{{titleBar.title}}

{{titleBar.tagline}}

 

 

RECON for December 14, 2018RECON for December 14, 2018Bryan PopePope
2018-12-14T06:00:00Z2018-12-14T06:00:00Z

Real Estate Center Online News
Center Director Gary Maler (left) led a housing affordability workshop with community leaders at the town hall in Corpus Christi on Thursday. Research Intern Clare Losey and Research Data Scientist Gerald Klassen discussed gentrification at the same event. (Photos by Center Photographer JP Beato III.)
December 14, 2018

Natural gas top electricity source produced in Texas

​​AUSTIN (Dallas Morning News) – While natural gas is still the top energy source in Texas, ​wind and solar​​ production is growing, according to the "Full Cost of Energy​" report by the University of Texas Energy Institute​​.

​​​Natural gas produces 45.4 percent of Texas' energy, followed by coal at 24.3 percent. 

Wind and nuclear energy power 18.1 percent and 10.8 percent of the state, respectively. Solar energy produces just shy of 1 percent.

"Wind and solar capital costs, in the two years since we released the study, have fallen the most," said Joshua D. Rhodes, research associate at the UT Energy Institute. "​​They've taken over more of the map. It doesn't seem that the capital costs of things like natural gas have come down very far. They haven't really had to because the price of natural gas has been so cheap."

Solar utility costs dropped ​​41.1 percent since 2016. O​​n-shore wind costs fell 16.8 percent. ​​Combustion-turbine natural gas costs​ fell 5.4 percent.

Total Statewide Electricity Production by Source
Source: University of Texas Energy Institute 

Way out West: Midland, Odessa among top U.S. home markets

​​​​​​WASHINGTON (Dallas Morning News) – For the third time in recent months, Midland took the number one spot as Realtor.com's top U.S. home market. 

In November 2018, Midland homes had a median list price of $358,450 and were on the market for 44 days, 16 percent faster than last year. Listing prices have increased by 20 percent year over year.

Odessa ​claimed the fourth spot on the list with a median list price of $266,450 and ​42 days on market. Listing prices have increased by 26 percent year over year.

The rest of the top ten are:
  • No. 2 Fort Wayne, Ind., median list price of $179,900 and a median of 48 days on market;
  • No. 3 Columbus, Ohio, $239,525 and 50 days;
  • No. 5 Boston-Cambridge-Newton, Mass.-N.H., $500,625 and 52 days;
  • No. 6 Colorado Springs, Colo., $367,000 and 50 days;
  • ​No. 7 Sacramento-Roseville-Arden-Arcade, Calif., $444,998 and 51 days;
  • No. 8 San Francisco-Oakland-Hayward, Calif., $893,500 and 38 days;
  • No. 9 Detroit-Warren-Dearborn, Mich., $226,250 and 48 days; and
  • ​No. 10 Boise City, Idaho, $329,995 and 47 days.
Texas Border Economy report
Economic growth slowed in October along the border as hiring moderated, though unemployment remained historically low. Wages, however, failed to improve despite the tight labor market, weighing on the housing market through decreased affordability. Construction values elevated, but lackluster permit activity suggests flattening in the upcoming months. Read more in the latest Texas Border Economy report.

Houston housing ready for another record year

​​​HOUSTON (Houston Association of Realtors) – Home sales are 4.6 percent ahead of 2017's record volume as of November, according to the Houston Association of Realtors. 

Last month, 6,159 single-family homes were sold in the area, down 2 percent from last year. However, the market remains on track for another record year. 

The average sales price for a single-family home was $295,084, up 4.3 percent from November 2017. During that period, the median sales price grew 4.4 percent to $235,000. Both prices are the highest on record for November​.

Inventory grew by 0.3 months to 3.9 months. The Real Estate Center considers a balanced market to have between a six- and 6.5-month supply. Last month, 6,052 single-family home sales were pending. 

The best-performing single-family home segment was the luxury market (homes priced at $750,000 and above), which grew 12.3 percent. The only segment to see a decline was for homes priced at $150,000 and under.​

Last month, there were 7,400 total sales, down 0.3 percent. The total dollar volume grew 3.9 percent over the year to over $2.1 billion. There were 40,530 active listings. 
a single-family home for rent
One side effect of the Great Recession has been growth in the national single-family rental home market. Unfortunately, rental homes are becoming a less viable option for lower-income families in Texas. For more, read "Oh Give Me a (Single-Family Rental) Home," a Tierra Grande digital first written by Center Research Economist Dr. Harold Hunt and Research Intern Clare Losey.  

Austin's the new Big Apple

AUSTIN (Apple Inc.) – Apple Inc. is expanding its local operations with a $1 billion new campus in the Texas Capital.

The new 133-acre campus will be less than a mile from the company’s existing facilities. It will include 50 acres of preserved open space and will be powered by 100 percent renewable energy.​

The expansion will initially accommodate 5,000 additional employees with the capacity to grow to 15,000, making Apple​ the largest private employer locally.

Jobs created at the new campus will include engineering, R&D, operations, finance, sales, and customer support. 

With 6,200 people, the Texas Capital campus already represents the largest concentration of Apple employees outside Cupertino, Calif.
The Real Estate Center has always aimed to help Texans make better real estate decisions. Although the times are changing, our mission hasn't. Director Gary Maler elaborates on how the Center is adapting in this week's Mixed-Use blog.

Logistics hub lands new owner

WILMER (Dallas Morning News) – Chicago-based Logistics Property Co. has purchased the 252-acre Southport Logistics Park on I-45.

