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- Slowdown Expected for Texas Oil and Gas Industry in 2020
- A pair of large industrial developments in DFW
- Travel company TripActions expands in Downtown Dallas
Slowdown Expected for Texas Oil and Gas Industry in 2020
The oil and natural gas industry was a major boon to the Texas economy in 2019, as it paid a record $16.3 billion in taxes and royalties to the state and locaties, according to the Texas Oil and Gas Association announced Tuesday. The success of the industry is largely due to the fact that U.S. fossil fuel production and exports are at record levels. This is good news for the Texas economy, as the energy sector is still very important to the state’s economic growth.
Houston’s Energy Corridor, which is home to a number of oil and gas companies like BP America, Citgo, ConocoPhillips, and Shell, benefited greatly from this positive trend as it experienced the Houston metro's highest office absorption rate during Q4 of 2019. Oil companies like Penn Virginia were responsible for a substantial portion of the positive absorption in the neighborhood. Last quarter marked a turning point for the Energy Corridor, as the district has struggled with one of the highest office vacancy rates in the Houston MSA since 2014 when the price of oil dropped.
Unfortunately, there are signs that oil and gas will experience a major slowdown, as high production rates and lower global demand is expected to slow down the industry’s growth. Fossil fuel production rose in Texas last year, but there were some warning signs, such as a sharp dip in the number of active oil rigs, thousands of industry job losses, and a number of bankruptcies.
Latest Development News
Construction recently began on Urban District 30, a 980K SF, five-building industrial park in Mesquite that will support about 500 permanent jobs once it is completed. Another major industrial development in the DFW area is under construction, as the 740K SF Synergy Crossing Building 400, part of the greater Synergy Crossing development, begins to take shape. In Houston, there are plans to develop a 10-story medical office building in the Museum District, with an expected groundbreaking date in February. The building will be the first phase of a greater development spanning three blocks east of Main Street.
Latest Leases Signed
Travel company TripActions has signed a 88K SF lease in Downtown Dallas to accommodate its growing Dallas workforce of 200 employees. Meanwhile, Tenna, a New Jersey-based construction technology company, recently expanded into Texas with a lease in Coppell. Meanwhile, Pipeline Packaging, an industrial container distributor, recently expanded their Houston-area operations with a 93K SF facility with warehouse and office space.
Upcoming Small Business and Real Estate Events
This section highlights a couple upcoming small business and real estate events to watch for in Austin and Houston.
On April 22-23, CREtech will hold an event at the Austin Convention Center. The two day event will feature renowned speakers, industry-leading startups, investors from around the world, and active developers, owners, and brokers to discuss commercial real estate tech. CREtech’s events regularly sell out, and are a must-attend for real estate professionals looking to network and learn about how technology is revolutionizing the CRE industry.
On Wed. Feb. 5, Small Business Connexion, a Houston-based Business and Professional network, will hold a networking event. The event will bring together professionals, entrepreneurs, small business owners, networking organizations, chambers, government entities, and educational institutions for a unique networking opportunity for local small business owners and professionals.