Texas still a leader for commercial real estate

Houston's commercial real estate market is booming, helping Texas be the second biggest market in the country.

It may have lost its top spot for commercial real estate development in the U.S. to New York, but Texas remains the second biggest market in the country, according to a new report from the NAIOP Research Foundation. The data looks at how office, industrial and retail development contributed to the country's economy in 2012.

The state generated 162,877 jobs last year and spurred $4.34 billion in new projects and related spending in the commercial real estate market in 2012, the Houston Chronicle reported.

A major project that has generated much activity is the construction of a new Exxon Mobil corporate campus near The Woodlands, a master-planned community in the Houston metropolitan area. The 385-acre campus will soon be home to 10,000 workers, making it the largest corporate complex in the world, according to a Forbes report.

However, some experts say that while the state's commercial real estate market is booming right now, there may be some harder times in the future.

"These gains and planned projects face a difficult economic road as current changes in fiscal policy and decreases in federal spending threaten the current projections of increased GDP growth and job creation through 2015," Stephen Fuller, a professor at George Mason University said in a statement. "These advances and increased projects are paramount to continued growth in the country, as the U.S. economy cannot achieve sustained expansion in the absence of the development industry's full recovery."

Another commercial real estate expert told the Chronicle in October that Houston's main economic drivers - education, medicine, technology and energy, are more disciplined today in terms of how they build and where. This discipline makes for a stable market, said Frederick Schmidt, president and chief operating officer of Coldwell Banker Commercial Affiliates.

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