Texas Industrial Building Booms As Economy, Population Grow
Texas Industrial Building Booms as Economy, Population Grow By Laila Assanie and Michael Weiss he boom in Texas commercial real supporting healthy and broad-based estate activity is plainly visible gains in the commercial real estate sec- T in the high-rises that create the tor—apartments, offices and industrial skylines of the state’s major metropoli- space. It was only during the most } tan areas and in the sprawling office recent energy bust, in 2015–16, that campuses dotting its thoroughfares. employment growth in the state fell be- ABSTRACT: A significant Another source of major activity is far low its long-term average growth rate, portion of Texas’ recent less conspicuous, though it has pow- primarily due to Houston's decline. ered another new wave of commercial Commercial construction and real construction activity has construction and economic activity. estate activity play a notable role in been industrial building, Demand for Texas industrial space, an area’s economic growth, buoying with Dallas–Fort Worth which includes warehouses, manu- output and employment growth. The leading the nation and facturing plants and research and state’s commercial real estate sector development facilities, has been robust will likely continue to expand this year, Houston among the top during the ongoing expansion cycle. albeit at a slower pace. six markets. Burgeoning Well over 235 million square feet of e-commerce, state space was built and absorbed from Industrial Construction Gains population gains and an 2010 to 2018 statewide, with Dallas– Consistent with Texas’ “bigger is Fort Worth ranking No. 1 in the country better” ethos, the thriving construction expanding export market in construction and in net absorption sector recorded $104.1 billion worth have contributed to the (net change in square footage of oc- of total contract values (residential, growth spurt that has cupied space) during the period and nonresidential and nonbuilding) last 1,2 included increases in Houston placing among the top six.
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