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RECON for August 17, 2018RECON for August 17, 2018Hayley RiederRieder
2018-08-17T05:00:00Z2018-08-17T05:00:00Z
Real Estate Center Online News
Rendering of 5th and Brazos tower
Work will start on 5th and Brazos, a 32-story hotel and residential project in Austin, in fourth quarter 2018. For details on the $170 million project, keep reading today's RECON. (Photo from bKL Architecture.)
August 17, 2018

Austin-area home sales up 9 percent in July

​​​​AUSTIN (Austin Board of Realtors) – In July, 3,103 single-family homes were sold across the metro, up 9 percent over the year, says a new report from the Austin Board of Realtors. 

The median price in the area grew 6 percent over the year to $320,000, the highest ever. Total dollar volume increased 14 percent to $1.3 billion, the highest in seven years.

Homes spent an average of 44 days on the market, unchanged from July 2017. 

There were 2.9 months of inventory across the metro, down 0.2 months. The Real Estate Center considers a six- to 6.5-month supply a balanced market. 

Last month, there were 3,738 new listings (down 1 percent), 7,522 active listings (down 3 percent), and 3,065 pending sales (up 11 percent). 

In Austin proper, 952 homes were sold, a 13.5 percent increase.​
Helping Texans make better real estate decisions since 1971

Harvey claims deadline approaching

​AUSTIN (Texas Department of Insurance) – As the anniversary of Hurricane Harvey approaches, remember that some insurance policies have a one-year deadline to file claims.

Harvey made landfall August 25. Texas Windstorm Insurance Association (TWIA) claims must be reported by the one-year anniversary of the date the damage occurred unless the policyholder can show good cause for the delay.

To file a TWIA claim, go to www.twia.org or call 1-800-78​8-8247. 

Some other insurance policies also have a one-year deadline to file claims. To see if your other policies have claim deadlines, check the policy language or contact your insurance company or agent.

Visit the Texas Department of Insurance's help after the storm page for more. You can also read ​​the Real Estate Center's Hurricane Harvey Disaster Relief Guide. ​​​
Real Estate Red Zone logoOn this week's Real Estate Red Zone podcast, we welcome two new members to the Real Estate Center's Advisory Committee. Plus, we report on news from Dallas, Lubbock, Edinburg, and Corpus Christi. All this in only ten minutes. Take a listen. (10 min. 45 sec.) 

32-story hotel, apartment tower coming to Fifth and Brazos

​​AUSTIN (Austin Business Journal) – Chicago-based Magellan Development Group LLC and Ryan Companies​ US Inc. will break ground​​ on a 32-story hotel and residential tower on Fifth and Brazos Streets in the fourth quarter. 

Called 5th and Brazos, the project will cost $170 million.

The development will include:​
  • two hotels—a 211-room one under the Thompson Hotels brand​​ and a 190-room one called "Tommie"—on floors five through 14;
  • flex floors on levels ​15 and 16 with 49 rooms for a mix of short- and long-term stays;
  • 274 apartments on floors 17 through 31;
  • retail space with a 13,000-sf restaurant on the first two floors; 
  • amenities on floors three and four; and 
  • 300 below-ground parking spaces.  
The hotel will be open to the public in fourth quarter 2020. The apartments will be rolled out in three stages through early 2021.

San Francisco-based Geolo Capital is an equity partner in the project. Stantec Inc. is the civil engineer, bKL Architecture LLC is the architect, and Studio Collective is the interior designer. 

The tract currently houses a parking lot run by Nashville-based Premier Parking. 
Warranty deed from the mid-20th century
The year was 1958. Upon writing a check for $424, D.B. and Pearl Kiser got the ball rolling on the purchase of a ten-year-old, 1,200-sf home on 35th St. in Lubbock. The paperwork was interesting. Read more in the latest Mixed-Use blog. 

First Park 121 coming to Lewisville

​​​​LEWISVILLE (REBusiness Online) – Chicago-based First Industrial Realty Trust Inc. will develop a 345,280-sf warehouse/distribution project on 84 acres. 

Phase one of First Park 121 will break ground this month and include two rear-load facilities​​. The buildings will have​​ 32-ft clear heights, over 160 auto stalls, and ESFR sprinkler systems. 

The first phase will ​deliver in second quarter 2019.

Alliance Architects is the architect, and Arch-Con is the general contractor​​. Lee & Associates will lease the property.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Cityplace Tower under new ownership

​​DALLAS (Dallas Morning News) – Locally based Highland Capital Management ​​has purchased the 42-story City​place Tower at 2711 N. Haskell Ave.

