Republican donor Ross Perot Jr. has a plan to buffer President Donald Trump’s trade policies.
Perot, Chairman of real estate development firm Hillwood Investment Properties, is considering adding a clause in development contracts to account for the possibility of rising construction costs tied to Trump’s proposed tariffs on steel, aluminum and other imported goods, the Dallas Morning News reported.
By introducing this “tariff line” in contracts, the industrial real estate heavy hitter would offer clients a baseline price for industrial developments and an adjusted price should tariffs raise the cost of materials, providing more flexibility in the face of unpredictable global markets.
While tariffs are a primary concern for the billionaire, Perot is also keeping a close watch on the impact of the political climate, particularly regarding immigration.
The construction industry in Texas is largely dependent on immigrant labor, and changes to immigration regulations could lead to work shortages in the sector, according to a study co-led by the American Immigration Council. The study found that immigrants comprise nearly 40 percent of the state’s construction workforce.
“We need that labor to keep up with demand,” Perot said. “The immigration policy will play a significant role in our ability to deliver projects on time.”
Perot remains bullish on the Texas economy, particularly in North Texas. The Dallas-Fort Worth industrial market recorded nearly 4.1 million square feet of net absorption in the fourth quarter, according to CBRE. Industrial vacancies stood at 9.8 percent, with the warehouse segment reaching 11.1 percent.
Deliveries during the quarter reached almost 3.3 million square feet, with nearly 25 percent of that space pre-leased. The construction pipeline at the end of last year totaled 10.8 million square feet.
Hillwood is working with Hunt Realty to develop Goldman Sachs’ 815,000-square-foot regional campus north of downtown Dallas. Perot’s firm is also overseeing the expansion of AllianceTexas, a 27,000-acre master-planned development in north Fort Worth.
Hillwood recently sold the 1 million-square-foot Commerce 20 industrial complex in southern Dallas to MDH Partners. The complex serves as a key logistics and distribution hub in the Dallas area. The purchase was completed as part of a broader $1 billion spending spree by MDH.
— Andrew Terrell
Read more
Jerry Jones’ Blue Star Land adds to Prosper megaproject
Westmount bullish on suburban industrial with portfolio buy
Realterm buys Brookfield industrial portfolio for $277M
