Decade-long streak of growing home prices ends in DFW

DALLAS (Dallas Morning News) – Home prices have declined after a decade of growth, according to the S&P CoreLogic Case-Shiller Index.

Home prices in March fell 1.2 percent from the previous year. They have fallen 7.5 percent since last June, when they peaked, but increased from February to March. This is the first year-over-year decline since February 2012.

The median price for a single-family home declined 5 percent in April compared with last year. Transactions were down 8 percent.

The Case-Shiller Index compares price changes over time for specific properties. It is a couple months behind current market conditions.

Transformer shortage roadblock for residential developers

SAN ANTONIO (San Antonio Express-News) – Supply chain disruptions that began during the pandemic are still causing shortages of a piece of equipment needed to power homes: transformers.

Transformers, those dark green metal boxes visibile on neighbhood lawns, transform higher voltages flowing through underground power lines into lower voltages for use in homes. For about every four houses being built in a new subdivision, one new transformer must be installed. 

Utilities across the state and nation are struggling to secure the distribution system transformers they need to meet the needs of residential developers. Procurement times, which averaged about three months in 2020, stretched to more than a year by the end of last year, according to the American Public Power Association. In national surveys, the lack of transformers been specifically identified by builders as a concern for 2023. 

In early May, CPS Energy, which serves San Antonio, had 645 of the 35-kilovolt transformers used in residential subdivisions ready for installation—and requests for more than 3,400. CPS warns that some developments could be waiting for more than a year.

From sheet metal to immersive art: Fifth Ward warehouse repurposed

HOUSTON (Houston Business Journal) – Meow Wolf has broken ground on its $42 million immersive art exhibit project at 2103 Lyon St.

The exhibit will occupy 32,242 sf in the former Moncrief-Lenoir Manufacturing Co. sheet metal plant, a 115,000-sf warehouse built in 1917.

The company said this location will be larger than its permanent exhibit in Denver, which attracts as many as 750,000 visitors annually. 

Completion is slated for 2024.

High-rise luxury apartments ready to break ground in Dallas

DALLAS (Dallas Morning News) – A new high-rise apartment building will be built near Turtle Creek.

The 31-story Fairmount Tower will break ground this fall. It will include luxury rental units and ground-floor retail. The $130 million building will replace the commercial buildings on the site.  

The designer is WDG Architecture.

Fairmount Tower will open in late 2025.

Psst! 600-acre public park under development in Whisper Valley

MANOR (Austin American-Statesman) – Plans for Valley Park, a 600-acre public park in the $2 billion Whisper Valley housing subdivision, are underway.

The project will be just off the SH 130 tollway along FM 973 and extend east of Taylor Ln.

Plans for the space include picnic areas, manicured open space, playgrounds, shade structures, restrooms, decomposed granite trails, community gardens, an events amphitheater, benches, landscaping, and signage. The park will cost more than $8 million.

The park will be the centerpiece for a new master trail plan that will ultimately connect Austin's 4,000-acre Walter E Long Metropolitan Park and Lake Walter E. Long, Travis County's 14-mile trail system and the East Metropolitan Park through Whisper Valley, providing about 20 miles of trails in all.

The park's first phase will include the design and construction of miles of 12-ft-wide pedestrian trails that extend from the community retail center at FM 973 and along Gilleland Creek to Taylor Ln.

The final design for the first phase of Valley Park is due to be completed in 2025, with construction slated to begin in 2026.

The park is expected to be built in seven phases over six years.

Taurus Investment Holdings is the developer.

Wilmer welcoming new 1.5 million-sf business park

WILMER (Dallas Morning News) – A 1.5 million-sf business park is under development south of Dallas.

The Southport Logistics Center will have two industrial buildings near I-45 and the Union Pacific Intermodal Yard. These will add to the 17 million sf of warehouses planned for south Dallas County.

The project is being developed by Bandera Ventures and Invesco Real Estate. JLL will oversee leasing.

The buildings will open later this year.

Five smart-home features for 2023

WASHINGTON (Builder Online) – Builders are equipping new homes with advanced technology as a way to differentiate their product from the competition. The question is whether the appliances and devices are cutting edge or a decade behind. Here are five that are turning heads in 2023.