The new owner has signed a lease with Amazon for one of the two buildings in the project.

Dallas' Port Logistics Realty and Diamond Realty Investments, a subsidiary of Mitsubishi Corp., originally built the project, which is near Union Pacific Railway's intermodal facility and the FedEx Ground hub on I-45.

The development still has room for more than 8.6 million sf.
An online search for short-term rentals
Did the Texas Supreme Court rule in favor of private property rights in a 2018 case involving an HOA covenant restriction? Well, no, not exactly. Center Research Attorney Rusty Adams says more in "¿Mi Casa Es Su Casa? Restrictive Covenants and Short-Term Rentals," a Tierra Grande digital first.

Multifamily metrics for Texas metros

​​​​​​​PHOENIX (Connect Media) – Economic strength continues to be the main driver for apartment demand nationally and throughout Texas, according to Yardi Matrix's Multifamily National Report​ for 2018.

The report noted that a strong economy in locations such as Austin mean both rent growth and occupancy continue steady, even with extra supply. 

Austin's apartment rent grew 3.5 percent year over year as of November. It is forecast to grow 2.1 percent by year-end 2019. Occupancy was 94.9 percent as of October.

In Dallas, yearly rent growth was 2.1 percent last month and is expected to grow 4.4 percent next year. Occupancy was 94.6 percent in October.

Rents in Houston grew 1.3 percent year over year in November, and occupancy was 93.3 percent in October. Apartment rents are predicted to grow 2.4 percent in 2019. 

San Antonio's apartment rent grew 2.2 percent year over year as of November. Rents should grow 1.9 percent next year. Occupancy​ was 93.4 percent in October 2018. 
Real Estate Red Zone logoOn this week's Red Zone podcast, we talk about the best places to work and rent in the country, according to a study. We also look at two new Center articles—one about short-term rentals and another about single-family renters. For all this plus a rundown of the Texas economy, tune in. (14 min. 06 sec.) 

Renovations planned for River Walk's first hotel

SAN ANTONIO (San Antonio Business Journal) – The historic 324-room El Tropicano at 110 Lexington Ave. has been bought by a local partnership that includes Phoenix Hospitality Group and Alamo Equity LLC.

The property will undergo a 20-month renovation to add a fitness center, spa, and more than 20,000 sf of meeting, conference, and special event space. Costs could exceed $50 million.

​Renovations will begin after work is finished in third or fourth quarter 2019 at a neighboring property, Hotel Indigo.

El Tropicano is the River Walk’s first hotel. It will stay open during renovations. ​
Cover of 2019 calendar
The Center's Annual Report + Calendar giveaway ends today! For a chance to get your hands on the 2019 edition of the always popular calendar, tell us your favorite 2018 Tierra Grande article before midnight tonight. Hurry before supplies run out.

Out-of-state retailer plans huge DFW distribution center

​LANCASTER (Dallas Morning News) – Harrisburg, Penn.-based Ollie's Bargain Outlet Inc. is building a huge regional distribution center in the Wintergreen Exchange business park.

Jones Development Co. will construct the 615,060-sf industrial project on 58 acres at the southwest corner of W. Wintergreen and N. Lancaster-Hutchins Roads.

Delivery is expected for late 2019.​
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

A walk in the 189-acre Lakeline Park

CEDAR PARK (Community Impact Newspaper) – The city council has approved the master plan for the 189-acre Lakeline Park.

The park will be on city-owned land bounded by US 183/Bell Blvd., Lakeline Blvd., and Cypress Creek Rd.

Key elements of the plan include multiuse trails, a multipurpose pavilion, sports fields, equipment rentals, a splash pad, wildlife observation, and public art.

The estimated cost is $21.7 million.
The Texas Real Commission is accepting applications for appointment to open Inspector and public member positions of the Texas Real Estate Inspector Committee.

Midtown project from the land down under tops out

HOUSTON (Houston Chronicle) – Australian developer Caydon has topped out its 27-story apartment tower at 2850 Fannin St. ​in Midtown.

Work began on the 357-unit project a little more than a year ago.

Hoar Construction is the general contractor of the project, which was designed by locally based Ziegler Cooper Architects.

The tower will have European-style interiors, resort-style amenities, and a retail plaza. It ​is expected to open in summer 2019.
Helping Texans make better real estate decisions since 1971

$40M, 40-acre business park to Kyle

KYLE (Austin Business Journal) – Developers have recently broken​ ground on a 535,113-sf industrial spec​ project at 2575 CR 210.

The two-building, 40-acre development is estimated to cost $39.7 million.

California-based Majestic Realty Co. is developing the business park. 

Developer bringing more multifamily to North Texas

LEWISVILLE (Dallas Business Journal) – Leon Capital Group is developing Lakeyard District, a 364-unit rental community at 1000 Lake Ridge Rd.

The complex will consist of eight three-story buildings on 15.2 acres. The buildings will be built in a contemporary, Texas Hill Country style.

Preleasing will begin in August 2019 with the first units targeted for delivery in November.

LG Wade is the general contractor​, and the architect is BGO Architects.
Texas Association of Realtors quote about Real Estate Center
Copyright © 2018, 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 Hayley Rieder. 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=233
RECON for December 11, 2018RECON for December 11, 2018Bryan PopePope
2018-12-11T06:00:00Z2018-12-11T06:00:00Z

Real Estate Center Online News
Texas led the nation in second quarter GDP growth at 6 percent on a seasonally adjusted annualized rate, led by gains in the energy and manufacturing industries. According to the Real Estate Center's latest Outlook for the Texas Economy, wholesale trade and professional, scientific, and technical services also posted solid quarterly gains. Nondurable goods manufacturing was the largest drag on both the national and state economies, followed by the finance and insurance industry. Click here to read the full report. (Photo from Getty Images.)
December 11, 2018

Frisco lands it on the green

FRISCO (Dallas Morning News) – PGA of America is poised to move to North Texas and create what it calls the "Silicon Valley of golf."

