2008-06-30 23:45:11 -

- The Texas economy has avoided most of the nation's recessionary trends. The Lone Star State is showing strong job growth, population gains and a resilient real estate market, according to Lewis Realty Advisors, one of the oldest and most respected Texas-based real estate valuation and consulting firms.

"Texas is not completely immune to the national economic downturn. But

we continue to see positive trends in real estate and in the overall economy," said David M. Lewis, founder of the Houston-based firm.

"Houston, Austin, Dallas/Fort Worth, and San Antonio are the top four gainers in job growth in the nation. Those four cities are also in the nation's top 10 for population growth," Lewis stated. "When Texas cities dominate the national economic statistics, it signifies that Texas real property is significantly outperforming other regions."

The strength of Texas' economy has been supported by healthcare, education and technology; however, the energy sector continues to drive the marketplace. The domestic energy rig count, which measures oil and gas drilling, is at its highest point since 1985. Significant expansion is underway by Texas energy companies and manufacturers of oilfield equipment. Demand increased for office and industrial space due to the energy explosion.

"North Texas has been energized by the phenomenal Barnett Shale, one of the largest natural gas fields in the nation," said Mark Sikes, co-managing partner of Lewis Realty Advisors, which is very active in the region. "Higher energy prices and technological improvements in recovery methods made the Barnett Shale a hot spot for drilling near Fort Worth."

"Downtown Fort Worth registered noteworthy improvements in its office market," Sikes said. "Fort Worth gained several major expansions by energy firms, including XTO Energy and Chesapeake Energy, which recently spent $104 million to purchase a 467,000-square-foot office building."

With the energy surge, the Houston office market has seen rising rents, encouraging developers to start new office buildings, including the first office towers constructed in downtown in years.

Urban residential condominium towers are under development in Dallas, Austin, Houston and elsewhere, providing density that encourages infill retail and restaurant openings.

The residential markets in Texas have slowed slightly due to the subprime lending shake-out. However, home prices have held steady in Texas. The median home price in Houston was $155,000 in May, unchanged from a year earlier. By contrast, the national median home price declined 8 percent.

"Most Texas home builders have reduced new construction and prices for residential development acreage softened. But prices for urban infill parcels are strong and in high demand for residential use," Lewis noted.

ABOUT LEWIS REALTY ADVISORS: Lewis Realty Advisors is a Texas-based company that has been providing real property appraisal, consulting and commercial development services for almost 50 years. The firm has assisted private property owners and governmental agencies in litigation for eminent domain, environmental contamination, construction and title defects, taxation and foreclosure litigation. www.lewisrealty.com

Lewis Realty Advisors
Mark Sikes, 713-461-1466