entering the seventh year, brokers are beginning to prepare for its end. But when will it end? It’s anyone’s guessing game at this point.
So what are North Texas brokers saying? We gathered some thoughts from D CEO’s recent report.
- 2017 began as strong as ever, continuing on the previous year’s solid job growth and well-balanced markets
- North Texas’ robust employment growth spurs on and continues to drive the real estate industry, with DFW recognized as the second fastest-growing metro areas in the country (approximately 732,000 jobs have been added to North Texas since the beginning of 2010)
- The good times could roll on since the national economy’s GDP growth isn’t overheating quite yet, signaling continued balance
- With our lower cost of living and favorable business environment, Texas is more well-positioned against the rest of the country
- However, there are signals of caution, including rising interest rates, increased land costs, skyrocketing building costs, declining office absorption, growing office leasing rates, record single-family home prices, and sky-high multifamily rents