Its new headquarters will house at least 100 workers and cost the PGA at least $30 million to build. 

The association will anchor a 600-acre mixed-use development at future extensions of Rockhill Pkwy. and Legacy Dr. near Frisco's northern border. It will cost more than $520 million to build using public and private funds.

Frisco officials estimate it will have an economic impact of more than $2.5 billion over the next 20 years.

In addition to the association's 100,000-sf headquarters and education facility, the project will include two 18-hole championship golf courses, a nine-hole short course, and practice areas for a total of 45 holes. 

It also will include an estimated 35,000-sf clubhouse, 500-room Omni resort, and 127,000-sf conference center.

The three courses alone account for 540 acres.

Minimum potential state and local tax incentives for the project total $163.8 million.

USACE, GLO seek input on $32B coastal protection project

​AUSTIN (Strategic Partnerships) – The U.S. Army Corps of Engineers and Texas General Land Office are requesting feedback​ from Texas Gulf Coast residents on a proposed $32 billion coastal protection project.

The project is intended to help prevent coastal storm surges, erosion, habitat loss, and water quality degradation, and fight rising sea levels.

A proposed plan for South Padre Island calls for building two miles of 12-ft-tall, 100-ft-wide sand dunes that will be aligned with the existing dune system. That plan is estimated to cost from $71.6 million to $83.1 million.

The public has until Jan. 9, 2019,​​ to comment on the proposal. If approved, construction could begin as early as 2025 and take from ten to 15 years to complete.
You have only three more days to enter our Annual Report + Calendar giveaway! For a chance to get your hands on the 2019 edition of the always popular calendar, tell us which 2018 Tierra Grande article you found most useful. Hurry and secure yours before supplies run out. Click here to participate.

SAHA to add affordable apartments downtown

​SAN ANTONIO (Rivard Report) – The San Antonio Housing Authority ​is partnering with private developer Franklin Development to build a 215-unit apartment complex at 100 Labor St. in the Lavaca neighborhood.

Twenty percent of the units will be reserved for affordable housing at far below market rate.

Groundbreaking on the $45 million complex is slated for late 2019, with expected delivery in early 2020.​​

The Logistics (Property Co.) behind 97-acre center

​MISSOURI CITY (San Antonio Express-News) – Logistics Property Co. will develop the CityPark Logistics Center near the northwest corner of Beltway 8 and US 90.

The 97-acre project will have seven buildings totaling 1.7 million sf.

Phase I will break ground in first quarter 2019. It will consist of a 77,000-sf building with a rear load dock and two 180,000-sf cross-docked buildings.

The buildings are projected to open in late 2019. Phases II and III will offer larger buildings along with build-to-suit opportunities.​

It's built on sand but will produce 100K tons per week

MONAHANS (CBS7) – Atlas Sand has opened a new sand plant to serve as a twin facility to the recently opened facility in Kermit.

The plant is expected to produce between 80,000 to 100,000 tons of fracking sand every week.

Atlas Sand managers said they are hiring in all departments and looking to partnering with locals to staff the plant.​

To learn more about Far West Texas industries, including sand-mining operations, read "Between Sand & Sky: Challenges in the Land of Ghost Towns and Boom Towns​."
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Industrial developer plans ahead with Dallas permits

DALLAS (Dallas Morning News) – Liberty P​roperty Trust​ has filed building permits for two new warehouses totaling over 1.28 million sf in the Mountain Creek development on I-20.

One building will be 797,077 sf and the other 48​3,676 sf.​

The project will cost over $36 million.​

East Texas home sales rising

LONGVIEW (Longview News-Journal) – Home sales in the ten-county regional market were nearly 43 percent higher in October than a year ago.

In addition, the average sale price rose 5.5 percent, according to data from the Longview Area Association of Realtors.

Real estate agents sold 281 homes with an average price tag of $174,436 in October, up from 197 homes with an average price of $165,334 a year earlier.

Homes stayed on the market an average of 98 days, down 15.5 percent from 116 days in October 2017.

The association’s data is from the local Multiple Listing Service, which represents about 85 percent of total sales in the market. It does not capture sales by owners or some sales of new construction.

Expand to Texas? It's only logistical

FORT WORTH (Dallas Business Journal) – Smart Warehousing, a Kansas City-based third party logistics firm, is setting up shop in a 269,494-sf industrial facility at AllianceTexas.

The company will occupy Alliance Center North 15, a distribution center at 3300 Eagle Pkwy.

​AllianceTexas, a 26,000-acre master-planned development surrounding the Fort Worth Alliance Airport, is home to 488 companies.

The development also includes more than 2.6 million sf of retail, restaurant, medical, entertainment, and residential space.

PROS upgrades to 118K sf at Kirby Collection

HOUSTON (Thor Equities Group) – PROS has leased approximately 118,000 sf of office space at the Kirby Collection near River Oaks. 

The cloud software company is relocating from its current space at 3100 Main St. to 3200 Kirby, where it will be the anchor tenant.

The 13-story, 186,000-sf Class A office building is near the Galleria/Uptown District and the Texas Medical Center. ​​​​​

The one million-sf, Silver LEED-certified Kirby Collection also has a 25-story, 385,000-sf residential tower encompassing 199 luxury rental apartments. 

