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Adam Saphier: Job Growth—A Spark for Development in All Sectors

The impact of DFW’s job growth is being felt across all product types. CBRE reported that in 2011, North Texas had net absorption of approximately 2.4 million square of office space, 11.6 million square feet of industrial space, 560,000 square feet of retail, and 15,240 multi-housing units. At Trammell Crow Co., our in-process developments are representative of this broad-based expansion.
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Adam Saphier

Commercial real estate development in North Texas is completely dependent on job creation. Fortunately, we have been creating jobs, and it looks like we will continue to attract and retain jobs here in DFW because of our numerous competitive advantages: business-friendly environment, low cost of living, central location with great airports, and no state income tax.

According the Bureau of Labor Statistics, North Texas has created more jobs recently than it lost during the recession, and now has more employed in DFW than ever before. We created more than 50,000 jobs each of the last two years and have the potential to continue this 2 percent growth rate in 2012.

This is great news for all real estate product types. The office and industrial sectors are directly tied to job growth, or contraction, in the short and long term. Other product types, such as retail and multi-housing, are most affected by population growth in the short term, but the sustainability of that population growth is usually dependent on job growth over time.

The impact of DFW’s job growth is visible across all product types. CBRE reported that in 2011, North Texas had net absorption of approximately 2.4 million square of office space, 11.6 million square feet of industrial space, 560,000 square feet of retail, and 15,240 multi-housing units.

At Trammell Crow Co., our in-process developments in DFW are representative of this broad-based expansion. We’re currently under construction on two office build-to-suits totaling more than 500,000 square feet, an industrial build-to-suit that tops 1.1 million SF, 179 multi-housing units, and we’re putting the finishing touches on a 485,000-square-foot shopping center.

We’re grateful to be in an area that not only has competitive advantages over other cities, but also has progressive users of space and experienced real estate professionals who know how to get deals done. We think the increase in activity in all product types across North Texas will persist for the foreseeable future, as we steadily grow jobs across many industries in our diversified local economy.

Adam Saphier is a managing director for Trammell Crow Co., overseeing the firm’s activities in Dallas-Fort Worth. Contact him at [email protected].

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