HOUSTON—As West Texas’ Permian Basin region continues to experience phenomenal growth and miniscule unemployment, Taylor Consulting, Inc. (TAYO) is making plans to move forward with a number of real estate acquisitions in the region.
Across Texas, drilling activity continues to attract new residents and create jobs. The state’s population growth has averaged 1.7% annually over the past three years, more than double the national average. The Permian Basin, anchored by Midland and Odessa, has several shale plays that will likely produce more than 1.3 million barrels of oil per day by 2017, according to many oil industry experts.
That projection has led to extraordinary population growth. National Real Estate Investor reported this week that annual effective-rent growth in the Midland-Odessa metro was 6.3 percent during the first quarter of this year. The area’s 97.5 percent occupancy rate is one of the highest in the country, while first-quarter 2014 revenue growth of 5.4 percent also topped the charts.
“Under such promising economic conditions, there are definitely gains to be made in real estate,” says TAYO CEO Scott Wheeler. “We’re evaluating properties now that we believe exhibit multiple avenues for development.”
TAYO is currently conducting due diligence toward acquiring four properties located on or near West Texas’ massive Cline Shale formation. Covering an area of over one million acres, the Cline Shale could be the largest North American oil play of all time, with some experts predicting it could produce as many as 30 billion barrels of oil.
In addition to its traditional sports consulting business, TAYO recently created a new division—Third Avenue Development, LLC—to invest in promising real estate assets to compete alongside American Homes 4 Rent, Silver Bay Realty Trust Corp., Equity Residential, Essex Property Trust Inc. and more.