The Hartman Advantage

The cornerstone of our investment strategy is our discipline in acquiring commercial properties that offer a blend of current and potential income based on in-place occupancy, plus significant potential for growth in income and value from re-tenanting, repositioning, redevelopment and operational enhancements.

Vertical Integration

Hartman is a vertically integrated management company. Hartman is entirely owner-operated for acquisition, redevelopment, repositioning, re-tenanting, and operational enhancements by being vertically integrated.

The advantages and benefits to the our investors include:

  • Acquiring properties by evaluating value, stack-ranking the properties, in-depth analysis, and review.
  • Redevelopment and structural enhancements by analyzing the properties’ potential and developing best in class, value-add, modern aesthetics.
  • Re-tenanting the properties by offering competitive rates, flexibility, and proactive renewals.
  • Operational enhancements and proactive management help stabilize cash flows, tenant relations, and efficient property enhancement.
Texas REIT

Why Texas?

9th Largest Economy in the World

Texas is the 9th 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 14+ million workers.

The state’s GDP of approximately $1.7 trillion is the second largest economy in the United States, behind California. If Texas were a sovereign nation, it would have the 9th largest economy in the World. If California was also considered a sovereign nation, the Texas economy would be the 10th largest economy in the world.

1 United States 2019 21,433
2 China 2019 14,279
3 Japan 2019 5,081
4 Germany 2019 3,861
5 India 2019 2,868
6 United Kingdom 2019 2,829
7 France 2019 2,715
8 Italy 2019 2,003
9 Texas 2019 1,887
10 Brazil 2019 1,839
11 Canada 2019 1,736
12 Russia 2019 1,699

Sources: U.S. Bureau of Economic Analysis and The World Bank. All data is as of January 2022. Note: Dollar conversions to GDP are based on average annual exchange rates to the U. S. dollar in 2020.

Below Average Unemployment Rates

Despite the increase in the unemployment during 2020 and the global pandemic, Texas is pulled the state’s annual unemployment rate from 7.7 percent back down to 4.8 percent in 2021. In many of the major metros, average unemployment in 2021 was even lower than the state’s average.

2021 Unemployment Rates:

  • Austin – 2.9%
  • San Antonio – 3.7%
  • Dallas-Fort Worth – 3.6%
  • Houston – 4.8%

Sources: Bureau of Labor Statistics as of 12.31.21

Texas Average Annual Unemployment Rate (%)

Sources: Bureau of Labor Statistics as of 12.31.21

Texas: Always Open for Business

Tax Relief

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 2022 State Business Tax Index.

Exports

In 2021 Texas exported $375.3 billion in goods to destinations all over the world, leading the nation for the 20th year running.

Sources: Office of the Governor, Economic Development and Tourism and Business Research; Tax Foundation; Bureau of Labor and Statistics; United States Department of Commerce. All data is as of April 2022

Fortune 500 Companies Headquartered in Texas

  • Academy Sports and Outdoors
  • American Airlines Group
  • AT&T
  • Baker Hughes
  • Builders FirstSource
  • CBRE Group
  • Celanese
  • CenterPoint Energy
  • Cheniere Energy
  • Commercial Metals
  • ConocoPhillips
  • Core-Mark Holding
  • Crestwood Equity Partners
  • Crown Castle International
  • D.R. Horton
  • Dell Technologies
  • Energy Transfer Equities
  • Enterprise Product Partners
  • EOG Resources
  • Exxon-Mobil
  • Fluor
  • Group 1 Automotive
  • Haliburton
  • Hewlett Packard Enterprises
  • HollyFrontier
  • Huntsman
  • Jacobs Engineering Group
  • KBR
  • Kimberly-Clark
  • Kinder Morgan
  • McKesson
  • NOV
  • Occidental Petroleum
  • Oracle
  • Phillips 66
  • Pioneer Natural Resources
  • Plains GP Holdings
  • Quanta Services
  • Southwest Airlines
  • Sysco
  • Targa Resources
  • Tenet Healthcare
  • Texas Instruments
  • USAA
  • Valero Energy
  • Vistra Energy
  • Waste Management
  • Westlake Chemical
  • Yum China Holdings
  • Tesla

Texaplex: Houston, Dallas, San Antonio

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.

These three cities comprise of 66% of the state’s population, 80% of the state’s population growth since 2000, and 77% of the Texas economy. Additionally, the job growth rate for this area is three times that of New York City and five time that of Los Angeles. 

houston icon

Houston

Energy capital of the world
World-famous medical center
International airport
Home to the Port of Houston

Dallas / Ft. Worth

Financial center
Telecommunications pioneer
Top destination for corporate expansions

austin - icon

Austin / San Antonio

World-class technology and cybersecurity center
Home to three major military command centers
International automotive manufacturing hub
The Alamo and Riverwalk

"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."

The Case for Texas

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.

Consider these important risk factors before investing:

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 investment in real estate include:

  • A decrease in demand for office or retail space may have a material adverse effect on financial condition and results of operations.
  • Economic and regulatory changes that impact the real estate market generally may decrease the value of investments and weaken operating results.
  • Global and U.S. market, political and economic conditions may adversely affect liquidity and financial conditions and those of tenants.
  • Market trends and other conditions outside of the control of the issuer could decrease the value of investments and weaken operating results.
  • Issuers are subject to governmental regulations that may affect the renovations to, and use of, their properties.
  • Properties that have significant vacancies could be difficult to sell, which could diminish the return on your investment.
  • Real estate assets are illiquid, and issuers may not be able to sell their properties when they desire.
  • Future terrorist activity or engagement in war by the United States may have an adverse effect on financial conditions and operating results.
  • Costs of responding to both known and previously undetected environmental contamination and hazardous conditions may decrease cash flows and limit an issuer’s ability to make distributions.
  • Properties may be dispersed geographically and across various markets and sectors.
  • Issuers may be limited in their ability to diversify investments, making them more vulnerable economically than if their investments were diversified.