Commercial Real Estate Expected to Flourish in Southwest

Commercial real estate markets in the Southwestern region of the U.S. are particularly well-positioned to benefit from U.S. population growth and strong local economies, according to a new report from NAI Global, a network of independent commercial real estate firms.

The report, “U.S. Market Spotlight: Sunshine Brightens Outlook for Southwest U.S.,” cites large working and immigrant populations, attractive quality of life offering, and moderate climates as key factors supporting continued corporate expansions and relocations to the region.

The report explores the factors driving growth in the Southwest and highlights the opportunities and challenges this growth is likely to create. It also provides market overviews for the Southwestern cities and metropolitan areas most likely to benefit from favorable demographic trends and attractive quality of life offerings.

Some market highlights include:

Denver - Increasing profits continue to drive commercial real estate leasing and investment. The completion of a new rail system serving downtown districts, as well as increases in employment, contributed to strong performance in 2006.

Los Angeles - Long Beach - Santa Ana: In addition to its thriving entertainment, aerospace, technology, fashion and tourism industries, Los Angeles is the largest manufacturing center in the United States. It is estimated that the area will add 100,000 jobs between 2007 and 2009.

Las Vegas - Paradise Metropolitan Area: Though high construction costs and land prices are slowing development, the commercial real estate market is expected to continue to flourish. The hotel market, in particular, continues to thrive, with roughly $28.3 billion in expansion expected through 2010.

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