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RECON for November 17, 2017RECON for November 17, 2017Bryan PopePope
2017-11-17T06:00:00Z2017-11-17T06:00:00Z

Real Estate Center Online News
Commercial Real Estate Course agenda
Around 80 people attended the Center's 21st Annual Commercial Real Estate Course this week at the Norris Conference Center in Houston. The course covered a range of topics from demographics and infrastructure to logistics and legal information. (Photo by Center Graphic Designer Alden DeMoss.)
November 17, 2017

El Paso approves 26-story downtown tower

​​EL PASO (El Paso Inc.) – The city council has approved plans for a 26-story downtown tower.

The building will be on the 1.5-acre city hall parking lot​​ at Mills Ave. and Campbell St. It will include 360 luxury apartment and hotel units, 35,000 sf of retail, and 1,104 parking spots, 700 of which will be owned by the city.

The Meyers Group and II Sabes are the developers. 
Woman reading in self-driving vehicle.
How could self-driving vehicle technology impact real estate markets? Transwestern suspects the industrial sector could be the most affected. More in this week's Mixed-Use Blog post.

641,226-sf TTI headquarters delivers

​​​​​FORT WORTH (REBusiness Online) – Bob Moore Construction Inc. has completed a 641,226-sf facility for TTI Inc.

The facility at 3737 Meacham Blvd., within the Mercantile Center, features a tilt-wall configuration and 38 loading docks.

Work started on the property in June 2016. ​
Real Estate Red Zone logoA lot of new things are in the works around the Real Estate Center: social media videos, webinars, calendar giveaways. Tune in to this week's Real Estate Red Zone to learn more about them. You'll also get real estate headlines from Brookshire, Port Lavaca, San Antonio, Missouri City, Seguin, and Midland. (15 min. 10 sec.) 

PAC affiliate buys office from USAA

SAN ANTONIO (Connect Media) – ​​Preferred Office Properties LLC, a subsidiary of Preferred Apartment Communities Ltd., has purchased a two-building office property from USAA Real Estate Corp.

The 258,000-sf Westridge at La Cantera delivered in 2015 and 2016 at 15935 La Cantera Pkwy. It is fully leased to tenants including USAA and Harland Clarke Holdings Corp.

​The buyer financed the acquisition with a $54.4 million first mortgage loan through Allianz Real Estate of America LLC.
Houston skyline at night.
The Center is working on a commercial real estate report that will present forward-looking insights and opinions regarding rents, vacancy, new construction, employment, and net absorption. Read more about the upcoming report on our website.

City Base Landing sold

​​​SAN ANTONIO (Holliday Fenoglio Fowler) – MIMCO Inc. has purchased City Base Landing, a 201,426-sf shopping center within the 1,300-acre Brooks City Base. 

Completed in 2005, the retail center is on just over 22 acres at 3326 SE Military Dr. ​It has eight multitenant and four individual buildings. 

Tenants include Best Buy, Office Depot, Chili's, Jo-Ann Fabric and Craft, Starbucks, Chick-fil-A, Mattress Firm, Cato, and Anytime Fitness. 

HFF marketed the property on behalf of the seller. ​

Developers start on Ashley Furniture distribution center

​​MESQUITE (REBusiness Online) – ​​Illinois-based FCL Builders Inc. has broken ground on an 877,230-sf distribution center for Ashley Furniture.

The facility at 4000 E. Scyene Rd. will create 170 new jobs. 

Completion is slated for September 2018. 
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Tenants move into Transwestern's first Houston apartment complex

​​​HOUSTON (Realty News Report) – The first tenants have moved into The Hayworth, Transwestern Development's new multifamily project.

The 246-unit, eight-story luxury community is at 1414 Wood Hollow Dr.  

The Hayworth offers one- to three-bedroom floor plans ranging from 934 to 2,324 sf. Ten townhomes starting at 1,986 sf will be available next year.

This is Transwestern's first multifamily development in the city. 

Helping Texans make better real estate decisions since 1971

California investor picks up Northgate Plaza 

​​​​WAXAHACHIE (Strive) – Northgate Plaza, a 196,006-sf retail property on 18.6 acres, has been sold.

