From one of the most profitable times in American history to one of the deepest recessions on record, the pendulum of retail has swung from extraordinary productivity to serious caution and now back to stability. As the stock market posts gains, and the employment picture stabilizes, new data suggests that consumers are clearly increasing their spending.

Looking forward, the job and credit markets remain the primary challenges affecting our market, and there is no question that the national economy and financial markets will continue to present significant issues for every business. That understood, we are very fortunate to be based in Texas. With offices in Dallas, Houston and San Antonio, our major markets continue to rank among the top US MSA’s for both performance and projected retail sales growth. Additionally, we expect that Texas and the surrounding states will continue to hold up much better than the rest of the country, and our activity continues to pick up measurably. The DFW and Houston regions are projected to see continued growth in population and job creation, and the retail markets are still two of the strongest in the country, due to a diverse and steady economy. Dallas is projected to surpass Houston by 2020 as the 4th largest MSA in the U.S.

The Texas unemployment was 8.3 percent in May, and the rate for the Dallas-Fort Worth-Arlington submarket fell to 8.1 percent, down from 8.4 percent, according to the Texas Workforce Commission. Overall, on a seasonally-adjusted basis, the state of Texas has an unemployment rate of 8.3 percent and the state continues to be in a significantly better position than the nation’s 9.5 percent unemployment rate. Stabilizing assets and capturing market share remain the top priorities for our industry and our company. We are seeing the better centers perform extremely well and generally hold their rents as retailers upgrade their locations. At the same time, we are seeing continued downward pressure on rents in secondary real estate and expect this will continue until supply and demand swing back into balance. Contributing to stabilization in the market is certainly the fact that little to no new development is being initiated. All of this is driven by the consumer who is feeling better about the economy, and as a result, is starting to spend again.

To put all into perspective, in 2006, the International Council of Shopping Centers recorded a 4.8 percent annual increase in same-store sales. By 2009, same-store sales had fallen to a record low of -1.9 percent. Recent data tells us that for the first time in almost two years, people feel more certain of their future. Whether they will continue to spend with enthusiasm in the coming months will depend in large part on the jobs situation and the housing market, both of which are showing positive signs.

As with any cycle, there will be winners and losers. Walmart, Target and Best Buy ramped up certain merchandising categories immediately upon the demise of Circuit City. Similarly, Bed Bath and Beyond added new stores and customers as a result of the closing of Linens N Things. More so than ever, the consumer is looking for quality and value. Early on, TRC recognized the importance of expanding our relationships with value-oriented retailers such as JoAnn’s, Nordstrom Rack, Famous Footwear, Dollar General and Charming Charlie. Such recognition is leading to tremendous results.

The Retail Connection is always looking for ways to maximize opportunities for our clients, helping to influence and expand their platforms. Planning and implementing growth strategies to develop new markets and expand their businesses is our main objective.

One of the most important keys to success in our business is the ability to structure solutions that others do not see, which leads to accomplishing results that others do not achieve. We continue to leverage our unique advantages to the fullest, to make the connection at every point where retail and real estate come together, delivering all the related, end-to-end services that provide meaningful value to our clients. We have remained focused on our team, and we make sure we maximize every resource and opportunity related to their businesses. We have intensified our focus on outcomes and accountability, we have added manpower, grown our project, tenant rep, and investment teams, added a property management division, expanded the geography we cover, and continue to gain market share. As always, we remain extremely appreciative of all of our clients and exceptional relationships.