1. Advanced security. Floodlight cameras and 24/7 monitoring go without saying, but the latest innovation in home security is the smart door. LED motion lighting, a video doorbell, and a smart lock are included.

2. Home health. Many are keeping a closer eye on indoor air quality since COVID-19. That’s why demand for whole-home air purification and humidifiers has been rising. Appliances work in conjunction with a home’s HVAC system to eliminate airborne bacteria and keep humidity levels in check. High-tech versions feature wi-fi touchscreens and are compatible with voice-activated assistants.

3. Home office. With nearly 18 percent of people working from home, floor plans that include dedicated workspaces are popular. Built-in work stations, upgraded technology packages, additional data/teleports, and USB charging outlets are attractive.

4. High-tech kitchen. A microwave that sends a phone notification when a meal is ready is a slick feature, but smart technology goes beyond appliances. The kitchen faucet is the latest fixture to get the smart treatment—tell it how much water you need and your desired temperature for hands-free operation.

5. Smart(er) thermostat. The latest generation of smart thermostats offers the same energy-saving features as previous models, such as remote operation and the ability to learn your preferences and daily routine, but also comes with more bells and whistles. Remote sensors detect temperatures in other rooms to help maintain an even temperature throughout the home. Also, new models are voice-activated and integrate into a smart-home hub.

Billingsley bringing $3 billion Sloan Corners mixed-use to Collin County

COLLIN COUNTY (Dallas Morning News) – Developer Billingsley Co. is finalizing plans for the first phase of a 500-acre mixed-use development that could total over $3 billion when completed.

The development, Sloan Corners, will be in Allen and Fairview.

The developer gained control of 240 acres at the southeast corner of US 75 and SH 121 in Fairview in 2019. Two years later, they purchased 260 acres across the highway in Allen.

The City of Allen just designated its corner as a reinvestment zone and tax increment finance district, which will allocate increased property taxes from the Sloan Corners development to help pay for streets, utility lines, and other infrastructure. The maximum reimbursement could be nearly $75 million.

Plans for Sloan Corners call for more than ten million sf of office space, 6,000 apartments, and over 200,000 sf of retail space.

The firm plans to build apartments and offices in the first phase on Chelsea Blvd. The planned Hartford Square apartments would be in a four-story building designed by Dallas’ O’Brien Architects. The rental units would open in early 2026.

Sloan Corners will include greenbelts, parks and walking trails.

503K-sf medical education tower underway at Baylor College of Medicine campus

HOUSTON (BISNOW) – Baylor College of Medicine has started construction on The Lillie and Roy Cullen Tower, a 503,000-sf, 11-story medical education and research building.

The development will include a 35,000-sf simulation lab, a 500-seat classroom and event center, small-group and studio classrooms, dedicated space for big data analytics, lecture halls, and a student wellness center.

The 11^th floor will house the new offices of Baylor executive leadership.

The Cullen Foundation, The Cullen Trust for Health Care, and The Cullen Trust for Higher Education contributed a combined $30 million for the project with an additional $100 million donated.

The construction manager for the project is Linbeck Group. The project manager is JLL.

The building is expectd to open in 2026.

How refreshing! ARCO Beverage building 253K-sf Weslaco distribution center

WESLACO (REBUSINESS) – ARCO Beverage Group has broken ground on a 253,200-sf distribution center in Mid Valley International Industrial Park, a 122-acre master-planned development owned by Weslaco EDC.

The project will have 210,000 sf of temperature-controlled space, 36-ft clear heights, 27 dock positions, and 25,000 sf of office space.

Completion is slated for first quarter 2024.

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• Dual-branded hotel opens in 14-story tower near Texas Medical Center

• 43-story downtown Houston tower converting to rentable public venue

• Frisco's Fields to sprout new growth

• 24-acre master-planned Aquarene Crossing coming to San Marcos

Admiral Legacy mixed-use planned for Mansfield

MANSFIELD (Dallas Morning News) – The city council has approved plans for a 240,000-sf mixed-use project.

Admiral Legacy will be at Heritage and Regency Parkways off US 287. It will include two office buildings totaling 240,000 sf, 650 apartments, and retail. The office buildings will break ground next year.