Strive marketed the property on behalf of the seller, an investor from California. Another Golden State investor purchased the 88 percent-occupied property.  ​​

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If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

Stream breaks ground on Houston industrial

​HOUSTON (Houston Business Journal) – Stream Realty Partners has broken ground on Northwest Logistics Center.

The 411,442-sf distribution center will be on 26 acres ​​off N. Eldridge Pkwy. It's expected to deliver in June. 

Empire Central office complex sold

​​DALLAS (REBusiness Online) – ​​​​​Peewit Partners LP has purchased Empire Central, a two-building, 161,000-sf office​​ complex.

The Class B property was built in 1981 at 1430 and 1440 Empire Central Dr.

Colliers International brokered the sale. ​​

Cows graze near a lake in rural Texas.
In third quarter 2017, Texas land markets recorded the lowest year-over-year price increases since fourth quarter 2015. Research Economist Dr. Charles Gilliland and Research Assistant Tian Su have more in the latest Texas land markets report. Read it here.

Stewart Title subleases over 156,000 sf

​​HOUSTON (Houston Business Journal) – Locally based Stewart Title has subleased 156,151 sf in BHP Billiton's former ​​Uptown tower​.

The company ​will move into floors ten through 17 at 1360 Post Oak Blvd. in mid-2019. The space will revert to direct space when BHP's lease expires in 2025.

Cushman & Wakefield represented BHP, and CBRE represented Stewart Title.

Multifamily project starts near Music Factory

​​IRVING (Dallas Morning News) – ​​JPI is developing the 387-unit Jefferson Promenade near the Toyota Music Factory. 

The four-story apartment project, designed by O'Brien Architects, will be near Northwest Hwy. and Las Colinas Blvd. 
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

DIJ buys two San Antonio apartments

​​​​SAN ANTONIO (REBusiness Online) – ​​​DIJ Properties has acquired two apartment properties totaling 678 units.

The 546-unit Wood Hollow Apartments and the 132-unit Sunny Glen Apartments are both on the 10000 block of Sahara St. 

The buyer will make capital improvements to both properties. 

Shops at Stonebriar changes hands

​​​​FRISCO (Strive) – Shops at Stonebriar, a 187,767-sf retail center at the southwest corner of Preston Rd. and Gaylord Pkwy., has been sold.

The Class A property was 98 percent occupied at the time of sale. Tenants include Toys R Us, Babies R ​​Us, Patel Brothers, Sun & Ski, Casual Male XL, and Fuddruckers.

Strive sold the property on behalf of a California partnership. 

Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=126
RECON for November 14, 2017RECON for November 14, 2017Bryan PopePope
2017-11-14T06:00:00Z2017-11-14T06:00:00Z

Real Estate Center Online News
Mark IV Capital will develop The District, a $200 million mixed-use project on 65 acres in Round Rock. Get the details on this story and more in today's RECON. (Rendering from Round Rock Chamber of Commerce.)
November 14, 2017

Four Texas cities top list of largest price growth

​SANTA CLARA, Calif. (Realtor.com)– Four Texas metros have topped Realtor.com's list of markets with the largest price appreciation since 2006. 

Austin-Round Rock took the top spot with 62.9 percent home price growth in ten years. In 2006, the metro's median home price was $173,510, jumping to $282,625 in 2016. 

Dallas-Fort Worth-Arlington (51.6 percent), San Antonio-New Braunfels (45.9 percent), and Houston-The Woodlands-Sugar Land (45.5 percent) ranked third, fourth, and fifth, respectively.

The only metro outside of Texas landing in the top five was No. 2 Denver-Aurora-Lakewood with 53.5 percent growth. 

Nationally, the median home price increased from $232,000 in 2006 to $236,000 last year. 

While home prices have returned to the boom levels of a decade ago, there are no signs of a real estate "bubble" bursting, says Realtor.com Chief​ Economist Danielle Hale. Backed by tighter lending standards like the Dodd-Frank Act and Consumer Protection Act, current price appreciation is now driven by strong supply-and-demand fundamentals. 
Helping Texans make better real estate decisions since 1971

Mark IV to develop The District

​​​ROUND ROCK (REBusiness Online) – California-based Mark IV Capital will develop The District, a $200 million mixed-use project on 65 acres at I-35 and SH 45. 

