BIG PICTURE: Diversity Will Save Markets From Corporate Cutbacks

CHICAGO-The adage about putting too many eggs in one basket is coming into play as the national economy takes a dip. Markets with a diverse economy are either faring well or experiencing minimal disruptions, while those dependent on one or two industries are bracing for the worst.

For instance, this market’s diverse economy gives it a fighting chance of surviving what some captains of industry here are already calling a recession. Although Chicago is the third-largest tech market in the US, tech’s presence here is not nearly as dominant as other markets, such as Silicon Valley. While dot-com startups bailed out of Downtown space beginning in the second half of last year, most of the space was absorbed by old-economy financial-service companies and law firms.

Likewise, Texas’ increasing diversification will help it survive the latest rounds of corporate cutbacks. The Dallas, Houston and Austin markets also have seen an influx of international companies less reliant upon the US’ economic fortunes. Jeff Deweese, vice president and managing director for Grubb & Ellis Co.’s Dallas office, tells Southwest bureau chief Connie Gore that “we’re increasing at a decreasing rate. It’s slowing down, but the economy’s good. Our diversified economy will stay the course.” Instead of 100,000 new jobs this year, 50,000 to 60,000 are expected, and “that’s very healthy growth,” Deweese says.