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 14+ million workers.
The state’s GDP of approximately $1.775 trillion 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. If California was also considered a sovereign nation, the Texas economy would be the 11th largest economy in the world.
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Sources: U.S. Bureau of Economic Analysis and The World Bank. All data is as of July 2018. Note: Dollar conversions to GDP are based on average annual exchange rates to the U. S. dollar in 2018.Global GDP rankings for the top 6 countries and states were as follows: (1) U.S. (2) China (3) Japan (4) Gernany (5) California (6) United Kingdom and (7) France
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 3.4 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 2018 was even lower than the state’s average.
Sources: Outlook for the Texas Economy, published by Texas A&M University Real Estate Center, August 9, 2019. Unemployment data obtained from Bureau of Labor Statistics, Databases, Tables & Calculators, month of June rate for each year (https://data.bls.gov/pdq/SurveyOutputServlet); accessed on 8/20/2019.
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 2018 Texas exported $315 billion in goods to destinations all over the world, leading the nation for the 17th year running.
In 2018, Texas was one of the top ten states for private sector job creation, creating 352,000 private sector jobs.
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 July 2019
Sources: Fortune 500 List by State for 2019. The list of companies is based purely on revenue. The top five states with the most Fortune 500 companies are as follows: New York (56), Texas (49), California (54), Illinois (3) 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.
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