​​The development will include more than one million sf of commercial and residential space. 

Construction is expected to begin within the next year. ​
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Goya Foods nearly doubling Brookshire facility

​​BROOKSHIRE (Houston Business Journal) – Jersey City, N.J.-based Goya Foods will add 324,000 sf to its North American processing center at 30602 Goya Rd.

The company will spend around $25 million to expand the 380,000-sf facility, which currently employs 250. Goya will hire an additional 25 to 30 employees. 

Houston-based KDW Ltd. is the designer and general contractor. The project is slated to deliver next year. 
Highways in Harlingen, Texas.
Tightening labor markets offset construction activity and trade values, supporting the current level of economic growth along the Texas-Mexico border. NAFTA renegotiations, a slowing Mexican economy, and immigration reform uncertainty present the largest headwinds for the region. Read more in our latest Texas Border Economy report. (Harlingen pictured here.)

Novus investing $250 million in Calhoun County

​​PORT LAVACA (Victoria Advocate)– Novus International Inc. will develop a $360 million plant on the INEOS Nitriles property along SH 185, south of Bloomington.

The global animal nutrition solution​s company announced the project at the Victoria Economic Development Corp.'s annual meeting.

Work will start in 2019 and wrap up in 2020. The plant is expected to attract about $9 million in new residential investment over the next two decades.

Novus will bring 65 permanent full-time jobs to the facility. The plant will employ up to 600 workers at peak construction times.​​ 

Calhoun County agreed to a ten-year, 100 percent tax abatement, and Novus will donate $1 million to the county in 2019 and $700,000 in 2021. 
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

Austin luxury apartments on the way

​​​AUSTIN (Austin Business Journal) – Trinsic Residential Group is developing Aura Riverside, a 360-unit apartment complex at 6205 E. Riverside Dr.

​​The company bought the 9.3 acres from Rivermont Place General LLC. 

Trinsic legal entity CRP/TRG Aura Riverside Owner LP obtained a $39.9 million construction loan last month from Associated Bank NA. 

Kimley-Horn & Associates is the engineer.
Pasture in Texas at sunset
Texas ranks second in states with the most foreign-held land, with 2.9 million acres under foreign ownership. What kind of land are they buying? Read Dr. Charles Gilliland's latest research article, "This Land is Their Land." 

Woods Distribution signs 250,000-sf industrial lease

​​​FORT WORTH (REBusiness Online) – Woods Distribution Solutions is leasing 250,000 sf at​ 2900 Meacham Blvd.​​

Built in 1991, the cross-dock property has 6,000​ sf of office space.

Lee & Associates negotiated the lease. The landlord is 2900 Meacham LLC.
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

882-unit Houston portfolio sold for over $60 million

​​​​HOUSTON (Realty News Report) – Dallas-based S2 Capital LLC has purchased two multifamily properties totaling 882 units for over $60 million.

The 432-unit Avalon at Royal Oaks is at 2310 Crescent​​ Park Dr. The 446-unit Village at Uvalde is at 250 Uvalde Rd.

ARA Newmark represented the seller, Miami-based One Real Estate Investment.
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New Austin apartment community sold

​​AUSTIN (REBusiness Online) – Atlanta-based Pollack Shores has purchased Eastside Station, a newly built, 330-unit apartment community at 1700 E. 4th St.

ARA Newmark represented the seller and developer​, Flournoy Development.
Real Estate Center economic reports advertisement
Copyright © 2017, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=125
RECON for November 10, 2017RECON for November 10, 2017Bryan PopePope
2017-11-10T06:00:00Z2017-11-10T06:00:00Z

Real Estate Center Online News
Alden DeMoss films Luis Torres for a webinar.
Alden DeMoss, graphic designer, films Dr. Luis Torres, research economist, for the Real Estate Center's first-ever live webinar on Thursday. Keep your eyes peeled for more webinars from us in the future. (Photo by REC Art Director Bob Beals.) 
November 10, 2017

'Thousands of possibilities,' more jobs for Missouri City

MISSOURI CITY (Haunani Shipper) – Best Buy has chosen 636 US 90A as the site of its newest delivery distribution center.

