Sunbelt states outperform in new leasing activity
The real estate market has been a rollercoaster ride in the past year, with many industries struggling due to the pandemic. However, one region has been consistently outperforming the rest – the Sunbelt states. In the midst of all the uncertainty and economic downturn, these states have seen a surprising surge in new leasing activity. Let’s explore why the Sunbelt states are standing out in this article.
Sunbelt States: A Quick Overview
The Sunbelt states are a region in the southeastern and southwestern parts of the United States. This area includes Florida, Texas, Arizona, New Mexico, and parts of California, Nevada, and Georgia. The term “Sunbelt” was first coined in the 1960s to describe the growing population and economic development in these states due to the warm and sunny climate.
Over the years, the Sunbelt has become an attractive destination for businesses and individuals due to its lower cost of living, business-friendly policies, and favorable climate. This has resulted in a steady influx of people and investment into the region, driving its economic growth.
New Leasing Activity in the Sunbelt States
According to a recent report by commercial real estate services firm JLL, the Sunbelt states have seen a remarkable increase in new leasing activity in the past year. In the first quarter of 2021, the Sunbelt states accounted for four of the top five markets, with Phoenix, Atlanta, and Dallas taking the top three spots.
What’s more impressive is that despite the economic uncertainties and remote work trends, these states have continued to attract companies and stimulate job growth. This indicates that the Sunbelt’s real estate market is not only resilient but also thriving in the face of adversity.
Reasons Behind the Sunbelt’s Success
So, what are the key factors contributing to the Sunbelt states’ success in the current real estate market? Let’s take a look at some of the top reasons:
1. Affordable Cost of Living
The Sunbelt states have a lower cost of living compared to other major cities in the country, making them an attractive option for people and businesses. A lower cost of living translates to lower real estate prices and operating costs, making it easier for companies to expand and set up new offices.
2. Pro-Business Policies
The Sunbelt states have a reputation for having business-friendly policies, including lower taxes, fewer regulations, and incentives for businesses. This makes it easier for companies to operate and thrive, leading to job creation and higher demand for real estate.
3. Favorable Climate
The pleasant and sunny climate of the Sunbelt states is another major draw for both individuals and businesses. This has contributed to the region’s steady population growth and increased demand for housing and commercial real estate.
4. Growing Industries
The Sunbelt states are home to a wide range of growing industries, including technology, healthcare, and logistics. These industries have shown resilience during the pandemic and continued to drive demand for real estate, especially in cities like Phoenix, Atlanta, and Dallas.
Conclusion
The Sunbelt states have been leading the pack in terms of new leasing activity, owing to their affordable cost of living, pro-business policies, favorable climate, and thriving industries. These factors have made the Sunbelt an attractive destination for businesses and individuals, even in the face of a global crisis.
As the real estate industry continues to evolve and adapt to the new normal, the Sunbelt states are well-positioned to maintain their momentum and outperform other regions. Whether you are a business owner looking to expand or an individual looking for a new place to call home, the Sunbelt states are definitely worth considering.