Yippee-ki-yi-redevelopment

MESQUITE (Dallas Morning News) – Centurion American Development Group is moving ahead with the $116.5 million, 56-acre Iron Horse Village development next door to the historic Mesquite Rodeo.

The company bought the 17-acre rodeo facility and more than 50 acres of adjoining land just west of LBJ Fwy. at Military Pkwy. earlier this year.

The mixed-use project will include:
  • more than 330 homes, townhouses, and single-family bungalows priced from $235,400 to $310,000;
  • about 130,000 sf of retail and commercial space; and 
  • $4 million in upgrades to the rodeo complex.
Mesquite's rodeo dates to the late 1940s but came into its own in the 1950s when it was championed by legendary bull rider Neal Gay.

DFW home price growth slowing

DALLAS-FORT WORTH-ARLINGTON (Dallas Morning News) – Area home prices were up almost 5.7 percent in the latest nationwide comparison by CoreLogic.

October's year-over-year price gain in the Dallas area was slightly ahead of the 5.4 percent nationwide gain.

But prices in North Texas, which have moderated this year, aren't growing nearly as fast as in booming home markets including Las Vegas (up 12.6 percent from last year) and San Francisco (up 8.3 percent).

Sales and price increases in North Texas have slowed in 2018 after several years of increasing purchases.

Total North Texas home sales so far in 2018 are unchanged from this time in 2017. 

Median home sales prices in North Texas have risen by more than 40 percent in the last five years. 

CoreLogic estimates that home prices are now overvalued in more than a third of U.S. markets, including Dallas.​

Index: Some real estate markets seeing a bubble

BOCA RATON, Fla. (PRNewswire) – National residential real estate markets are peaking and some cities are in another pricing bubble, according to the latest national index​ produced by Florida Atlantic University and Florida International University faculty.

The Beracha, Hardin, & Johnson Buy vs. Rent (BH&J) Index estimates wealth creation by way of homeownership and equity appreciation versus renting and reinvesting in more traditional financial assets. 

The index also measures the pressure on the demand for homeownership. Scores approaching one indicate strong downward pressure on the demand for ownership.

Two metros, Dallas (.92) and Denver (.77), are rapidly approaching an index score of one. "Both Dallas and Denver are significantly overheated," said Ken Johnson, Ph.D., one of the index's creators.

"Residential real estate prices in Dallas are significantly above their long-term pricing trend, and I anticipate pricing corrections in the near future."

Strong economies in Dallas and Denver have buoyed property prices beyond their fundamental levels for a sustained period.

"Prices are still appreciating in both metros but at a decreasing rate, suggesting that the current upward pattern in property appreciation is nearing an end," said Eli Beracha, Ph.D., co-creator of the index.

For home-price activity in major Texas markets, check out the Real Estate Center's Home Price Index​.​
Free land data ad
Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the Real Estate Center.
Helping Texans make better real estate decisions since 1971
Copyright © 2018, 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 Hayley Rieder. 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=232
RECON for December 7, 2018RECON for December 7, 2018Rieder
2018-12-07T06:00:00Z2018-12-07T06:00:00Z

Real Estate Center Online News
JP and Alden set up cameras on the Center's roof
Center Graphic Designer Alden DeMoss and Photographer JP Beato set up cameras on the Real Estate Center’s roof to catch the perfect shot of Special Airlift Mission 41 flying over the George Bush Presidential Library and Museum on Wednesday. (Photo by Center Creative Manager Bob Beals.)
December 7, 2018

USGS strikes oil with largest O&G assessment ever

​​​​WASHINGTON (U.S. Department of the Interior) – According to the U.S. Department of the Interior, an assessment by U.S. Geological​ Survey (USGS) has found a portion of the Permian Basin contains an estimated mean of 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids.

This is the largest ​continuous oil and gas resource potential ever assessed.​

The Wolfcamp Shale and overlying Bone Spring Formation are in the Delaware Basin portion of Texas ​​​and​ New Mexico's Permian Basin province. 

Although the USGS has previously assessed conventional oil and gas resources in the Permian, this is the first assessment of continuous resources in the Wolfcamp Shale and Bone Spring Formation. Oil and gas companies are currently producing oil here using both traditional vertical well technology and horizontal drilling and hydraulic fracturing. ​

​According to U.S. Secretary of the Interior Ryan Zinke, "Christmas came a few weeks early this year."​
Texas Housing at a Glance

Midland home inventory rises above 400

​​​​​MIDLAND (Midland Reporter-Telegram) – There were more listings in Midland County at the end of October than there had been in more than a year, according to a Real Estate Center report.

Still, the months of inventory across the county was below two months, and the average price for a home sold remained above $300,000.

The city had 413 listings, nearly double the 214 total from March and the most since September 2017, when there were 426 inside the county.

The number of homes sold also rose over the month (251 to 260) and over the ​year (255 to 260).
Real Estate Red Zone logo
On this week's Real Estate Red Zone podcast, Center Chief Economist Dr. Jim Gaines looks back on Texas' housing market so far this year. He also tells us what may be in store for 2019. Tune in for his commentary plus more real estate news from around the state. (22 min. 04 sec.) 

I see a 289K-sf IKEA

LIVE OAK (San Antonio Business Journal) – IKEA's newest Texas store will hold its grand opening Feb. 13, 2019.

The 289,000-sf store will anchor the 760,000-sf Live Oak Town Center off I-35. It will feature nearly 10,000 exclusively designed items, multiple room settings, three model home interiors, a supervised children’s play area, and a restaurant.