The electronics giant plans to open the distribution center before the 2018 holiday shopping season. The facility will distribute large items such as appliances and televisions to nearly 60 Best Buy stores throughout Texas and Louisiana.

The 500,000-sf facility will create at least 40 new full-time jobs.

Seefried Industrial Properties Inc. and 4M Investments LLC will develop the property for Best Buy.
Helping Texans make better real estate decisions since 1971

Anadarko moving to Midland

MIDLAND (Realty News Report) – Houston-based Anadarko Petroleum Corp. will build its regional headquarters in the 38-acre Westridge Commons mixed-use development.

The company will be the first anchor tenant in Continuum Partners and KKR's project on Andrews Hwy. 

Construction will​ begin in February 2018 with completion of the office and retail space set for summer 2019. Around 300 employees will initially work at the 300,000-sf office. ​
Real Estate Red Zone logoIf this week's lineup of stories has a common thread, it's retail. Tune in for news about Best Buy's new distribution center in Missouri City, HeyDay Entertainment's move into Denison, and Austin as a contender for new Amazon HQ. Join us in the Real Estate Red Zone. (14 min. 30 sec.)

AC Hotel headed to downtown Cowtown

​FORT WORTH (Fort Worth Business Press) – The city's Downtown Design Review Board has approved the construction of a 16-story AC Hotel from Marriott.

The original 15-story design called for 218 rooms, but developers haven't said how many rooms the hotel will have with the extra floor. 

Epperson Company was the applicant, and Jackson-Shaw owns the hotel.​​ 

Merriman Anderson is the building architect, and SMR Landscape Architects Inc. is the landscape architect. 
Changes to the mortgage interest deduction is drawing significant attention across the country. The proposal decreases the cap on newly issued loans from $1 million currently to $500,000, while removing any deductions on second homes. Assuming a 20 percent down payment, homes selling for $625,000 would be the maximum price that allows the deduction of all mortgage interest. Read more about the Tax Cuts and Jobs Act in this week's Mixed-Use Blog post.
Percent of Texas home sales under and over $625,000

Railhead project approved

​​​​FRISCO (Dallas Morning News) – The city council has approved a $1.5 billion mixed-use project on the Dallas North Tollway. 

Newman Real Estate, Shula Netzer Real Estate, and Koa Partners are developing the 80-acre Railhead project.

Plans show almost two dozen buildings constructed around a central park. ​​Office buildings, a hotel, and retail will occupy most of the land closest to the tollway. ​

Koa will build a 250,000-sf, ten-story office building. W3 Luxury Living will build 1,200 multifamily units.

Architect CallisonRTKL designed the project.
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If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

Chevron data center to 'be what's next'

​​​​​SAN ANTONIO (San Antonio Business Journal) – Chevron USA Inc. has sold its 5200 Rogers Rd. data center to Microsoft Corp. 

The Chevron Corp. subsidiary purchased the 33 acres in Westover Hills from Stream Realty Partners in 2011. It increased the facility from 150,000 sf to 202,000 sf. 

Microsoft will provide cloud services to the energy giant.

LaCenterra at Cinco Ranch sold

​KATY (REBusiness Online) – PGIM Real Estate has acquired LaCenterra at Cinco Ranch, a 412,900-sf mixed-use property ​​at 23501 Cinco Ranch Blvd.

The 34-acre, Class A development includes 273,522 sf of retail space anchored by Trader Joe's and 139,378 sf of office space. The components are 93 and 89 percent leased, respectively.

The final phase, which features an eight-screen Alamo Drafthouse Cinema, is slated for a 2018 completion. 
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Nitya Capital to rebrand Norfolk Tower

​​​HOUSTON (Holliday Fenoglio Fowler) – Nitya Capital has purchased Norfolk Tower, a 207,562-sf office building, from TA Realty. 

The 11-story tower sits on 2.36 acres at 2211 Norfolk St. in the Greenway submarket. It is 82.6 percent leased.

