Earlier this month, a record-breaking 111.3 million viewers tuned in to coverage of the Superbowl XLVI. I’m a football fan, but I’m guilty of paying just as close attention to the advertisements that leave you laughing, wanting to test-drive a new car, or head to the store and grab the latest-generation tech-gadget.
But for the second year in a row, the “big three” motor giants left chills running up and down my spine with moving ads to honor the perseverance of the auto industry and its determination to recover from bankruptcy. Chrysler’s two-minute “Halftime in America” ad, narrated by Clint Eastwood and featuring images of the manufacturing plants in the Motor City, resonated with me this year, declaring that, “This country can’t be knocked out with one punch. We get right back up again. And when we do, the world is gonna hear the roar of our engines. It’s halftime America, and our second half is about to begin.”
More than 1,000 miles sit between Dallas and Chrysler’s Detroit headquarters; but it’s home to many “Made in America” companies. South Dallas, in particular, has become an industrial hub to big names like GE Transportation, Kellogg’s and Home Depot. This got me thinking what the whole “Halftime in America” meant for our city, the state of Texas, and for the national industrial sector.
Keeping with the football theme, let’s take a look at the key findings from Jones Lang LaSalle’s 2012 Industrial Outlook for our own Dallas “Halftime Report:”
• Leading team in the conference. Dallas/Fort Worth is a top-five industrial market in the country.
• Slow first-half, but points on the scoreboard. Although the manufacturing sector remained largely flat in 2011, year-over-year nearly 4,000 more manufacturing jobs emerged in North Texas through November 2011 (latest figures available).
•Solid roster. Seven of Dallas’ nine submarkets witnessed positive industrial net absorption in 2011 and, year-over-year, average asking rental rates rose to $3.60 per square foot. The uptick is a good sign, but shows that landlords are less aggressive offering incentives.
• Injured player. The debt market has hindered significant construction and speculative projects—resulting in a tenant-favorable to more neutral conditions for most submarkets.
• High-scorer. Dallas’ total industrial inventory adds up to more than 520 million square feet. (Think of it as 8,6670,807 runs into the end zone.)
So here’s what we’ve got: A strong team—despite an injured player—that’s playing on favorable terrain with a record of getting points on the scoreboard.
Chrysler and Clint might be onto something. If this is halftime for America and for our nation’s signature industries, engines are ready to roll full steam ahead through 2012 and beyond. As a fan of the team, I’m cautiously optimistic for our second half.
As managing director, Terry Darrow leads Jones Lang LaSalle’s Dallas-Fort Worth industrial group. Contact him at [email protected].
