Photos and video / Briggs Freeman Sotheby’s International Realty
With falling oil prices, investors are betting it will be an opportune time to buy Texas ranchland, according to a report by the New York Times.
Jay Ellis of Dallas-based Sporting Ranch Capital is raising $100 million from investors to buy “trophy ranches” that owners want to sell “quickly and quietly” – as their personal portfolios fluctuate with the price of oil.
Robinson Creek Ranch | Lipan, TX
Briggs Freeman Sotheby’s International Realty’s David Burgher said that, although Texas land prices historically have followed oil prices, the relationship might not be as closely related nowadays.
Here’s what Burgher told the New York Times:
Statewide land prices increased 79 percent from 2004 to 2008. After a 6 percent decline in 2009 — oil dipped below $40 a barrel during the financial crisis — land prices kept rising, increasing 31 percent from 2010 to 2014.
“There were a lot of people after 2008 betting it would be like the 1980s. That never happened,” said David Burgher, a broker associate with the Ranch & Land Division of Briggs Freeman Sotheby’s International Realty. “I think people have gotten smarter and not knee-jerking.”
The Texas economy also appears to be more diversified. A 2015 report by the Federal Reserve Bank of Dallas estimates that, as of 2013, oil and gas accounted for roughly 13 percent of the income generated in the state but only 2.5 percent of the jobs. Although a drop in oil prices has affected job growth — Texas will lag the nation for the first time this century — more than a million jobs have been created across all sectors since 2012.
“Strong oil prices didn’t hurt, but it’s not the only thing driving prices,” said Mr. Burgher, who said he had not seen a significant decline in land prices.
Click here to read the full article. Explore more Texas ranches here:
Valhalla Farm | Cameron, TX
Hartlee Field Ranch | Denton, TX
16155 Highway 377 South | Fort Worth, TX
President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with offices in Dallas, Fort Worth, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.