Every business man and woman wants to know what 2018 will bring for the Lone star state and its major industries. The international Council of shopping centers 7th annual Texas retail forecast focused on the State’s outlook for 2018 and other industrial trends throughout the region affecting the retail sector. The keynote speaker was James Gaines, chief economist with the Real estate sector at the Texas A&M university. Gaines offered insight on topics ranging from the recent Tax cuts and Jobs Act of 2017 to what’s happening in the housing market, to the Texas economy.
When talking about the Tax cuts, Gaines pointed out that the corporate tax rate is getting the most attention especially from small businesses. Pass-through provisions could also impact real estate entities, with a possible C corporation conversion rush for the taxation pass-through advantage. He was skeptical about the time frame that will take to figure this out and stated that it could take from six months to a year.
The housing industry, according to him was ‘somewhat recovered’. A decade after the great recession, housing, as stated by him wasn’t all the way restored to its original state. When talking about interest rates, he said that the government will most likely continue to raise them despite the state of the GDP and inflation rate.
Coming to the Texas economy, he proclaimed that it did well in 2017 in spite of the hurdles that were faced during the year. He explained that the Texas economy was booming due to the oil and energy sector. Even though there was a drop-in oil prices, the issue did not have as big of an impact due to rising demand for energy from abroad.
As a result, Gaines said the Texas forecast is for 4.1% growth in 2018, versus the 2.9% growth forecast for the United States. “While the United States will do better in 2018,” he added, “Texas will do even better.”
Follow us on social media to learn more about industrial trends within the Texas region.