Built in 1987, the 1.4 million-sf high-rise has been owned by Parmenter Realty Partners and Angelo, Gordon & Co. since 2013.

The new owners are ​​planning upgrades to the proper​ty.

Colliers International brokered the sale. Avison Young will market and lease the tower.
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.

National housing starts hold steady

​​​​​​WASHINGTON (National Association of Home Builders) – ​National housing starts inched up 0.9 percent in July to a seasonally adjusted annual rate of 1.17 million units, according to the U.S. Department of Housing and Urban Development and the Commerce Department.

Some projects are delayed due to cost concerns. The number of single-family units authorized but not started are up 25 percent since July 2017.

“Supply-side challenges including increases in material prices and chronic labor shortages are affecting affordability in many markets,” said National Association of Home Builders Chief Economist Robert Dietz. “However, consumer demand remains strong due to a growing economy and job market and favorable demographics. Moreover, on a year-to-date basis, single-family construction has shown steady progress, up 7.2 percent, while 5+ multifamily production is up 3.4 percent as well.”

Meanwhile, the multifamily sector rose 3 percent to 306,000 starts.

The South​—the region which includes Texas— reported combined single- and multifamily housing starts rose 10.4 percent.

Partnership sells 1,331-unit Westchase multifamily portfolio

​​​HOUSTON (Connect Media) – Moriah Real Estate Co. and Ascension Commercial Real Estate have sold a three-property multifamily portfolio to the Valcap Group.

The Class B, 1,331-unit portfolio is 91 percent occupied. Assets include the:
  • 307-unit Westchase Estates at 2305 Hayes Rd.;
  • 556-unit Westchase Grand​​ at 10881 Richmond Ave.; and 
  • 468-unit Westchase Preserve at 10615 Meadowglen Ln.
CBRE represented the sellers. 
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Austin developer working on Kingwood project

HOUSTON (REBusiness Online) – ​​​​​Austin-based Stratus​​ Properties Inc​​. is developing Kingwood Place, a 54-acre mixed-use project within the 14,000-acre Kingwood master-planned community.

The project will be anchored by a 103,000-sf H-E-B grocery store. It will also have 41,000 sf of additional retail space and 300 multifamily units. 

Construction will begin in November. 

Summit of Thousand Oaks in San Antonio sold

​​SAN ANTONIO (MultifamilyBiz) – ​37th Parallel Properties has purchased Summit of Thousand Oaks, a 224-unit apartment complex.

The 161,816-sf property has 144 one-bedroom units and 80 two-bedroom units. It was built in 1983 at 1550 Thousand Oaks. 

The new owner will make capital improvements to the property.​​
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=200
RECON for August 14, 2018RECON for August 14, 2018Bryan PopePope
2018-08-14T05:00:00Z2018-08-14T05:00:00Z

Real Estate Center Online News
Empty road in Lubbock, Texas.
Lubbockites have the fastest commute in Texas, according to HomeArea.com. What other Texas cities made the list? Keep reading today's RECON to find out. (Photo from Center files.)
August 14, 2018

Dallas hotel building boom second in nation

​​​DALLAS (Dallas Morning News) – The metro has a total of 156 hotel projects with 18,908 rooms in the construction pipeline​​​​, according to a new report by Lodging Econometrics. 

Only New York City has more new hotels in the works (169 projects). 

Dallas currently has 47 new hotels with 6,350 rooms under construction. Another 73 hotels with 8,606 rooms are scheduled to start in the next 12 months.​​

​"If all of the projects in the pipeline eventually come to fruition, this will increase the city's guest room supply by 21.3 percent," Lodging Economics said in the report. "Dallas should continue its fast-paced growth.​​​"

Most of the current construction in the metro is in Denton, Lewisville​, McKinney, Plano, and Frisco. 

Houston ranked fourth on the list with 40 projects in the pipeline.

Nashville, Tenn., (43 projects) and Atlanta (28) were also on the list. 
Helping Texans make better real estate decisions since 1971

Lubbockites have fastest commutes in Texas

​WASHINGTON (HomeArea.com) – The average travel time to work in Lubbock is 16.3 minutes, the fastest in Texas​, according to ​HomeArea.com. ​​

The city was previously fourth on the list, clocking in at 18.3 minutes last year. 

Other cities in the top ten are: Waco (18.2 minutes), Amarillo (18.5), Corpus Christi (18.7), Brownsville (20.1), Laredo (20.9), El Paso (23.2), Richardson (24.6), San Antonio (24.7), and Austin (24.8).