More than 500 jobs were created during construction. About 250 employees will work at the new store.
Collage of photos of Texas cities
There's only one week left in the Center's Annual Report + Calendar giveaway! For a chance to get your hands on the 2019 edition of the always popular calendar, tell us your favorite 2018 Tierra Grande article before December 14. Hurry and secure yours before supplies run out. No purchase necessary. 

$60M children's museum looks out of this world

EL PASO (Architectural Digest) – The new El Paso Children’s Museum is coming to life downtown at 201 W. Main.

The $60 million museum will offer more than 80,000 sf of indoor and outdoor space.

International architecture firm Snøhetta is designing the building. They are incorporating futuristic designs, bright and airy concepts, and welcoming spaces into the structure.

It will break ground in spring 2019 with expected completion in late 2021 or early 2022.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Airport industrial development continues

IRVING (Dallas Morning News) – A huge industrial park is on the way on the eastern edge of DFW International Airport.

Perot Development Co. is planning the new 200-acre project on SH 161. It will include four buildings totaling 2.4 million sf.

​The largest of the proposed distribution buildings is more than 1.4 million sf.

During the last 15 years, Perot Development has built almost six million sf of industrial space in North Texas and Houston.​
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.

$15B factory up and running

GREGORY (Corpus Christi Business News) – A $15 billion natural gas liquefaction factory went online mid-November 2018 after years of construction.

The Cheniere Energy plant is ​on the northeast side of Corpus Christi Bay on the La Quinta Channel in San Patricio County.

Long-range plans include construction of three “trains,” or liquefaction facilities, which turn natural gas into a liquid that can be more easily and cheaply transported long distances.

Each train will be able to produce 4.5 million tons of product a year. The first train is now online, and the second is expected to be finished in early 2019. 

Construction of the third train, which will take four years, should begin shortly after the completion of the second.​
Subscribe to RECON if you haven't already. Click here to go to our website.
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?

Lakeshore apartments to rise in Las Colinas

​IRVING (MultiHousing Pro) – Legacy Partners and HGC Investment Management have purchased 3.38 acres in Las Colinas.

The team will develop a 293-unit multifamily project called Legacy Lakeshore. Floor plans range from a 580-sf studio to a 1,945-sf two-bedroom unit. 

The community, designed by architectural firm REES Associates Inc., is near stations for the DART Orange commuter rail and Las Colinas’ local Area Personal Transit System.

Delivery is set for 2020.​

The land sale was brokered by IPA and Transwestern.
Helping Texans make better real estate decisions since 1971

Class A industrial spec building to El Paso

EL PASO (CBRE) – Hanson Asset Management LP has broken ground on Hanson Spec Building B at 9581 Joe Rodriguez Dr.

The 125,646-sf, Class A, speculative industrial building will be available to lease July 2019.

Two additional buildings are planned next door for future expansion requirements.

Olympus acquires 341-unit Broadstone Sierra Pines

​​​​THE WOODLANDS (Connect Media) – Fort Worth-based Olympus Property has added the 341-unit Broadstone Sierra Pines apartment complex to its Opportunity Fund II.

The property, which delivered in 2014 at 1615 Sawdust Rd., has been renamed Olympus Sierra Pines. 

Amenities include a centrally located four-story garage, resort-style pool, club room with billiards and poker table, and a fitness center.

​Alliance Residential was the developer/seller.
Texas Association of Realtors quote about Real Estate Center
Copyright © *|CURRENT_YEAR|*, 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 Hayley Rieder. 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=231
RECON for December 4, 2018RECON for December 4, 2018Bryan PopePope
2018-12-04T06:00:00Z2018-12-04T06:00:00Z

Real Estate Center Online News
Graphic of photos used in the 2019 REC Calendar
The Center's Annual Report + Calendar giveaway is back again! For a chance to get your hands on the 2019 edition of the always popular calendar (while supplies last), tell us your favorite 2018 Tierra Grande article before December 14. Click here to take the survey. No purchase necessary.  (Graphic by Center Photographer JP Beato III.)
December 4, 2018

Texas metros bouncing back

​​​​NEW YORK (HSH) – Five Texas cities have landed on HSH's list of the top ten metros that have recovered most since the Great Recession. 

Austin-Round Rock home prices are 72.55 percent above the last housing boom's peak, the second-highest of all metros studied. 

Dallas-Plano-Irving (68.51 percent above peak) and Fort Worth-Arlington (59.85 percent) ranked fourth and fifth, respectively.

Houston-The Woodlands-Sugar Land followed closely behind at sixth with its home prices 57.05 percent above the prerecession peak. ​​No. 8 San Antonio-New Braunfels had home prices 44.47 percent above peak. 

The rest of the top ten are:
  • No. 1 Denver-Aurora-Lakewood, 87.88 percent above peak;
  • No. 3 San Francisco-Redw​ood City-South​​​ San Francisco, 68.90 percent;
  • No. 7 Nashville-Davidson-Murfreesboro-Franklin, Tenn., 56.70 percent;
  • No. 9 Buffalo-Cheektowaga-Niagara Falls, N.Y., 43.61 percent; and 
  • No. 10 San Jose-Sunnyvale-Santa Clara, Calif., 43.37 percent. 
So far, 73 U.S. home markets have seen their home values recover fully from the huge downturns some areas saw during the recession.
Helping Texans make better real estate decisions since 1971

Lakehouse livin'

HOUSTON (Houston Business Journal) – Trendmaker Homes has started construction on a 225-acre community called Lakehouse.

The gated community north of I-10 and west of the Grand Pkwy. near the intersection of Clay and Pitts Roads will have 350 homes ranging from the $200,000s to the $600,000s. 