HFF represented the seller and procured the buyer, which will upgrade the building and rebrand it as Nitya Tower. ​​

Partnership purchases 100 acres on Longhorn Quarry

​​SAN ANTONIO (San Antonio Express-News) – A partnership between ​​Bitterblue and Be​​itel Creek Ltd. has purchased 97 vacant acres between Wurzbach Pkwy. and I-35 on Thousand Oaks Dr. 

The land is on part of the defunct Longhorn Quarry.

Gordon Hartman provided financing.​​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Lights on for The Luminary

​​​DALLAS (REBusiness Online) – Crescent Real Estate ​​and Long Wharf Capital have broken ground on The Luminary, a 105,000-sf Class A office project.

The property also includes 462 parking spaces and 52 bike racks. 

​Opening is scheduled for early 2019.

736-unit Austin self-storage facility delivers

​​​AUSTIN (REBusiness Online) – Illinois-based ARCO/Murray has delivered Lakeline Storage, a 736-unit self-storage facility at 11000 Lakeline Blvd. ​

The three-story, climate-controlled property includes 115,000 sf of net rentable space. 

The Jenkins Organization will operate the facility. 
Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=124
RECON for November 7, 2017RECON for November 7, 2017Bryan PopePope
2017-11-07T06:00:00Z2017-11-07T06:00:00Z

Real Estate Center Online News
Hub 121 mixed-use development rendering
A $120 million mixed-use project is coming to McKinney Corporate Center Craig Ranch. The 22-acre Hub 121 will be at the northwest corner of SH 121 and Alma Rd. in McKinney. Details in today's RECON. (Rendering courtesy of Purpose Media Group.)
November 7, 2017

Austin Moody's top contender for Amazon's second HQ

​​WALTHAM, Mass. (Pro Teck Valuation Services) – Moody's Analytics has put Austin at the top of its list of most likely locations for Amazon's second headquarters.

According to Pro Teck Valuation Services, "In addition to 'looking for a metro area with more than one million people and a stable and business-friendly environment with the potential to attract and retain strong talent,' Amazon is also reportedly weighing several other key decision drivers, such as: presence and support of a diverse population, an overall high quality of life and a strong university system — attributes that are all present in Seattle, home to Amazon’s original headquarters.

"In Amazon’s current hometown, 35 percent of the population over 18 has a bachelor’s degree or higher. Comparatively, 36 percent of Austin’s population over 18 has a bachelor’s or higher degree."

​Of the ten metros listed as contenders, Austin and Atlanta are the two hottest housing markets. Average Austin home price is $310,000.

Other metros on the list are Atlanta; Philadelphia; Rochester, N.Y.; Pittsburgh; New York; Miami; Portland, Ore.; Boston; and Salt Lake City.
Helping Texans make better real estate decisions since 1971

San Angelo housing market holding steady

COLLEGE STATION (Real Estate Center) – San Angelo’s housing market has been stabilizing since reaching record sales volumes in 2013. September year-to-date sales for Tom Green County were 1,098, which for the most part is on par with the same period last year. Active listings are down slightly from a year ago. On average, the active listings per month in 2017 has been 498, compared with 511 throughout 2016.

“Housing prices continue to grow each year, and buyer sentiment is good,” said local appraiser and Realtor Laura Lacy with Angelo Appraisals and Lacy & Co. Realty. Third-quarter average home price in the county was approximately $185,000.

Oil played a big role in San Angelo’s housing market bump a few years ago. Since 2014, sales volume for single-family homes has gradually fallen back to regular territory. Overall employment has also been in gradual decline, but that may soon change with oil starting to show positive signs. Oil prices, ​while still down from the latest boom, have been relatively stable near the $50-per-barrel mark, and production in the Permian Basin and Eagle Ford has steadily risen throughout the year.

Hotel occupancy has also grown over last year according to the San Angelo Chamber of Commerce. For cities such as San Angelo, hotel activity can signify temporary housing demand since it’s often required for oil field workers. At this time it’s too early to tell what this will mean for local housing.

