Past, Present & Future

Real Estate

BOOM!

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

1980 1990 2000 2010

San Antonio (Bexar County) McAllen Metro

Paralleled Growth

U.S. Census Bureau

Services & Infrastructure Stressed

―Push‖ ―Pull‖ effect

Labor Force:

Large, Young & Trainable

McAllen Chamber of Commerce

55%47%

37.90%34.20%

10%

20%

30%

40%

50%

60%

Mexico RGV Texas United States

47% of Population under 25 of

Age (2008)

Projected Job Growth

AgribusinessRetail

Medical Community

Foreign Trade Zone

Tourism

What drives our economy?

Multi-Faceted Economy

Agribusiness

Retail Mecca

Strategic Location

Foreign Trade ZoneWhat the FTZ offers:

• 775 Acre Industrial Park

Warehousing & Storage

Low Cost manufacturing

$1.3 Billion in products handled

annually

Medical CommunityOnly Sector Showing Significant Growth!

Rio Grande Regional –Increased Size: 200 to 320 beds., Doubling size of

hospital, Increased Trauma Service to Level 3. Only hospital in the Valley

offering pediatric cardiovascular care.

Doctors Hospital at Renaissance- Bringing the latest technology in CAT

scanners, MRI devices and cardiac catheterization to our area.

McAllen Medical Center- Opened area’s only kidney transplant program.

Mission Regional Medical Center – Expanded Neonatal ICU and added

S.A.F.E Place (Sexual Assault Forensic Unit)

Tourism

Birding Center

9 Sites along a 120 mile corridor (SPI to Roma)

Over 500 species migrate through the Valley

26 species specific to the Valley

Ecotourism boosts economy

South Padre Island

Beautiful beaches, deep sea fishing, dolphin watching, parasailing,

fine dining, shopping & an array of events and activities guaranteed

to delight everyone.

Mexico

Recent reports of civil unrest and drug violence have created a

negative perception of our area. If the conditions in Mexico do not

improve, it could have a long-term negative impact on our economy.

Perception vs. Reality Media Driven

5 state dilemma lead to a global crisis

Bad Lending Practices

Old vs. New

“Economic policy can result from governmental inaction as well as governmental action.”-John F. Kennedy

TARP

Money

Abused

Too Big

To Fail

Mentality

CREDIT FREEZE

Economic Cycle’s

CONTRACTION

RECESSION

EXPANSION

5-7 Years

RGV

McAllen MSA ranked one of the top 100 Leading Locations for

doing Business in 2011

- Area Development Magazine, 2011

Brookings Metro Monitor

McAllen MSA ranks among Top 20 Strongest Metros in the US

March 2011 — Metro Monitor: Tracking Economic Recession and Recovery

in America’s 100 Largest Metropolitan Areas

McAllen ranked No. 1 mid-market cities for the top emerging

restaurant markets & restaurant expansions the U.S.- QSR magazine, 2011

Quick Service Restaurant

La Plaza Mall

Simon Owned

Top Sales-Producing Retail Mall in Nation

Avg. $650/psf sales

1,203,000 sf

Macy's, Dillard's(#1 in nation), JCPenney, Sears, Joe Brand

Palms CrossingExpwy. 83 & Ware Rd.

100% Community & Lifestyle Center

322,000 sf development

Bealls, Chocolate Factory, Cavenders,

PF Chang’s

The Shoppes at Rio Grande

EDINBURG 1.1 million sf

open-air center on 130 acres

$80 million development, $90 million economic impact

JC Penny, TJ Maxx, Academy (just added 90,000 sf)

―Information is

the currency of democracy.‖-Thomas Jefferson

Rapid Response Center280-acre research & educational park

Mind to market in 30 days

Creating a Culture of Innovation!

Creates Competitive Advantage

The New Silicon Valley!

Santana Denim Plant“Welcome to Denimburg!”

$180 million denim-manufacturing plant

23-acre site along U.S. Expressway 281

Will create an estimated 800 new jobs by 2015

and 3,200 indirect jobs to Valley suppliers

Will pump millions of dollars into local economy

McAllen MSA

0

500

1000

1500

2000

2500

3000

2006 2007 2008 2009 2010 2011

25792714

25652465

2335

1180

Total Units Sold - YTD

115

130

145

160

2006 2007 2008 2009 2010 2011

138

143

147 148 147 146

Avg. Days on Market - YTD

0

25000

50000

75000

100000

125000

150000

2006 2007 2008 2009 2010 2011

$128,990 $129,690$122,617 $119,525

$124,751 $126,446

Average Sold Price - YTD

0

50

100

150

200

250

300

350

400

2006 2007 2008 2009 2010 2011

$333$351

$313$294 $298

$148

Total Sold Dollar Volume - YTDIn Millions

Housing Starts

Jumpstart Economy

Pre-Construction

• Title Companies

• Mortgage Co.

• Insurance Co.

• Contractors

• Realtors

• Attorneys

• Engineers

• Surveyors

• Architects

• CPA’s

• Bankers

Construction• Plumbers

• Electricians

• Painters

• Brick Layers

• Carpenters

• Inspectors

• Appraisers

• Lumber

• Brick

• Flooring

• Concrete

Post Construction• Furniture

• Appliances

• Electronics

• Landscapers

• Hardware

• Window Coverings

• Security System

• Interior Decorators

• Home Entertainment

• Pool Maintenance

• Sprinkler Company

Valley Resourcefulness

• Continued Job & Population Growth

• Emergence of New Innovations

• Construction Expansion

• Increased Presence in Global Economy

CHARLES MARINA, CCIM, CRB, GRI

First American Realty Co.3827 N. 10th St. Suite 105

McAllen, TX 78501

(956) 682-3000

Email: cmarina@firstamrlty.com

Website: www.FirstAmericanRealty.com

http://www.facebook.com/chasmar1

http://twitter.com/FarcRGV

http://www.linkedin.com/in/cmarina37