Amenities will include a recreation center with resort-style pool, fitness center, playground, and a 2,800-sf activity lawn called Neighborhood Green where residents can do yoga. 

Homes at Lakehouse will vary from 1,800 to 5,000 sf on 50-, 60-, 70-, and 90-ft wide lots.

A grand opening is scheduled for March 2019.​
Black and white photo of former President George H.W. Bush

The Real Estate Center and all of Texas A&M University will be closed Thursday, Dec. 6, for former President George H.W. Bush's burial on the grounds of his presidential library in College Station. 

Commercial, residential construction hit the brakes in DFW

​​​DALLAS (Dallas Morning News) – A steep slide in commercial building pulled down total North Texas construction activity in October, continuing a trend from most of 2018, according to Dodge Data & Analytics.

Nonresidential building starts plunged 63 percent in October from a year earlier.

Year-to-date, commercial building in DFW has fallen 34 percent.

Commercial construction in the area has totaled just under $7 billion so far in 2018, compared with almost $10.5 billion in 2017.

Residential construction, which includes both single-family homes and apartments, also fell by 4 percent in October from the same month in 2017, according to the report.

However, through the first ten months of 2018, residential builders have started more than $12 billion in North Texas projects. That's an increase of 7 percent from the same period last year.
A luxury home in Bryan, Texas.
You might be surprised to learn that Texas has the fifth-largest luxury home market in the country. Where are all those high-end homes, who’s buying them, and what factors are driving that market? Hold onto your smoking jacket and martini, because we have answers. Read "Livin' Large: Texas' Robust Luxury Home Market" by Center Senior Data Scientist Joshua Roberson for more. 

Private hangar hub breaks ground at SA airport

SAN ANTONIO (Rivard Report) – Colorado-based Western has broken ground on a $25 million private hangar hub at the San Antonio International Airport.

Located off John Cape Rd., the nine-acre site will feature seven hangars totaling 100,280 sf. Hangars will range between 12,000 and 15,000 sf. There will also be over 25,000 sf of attached office space.

Six of the seven hangars have already been leased according to the developer.

The airport logged more than nine million passengers during 2017 and is on pace to surpass that by one million in 2018.
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. 

Lakewood at Brookhollow Prospering

PROSPER (Hines) – Hines has acquired the remainder of the Lakewood at Brookhollow master-planned community.

The firm will develop 360 single-family home sites in the 121-acre second phase. 

Toll Brothers, Highland Homes, Shaddock Homes, and Gehan Homes will add homes when home sites start in 2019.​

At buildout, Lakewood at Brookhollow will include 635 single-family lots across 230 acres.

The first phase of the 890-acre master planned Brookhollow neighborhood was re​cently com​pleted. 

Darling Homes, Britton Homes, and David Weekley Homes built homes in Phase I, which includes 247 developed lots and a public park, hike-and-​​bike trail, pool, and amenity center.

Future plans at Brookhollow include additional high-end single-family development, gated custom homes, luxury townhomes, and ancillary retail. ​
Texas Housing Insight report on a cell phone
Texas housing sales rebounded 11.8 percent in October but remained on a flat trajectory. The shortage of homes priced below $300,000 and rising interest rates continued to weigh on overall activity. Inventories inched forward but at an insufficient rate relative to demand, and housing starts fell for the fifth time in six months. Read the latest Texas Housing Insight report for more. 

Greybook, Marlin Spring acquire $68M multifamily portfolio 

HOUSTON (Connect Media) – Greybrook Realty Partners and Marlin Spring Investments have acquired two townhome apartment complexes totaling 566 units for $68 million. 

The portfolio consists of the 278-unit Lakeview Apartments at 16755 Ella Blvd. and the 288-unit Lakeview Estates at 1699 Romano Park Ln. 

The new owners are planning a value-add program to renovate units, improve common areas, and increase efficiencies across both properties, which are close to one another. 

The communities offer clubhouses, fitness centers, and resort-style pools. 
TREC has launched a new automated Certified License History tool on Monday December 10th. This new feature will allow anyone to print a certified license history ON DEMAND for FREE! This is just one more way TREC

Addison office building changes hands

ADDISON (Dallas Morning News) – Yacht Harbor Capital Advisors has purchased the Landmark office building at 14800 Landmark Blvd. in the Quorum business park.

The 160,000-sf property, just west of the Dallas North Tollway, was built in 1985.

Libitzky Property Co. and Sunwest Real Estate Group have owned the property since 2016.

Colliers International marketed the building for sale.
A phone with the latest Total RECall issue onscreen by a velvet VIP rope
What's happening around the Center? Get the inside scoop with Total RECall, a free monthly update that combines all of the Center's latest research and more into one neat package. Read the November 2018 issue online for free and join the VIP list.

Active, aged, and amenitized—the Trinity of senior living

McKINNEY (Dallas Morning News) – Del Webb, a division of nationwide Pulte Group, has started work on a 127-acre, 537-home project in the Trinity Falls community near Melissa.

The project will be aimed at buyers 55 and older and include a 1​2-acre amenities center with a clubhouse, pool, fitness center, and lounge areas.

The new development is Del Webb’s third project in North Texas, after its communities in Frisco and Little Elm.

Trinity Falls is one of the Dallas area's biggest residential developments and is owned by Houston-based Johnson Development. West of US 75, the 2,000-acre community opened in 2014 with plans for 4,000 homes and commercial space.
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. 

