Texas is the 10th largest economy in the world, based on gross domestic product (GDP). The lone-star state’s GDP is fueled by diverse industries across 12 economic regions and boasts a strong civilian workforce of more than 13 million workers.
The state’s GDP of approximately $1.7 billion is the second largest economy in the United States, behind California. If Texas were a sovereign nation, it would have the 10th largest economy in the World, excluding California.
|Rank||Nation/State||2017 GDP\GSP, $ in Trillions|
Sources: Statista.com, Gross domestic product (GDP) of the United States in 2017 and The 20 countries with the largest gross domestic product (GDP) in 2017. Global GDP rankings for the top 7 countries and states were as follows: (1) U.S., (2) China, (3) Japan, (4) Germany, (5) California, (6) France and (7) United Kingdom. Go Big in Texas, published by the Office of the Governor of Economic Development & Tourism; data as of 12/31/16. Regional Economic Data published by the Texas Comptroller. The 12 economic regions are: Alamo, Central, High Plains, Northwest, Southeast, Upper Rio Grande, Capital, Gulf Coast, Metroplex, South, Upper East and West.
Despite slow growth during the energy sector downturn, Texas added more than 266,600 nonfarm jobs in 2017—pulling the state’s annual unemployment rate to 4.26 percent; which was nearly half of the national unemployment rate of 8.2 percent during the recessionary peak. In many of the major metros, average unemployment in 2017 was even lower than the state’s average.
Sources: Outlook for the Texas Economy, published by Texas A&M University Real Estate Center, February 6, 2018. Top States to Find a Job in America in 2017; Unemployment data obtained from Bureau of Labor Statistics, Databases, Tables & Calculators (https://data.bls.gov/pdq/SurveyOutputServlet); accessed on 4/2/2018.
With no corporate income tax and no individual income tax, Texas has one of the lowest tax burdens in the country, ranking as a Top 15 Best State in the Tax Foundation’s 2018 State Business Tax Index.
In 2017 Texas exported $264 billion in goods to destinations all over the world, leading the nation for the 16th year running.
In 2017, Texas was one of the top five states for private sector job creation, creating 266,600 private sector jobs.
Sources: Tax Foundation, 2018 State Business Tax Climate Index. The seven states without an individual income tax were Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. Go Big in Texas, A Top-Ranked Powerhouse for Business. CNBC, Top states to find a job in America in 2017, published July 2017. Texas ranked number 9; other states in the ranking include: Tennessee (10), Washington (8), Georgia (7), Oregon (6), Colorado (5), Idaho (4), Nevada (3), Florida (2) and Utah (1).
Sources: Fortune 500 List by State for 2015, published on July 28, 2015. The list of companies is based purely on revenue. The top five states with the most Fortune 500 companies are as follows: New York (55), Texas (54), California (53), Illinois (34) and Ohio (23). None of these companies are, or necessarily will be, investors or tenants in any Hartman program.
A Houston-based think tank, the Center for Opportunity Urbanism, recently published, The Texas Way of Urbanism, a report that details the significant influence of Houston, Dallas and San Antonio on the state’s economic growth.
Sources: San Antonio Express-News, Texas’ triangle cities make up the ‘economic guts’ of the state, published September 18, 2017. Texas Association of Realtors®, Texas Relocation Report 2018 Edition.
The country has been driven by the bi-coastal economy, the large cities on the East Coast and Seattle, Portland, San Francisco, Los Angeles and San Diego on the West Coast. Then there’s Chicago. But now, it’s clear on the global scene of the power and economic weight of the Texas triangle.
Henry Cisneros, former Mayor of San Antonio
Since 2016, Texas remains a popular relocation destination. According to the Texas Relocation Report, Houston, Dallas, San Antonio and Austin contained nine of the 10 Texas counties that reported the highest gains in residents relocating from outside of Texas. Harris County and Dallas County led the state in out-of-state resident gains.
At the Metropolitan Statistical Area (MSA) level, Chicago-Naperville-Elgin, New York-Newark-Jersey City, and Los Angeles-Long Beach-Anaheim were responsible for the largest numbers of residents relocating to the four major Texas MSA’s.
Source: Texas Association of Realtors®, Texas Relocation Report 2018 Edition.
Hartman believes that certain Texas attributes attract the number and type of quality corporate tenants Hartman seeks, which drives the need for properties that meet the objectives of Hartman’s programs. Please talk to your financial advisor to learn more about how Hartman can potentially help you achieve your investment goals.
Please keep in mind that our ability to diversify our portfolio may be limited both as to the number of investments owned and the geographic regions in which our investments are located. While we seek to diversify our portfolio by geographic location, we focus on our specified target markets that we believe offer the opportunity for attractive returns and, accordingly, our actual investments may result in concentrations in a limited number of geographic regions. As a result, there is an increased likelihood that the performance of any single property, or the economic performance of a region in which our properties are located, could materially affect our operating results.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. AN OFFERING IS MADE ONLY BY PROSPECTUS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) OR OTHER OFFERING DOCUMENTS IF THE SECURITY IS EXEMPT FROM REGISTRATION WITH THE SEC. A COPY OF THE CURRENT PROSPECTUS OF ANY SECURITY MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH AN OFFERING AND SHOULD BE READ IN ORDER TO MORE FULLY UNDERSTAND THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. NON-TRADED REIT INVESTMENTS ARE NOT SUITABLE FOR ALL INVESTORS. INFORMATION ABOUT INVESTING IN A SPECIFIC NON-TRADED REIT MUST BE ACCOMPANIED BY A PROSPECTUS, WHICH SHOULD BE READ PRIOR TO INVESTING.
Neither the SEC nor any other state or federal regulator has passed on or endorsed the merits of any offering or any securities or confirmed the adequacy or accuracy of any prospectus or other offfering documents. Any representation to the contrary is unlawful.
All information contained in material is qualified in its entirety by the terms of any current prospectus. Investors should consider a program’s investment objectives, risks, charges and expenses before investing. The achievement of any goals is not guaranteed.
General risks related to investments in real estate include: