Tuesday, November 15, 2011

NAI Rio Grande Valley Market Report 2011

By: Rey Anzaldua

As global companies look to expand or relocate within the United States many of their operations require a young labor force, easy access to international sea, air and cargo ports of entry, low cost of living, and access to development opportunities.  Hundreds of companies have taken a hard look at the Rio Grande Valley in south Texas.  Two nations, one region, many choices is the marketing slogan for Rio South Texas, which promotes all of the communities on both sides of the Rio Grande Valley Border with the principal cities of Brownsville, Harlingen and McAllen, Texas and Matamoros, Rio Bravo, and Reynosa, Mexico.

Commercial real estate has stabilized in the Rio Grande Valley after a series of down years.  This makes the market one of the best in the nation and according to Forbes Magazine, the McAllen MSA ranked 4th for best Mid Sized MSA for jobs while Bloomberg/Businessweek ranked the MSA 4th in cost of living nationally.  The Metropolitan Policy Program (MPP) at the Brookings Institution regularly lists the 20 strongest major metro areas in the U.S.  It looks at fundamental economic issues: economic activity, housing, and employment.  The McAllen MSA was ranked in the top 20 of the Strongest Metro Areas by the MPP.

The local colleges and universities (University of Texas Brownsville and Pan American, South Texas College, Texas Southmost and Texas State Technical College), continue their growth not only in students but in construction of new buildings and acquisitions of land to accommodate the enrollment growth and movement into research and development.

Dallas Federal Reserve recent data shows a slight increase in retail sales of 6%.  With several big box retail stores set to open late 2011 and early 2012 the stage is set for a continued increase in retail sales.  Bass Pro Shops will complete construction before the end of 2011 in Harlingen while in the McAllen MSA a Costco in Pharr will be completed in the spring of 2012.  

Healthcare and government agencies continue to dominate the office market.  Retail sales in 2010 in Hidalgo and Cameron counties reached $14.5 Billion dollars confirming that the Rio Grande Valley remains a very healthy retail market.

NAI Rio Grande Valley is a focused commercial real estate brokerage, consulting, development and syndication firm serving the Rio Grande Valley and based in McAllen, Texas. Our mission is to transform real estate opportunities into profits for owners, users and investors.

NAI Rio Grande Valley advises it's customers and clients on how to maximize the value of their assets and utilize real estate to their long term advantage through comprehensive and strategic planning, execution and management.