Small town expands parks, greenspaces with land buy

​​​​​GILMER (Longview News-Journal) – Yamboree Park will grow by 12.5 acres after the city council authorized the $65,000 purchase on the north end of the park.

​The buy is part of a 2017 parks master plan to upgrade the city's public green spaces. 

Most of the attention is going to Yamboree Park, with new fields and facilities planned. The park is between US 271 and SH 155 in Upshur County. 

According to city officials, walking trails are also planned.
Computer with four email notifications
Did you know you can get notified every time one of our new economic reports is released? Check out our brand-new email notification feature to get the latest economic data sent directly to your email inbox for free. 

Work starts on $50M sports medicine center

WACO (Waco Tribune) – Work is underway on a $50 million sports medicine center at Baylor Scott & White Hillcrest.

The four-story, 106,000-sf Sports and Orthopedic Center will be built at 100 Hillcrest Medical Blvd.

About 50 support staffers and ten physicians will occupy the new facility when it opens in December 2019.

Resale, rebrand, ReNew at TPC

SAN ANTONIO (San Antonio Business Journal) – FPA Multifamily has purchased The Grand Estates at TPC at 5707 TPC Pkwy.

The 408-unit property was sold by W.P. Carey Inc. The complex has been rebranded as ReNew at TPC.

The property was built in 2007 and previously sold in 2015.​
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

Finial Group developing 145K-sf industrial park

HOUSTON (REBusiness Online) – Finial Group will develop Independence Business Park, a 145,185-sf industrial project. 

The property will be on roughly 19 acres near Beltway 8 and SH 288 and have seven buildings ranging from 17,025 to 27,030 sf. 

Buildings will feature 10 percent office buildouts and grade-level doors. 

First phase completion is slated for third quarter 2019.

New Irving multifamily property sold

​IRVING (Dallas Morning News) – Local builder JPI sold its 371-unit Jefferson Riverside apartments at 655 Promenade Pkwy. 

The almost five-acre rental community opened last year near the Toyota Music Factory and the Irving Convention Center.

Deed records show Atlanta-based Cortland Partners acquired the property.

The four-story apartment project was designed by JHP Architecture and financed by Fifth Third Bank.

Institutional Property Advisors brokered the sale.
Free land data ad
Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the Real Estate Center.
Copyright © 2018, 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 Hayley Rieder. 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=230
RECON for November 30, 2018RECON for November 30, 2018Bryan PopePope
2018-11-30T06:00:00Z2018-11-30T06:00:00Z
​ ​
Real Estate Center Online News
Luxury lakeside homes in a Dallas metro
September 2018 marked the eighth consecutive month of declining home appreciation in North Texas as price growth slowed to 4.3 percent in Standard & Poor's/CoreLogic Case-Shiller Home Price Index. The details are in today's RECON. (Photo from Center files.)
November 30, 2018

DFW home price growth slows for eighth month in a row​

​​​​​​DALLAS (Dallas Morning News) – September 2018 marked the eighth consecutive month of declining home appreciation in North Texas as price growth slowed to 4.3 percent in Standard & Poor's/CoreLogic Case-Shiller Home Price Index.

Nationwide, home prices were 5.5 percent higher in September than a year earlier. However, the rate of home-price gains around the country has also been slowing this year.

"Home prices plus data on house sales and construction confirm the slowdown in housing," S&P Dow Jones Chairman and Managing Director David M. Blitzer said. "Sales of both new and existing single-family homes peaked one year ago in November 2017.

"One factor contributing to the weaker housing market is the recent increase in mortgage rates," he said. "Currently, the national average for a 30-year fixed-rate loan is 4.9 percent, a full percentage point higher than a year ago."

​Through the first ten months of 2018, North Texas median home-sales prices were 5 percent higher year over year. Preowned home sales in the area are flat from 2017.

Case-Shiller's index tracks over time the prices of single-family homes in each metropolitan area, not including condominiums and townhouses. It covers only preowned properties, not new construction.
A christmas calendar flat-lay

The Center's Annual Report + Calendar giveaway is back again! For a chance to get your hands on the 2019 edition of the always popular calendar (while supplies last), tell us your favorite 2018 Tierra Grande article before December 14. Click here to take the survey. No purchase necessary. 

Nicholas Residential acquires 2,115-unit MF portfolio

HOUSTON (REBusiness Online) – Nicholas Residential LLC has acquired a six-property multifamily portfolio totaling 2,115 units.

The properties are:
  • Chelsea Park at 11000 Crescent Moon Dr. in Houston;
  • Riviera Pines at 555 Normandy St. in Houston;
  • South Grand at Pecan Grove at 2400 Old S Dr. in Richmond; 
  • Country Club Place at 1111 Golfview Dr. in Richmond;
  • The Veridia​n at 695 Pineloch Dr. in Webster; and
  • Sky Hawk at 17231 Blackhawk Blvd. ​in Friendswood. 
The Dallas-based buyer will upgrade amenity spaces.

Hudson Advisors sold the properties. 
A $100 sits on a paper that says
Did a 2018 Texas Supreme Court ruling on the Property Tax Code open up a can of legislative worms or provide a solution to tax problems regarding certain property types? Possibly both. Center Research Economist Charles Gilliland explains. Read "Value Judgment: Property Tax Ruling Ushers in Problems, Opportunities" for more. 

Battery producer recharges operations with $106M facility

TEMPLE (Temple Daily Telegram) – Battery producer East Penn Manufacturing Co. will expand its operations with a $106 million distribution facility.

The new center will be built in a 305-acre industrial park near the intersection of I-35 and Loop 363. Construction is expected to start in third quarter 2019.

It is expected to create 266 jobs.

