The Texas Two Step
The Texas Two-Step
By: Nicholas A. Dunlap, CPM
Disgruntled public employees in California must love the headline in today’s Orange County Register. Often behind the times and trends of Business and Real Estate, the Register today proclaimed that Texas has begun to “Lasso California Businesses”. Essentially what the state of Texas has begun to do is send out invitational letters to businesses encouraging them to explore the pro-business climate that Texas has to offer. Yes, public employees and civil servants, that means that the tax dollars and activity that pays your salary is leaving this unionized, California king-sized pension mess of a state and heading southwest. There’s a lot to be said about a balanced budget, no state income tax and the fact that are actually thousands of jobs being added each month. Current and future population and job growth is paramount to commercial real estate investors who are looking for returns unsatisfied in primary California markets.
UCLA’s Anderson School of Business announced last week although Texas might have the appeal, California performed better than much of the nation this year, seeing a 2.7% rise in personal income and projecting a 3% increase next year. And while California’s unemployment levels are projected to drop from 10.9% to around or under 10%, over 5 million jobs in the construction, manufacturing and retail industries that were lost are unlikely to return. For those keeping score at home. Texas unemployment rate is 7.9% and is projected to drop to 6% by late 2011 due to the number of technology, manufacturing and engineering jobs being added.
To read the Register’s bit on Texas, click here:
To read the statistics from UCLA Anderson’s Release, click here: