Mike Geisler: All Signs Point to Texas

Apr 23, 2013

D Real Estate Daily - April 23, 2013

Over the last two months I have had a number of experiences that add up to some strong signals about the great state of Texas.

First, over our kids' spring break, we visited colleges. We would meet other families and, as we would get to know them, comments would come up about people moving to Texas. It happened about six times over three days!

Then, while having lunch at a restaurant in Alabama, the owner told us he is looking in Dallas-Fort Worth to open a second location. He expressed awe over the health of our economy and the suburbs' willingness to provide some assistance.

While driving to another college, I turned on the radio and was listening to Dave Ramsey. There was a caller from Cincinnati who has a good job but had no ties to Ohio and wanted to move to Texas. He said he was tired of the "brokenness" of the city and state in which he lives. And I continue to see more about people from California moving this way.

I am amazed that these signals keep coming.

Why are these people moving? Is it the lure of Texas and what it has to offer, or is it the brokenness they're experiencing in their respective states?

You see, I think it takes a lot to get people to move. They probably have family and friends and "roots" of some kind where they are. My guess is that people have been very loyal to the place of their roots, but now things are at a tipping point.

Things look very broken in some areas, and they do not appear to be improving. Many cities run with huge deficits, but they are still operating. They continue to tax more and more. When will these cities break? And why are all the signs pointing to Texas?

- Mike Geisler is co-founder of Venture Commercial Real Estate