The company currently has a facility at 2526 Charter Oak Dr. where it employs about 80 people.
Real Estate Red Zone logoIt's nothing but news on this week's Red Zone podcast. Hosts Bryan and Hayley look at two new Center reports and real estate headlines from around the state. Plus, what day is the best day for closing on a house? Tune in for all this. (11 min. 15 sec.) 

KDC developing another Telecom Corridor data center

RICHARDSON (KDC) – KDC will develop a 130,000-sf powered shell data center in the city’s Telecom Corridor just south of its CityLine development.​

The new data center at 1510 E. Lookout Dr. near the intersection of Plano Rd. and Lookout Dr. will be completed in summer 2019.

Features will include a 190-mile-per-hour wind-resistant design, an on-site substation for robust power and short electrical feeder runs,​ and over 20 network fiber carriers.

Alliance Architects is designing the project, and Kimley Horn is the civil engineer. Telios Dallas is the mechanical and electrical engineer.

This project is KDC’s fifth ground up data center development in the city.​
An oil pump works at sunset
There’s no shortage of good news in The Tall City when oil prices are up: high housing demand, strong job growth, low unemployment, and high household income. These days, Midland is feeling the energy. Center Senior Data Scientist Joshua Roberson exmplains in "All's Well When Oil's Well," a Tierra Grande digital first. 

Oak Ranch expansion addresses affordability crisis

DEL VALLE (Business Wire) – Roberts Communities will break ground in January 2019 on 550 manufactured and 260 single-family home lots in the Oak Ranch community off Pearce Ln.

The 198-acre project will bring homes to the market for 50 percent less than the average single-family home.

It will also include a new 10,000-sf community center with a resort-style gym, pool,​ and event lawn
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

PacVentures down to Brownsville for 811K-sf acquisition 

BROWNSVILLE (REBusiness Online) – San Diego-based PacVentures has acquired a ten-property industrial portfolio totaling 811,092 sf. 

The portfolio was 96 percent leased at the time of sale to multiple tenants including Trico and Carter Fuel Systems. 

Transwestern and AQUILA Commercial represented PacVentures. The seller was​ Sealy & Co.

14-story multifamily project resurrected near River Oaks

HOUSTON (Houston Business Journal) – Atlanta-based Gables Residential has broken ground at the site of the former Westcreek apartment complex just north of the River Oaks District.

The 14-story project, which was expected to begin over three years ago, will open in 2020 along Westcreek Ln. between San Felipe St. and Westheimer Rd. 

The tower will have 295 units averaging 1,539 sf. Amenities will include concierge services, a rooftop swimming pool with outdoor kitchen, fitness room, bicycle storage and workshop, and a club room.

Locally ​based architecture firm Ziegler Cooper designed the project. 
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.

El Paso sparks up luck of the Irish

EL PASO (El Paso Times) – Ireland-based Eaton Corp. will open a design and manufacturing facility at 7800 Trade Center Ave.

Eaton is required to invest $15.7 million in improvements and equipment and create 200 full-time jobs.

This location will make switchboard and motor-control components when it opens in t​he first half of 2019.

Driftwood Hospitality acquires two Houston hotels 

HOUSTON (CP Executive) – Driftwood Hospitality Management has acquired two hotels with plans to upgrade. 

​The 480-key, 15-story Hilton Houston North at 12400 Greenspoint Dr.​ has a 40,000-sf atrium and 52,000 sf of meeting space. It has an ​outdoor pool, 23 flexible function rooms, and a fitness center.

Marriott Houston North at 255 N. Sam Houston Pkwy. E. ​includes 20 function rooms totaling 15,990 sf. The 390-room hotel has a central 12-story tower adjacent to an eight-story tower with a detached two-story parking garage. ​​
Subscribe to RECON if you haven't already. Click here to go to our website.
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?

Historic downtown tower sells to hotel developer

FORT WORTH (Dallas Morning News) – Tennessee-based Development Service Group Inc. has acquired the 24-story 714 Main building, formerly the Continental Life Insurance Building.

The 97-year-old high-rise was purchased from XTO Energy Inc., the latest in a series of property sales by the firm.

The new owners plan to redevelop the 185,000-sf landmark tower, which was renovated in 2010.

​JLL worked on behalf of the seller. 

334-unit Villas to new owner

SAN ANTONIO (San Antonio Business Journal) – GVA Real Estate Group has purchased the Villas del Encanto at 1830 Bandera Rd.

The 334-unit apartment ​complex has studio, one- and two-bedroom units. The average unit size i​s 5​18 sf, and the average rent is $615 per month.

Comunidad Realty Partners sold the property. ​
Helping Texans make better real estate decisions since 1971

Five-story self-storage facility coming to Westheimer & Beltway 8

​​​​HOUSTON (REBusiness Online) – Central Southwest Texas Development LLC (CSW) will develop a 1,311-unit self-storage facility at 10411 Westheimer Rd. off Beltway 8 in the Westchase neighborhood. 

The five-story, 132,350-sf property is expected to cost $16 million, according to the Texas Department of Licensing and Regulation.

JLL arranged construction financing. 

Alamo City makes room for Living Spaces

SAN ANTONIO (San Antonio Business Journal) – Furniture retailer Living Spaces has opened a 140,000-sf store at 4239 N. Loop 1604 W.

The store features QR codes on merchandise, which will enable shoppers to scan any product with a mobile device to see details, reviews,​​​ and more.​
Texas Association of Realtors quote about Real Estate Center
Copyright © 2018, 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 Hayley Rieder. 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=229

 Search RECON Issues