Dallas December 2021 Key Take Aways
- Steve Bruszer with Spring Valley Construction Company, shared that his “word of the month is POSITIVE”. Spring Valley just signed four contracts worth nearly $40 million in Plano and Forney and their back log is “tremendous”. He assumed that building requests would slow down but it’s stronger than ever, even with lumber/wood prices on the rise again. Steve has been nominated to serve on the Board of Directors of TEXO, The Construction Association, for the next 3 years starting in 2022 so Congratulations to Steve!
- Scott Lynn with Cache Realty Capital, shared that his word of the day is “ONWARD,” he also has “a lot of positive things happening at the moment”, including an industrial project outside of Birmingham, Alabama. Fortunately, the developer in Alabama had the foresight to commit to the second phase where he pre-ordered steel and roofing materials 6 months ago with locked in prices. Scott also shared that he is currently working on the Redbird Revitalization project and has other “irons on the fire”. Scott shared that there is plenty of capital out there so financing isn’t the issue it’s finding the right opportunities to finance.
- Laila Assanie with the Federal Reserve Bank of Dallas, shared that the job growth has been growing at a much stronger pace than expected, both in both Texas and across the U.S. With that being said, the oil and gas market are still “very volatile”. She also shared that the supply chain disruptions seem to be getting worse, according to companies that they check in with every few weeks, and unfortunately, they are expecting the supply issue to continue over the next 6-12 months.
- Marsha Getto-Aikens with HKS, an architectural company, shared that they are very involved with “micro hospitals” in rural areas. The hospitals will include all the assets of a clinic but will also offer beds, a broader base of medical expertise, etc. and its gaining a lot of popularity. Also, the micro hospitals plan to offer wellness centers, acupuncture, cancer clinics, etc. There is also a new thing called “Medtail” which is retail that focuses on health and wellness.
- Jim Smith with Smith Jackson, an accounting firm, shared very positive news in that the Build Back Better Act or “BBB Bill” that the House of Representatives sent to the Senate “got rid of almost all of the really bad stuff” such as: no longer an increase in individual tax; no longer a tax increase on long term capital gains; corporate basic tax rate will not be going up; mediate reduction of the estate tax exemption is gone; among other positive changes and Jim couldn’t be more pleased. He also shared that unfortunately, the BBB Bill hasn’t officially passed through the U.S. Senate yet and there is a chance that they will pass “nothing” because some politicians feel that there is no rush to pass and/or don’t agree with a lot of the changes. He feels that there is “good stuff in the BBB Bill but there is so much politics that is up in the air right now”.
- Walker Hairston with Falcon Realty Advisors, shared that they are seeing that there are a lot of people still wanting to expand so he feels “very fortunate to be living and working in Texas”. Unfortunately, clients are having trouble getting permits because it’s now taking months, so tenants are realizing that they are about to start paying rent even before opening their businesses. He is noticing that people are wanting to “get out there and spend money” which is great on the retail side of things. One of Falcon’s clients, Wendy’s Restaurants, are realizing that they need to get more competitive and “up their game” but they are having difficulty finding people to hire. He is noticing that many restaurants are offering signing bonuses just to find employees.
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