TEXAS SNAPSHOT, MARCH 2009

Midland

Midland’s strong local banking community and conservative lending practices have helped the area fare a little better than other communities in Texas and the rest of the nation during this recession.

“We’re feeling the fallout of a national economy, not our local economy,” says Mike Hatley, vice president of economic development with Midland Development Corporation. “We’re still maintaining some very strong indicators locally, but we’re seeing some closures based on national events.”

As an oil- and gas-based economy, Midland has prospered. Up until recently, that sector had been performing very well, keeping the region strong. The hospitality market has seen a run-up in hotels as of late, but Hatley predicts that will curtail. Multifamily has come on strong in the last 12 to 18 months with three large apartment projects being completed.

“We had a very slim supply of housing in Midland and Odessa, but the market is adjusting,” Hatley says.

On the retail side, smaller retailers like CVS/pharmacy and Walgreen’s are showing interested in Midland, and retail sales were up 25 percent last December compared to the previous year, which bodes well for this sector.

“I think there is some pent-up demand in the retail sector,” Hatley says. “High-end retail is an area that would have some success. There have been some people who have said that we need more specialized grocery; that would do well here.”

Midland’s downtown district is ripe for redevelopment. Hotels, urban residential and boutique retail stores are beginning to come into the central business district, and Hatley believes there are many high-rises that would provide perfect opportunities for more of these types of properties.

Overall, Midland is holding up in the face of the national recession, and opportunities abound.

— Mike Hatley is vice president of economic development with Midland Development Corporation.

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