Home sales in San Angelo have been most active along Route 67, particularly to the west of Loop 306 and Route 67. Within San Angelo, 353 homes were sold in the third quarter, an 8.9 percent increase over third quarter 2016. Year to date, 919 homes have been sold, for the most part on par with 2016. Active listings and months inventory are also about the same as last year.

For more on San Angelo housing, read the Real Estate Center's third-quarter 2017 housing report​.
 
San Angelo Housing Market Activity, 2012–17
San Angelo housing market activity
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

Hillwood building $1.5 billion Pecan Square mixed-use

​NORTHLAKE (Dallas Morning News) – Hillwood Communities is building the 1,157-acre Pecan Square in the Denton County town of Northlake.

The $1.5 billion mixed-use project on FM 407 will have building sites for more than 600 homes in the first phase. Ultimately, the project will have more than 3,000 homes.

Houses will be priced starting at about $270,000.

Hillwood Communities just purchased the land. The largest portion is a longtime equestrian center, Woodhill Farm. The developer plans to repurpose some of the horse farm buildings.

Phase-one builders include Ashton Woods, CalAtlantic Homes, D.R. Horton, David Weekley Homes, Highland Homes, Perry Homes, Plantation Homes, and Pulte Homes.

Hillwood has donated 15 acres to Northwest ISD for a new elementary school, and the district has purchased 150 acres for a new middle school, high school, and football stadium.​​
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Colliers: Houston retail vacancy up slightly in third quarter

HOUSTON (Colliers International) – Local retail market activity slowed during the third quarter but remains healthy despite a decrease in absorption and a slight uptick in vacancy.​

According to Colliers International's latest market report, Houston’s average retail vacancy rate increased 20 basis points from 5.4 percent to 5.6 percent over the quarter and by 40 basis points from 5.2 percent a year ago. At the end of the third quarter, the city had 15.7 million sf of vacant retail space.

Among major property types, single-tenant retail had the lowest vacancy rate (1.6 percent), followed by theme/entertainment (2.3 percent), lifestyle centers (3.2 percent), malls (3.9 percent), and power centers (4.4 percent). The highest vacancy rate is among outlet centers (11.8 percent), and the largest amount of vacant space by sf is among neighborhood centers.

Currently, 2.8 million sf of retail space is under construction, 55.7 percent of which is preleased.

The market posted 438,000 sf of positive net absorption in the third quarter, a 66 percent decrease from the previous quarter.

Houston’s citywide average quoted retail rental rate for all property types decreased between quarters from $15.17/sf triple net (NNN) in second quarter 2017 to $14.88/sf NNN.

Retail leasing activity, which includes renewals, decreased quarterly from 1.4 million sf in the second quarter to 1.2 million sf in the third quarter.
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Texas home sales decline on quarterly basis for first time since 2012

AUSTIN (Texas Association of Realtors) – Texas home sales declined slightly in third quarter 2017, according to the 2017-Q3 Texas Quarterly Housing Report released Friday by the Texas Association of Realtors. This is the first time that Texas home sales have declined on a quarterly basis since second quarter 2012.

Texas home sales volume declined 0.3 percent year-over-year to 91,401 home sales. The median price increased 5.6 percent to $225,000.

The price distribution of homes sold in the third quarter showed that 44.5 percent were less than $150,000 (the price threshold that the Real Estate Center cites as affordable for entry-level Texas homebuyers). This is a decrease of 0.7 percentage points from the same period last year.

"Historically, Texas home sales volume is highest in the second and third quarter each year," said ​Center Chief Economist Dr. Jim Gaines. "How​​​ever, shortages in housing stock fueled by population growth and increasing labor and lot shortages continue to put constraints on the Texas housing market."

Monthly housing inventory​ in Texas increased 0.2 months from third quarter 2016 to four months of inventory.

​​​​​​Active listings increased 7.4 percent year-over-year to 109,961 listings in the third quarter. Texas homes spent an average of 52 days on the market.​​​​​​​​​

Midland housing inventory halved

​​​MIDLAND (Midland Reporter-Telegram) – Local housing inventory during the third quarter was nearly half of what it was a year ago.

The Texas Association of Realtors' (TAR) latest housing report shows Midland had 2.2 months of inventory, down from 3.9 months during third quarter 2016.

