Posts Tagged ‘Dallas’

Texas’ Big Economy Sets the Stage for Post-Recession Growth Surge

Thursday, June 24th, 2010

Texas leads the recovery.  Is there something special in the water in Texas?  After surviving the Great Recession in relatively good shape, the Lone Star State can claim that it has more jobs than it did two years ago, as well as the lowest unemployment rate of the 10 largest states at just 8.3 percent.  According to the Texas Workforce Commission, the state has created more jobs in the private sector – 724,300 in December of 2009 alone — than any other state in the last 10 years. Boasting the world’s 11th largest economy, Texas reported a gross state product (GSP) of roughly $1.25 trillion during 2009 as it expanded its presence in knowledge-based industries.  Additionally, Texas leads the nation in export revenues for the last eight years, shipping $163 billion in product last year.

“Texas, so far, is the big winner,” said William Frey, a demographer with the Brookings Institution.  “Big Texas metros are doing well because they avoided a lot of the pitfalls of the housing boom and bust.”  Frey specifically points to Austin, Dallas, San Antonio and Houston as high-growth cities with expanding economies, particularly in energy, technology, government and education.  Austin, Dallas and Houston are expected to experience a seven percent job growth rate over three years.  San Antonio, which is close to four military bases, is expected to experience an 8.32 percent increase in employment over the next few years.  What sustained Texas through the recession?  Civic leaders think it was the diversified economy, low taxes, reasonable regulatory rules, government incentives and funding, as well as a skilled, highly educated workforce.

Austin, for example, has long been a magnet for entrepreneurial businesses that thrive in Texas’ capital. “There’s an old saying in Austin:  If you come here and can’t find a job, start a new business,” notes Rebecca Melancon, executive director of the Austin Independent Business Alliance.  Austin’s Small Business Development Program is extremely supportive of would-be entrepreneurs with databases to research demographics, free counseling and even classes on how to operate a business.  Additionally, the “Keep Austin Weird” support for unique cultural events supports local businesses.  “The biggest thing our city does to promote local business is not something that city hall does.  It’s our culture.  We don’t want to be Anywhere, U.S.A, and we work hard not to be,” Melancon said.

Green Buildings Weathering a Tough Economy

Monday, May 3rd, 2010

Building owners, users find green elements save money.Despite the troubled economy, commercial building owners retain their commitment to making their properties more environmentally friendly.  Going green saves building owners and users money and makes sound business sense.

“The fact of the matter is this is just good business – making buildings perform better,” said Dan Probst, an energy and sustainable development expert with Jones Lang LaSalle.  “It’s all about making existing buildings perform better.”  Probst was speaking at a seminar sponsored by the Urban Land Institute, the North Texas Commercial Association of Realtors and the Real Estate Council.  “Their shareholders, customers and employees care about it.”

“Today people simply expect it,” said Michael Buckley, a real estate professor at the University of Texas at Arlington, noting a shift in attitudes towards eco-friendly commercial real estate.  “Cost savings is going to drive things.”  Developers recognize that buildings with environmental and energy design built in have a four percent higher average occupancy and offer significant savings on utilities.  Additionally, corporate America has embraced the concept.

Ernst & Young (E&Y), one of the nation’s largest office tenants, is focusing on locating its offices in green buildings.  More than half of the 6,100,000 SF that E&Y occupies in the United States has energy savings ratings, according to Judy Barth Bowles, the accounting giant’s director of real estate services.  “We’ve looked at everything to maximize the dollars we spend,” according to Bowles.  “We are very cognizant of the energy consumption.  Landlords are very interested, and we give them the push.”

Las Vegas Underwater

Monday, June 1st, 2009

Las Vegas may be in the middle of a desert, but right now it’s underwater.  Fully two-thirds of the once fast-growing city’s housing stock is underwater,  meaning that the owners owe more on their mortgages vegasthan the home is worth.

According to www.zillow.com, borrowers who are underwater totaled 20.4 million at the end of the first quarter of this year, compared with 16.3 million at the end of last year.  This represents 21.9 percent of all homeowners.

The irony in these numbers is that falling prices are making homes more affordable for first-time buyers who previously were shut out of the housing market.  At the same time, the decline in home prices compounds problems for owners who get into financial trouble by making it harder for them to refinance and take advantage of the current low interest rates.

“What’s going on here is that you don’t have any markets that have turned around and you have new markets, like Dallas, that have joined the ranks of communities where home prices have fallen,” noted Stan Humphries, a Zillow.com vice president.

Zillow.com reports that the nation’s top 10 underwater cities are:

  • Las Vegas, NV                    67.2 percent
  • Stockton, CA                       51.1 percent
  • Modesto, CA                       50.8 percent
  • Reno, NV                             48.5 percent
  • Vallejo Fairfield, CA       46.5 percent
  • Merced, CA                         44.4 percent
  • Port St. Lucie, FL              43.5 percent
  • Riverside, CA                     42.8 percent
  • Phoenix, AZ                        41.7 percent
  • Orlando, FL                         41.7 percent