Texas Remains Hot Property Despite Slowdown

"As our report reflects, this region has a strong ability to recruit and retain world-class companies," says Bill Sproull, vice president of economic development in Dallas. "We may not have won Boeing, but we will win others."

According to the report, relocations account for 27% of the economic development activity and 27% or about 6.4 million sf of the 41.4 million sf of absorbed space. About 120 of the relocations had been from within the metroplex, 15 from other Texas cities and 13 from outside Texas. The relocations resulted in 16,350 new jobs while overall job growth hit 64,796 in 2000. Better than half of the new jobs had been created in Plano, Richardson and Irving. Expansions account for 48% of the activity.

The chamber's data, coupled with the Forbes list, is "a real dramatic statement about where our state is today," Jeff Moseley, executive director of Texas Economic Development, tells GlobeSt.com. "It speaks volumes."

Moseley confides that Boeing had ranked Dallas with a B in premier office availability while Denver and Chicago had A's. It's not the reason that Dallas lost out in the fierce competition, he emphasizes to GlobeSt.com, "but it clearly points to the fact that there is not an abundance of vacant office spaces."

Texas' current cool down would be a boon elsewhere. Diversification is key to the state's ability to weather the slowdown, says Moseley. Energy's plentiful, with the PUC predicting 30% more capacity than demand at peak usage times. The state exports $100 billion annually. Half of the annual exports go south of the border, but its NAFTA trade partner gives nearly as much as it receives. And, he's quick to point out that Dallas-Ft. Worth is the biggest gainer from NAFTA. High-tech, though still in a slow mode, remains a bright spot for new development. Add in biomedical, banking and insurance and, says Moseley, Texas will continue to bloom while others fade. "When one is soft or weak, there are other sectors that are pulling the wagon," he says. "It shows we are no longer a one-horse economy."

The Greater Dallas' report says distribution had accounted for nearly 15 million sf of absorbed space. Carrollton led the Dallas area by absorbing 4.1 million sf. More than 40 million sf of real estate, representing 710 projects, had been announced or tracked last year by area cities and economic development councils.

In the Forbes ranking, Austin fell a notch from last year to this year, losing its first-place ranking to San Jose. That, says Moseley, is an indicator that the data had been gathered prior to the rolling power blackouts. Dallas jumped to fifth place from 24 while Ft. Worth-Arlington backslid to 20 from 15. San Antonio is 24, down 16 spots from last year, while Houston's 44 is a backslide of five slots. McAllen, a NAFTA boomtown, is ranked 25 this year in comparison to last year's 36.