Austin named top town for real estate development

Texas is the go-to state for real estate developers in the U.S. and Canada, according to PwC and the Urban Land Institute.



In the 38th annual edition of the joint study, “Emerging Trends in Real Estate,” investment companies surveyed named Austin and Dallas/Fort Worth as the top two cities for development. The Northwest put in the second-best showing, with Portland and Seattle coming in at numbers three and four.



“Austin, along with many of this year’s top 10 cities, boasts attractive, niche neighborhoods and a vibrant, diverse economy,” said PwC Partner and research leader Mitch Roschelle.



One of the most dynamic trends in development, said the study, was “optionality”—people using the same space for different purposes at different times of day. It boils down to building communities, stated the report: “Instead of focusing on building “stand-alone” mixed-use buildings, they’re increasingly building mixed-use neighborhoods and communities that pack residential, retail, and commercial space into a dynamic whole.”



The investment professionals’ rankings for return on investment, were all over the board on retail development. Urban/high street properties were ranked as the third subsector overall, neighborhood centers received moderate rankings, and power centers and regional malls were at the bottom of their list.



Favored retail investment vehicles of the experts were mixed-use developments and niche power centers, along with grocery-anchored and lifestyle centers.



The complete top 10 list of trend-setting cities:



1. Austin, Texas

2. Dallas/Fort Worth, Texas

3. Portland, Ore.

4. Seattle

5. Los Angeles,

6. Nashville, Tenn.

7. Raleigh/Durham, N.C.

8. Orange County, Calif.

9. Charlotte, N.C.

10. San Francisco

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