Economic expansion and job growth will drive recovery as interest rates rise. Recovery in the housing market augers for continued improvement in U.S. commercial real estate over the next two years.
Despite challenges – including gradually rising interest rates and government spending cuts – the outlook for commercial real estate is positive. The U.S. economy is expected to grow by 1.9% in 2013 and accelerate to 2.8% in 2014. This growth will spur the creation of 4.8 million jobs over the next two years. As job growth accelerates, so too will demand for commercial real estate, leading to continued improvement in vacancy rates. …Read Entire Post
Even at the height of an oil boom, people worry about what happens next. In little more than four years, the oil and gas from the Eagle Ford Shale field has rocked Texas and the rest of the country. Late last year, the International Energy Agency made the startling projection that the United States could briefly surpass Saudi Arabia as the world’s largest oil producer in the next decade and could be nearly energy independent by 2035.
Today, the mostly rural area of the Eagle Ford—about fifty miles wide and four hundred miles long, running across roughly two dozen counties—is thick with truck traffic. Last year, the Railroad Commission issued more than 4,100 drilling permits for the shale, up from just 26 in 2008. Oil production in 2012 jumped to about 352,127 barrels a day, up from 127,965 barrels a day in 2011. …Read Entire Post
Site Selection magazine awards the Governor’s Cup each year to the governor of the state with the highest number of qualified capital investment projects the previous calendar year. Texas is back in a big way with a commanding first-place finish in the 2012.
“This is a confirmation of the men and women of the Texas legislature understanding that if we will continue with the predictability and stability of tax and regulation and legal policy that allows entrepreneurs to keep more of what they earn, then we will become the job creation magnet in America,” Gov. Rick Perry told Site Selection on February 21st. “That is what has happened.” …Read Entire Post
Cities in Texas dominated Forbes’ most recent “Best Cities For Good Jobs” list including San Antonio at No. 6. Dallas ranked at the top of the list followed by Houston at No. 2, Austin at No. 3 and Fort Worth was No. 4.
…Read Entire Post
For the last few years, San Antonio’s economy has been seen as something special, partially protected from the onslaught of the Great Recession by the booming shale play to the city’s south, significant government construction projects and state mortgage regulations that kept some of the major contributors to the housing bust at bay.
And as the nation’s economy recovers, San Antonio’s economy has continued to grow — for example, the unemployment rate has dropped from 6.9 percent in January 2012 to 5.8 in November 2012 — and local businesses and industries expect more of the same in 2013.
Click to read the full article: S.A. economy expected to roll in 2013 (San Antonio Express-News, 1-4-13)
The accolades keep coming for the Eagle Ford Shale oil and gas field — the biggest economic development boost for the San Antonio area in recent memory. A report recently released by the San Antonio Economic Development Foundation said the area has already scooped up more than 4,000 jobs from producers and service companies working in the shale play. By 2021, the study expects Bexar County will have 11,627 shale-related jobs with a payroll of more than $507 million.
Click to read entire article: Oil boom produces 4,000 new jobs in S.A. (San Antonio Express-News, 12-12-12)
NAI REOC’s Director of Research, Kim Gatley, presented an update of the San Antonio commercial real estate market at this year’s CCIM Symposium held November 1st at the Grand Hyatt Hotel in downtown San Antonio.
Click here to view the 2012 CCIM Symposium Research & Statistics slide presentation.
Development of oil and natural gas in the Eagle Ford Shale contributed $25 billion in total economic output to the region in 2011, according to a study released today by the Center for Community and Business Research at The University of Texas at San Antonio Institute for Economic Development.
“The Eagle Ford Shale has proven to be one of the most important economic engines in the state,” said Thomas Tunstall, director of the UTSA Center for Community and Business Research and the study’s principal investigator. “In 2011 alone, the play generated over $25 billion in revenue, supported 47,000 full-time jobs in the area and provided $257 million in local government revenue.”
The study also concluded that in 2011 shale development:
- Paid $3.1 billion in salaries and benefits to workers,
- Provided more than $12.6 billion in gross regional product,
- Added more than $358 million in state revenues including $120.4 million in severance taxes
- And spurred a triple-digit sales tax revenue increase in various local counties.
Click to read full article Eagle Ford Shale generated more than $25B in revenue for South Texas in 2011 (UTSA Today, 5-9-12) and follow link at bottom to view full study report.
A recent CNBC article referred to Texas as a “well-oiled real estate machine” based on the evidence that residential real estate is reaping the benefits of an economy supported by energy production which has created jobs and bolstered demand. The article cited Jim Gaines, research economist at the Real Estate Center at Texas A&M University, who said, “The middle of the country, the spine, has done much better than the two coasts. A common thread is energy, from Texas to the Dakotas — there has been a real boom time due to the exploration and drilling activity.”
Click to read the full article: Texas is a well-oiled real estate machine (CNBC, 3-30-12)
Things are looking up in the world of commercial real estate lending. According to National Real Estate Investor’s annual Borrower Trends Survey, more than half of lenders (56 percent) and 44 percent of borrowers are predicting that credit will be more widely available in the coming year. …Read Entire Post