14 Aug 13
Investor interest from both domestic and foreign sources has revived in Houston given its nation leading employment growth and tight office market conditions. This is particularly prevalent downtown where trophy asset trades have set total sale price and price per square foot records to date in this expansion. Given the near-term supply/demand outlook, Downtown Houston office market fundamentals likely have room for further improvement. Comparing these fundamentals, local capital market conditions and performance characteristics versus the core downtowns of the top four U.S. gateway markets – New York, Washington, D.C., Los Angeles and San Francisco – suggest that Downtown Houston deserves consideration as an emerging gateway market.