As Midland continues to experience significant growth, its industrial sector is quickly gaining attention from investors across the nation. Serving as the heart of the Permian Basin and a booming energy industry, Midland offers numerous advantages for those looking to invest in industrial real estate.
Here are the Top 5 reasons why this West Texas city is becoming a prime destination for industrial investment.
1. Thriving Energy Industry
Midland is located in the center of the Permian Basin, one of the largest and most productive oil fields in the world. The ongoing demand for oil and gas infrastructure has led to increased development of industrial spaces such as warehouses, storage facilities, and equipment yards. Investors can benefit from the sustained need for energy-related facilities, making Midland a reliable and lucrative market.
According to a recent June 2024 Texas Oil and Gas Production report by RailRoad Commission of Texas, Midland was the third highest county of natural gas production, coming in at 68,370,105 total gas production (natural gas production measured thousands cubic feet (MCF)).
2. Strategic Location
The Permian Basin encompasses parts of western Texas and southeastern New Mexico including dozens of cities and towns. Midland's central location within the Permian Basin makes it a critical hub for transportation, with access to major highways, railroads and airports, making it ideal for companies needing to move goods quickly.
Additionally, the presence of Interstate 20, which runs through Midland-Odessa and connects to the Dallas-Fort Worth area, enhances its appeal. I-20 frontage is a significant selling point for many businesses by offering direct access to both regional and national markets. This connectivity attracts industrial operations, particularly those looking to serve a wide customer base.
3. Economic Growth and Diversification
While Midland’s economy is energy-driven, recent efforts to diversify the local economy have led to growth in other sectors like manufacturing and construction. This diversification helps mitigate the risks associated with fluctuations in the oil and gas markets and provides new opportunities for industrial real estate development. Investors can capitalize on this broader economic expansion and the corresponding rise in demand for industrial facilities.
Midland has emerged as a frontrunner in economic growth, garnering recognition from institutions such as the Kenan Institute's American Growth Project. Projections have placed Midland as the fastest-growing economy among the 100 largest midsize cities in the U.S., surpassing urban cities like San Francisco.
4. Expedited Permitting and Development Processes
Midland's industrial sector benefits from streamlined permitting and development processes that can significantly reduce the time and cost of bringing new projects online. In a recent city council meeting held on Aug. 13, City of Midland Planning and Development Officer Elizabeth Triggs presented the city’s newly simplified process for permit reviews, saying that such permit processing timeline has decreased. This ensures that investors can move forward quickly without lengthy delays. In addition, the efficiency in handling permits and approvals not only speeds up the time to market but also minimizes the risks associated with project delays, making Midland a highly attractive option for industrial investments.
5. Supportive Business Environment
Midland boasts a business-friendly climate which helps investors easily navigate the local market and support workforce development and infrastructure improvements. The city's pro-development policies also allow local government and organizations such as Midland Development Corporation (MDC) and Permian Strategic Partnership (PSP) to support industrial growth through infrastructure improvements and workforce development programs.
The MDC incentives include job creation and skills training programs, as well as financial support for qualified businesses. Their involvement in infrastructure projects — such as collaborations with the Texas Department of Transportation — ensures better connectivity and growth potential for local businesses. For example, the MDC has invested millions in key road projects to enhance commercial activity and improve safety, which has caught the attention of investors.
The PSP on the other hand focuses on improving the overall quality of life in the Permian Basin. Through investments in education, healthcare, and infrastructure, the PSP ensures that Midland remains competitive and capable of sustaining its rapid economic growth.
This article is sponsored by NRG Realty Group. To learn more, visit their website.