Less dire, yes, but out of habit we'll start with the bad news. In Texas, Bob says, deterioration of the state’s fiscal health will be a big issue, as sales tax revenues are down. Numbers show a mixed picture that the corner is being turned, but it’s not enough traction that recovery is certain. He says that won't happen this year. Commercial building starts were down 55%  from 2008 to 2009. Yet, some bright spots include the $300 million Dallas Convention Center Hotel project that started this year.

McGraw-Hill economist Jennifer Coskren says Texas commercial construction was the poster child for a very bad 2009. She’s not expecting a repeat of the 80s (though we just read that Pee-wee Herman is making a comeback, so, let's check our facts), but property values, rents, and vacancies are not expected to make a comeback until 2011, at the earliest. Office was hit hardest, with construction sliding and Dallas vacancy creeping up to 22%.

More points a la Jennifer:

• Infrastructure looks to remain strong: Projects from the Recovery Act and the state’s Proposition 12 bond funding, plus projects from the public/private North Tarrant Express, will get started this year. 
  

• Recovery is not going to be uniform: Housing will recover, while multifamily doesn’t look good. Forget about commercial construction in '10 and don’t count on manufacturing either. 
  

• Place your bets on education and healthcare. Expect a healthcare increase in 2010, as the new Parkland Hospital gets underway. A few hours south, Fort Hood will replace its hospital this year, too.