General TX - Texas Resiliency

Texas Resiliency

DFW Airport

S. Fort Worth

Great SW

S. Dallas

S. Stemmons

NW. Dallas

E. Dallas

NE. Dallas

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Texas job growth outpaces the U.S.

Corporate expansion favors Texas

Texas offers low cost of living

Texas triangle megaregion drives growth

Texas industrial region gateway to trade

San Antonio

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DFW

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Austin

Houston

DFW Airport

S. Fort Worth

Great SW

S. Dallas

S. Stemmons

NW. Dallas

E. Dallas

NE. Dallas

Texas Resiliency

Click to view city stats

Texas job growth outpaces the U.S.

Corporate expansion favors texas

Texas offers low cost of living

Texas triangle megaregion drives growth

Texas industrial region gateway to trade

San Antonio

Click

to view the slides

DFW

Austin

Houston

Texas job growth consistently outpaces the U.S.

United States 4,503,000 (3.0%)

Source: JLL Research, U.S. Bureau of Labor Statistics, 12-month trailing totals (December 2022)

*Jobs data is for all of 2022

Corporate site selection and expansion activity favors Texas markets

Source: JLL Research, Ytexas.com, Site Selection Magazine Note: Corporate relocations, expansions, involved an investment of at least $1 million, create 20+ new jobs or add 20,000+ s.f. of new space

Major Texas population centers offer a low cost of living and high quality of life

Source: JLL Research, Greater Houston Partnership, C2ER Cost of Living Index Note: Based on a survey of 262 urban areas, released in October 2022

Texas Triangle megaregion drives state’s exponential growth

million people

trillion combined GDP

million total regional employment

moved to state for 2nd year in a row (2022 U-Haul Growth Index)

20.5

$1.47

10.1

#1

Texas industrial markets are a gateway of global trade

Dallas-Fort Worth and Houston were Top 5 markets in the U.S. for 2022 industrial net absorption.

Tenant demand

More than 108 million s.f. of new supply is underway across Texas’ four major metros.

New supply

Port Houston reached nearly four million TEUs in 2022, a 14% growth in container volume year-over-year.

Economic growth

Austin is a rapidly growing logistics and distribution market, driven by advanced manufacturing and tech.

Emerging hub

Austin has led major markets in employment growth through periods of national unemployment rate recovery

Austin has a critical mass of young, vibrant, and educated talent, providing a competitive workforce to attract new and expanding businesses

Median Age

34.7

Bachelor’s Degree or higher

46%

4-year colleges within 200 miles

86

A diversified industry base has reinforced Austin’s resiliency in times of economic crisis, historically seeing a shorter period of contraction compared to other cities.

Trade, transportation, and utilities

16%

Education and health services

12%

Trade, transportation, and utilities

21%

Government

14%

Financialactivities

6%

Manufacturing

6%

Otherservices

4%

Leisure and hospitality

11%

Mining, logging, and construction

6%

Information

4%

Tech industries represent 17% of jobs in Austin, compared to 9% nationally

Austin has exceeded every other major city in the U.S, by way of population and employment growth in the period since 2010, given its strong fundamentals

Looking ahead, Austin ranks number 1 among investors for plans to increase investment over the next five years

of surveyed investors plan to increase their Austin exposure

36%

The city of Austin has seen significant corporate growth and major capital commitments in the last several years, with the future economic impact of those yet to be fully realized

Major Capital Commitments

Direct Jobs

10,000+

Investment

$10 + Billion

Direct Jobs

500+

Investment

$17+ Billion

Direct Jobs

2,000+

Investment

$1+ Billion

Dallas-Fort Worth (DFW) has grown faster than all other major metros, and growth is projected to continue

DFW’s percentage of job gains are at the top of the major markets despite its smaller size compared to LA and NYC

234.7 | 5.9%

215.7 | 3.5%

344.4 | 3.6%

12-month job gains to November 2022

Dallas-Fort Worth

Los Angeles

New York

DFW’s balanced economy is positioned to weather declines facing select sectors

People in-migrating to DFW from coastal cities continues to drive population growth

DFW leads the nation in investment transaction volume since 2020, with New York and LA 2nd and 3rd

Dallas class A office rents have shown consistent growth since 2011 reaching a new highwater mark in 2022 of +$70/PSF

Dallas-Fort Worth sales volume ($m)

$36,344

DFW’s diverse economy and consistent job growth have provided resilience during previous downturns. In prior downturns, DFW has recovered faster than most of the larger metros

Demand for Industrial space has pushed DFW’s development pipeline over 62M SF making it the largest pipeline in the country

YoY (TTM)

16.6%

Dallas-Fort Worth supply of Industrial under development (Millions of s.f.)

61.6

Class A rent growth 2011-2020

58.7%

Covid-19 pandemic-total rent

7.4%

DFW leads the nation in investment transaction volume since 2020, with New York and LA 2nd and 3rd

Dallas class A office rents have shown consistent growth since 2011 reaching a new highwater mark in 2022 of +$70/PSF

Dallas-Fort Worth sales volume ($m)

$36,344

DFW’s diverse economy and consistent job growth have provided resilience during previous downturns. In prior downturns, DFW has recovered faster than most of the larger metros

Demand for Industrial space has pushed DFW’s development pipeline over 62M SF making it the largest pipeline in the country

YoY (TTM)

16.6%

Dallas-Fort Worth supply of Industrial under development (Millions of s.f.)

61.6

Class A rent growth 2011-2020

58.7%

Covid-19 pandemic-total rent

7.4%

Houston is one of the most diverse metros in the U.S., and as a minority-majority city, Hispanics are its largest ethnic group

Houston’s economy fully recovered from pandemic losses last May, and the region added 179,000 overall jobs in 2022

104.8%

Houston:

Houston’s robust workforce and business-friendly environment have driven a 20% increase in job growth, higher than the national average

Despite the pandemic, Houston’s population continues to climb steadily due to strong natural and in-migration trends

Pandemic job losses recovered

Port Houston continues its record-breaking growth and is a major economic engine for the entire state of Texas

Houston was the only Texas metro to land on the U.S. life sciences cluster rankings due to its impressive base of talent and research institutions

The Bayou City ranks No. 14 out of 80 cities for top U.S. real estate markets as strong population and job growth attract investors to Houston.

The life sciences sector has seen marked employment growth, advancing greater Houston’s position as an emerging market

Top imports

• Hardware and construction materials
• Machinery, appliances and electronics
• Food and drink

Top exports

• Resins and plastics
• Chemicals and minerals
• Automotive

1: Boston 2: SF Bay Area 3: San Diego 4: Greater DC & Baltimore 5: Philadelphia 6: Raleigh/Durham 7: New Jersey 8: New York City 9: Seattle 10: Salt Lake City 11: Pittsburgh 12: Minneapolis–St. Paul 13: Houston 14: Chicago 15: Denver-Boulder

San Antonio ranked as the fastest growing city in numerical population growth between 2020 and 2021 and is expected to welcome 1 million new residents by 2040.

The city is a magnet for talent, being home to several institutions of higher education and the nations #1 cybersecurity program.

Rich culture supports a flourishing hospitality industry, with an economic impact of $16.2B, rebounding 93% from pre-pandemic levels.

San Antonio benefits from a significant military presence, which is a major driver of the local economy and often countercyclical to economic downturns.

More affordable than the national averages

San Antonio’s average real estate costs across property types are more affordable than national averages, attracting commercial occupiers and residents to the city.

27%

Industrial

30%

Office

29%

Single-family

29%

Multi-housing

16

Area colleges and universities

160,000

Students