Red Zone: 2016 Commercial Market Forecast

​​COLLEGE STATION – Despite the projected slowdown in the state’s economy in 2016, Center Chief Economist Dr. Jim Gaines says the commercial outlook for next year is "generally positive."​​

Gaines covered the state’s major commercial real estate sectors on this week’s Real Estate Red Zone podcast. A few takeaways:

Office: "The office markets in Dallas and Houston are beginning to show some signs of slowdo​wn and maybe some cracks, if you will. Rates of absorption are declining."

Retail: "Retail is still going strong. Retail is still in short supply in terms of the actual amount of physical space, because we never did go through a real construction boom in retail. With the population growth and job growth we’ve had the last five years, retail spending has been fairly strong."

Industrial: "Texas is a leading state for distribution. Look at the North Texas area, where industrial warehouse is very strong. Houston is very strong with the port and exporting. The same is true in Corpus Christi, San Antonio and Laredo. Manufacturing and industrial manufacturing is slowing down a little because a lot of what we manufacture in this state is tied to the energy sector."

​For Gaines’ complete interview, tune in to this week’s Red Zone podcast.