Toyota recently celebrated its move to Plano, Texas, a suburb of Dallas-Fort Worth, and residents of the area are excited about the boost the auto manufacturer will bring to the local economy. The company plans to open its new U.S. headquarters in Plano in 2018. With major auto manufacturers like Toyota moving to the Dallas-Fort Worth metropolitan area, real estate investors looking at future growth should consider purchasing Dallas investment properties to prepare for the influx of new residents and higher housing demand near the area.
Economic impact of Toyota’s move
Accounting and consulting firm Grant Thornton predicts that by making its new home in Plano, Toyota could add $7.2 billion to the city’s economy, which includes creating thousands of jobs in and out of the auto sector, over the next 10 years, CBS affiliate DFW reported. In addition to the 3,650 full-time employees Toyota will have at its headquarters when it opens in 2018, up to 1,400 jobs in health care, food services and other industries may also be generated due to the automaker’s presence.
Plano drew the company after Toyota received millions of dollars in incentives and tax breaks, KDFW reported. Toyota threw a party for the area and local residents also have something to celebrate as it means more businesses in the Dallas-Fort Worth suburb.
“The people here have been just phenomenal,” said Steven Curtis, vice president of corporate communications for Toyota in the U.S. “They’ve just given us an incredibly warm welcome and that’s part of the reason why we’re throwing this Hello Texas party is to say thank to you [for] all their support.”
Influx of new residents heading to Plano
Autoblog reported that in addition to receiving a substantial amount of incentives from the city of Plano, Toyota decided on the North Texas city because of the surrounding area’s low cost of living. According to a statement from Toyota, the company plans to relocate thousands of workers currently at Toyota facilities in California, Kentucky and New York. The auto maker said the move will help consolidate manufacturing, sales and other operations in one central location.
“With our major North American business affiliates and leaders together in one location for the first time, we will be better equipped to speed decision making, share best practices, and leverage the combined strength of our employees,” said Jim Lentz, Toyota’s first chief executive officer for the North America Region. “This, in turn, will strengthen our ability to put customers first and to continue making great products that exceed their expectations.”
As Toyota plans its move to Plano, real estate investors could consider buying properties in the Dallas-Fort Worth area to accommodate the Toyota workers moving to the region. Demand will likely increase as Toyota progresses in relocating workers and generating more positions to staff its new headquarters. It’s also possible that related-sector jobs may drive demand as well, decreasing the supply of existing options. To cash in on this demand, investors could partner with a real estate investment firm knowledgeable about the Dallas housing market to select the best properties.