The Economic Warning Signs, Reasons For Hope And Safe Places In CRE.
Updated: Oct 10, 2019
Take a look at this article in BISNOW which quotes our friend, KC Conway, Chief Economist for CCIM Institute and CoStar Group Director of Market Analytics, Brandon Svec. Our developer and broker friends have been looking over their shoulder for several years wondering if we were in the 8th or 9th inning of our business cycle or was it more like the 11th inning. Dallas/Fort Worth has been the “darling” of corporate relocations and distribution hub expansions with accompanying record job growth ever since Toyota announced their move from California to North Texas. The result is that DFW is now on the international stage, and our region continues to be the recipient of millions of square feet of new construction of industrial and office projects, all of which generates jobs for construction workers, engineers, architects, building materials and employs thousands of people in our region.
The article cites reasons for caution based on uncertainty with global trade relations with China and Europe and of course an upcoming Presidential election in 2020. While those of us who have been in the business for more than one business cycle have long memories dating back to past recessions and financial crises, we like to say that DFW isn’t changing locations. Our reasons for growth are still with us! We still have companies locating here to serve the growing DFW population base, while others are here due to cost advantages, no personal income taxes, business friendly environment, central geographic location and two phenomenal airports that connect DFW to virtually anywhere in the continental US or the globe.
This article is interesting to read and discusses the impact of eCommerce in our economy and the significant growth it has experienced. While some decision making may move more slowly as we enter 2020, our team is bullish on DFW, and we look forward to another great year for DFW, albeit one of caution as our economy transitions with more eCommerce.