A look at the market – heading into 2011

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“It’s already the end of the 3rd quarter – and just like the 3rd quarter in football, it is time to see where we stand.  Last week I participated in 2 panel discussions about the market.  One was the 10th Annual North Dallas Chamber of Commerce Real Estate Symposium, and the second was our Jones Lang LaSalle Market Breakfast.  Here are my thoughts.

 Is our local market in recovery yet?  Maybe not quite, but getting pretty close.  In my talk for the North Dallas Chamber I looked at why companies are coming to Texas.  When you compare us to California our pro-business attitude, favorable tax structure and inexpensive housing makes us a clear choice.  That means more businesses locating to Texas, more jobs, more home purchases and greater demand for commercial real estate.  I think we’ll see positive absorption at the end of 2010 which is necessary for our market recovery. 

What submarkets will be strong next year?  We are bullish on Far North Dallas, Las Colinas, Central Expressway, Preston Center and Uptown.  We still see more of a bear market for Richardson/Plano, LBJ Freeway (construction on 635 will hinder this market for a long time), Stemmons Freeway, and the CBD.

We’ll have to see if we stall out at the November elections as people look to see what policy changes there could be for 2011.  There are transactions in the pipeline that have to move forward, but I think it will be 2011 before we see much “new” expansion.”

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