The median price of a home sold in the third quarter rose to $261,750, which was 11.4 percent higher than last year. The report also shows 39.5 percent of all homes sold in Midland were in the $200,000-$299,999 range.

In Odessa, the same trends hold true, according to TAR. There were 3.5 months of inventory during the third quarter, down from 5.3 in 2016. The median price of a home is up 8.4 percent to $178,900. Nearly 50 percent of all homes (49.9 percent) sold were in the $100,000-$199,999 price range.

​​In Midland, active listings fell by 29 percent to 471, while “closed sales” increased by 21 percent at 726 during the quarter.

For more on Midland housing, read the Real Estate Center's third-quarter 2017 housing report​.
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Meanwhile back at Craig Ranch: $120 Million Hub 121 coming

McKINNEY (Purpose Media Group) – A $120 million mixed-use project is coming to McKinney Corporate Center Craig Ranch. The 22-acre Hub 121 will be at the northwest corner of SH 121 and Alma Rd.

The first phase will include:
  • 40,000-sf restaurant park in three clusters with roof-top decks and connected pedestrian walkways to ​Independent Banks’ 400,000-sf corporate headquarters and the Parkside at Craig Ranch’s 2,500-unit urban residential community;
  • 6,500-sf pavilion with a performance stage for live music and family movie nights;
  • 20,000 sf of retail; and
  • 287 urban residences.
The second phase will have a roughly 100,000-sf office building, additional retail buildings, and a hotel.

Phase-one construction kicks off in January 2018.

NCA Partners is the architect, EDGE Realty Partners is the commercial leasing broker, Seneca Investments is the urban housing developer, and Happy State Bank is the lender.​​
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Copyright © 2017, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=123
RECON for November 3, 2017RECON for November 3, 2017Bryan PopePope
2017-11-03T05:00:00Z2017-11-03T05:00:00Z

Real Estate Center Online News
Tree in North Texas park.
Happy Texas State Arbor Day! The holiday is celebrated on the first Friday of November, since fall is a great time to plant trees all across the state. This year, the Texas A&M Forest Service chose Grand Prairie to host the official celebration. (Tree in a North Texas park, from Center files.)
November 3, 2017

Texas proposes $61 billion Harvey recovery plan

​​​​HOUSTON (Houston Chronicle) – Governor Greg Abbott and top state leaders proposed a Harvey recovery plan to Washington officials and the Texas legislature Tuesday. 

The Rebuild Texas plan is estimated to cost $61 billion. It includes funding for three "coastal spines" to control flooding, new reservoirs, and buyouts of thousands of properties. It mirrors much of a longstanding plan in Harris County to buy ​out properties in the most flood-prone areas. 

About 60 percent of the funding would go to "future proof" flood-prone areas. The rest would fund buyouts and elevating buildings in low-lying regions along the coast.​​

Recently, the official total Harvey damage estimate was increased to $180 billion. The state's new request for federal funding includes only part of that. 

The projects were chosen from a list of needs by county and local officials. It includes U.S. Army Corps of Engineers projects that could mitigate the potential for future storm damage.

​​The list is not all-inclusive, and other projects could be added down the line.​​
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Not registered for Houston CRE conference? Here's why you should

​​COLLEGE STATION (Real Estate Center) – Attention, commercial real estate professionals: If you're still on the fence about registering for the Real Estate Center's 21st Annual Commercial Real Estate Course in Houston, here are two reasons that might sway you.

In addition to covering commercial real estate, the conference includes the Texas Real Estate Commission's two legal update courses. This means you'll not only earn ten continuing education (CE) hours of elective credit for the commercial course but also a combined eight hours for the two legal updates.

The list of CRE topics that will be covered is exhaustive: Hurricane Harvey implications; new commercial building design trends; impact of new transportation modes and infrastructure; and updates on the Energy Corridor, retail and multifamily markets, and state and local demographics.​

The conference is Nov. 16 and 17 at Houston's Norris Conference Center. Cost is $250 if you register by Monday, Nov. 6. After that, it's $275.

