2014 Economic Forecast: Mike Berry President Hillwood Properties, October 25, 2013

1. Strategic Advantages
2014 Economic Forecast
Mike Berry
President
Hillwood Properties

2. Strategic Advantages

3. Strategic Advantages
2014 Economic Forecast: Year of the Rebound?
Presented by Mike Berry
President, Hillwood Properties
November
6,
2013
October 25,2013

4. Regional Growth Trends
Strategic Advantages
D/FW METROPLEX
§ Fourth-largest population center nationally with
approximately 6.5 million residents
§ Metroplex workforce is approximately 3 million
§ Projected 1.5 to 2.0 million in population growth over next
decade.
§ Fifth-largest metropolitan economy in the United States with a
$401 billion GDP that outpaces Venezuela, Thailand and
Denmark (Source: IHS Global Insight)
§ $15 billion of highway construction underway in North Texas

5. Real Estate Growth Trends
Strategic Advantages
MULTIFAMILY SECTOR
Multifamily
Existing Units
3Q12
3Q13
% Change
649,164
662,037
1.98%
Vacancy
6.20%
5.60%
-9.68%
New Deliveries (Units)
6,501
12,873
98.02%
10,146
15,934
57.05%
Absorption (Units)

6. Real Estate Growth Trends
Strategic Advantages
OFFICE SECTOR
Office
3Q12
3Q13
% Change
Existing SF
339,072,504
340,691,359
.48%
Vacancy
16.00%
15.00%
-6.25%
New Deliveries YTD (SF)
1,423,592
1,963,800
37.95%
Absorption (SF)
2,456,693
3,875,388
57.75%

7. Real Estate Growth Trends
Strategic Advantages
RETAIL SECTOR
Retail
3Q12
3Q13
% Change
Existing SF
372,074,288
374,543,184
0.66%
Vacancy
8.40%
7.60%
-9.52%
New Deliveries YTD (SF)
1,854,426
1,877,493
1.24%
Absorption (SF)
3,436,903
3,411,436
-0.74%

8. Real Estate Growth Trends
Strategic Advantages
INDUSTRIAL/MANUFACTURING SECTOR
Industrial
3Q12
3Q13
Existing SF
779,028,445
782,778,360
0.48%
Vacancy
8.80%
7.80%
-11.36%
372,322
2,089,793
461.29%
8,574,106
7,382,427
-13.90%
New Deliveries YTD (SF)
Absorption (SF)
% Change

9. Fast Growing Submarkets
Strategic Advantages

10. Overview
18,000 ACRES, MASTER PLANNED – 35,000 JOBS
Denton
20 min.
DFW
Airport
20 min.
FW CBD
20 min.!

11. Overview
Strategic Advantages
ECONOMIC ENGINE TO NORTH TEXAS
DEVELOPMENT STATISTICS
§ $7.71 billion invested
§ $43.74 billion economic impact
§ 32.7 million+ SF developed
§ 344 corporate residents
§ 65 companies listed on the Fortune 500,
Global 500 or Forbes’ Top List of Private Firms
§ 35,000+ employees
§ Fastest growing area of the nation’s fastest
growing metropolitan city (500,000+)
§ Population of 1.5 million within 15 miles of
Fort Worth Alliance Airport
AllianceTexas Corporate Base

12. Alliance Gateway
Strategic Advantages
17 MILLION SQUARE FEET DEVELOPED

13. Alliance Center
Strategic Advantages
3.6 MILLION SQUARE FEET DEVELOPED

14. Westport at Alliance
Strategic Advantages
5 MILLION SQUARE FEET DEVELOPED
Photo Date 6.28.13

15. ALLIANCE TOWN CENTER – MASTER DEVELOPMENT PLAN

16. Alliance Town Center
1.4 MILLION SQUARE FEET DEVELOPED
The
Boardroom
Salon for Men
FIVE GUYS
®
BURGERS and FRIES

17. Alliance Town Center
Strategic Advantages
ALLIANCE TOWN CENTER NORTH
Hillwood Commons I

18. Corporate Residents
Strategic Advantages
INDUSTRY CLUSTERS
Automotive
Aerospace/
Aviation
Logistics
Electronics
Pharmaceutical/
Health Care
Consumer
Goods/ Services

19. New Growth
Strategic Advantages
1.1M SF
2,000 Jobs
E-Commerce Fulfillment
788,000 SF
1,000 Jobs
E-Commerce Fulfillment
1.3M SF
500 Jobs
Manufacturing
445,000
2,000 Jobs
Manufacturing

20. Impact of the Panama Canal
Strategic Advantages
WHAT WILL IT MEAN FOR TEXAS?
§ Expansion delayed until 2015
§ Port of Houston well-positioned
§ Potential for North Texas growth due to inland
port capabilities
§ Strong potential for more export; specifically
energy section

21. Other Things to Watch
Strategic Advantages
§ Constitutional Amendments – Proposition 6 Water
§ Transportation Funding Initiatives – November 2014
§ Continued Growth of E-Commerce Fulfillment Activity
§ Continued Growth of Manufacturing Activity

22. Strategic Advantages
2014 Economic Forecast: Year of the Rebound?
Presented by Mike Berry
President, Hillwood Properties
November
6,
2013
October 25,2013