The Real Estate Center at Texas A&M University reported today that despite oil prices resulting in layoffs in the oil patch, Texas is still driving serious job growth. In the period from June 2014 to June 2015, Texas added 276,400 non-agricultural jobs. That’s an annual growth rate of 2.4% compared with 2.1% for the US overall.
Happily, the non-government sector added most of those jobs (253,900) and grew at 2.6%. On a seasonally adjusted basis, the Texas unemployment rate fell to 4.2% (actual 4.4%) compared to 5.0% a year ago. The nation as a whole fell from 6.1% to 5.3%.
The job growth was widespread throughout the state with only Wichita Falls losing jobs.
Jobs result in occupancy in commercial buildings. When companies hire employees they need a place to put them. So those companies lease or buy more office and warehouse properties. Those workers also need retail services so new retail properties are built and they need a place to live so houses and apartments are built. Jobs are the key to a growing economy.
Thank God for Texas.
Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.