For details or to register, visit the conference website.
Real Estate Red Zone logoThis week, Stephenville's got the blues—well, it's getting Project Blue. Get fit in McAllen, and 490 beds are on their way to TAMU Commerce. We'll cover these headlines and more in the latest Red Zone podcast. Tune in. (12 min. 43 sec.) 

TREC, TALCB extend license deadlines

​​AUSTIN (Texas Real Estate Commission) – The Texas Real Estate Commission and the Texas Appraiser Licensing and Certification Board have extended license application and renewal deadlines by up to four months for those in the 60-county disaster area declared by Governor Abbott.

License holders who live in the affected counties with licenses set to expire Aug. 31, 2017, through Jan. 31, 2018, will have until Feb. 28, 2018, to renew.

Initial applicants who live in the affected counties with applications set to expire Aug. 21, 2017, through Feb. 27, 2018, will also be extended until Feb. 28, 2018.
With the 'Stros' big win last night, we have Houston on our minds—particularly the city's housing market. REC Associate Editor Bryan Pope has more in this week's Mixed-Use blog post. 

Work starts on McKinney warehouse

​​McKINNEY (Dallas Morning News) – Dallas-based Hunt Southwest has broken ground on the first of two 200,000-sf warehouse buildings. ​

The first facility will be on Wilmeth Rd. near US 75 and will deliver next summer.

The second building is planned for University Business Park at Corporate and Commerce Drives.

Hunt is developing the warehouses in partnership with the McKinney Economic Development Corp. The city provided development incentives, including infrastructure reimbursement and tax abatements. 
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54 acres near Brooks slated for apartments, retail

​​​SAN ANTONIO (San Antonio Express-News) – NRP Group is buying 54 vacant acres from the Brooks Development Authority for apartments and retail shops.

The project will be near the Brooks economic hub at the intersection of Presa St. and Corpus Christi Hwy. 

NRP will use 15 acres for a $49 million apartment complex. It's partnering with the San Antonio Housing Trust Finance Corporation on the community. Residents will be limited to those earning between 50 and 60 percent of Bexar County’s median income.

Fort Capital acquires industrial portfolio

​​​FORT WORTH (REBusiness Online) ​​– Locally based Fort Capital has purchased a four-property, 369,625-sf industrial portfolio.

The properties are the:
  • 116,000-sf Suffolk Business Park at 2901-2951 Suffolk Dr.,
  • 63,795-sf property at 2020 E. 24th St.,
  • 16,000-sf property at 500 E. Central St., and 
  • 173,820-sf property at 1101 NE 23rd St. 
Collectively, the properties are 94 percent leased.
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Legacy hotel sold for $104 million

​​PLANO (Dallas Morning News) – The 404-room Marriott Plano Legacy Town Center hotel has sold for $104 million.

A Pennsylvania​-based investment firm purchased the hotel from Ashford Hospitality Prime Inc.

Built in 2001, the hotel at ​7121 Bishop Rd. includes over 36,000 sf of meeting space. 

HFF marketed the property for sale.

Two Houston flex properties sold

​​​​HOUSTON (REBusiness Online) – ​​Northwest Real Estate Holdings LLC has sold two office/warehouse facilities totaling 119,675 sf.

Downhole Technology LLC will occupy the buildings on 16.7 acres at 12450 and 12452 Cutten Rd. 

​J. Beard Real Estate Co. represented the buyer, and Cushman & Wakefield represented the seller. ​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

SteelTex relocating to Mansfield

​​MANSFIELD (REBusiness Online) – SteelTex is relocating to a 135,000-sf industrial facility at 102 Sentry Dr. in the​ Mansfield Industrial Park.

The company's current manufacturing facility is in the Fort Worth metro of Venus. 

SteelTex will expand its operation to 130 employees over the next five years. 

Driftwood Apartments trade hands

GALVESTON (REBusiness Online) – San Angelo-based Gulf Coast Kington Properties has purchased the 238-unit Driftwood Apartments.

The complex offers one- and two-bedroom floor plans across 15 buildings at 7019 Lasker Dr. ​​​

JLL brokered the deal.​
Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Bryan Pope. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.
https://www.recenter.tamu.edu/news/recon/?Item=122

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