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Saturday, September 8, 2012

Houston - Are we at a Market Top?

By Rand Stephens (Houston)

The answer lies in how you feel about the energy industry.  If you think oil is going to $200 then Houston is poised to explode.  If you believe oil is going to $65, then Houston's economic growth will soften from the 3+% annual growth that we've been enjoying.

Over the last 30 years the evidence is overwhelming that the Houston economy is all about energy as   prices, rig count, job growth, real estate occupancy and rental rates all move in unison.

Since the health of any commercial real estate market is linked directly to job gowth, it's not surprising that Houston's real estate markets are very healthy as this city is rockin' and rollin'!  The collapse of the capital markets have also helped  Houston's real estate fundamentals...Say what?..because there's been no new development coupled with a high demand for space. 

I've spent most of my professional career in the Houston real estate business...lived through our train wreck of the 80's, as well as several other ups and downs.  Houston's real estate fundamentals are the best I've ever seen!

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