Admiral Legacy Investments LLC is the developer.

160K-sf medical office building completed on Houston Methodist Sugar Land campus

HOUSTON (lDala Communications) – McCarthy Building Companies Inc. has completed construction of a six-story medical office building and an attached seven-level parking garage on the campus of Houston Methodist Sugar Land Hospital.

The 160,000-sf building has a lobby, corridors, and an endoscopy surgical center.

The medical center is connected to existing campus buildings by a conditioned pedestrian bridge, and the garage is connected to an existing adjacent garage by a vehicle bridge.

The project also extended a water main 2,500 ft around the campus.

McCarthy broke ground in December 2021.

ATCAP picks up 1.2M-sf Houston industrial portfolio

HOUSTON ( REBUSINESS) – ATCAP Partners purchased a portfolio of eight industrial buildings totaling approximately 1.2 million sf from CenterPoint Properties.

The buildings have a mix of front-load and cross-dock configurations and clear heights ranging from 20 to 34 ft.

At the time of sale, the properties were fully leased to a roster of tenants with a weighted average remaining lease term of 3.75 years.

CBRE brokered the deal.

TPW commission approves purchase of Fairfield Lake State Park

AUSTIN (Texas Parks ＆ Wildlife) – The Texas Parks and Wildlife Commission last week unanimously voted to authorize Texas Parks and Wildlife Department’s (TPWD) executive director to purchase approximately 5,000 acres in Freestone County including Fairfield Lake State Park.

TPWD acquired Fairfield Lake State Park by lease in 1971 from Texas Utilities, now Vistra Energy. The park opened to the public in 1976. 

Named after 2,400-acre Fairfield Lake, it sees an average 80,000 visitors a year and is known for activities such as horseback riding, family reunions, paddling, fishing, camping, and hiking.

North Texas housing market turns up the heat

DALLAS (Dallas Business Journal) – Dallas-Fort Worth's housing market ranks fourth among the 50 largest U.S. metros and 11^th among all 212 U.S. metros, according to Bankrate's Housing Heat Index.

DFW ranked third in job growth and sixth in population growth for the largest markets.

Overall, though, DFW ranked eighth in job growth, 37th in population growth, 41st in home price appreciation, 138th in unemployment, 126th in active listings, and 66th in number of days homes are on the market. 

Meanwhile, San Antonio ranked 43rd overall, while Houston came in 52nd and Austin 144th.

Texas has 'roared back' from COVID job losses

COLLEGE STATION (Texas Real Estate Research Center) – A couple of years ago, it was hard to imagine Texas recovering from substantial COVID-related job losses. However, a Texas Real Estate Research Center (TRERC) research economist says data show the state's job numbers have "roared back."

TRERC's Dr. Adam Perdue said Texas employment has more than recovered relative to the 2016-19 trend line for the last few months, even outperforming the U.S. (Figure 1).

He said Austin and DFW have contributed significantly to this outsized performance, while San Antonio and, especially, Houston have lagged (Figure 2).

"This complete return to the former trend line is unusual," Perdue said. "We've surpassed levels we would have forecast even if COVID had never happened." 

484K-sf industrial project in the works in southeast Houston

HOUSTON (REBUSINESS) – GTIS Partners of New York will develop a 484,000-sf industrial project on the city's southeast side.

The development will consist of a 355,017-sf, cross-dock building and a 128,999-sf, rear-load building on a 26-acre site. The buildings will have 36- and 32-ft clear heights, respectively, and combined parking for 382 cars and 92 trailers.

Construction is scheduled to begin in the fourth quarter. Completion is slated for summer 2024.

Powers Brown Architecture and Langan Engineering are also on the project team.

• 17K-sf of new Houston data center space coming online this summer

• Centro energized with 69K-sf office lease (Austin)

• Amazon-leased warehouse delivers to California-based investor (Dallas)

• Longview's Hotel Wingate sold

• Leonard making big waves with water treatment plant expansion

NewsTalk Texas is updated each weekday, throughout the day. 

Abilene tire plant sets wheels in motion for big expansion

ABILENE (Develop Abilene) – Bridgestone Bandag, a retread tire plant, is adding 50,000 sf to its 200,000-sf facility. The expansion will cost $60 million.

