The overall strength of the Texas markets in relation to other major metropolitan cities throughout the United States is clearly evident in the market cycle representations below.  These charts were included in the recently published annual report of IRR, Integra Realty Resources, Viewpoint 2010.  

The Office Cycle  

The vacancy rates of major Texas cities, Houston(10%), Austin(14.4%), and San Antonio(22.3%) clearly define them as within the hyper-supply stage of the business cycle with projected increasing rates and and little to no rental rate growth.  Dallas(21.2%) remains the only CBD to have entered the recessionary phase and will see continued depressed numbers for 2010.

Save Dallas and San Antonio, Texas MSAs remain below the national vacancy rate of 15.37%. 

The Retail Cycle

Retail will continue to see a tough year in 2010. Only Austin(9.2%) will experience a competitive retail market in the upcoming year with San Antonio(11.7%), Houston(15.82), and Dallas(10.01%) all entering the downward phases of the cycle.  Only Austin is seeing competitive overall vacancy numbers in line with the simple national average of 9.7%

The Multi Family Cycle

Again the Texas markets are in stronger position then most other metropolitan cities and is lagging behind their recessionary markets. As in most commercial real estate sectors, multifamily construction is down for a second year with a decrease of 18.6%.  Multifamily vacancy rates on a national scale are 7.6% with varied numbers throughout  local markets and regions providing both good and bad investment opportunity. 

The Industrial Market Cycle

According to Viewpoint, the industrial markets, though depressed, were not as greatly affected by the great drop off in the markets.  Vacancy and rental rates have remained somewhat stable and the markets are not disproportionally out of balance.  Texas again sits in a better stage then most of the country with steady employment, several deep ports, and many manufacturers based in the state.