For this Field Note, we wanted to share some perspective on a question we are asked frequently, particularly by investors outside the state — why we continue to concentrate so much of our activity in Texas.
The short answer is that the long-term fundamentals that originally attracted us to these markets are still in place, and in many ways have become even stronger over the past several years.
Texas continues to see steady population growth, driven by job creation, business relocations, and relatively affordable housing compared to many other parts of the country. While growth has slowed at times, the overall trend has remained consistent across multiple economic cycles. That type of steady in-migration tends to support the kinds of assets we focus on, particularly self-storage, industrial, and other land-driven developments located in expanding suburban corridors.
Another factor we continue to value is the ability to build. In many markets across the country, entitlement timelines, zoning restrictions, and regulatory uncertainty can make development difficult to predict. Texas is not without its challenges, but in general we have found that projects can still move forward within a reasonable timeframe, especially in suburban areas where local communities are supportive of growth.
Infrastructure investment has also played an important role. As highways expand and new residential communities move outward, demand tends to follow the same path. Many of the locations where we have developed projects over the past decade were considered outer suburbs at the time, but have since become established submarkets as rooftops, retail, and schools have filled in around them.
We also believe the diversity of the Texas economy has become more evident in recent years. While energy remains important, job growth has come from a wide range of industries, including technology, manufacturing, logistics, and professional services. This broader base of employment tends to produce more stable demand for the types of properties we own.
From an investment standpoint, concentrating in one region requires discipline, but it can also create advantages. Over time, we have built relationships with brokers, contractors, lenders, and local municipalities that help us identify opportunities earlier and move more efficiently when projects make sense. In our experience, that local knowledge can be just as valuable as trying to cover a larger number of markets.
No market is perfect, and Texas will go through slow periods just like every other state. However, when we look at long-term population trends, business activity, and the ability to develop new projects, we continue to believe the suburban Texas markets where we operate offer some of the most attractive opportunities for the types of investments we pursue.
For that reason, our strategy remains largely the same as it has been for many years — focus on growth corridors, control well-located land, and hold long enough for the underlying fundamentals to work in our favor.