Over the next decade, the project is estimated to add $21 million in taxes to the city, county, and school district. It will allow for 25 additional jobs in the company. 

Bridgestone Bandag has been in Abilene for 52 years.

Texas A&M expansion approved for Fort Worth campus

FORT WORTH (Fort Worth Business Press) – Texas A&M is about to break ground on the anchor building of its new downtown campus.

The $150 million project has been approved and will begin construction in June. The eight-story building will replace the current Law and Education building. Construction will finish in 2025.

Two more buildings are planned for the campus. 

The Gateway Building will have classroom and meeting space and a conference center. 

The Research and Innovation Building will house public and private research and development initiatives in engineering, defense, agriculture, telecommunications, health sciences, and technology.

The architect, Stantec, will work with Pelli Clarke & Partners.

Tech sector woes put pressure on major office markets

SANTA BARBARA, Calif. (CommercialEdge) – CommercialEdge’s May U.S. office report examines current market conditions, including the challenges fueled by weak demand and rising vacancies, particularly in tech-driven cities. 

As one of the growing tech hubs in recent years, Austin is also feeling the effects of the tech pullback: The metro's vacancy rate increased 5.9 percent year-over-year (YOY) in April, reaching 22 percent. 

Key findings from the report:   

• Austin led the nation in development on a percentage-of-stock basis, with underway projects representing 6.7 percent of its existing inventory.

• Miami still led the South in terms of prices, with asking rents coming in at $46.60/sf. 

• Washington, D.C. and Houston led the South in sales volume, with $509M and $466M in closed office deals, respectively. 

• The average U.S. office listing rate stood at $38.23/sf, rising 2.3 percent YOY. 

• Up 100 basis points YOY, the national vacancy rate was 16.7 percent.   

• Under-construction office space reached 118.2M sf nationwide, accounting for 1.8 percent of the total stock.

Texarkana ninth best ROI potential for investors

AUSTIN (Agent Advice) – Real estate experts at Agent Advice analyzed home value and typical rent prices across U.S. cities to establish where investors can currently expect the highest return on investment (ROI).

Straddling the border of Texas and Arkansas, Texarkana took the No. 9 spot. Texarkana's typical property value of $148,518 is 47 percent of the national average value. An average asking rent price of $1,212 equals 0.82 percent of property value, 55 percent more than the national average proportion. This makes for a potential down payment payback period for a typical investment property (20 percent down payment) just over two years and 38 percent shorter than the national average period.

Others in the top ten are: Houma (LA), Dotham (AL), Johnstown (PA), Beckley (WV), Decatur (IL), Shreveport (LA), Peoria (IL), Sumter (SC), and Jackson (TN).

Number of first-time Texas homebuyers declining

AUSTIN (Texas Realtors) – Texas had fewer first-time homebuyers last year than in previous years, according to the Texas Realtors' 2023 Texas Homebuyers and Sellers Report.

New buyers accounted for 24 percent of homebuyers between July 2021 and June 2022, down from 32 percent the year before and 39 percent a decade ago.

The median household income for Texas homebuyers was $110,000, $22,000 more than the national median for homebuyers. Thirteen percent of homes purchased during the reporting period in Texas were new homes, slightly more than the national figure of 12 percent.

Home purchases in Texas were more prevalent in the highest age groups, with 52 percent of purchases made by individuals aged 55 or older. In contrast, 14 percent of Texas home purchases were made by individuals aged 25 to 34.

The top reason Texans who sold their homes during the observed period did so was to move closer to family and friends (23 percent), followed by job relocation (13 percent) and retirement (10 percent), consistent with the strong job market in the state.

Eighty-seven percent of homebuyers and sellers used a real estate agent to help buy or sell their home, with 90 percent of those buyers and 86 percent of those sellers stating that they would likely use that same agent again or recommend them to others.

Houston Spaceport launches phase two

CLEAR LAKE  (Community Impact Newspaper) – The Houston Spaceport along Space Center Blvd. has a major expansion underway as it enters its second phase.

Phase one, which entailed filling 150 acres with the necessary infrastructure to host aerospace companies, was completed in 2019 for $24 million.

