Although the Houston market is still recovering from several years of oversupply, nationwide one specific area within the commercial real estate market industry is generally booming: office space. Office space has reported regular growth over the last four years -- and 2019 may be the best in recent years.
Why will 2019 be a good year for office space investments? Experts project this year will see the largest growth in this segment of the market since 2008. A recent press release from The White House explains that employment rose by 196,000 jobs in March of 2019 with an overall addition of 5.5 million jobs since President Donald Trump's election. This increase has likely played a role in the growing demand for office space.
How can investors make the most of this market? Entrepreneurs interested in joining this growing market are wise to explore what types of office spaces are doing well. Gone are the days of cubicles and fluorescent lights. Employers today are looking for office spaces that provide an inviting and "dynamic experience." Those looking to lease office space are often requesting amenities like a fitness center, food options and a striking entrance.
Adding amenities can be a relatively easy and cost-effective way to update an available office space. This can include a rooftop deck if outdoor space is limited or even an indoor golf simulator. These amenities can help your office project stand out from the competition.
In addition to amenities, projects that can provide tenants an environmentally friendly green rated building or a space with special tech offerings can also stand apart from other office rentals.
It is also helpful to complete some due diligence on your particular market to determine which type of tenants are likely to look for space in your area. Those in the tech industry account for a large portion of new tenants throughout the country, making up 27 percent of the new leases signed in 2018. Having this information can help to better ensure you invest in a project that will likely find success in 2019 and beyond.