Real Estate Valuations Should Hold Steady in 2016
Commercial real estate values should remain steady or show modest gains in most Texas locations in 2016, according to Deal Sikes & Associates.
Deal Sikes principal Matthew Deal (here with fellow principal Mark Sikes) says land and certain types of buildings associated with the energy industry will face weakened demand going forward, and fundamentals will take a hit.
However, valuations will remain stable. “There will be no fire-sale pricing in 2016,” he says.
Mark predicts that retail centers will be the strongest property type in 2016. Retail construction had been lagging behind rooftop growth, pushing occupancy and rents high. Since construction still hasn't satisfied demand, he expects that sector to be the top valuation performer next year.