Expected to break ground in the next two to 18 months, phase two will be about 300 acres, and its infrastructure is estimated to cost $80 million.

The project will include parcels for other aerospace companies to locate to the spaceport and land for a hotel, restaurant, and retail.

Additionally, the second phase will involve the development of the Aerospace Institute, an education institution to train aerospace workers.

A taxiway in the northwest of phases one and two that will allow aircraft to take off and land next to aerospace companies for unloading parts for their space stations is also under development.

Space Center Houston wants to construct the Lunar Mars Surface Integration Facility, two large, enclosed structures that will simulate the terrains of the moon and Mars. Visitors will be able to watch from an elevated exhibit hall as astronauts train within the two structures.

The new facility will add at least 60,000 sf of exhibit space to the existing 120,000 sf. It is expected to break ground in the next two years.

Big development in fast-growing Midlothian

MIDLOTHIAN (Dallas Morning News) – Construction has begun on a new residential development that will bring 2,000 homes.

BridgeWater will be on almost 1,000 acres off US 287 and Walnut Grove Rd. In addition to homes, it will have retail and restaurants. 

Hanover Property Co. is the developer. Homebuilders will include Highland Homes, American Legend Homes, Perry Homes, and John Houston Homes. Homes will be built over seven years.

• B Positive! Blood donation center to occupy 18K-sf in Beaumont retail center
• Wade Park resurrected after five years (Frisco)
• Mixed-use development breaks ground in Allen
• 342-unit Alta Blakey slated for Bastrop
• JV continues District West expansion with second office condo project (Houston)

Natalia 'Love's' new 252K-sf distribution center

NATALIA (REBUSINESS) – Love's Truck Solutions will open a 252,500-sf distribution center later this year.

The $23 million facility will house a tire warehouse, temperature-controlled storage space and 5,500 sf of office space.

The development will have two drive-up doors, 24 full docks and four overhead doors.

Construction is underway and expected to be complete this fall.

HDA Architects designed the facility.

Affinius Capital sells 142K-sf northwest SA office building

SAN ANTONIO (San Antonio Business Journal) – Real estate company Affinius Capital—formerly USAA Real Estate Co.—has sold its office building at 9830 Colonnade Blvd. to local investors SageView Partners. 

The 142,000-sf building houses Affinius' headquarters.

The site was recently assessed at just under $28 million, according to the Bexar County Appraisal District.

This is the second property sale from Affinius in two months. The firm sold a vacant downtown building at 1012 Navarro St. in April.

3,000-home active adult community developed near Lake Conroe

WILLIS (Houston Business Journal) – Caldwell Communities has developed Chambers Creek, a more-than-3,000-home active adult community at 14940 Chambers Creek Dr.

The project includes an 18-hole putting course designed by Tom Lehman and infrastructure specifically designed for golf carts.

The golf course is part of a larger 93-acre multifunctional park space named Lehman Park that has 20 miles of nature trails for hiking and biking.

Chambers Creek also has numerous pickleball and tennis courts, bocce ball, dog parks, open green spaces, and a community garden. A wellness center and resort-style pool recently broke ground, as well.

The gated community has a manned guard house at the entry.

Texas leads U.S. in job creation

DALLAS (Dallas Morning News) – Texas led the nation in job creation over the last 12 months, according to figures released Friday by the Texas Workforce Commission and the U.S. Bureau of Labor Statistics.

The state added 33,300 new nonfarm jobs in April, which helped push the state’s unemployment rate down from 4.2 percent in March to 3.7 in April.

Dallas-Fort Worth ranked second nationally in the number of jobs added over the last year, with 203,100. Only New York City had more at 277,000.

DFW’s job gains in April accounted for nearly half of Texas’ monthly gain.

“The state’s getting bigger, more people are moving here,” said Daniel Oney, research director for the Texas Real Estate Research Center at Texas A&M University. “That tends to drive growth, no matter what’s happening in the economic cycle.”

All industries tracked by TWC have recorded job growth from this time last year, led by mining and logging with a 9 percent gain.

For more on the Texas economy, read the Center's latest Outlook for the Texas Economy.