Happy Belated New Year!!! Although by the time this column is published we will be about three weeks or so into 2012, I still think sending you our best wishes at this time is very appropriate.
The start of a new year gives us the opportunity to reflect on the past year and set some goals for the next twelve months or even beyond. This month I will report to you on what the “experts” tell us 2012 will bring to the Texas commercial and industrial real estate business sector. More importantly, I’ll take what those “experts” are telling us and tie it what it means to those of us that live and do business in Copperas Cove.
Texas Real Estate Business is a magazine devoted to reporting news and events regarding ground-up projects as well as redevelopments and financing. This month Texas Real Estate magazine published the results of a November survey of commercial real estate insiders. Let me tell you right off that the results reflected a high level of optimism that things in Texas are already starting to get better. An example of that optimism is that 72% of the respondents that identify themselves as developers stated that they expect to break ground on new developments this year. More than 60% already have a development in the pipeline that will break ground in 2012.
So what are these projects that are already in the pipeline? Well, 27% are grocery and drug-anchored retail centers followed by single-tenant retail (22%) and multi-family (20%). Read on, I’ll come back to this a little later.
A good number of lenders responded to the survey and provided some very positive information. An overwhelming number (95%) of the respondents reported that in 2012 they would be more willing and able to lend funds for multi-family projects than they were in 2010 and 2011. Approximately 86 percent of the responding lenders stated they expect to close more loans in 2012 than in either 2010 or 2011. One of the lenders wrote that his firm would “continue to be conservative but much more active”.
So that is a quick snapshot of what seems to be the state’s emergence from the effects of the recession. The people that toil every day in the commercial real estate business have great and, we hope, well-founded reasons for expecting a strong recovery.
That is Texas. But what do all these facts and figures mean to us right here in Copperas Cove? Let me tell you. Because of the work of members of the Copperas Cove EDC Board of Directors (past and present), we are ready to ride the wave of optimism predicted by the “experts”. Copperas Cove is as well positioned as any community in Texas to take advantage of that strong economic recovery.
Very soon the Copperas Cove EDC will start work on the development of 70 acres of land on the south side of Old Copperas Cove Road. That development, currently called the Business and Technology Park will be built to welcome business. These businesses will bring good paying jobs and high capital investment to the community. Our focus will be on attracting businesses that fit within our already determined target industries.
We are working on helping develop a smaller piece of property that will house smaller sized businesses that are looking to expand or relocate. If things go well, this property will be “shovel ready” before the end of the year.
As the Southeast Bypass moves closer to reality, we will see positive change come to 190 and the businesses located on that corridor. I predict the renovations, new construction and a higher level of business activity will start this year.
And then there is Shops at Five Hills. The development of that retail center is sure to bring amazing economic change. I believe with the state’s economy improving, with lenders willing to loosen the purse strings and with the leadership that exists in this community we can expect a fast start to the development of this project.
I will check in with you as the year moves forward and keep you informed as to how right were those “experts”.
Polo Enriquez
Executive Director
Copperas Cove Economic Development Corporation