HomeArea.com calculated the average travel time to work for cities with a population of 60,000 or more using Census Bureau data from the American Community Survey. 
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. 

Groundbreaking set for Hidalgo County courthouse

​​​​EDINBURG (Correctional News) – Construction on ​​Hidalgo County's new courthouse and jail expansion ​begins next month with official groundbreaking​ set for October. 

The 300,000-sf courthouse will be six or seven stories high. It will have about 30 courtrooms and District and County Clerks' offices. ​​This portion of the project will deliver in 2021. 

The $150 million project will add 1,000 beds to the jail. There will also be a separate central utility plant, a security screening area, secure parking, a loading dock area, and a food court. 

The development team includes ERO Architects, HDR Architecture, Jacobs Project Management Co., and Morganti Texas Inc. 

Houston Methodist unveiling $700 million tower

​​​​​HOUSTON (Connect Media) – Houston Methodist is opening a 22-story, $700 million tower in the Texas Medical Center.

The 954,705-sf Paula and Joseph C. "Rusty" Waller III Tower opens Aug. 27 on Bertner St. 

The 336-bed facility will offer 18 high-tech operating rooms, 14 heart cath labs, three intensive-care floors, six acute-care floors, and a VIP suite. There will also be a helipad.

The Houston Methodist DeBakey Heart & Vascular Center and the Houston Methodist Neurological Institute will be in the new building. 
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. 

Corpus Christi's Frost Bank Plaza sold

​​​​CORPUS CHRISTI (Corpus Christi Business News) – The Ed Rachal Foundation purchased the Frost Bank Plaza late last month. 

The 23-story building at 802 N. Carancahu​a St. was built in 1983. It is the second tallest building in downtown. 

California-based CC Frost Properties Ltd. put the tower on the market after filing for bankruptcy earlier this year.​

Partnership picks Park Ten business park building

​​​​​HOUSTON (Realty News Report) – A partnership affiliated with Spire Real Estate LP ​​has acquired Westgate 1, a 248,707-sf office building in the Park Ten business park. 

Completed in 2014, the building at 17220 Katy Fwy. is 96 percent leased. Anchor​ tenants are Subsea 7 and Atkins PLC. 

The property, developed by Tranwestern, i​s part of a three-building, 660,000-sf master-planned project. 

The seller is a fund affiliated with Denver-based Miller Global Properties. 

HFF arranged acquisition financing for Nicola Crosby Real Estate.
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. 

Conn's developing distribution center near IAH

​​​​​HOUSTON (Houston Business Journal) – The Woodlands-based Conn's Inc. will break ground Wednesday on a 656,658-sf distribution facility on 1401 Rankin Rd. 

The 36-acre project will serve as a warehouse, distribution center, office, clearance, and customer pickup center. 

Pennsylvania-based Liberty Property Trust and New York-based Newmark Knight Frank ​are on the development team. 

High-rise hotel coming to Las Colinas

​​​IRVING (Dallas Morning News) – Houston-based Lodgic Hospitality is developing a 12-story, 157-room extended-stay hotel in Las Colinas. 

The Element Hotel will be on Carpenter Fwy. and Meadow Creek Dr. ​​It will include a ballroom and top-floor meeting space. 

Dallas-based Mayse & Associates Inc. designed the tower. DDG Construction is the general contractor. ​
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.

NAI Partners adds Houston business park to portfolio

​​​HOUSTON (NAI Partners) – ​​​​​NAI Partners' Investment Fund II has purchased the 104,212-sf Wells Fargo Business Park​. 

The two-building​, one-story flex office park adjacent to I-45 is 88 percent occupied. 

San Francisco-based Berkeley Partners was the seller. ​

Utah real estate firm buys San Antonio apartments

​​​SAN ANTONIO (PR Newswire) – Draper, ​Utah-based Triago Holdings LLC has purchased the ​​​​Republic Woodlake Apartments. ​​

Built in 2008, the community at 7027 FM 78 offers​ 288​ units averaging 787 sf. 
Real Estate Center economic reports advertisement
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=198
RECON for August 10, 2018RECON for August 10, 2018Hayley RiederRieder
2018-08-10T05:00:00Z2018-08-10T05:00:00Z
Real Estate Center Online News
Downtown Austin at the intersection of W. 6th St. and Congress Ave.
Austin ranked first on Magnify Money's list of America's biggest "boomtowns." Plus, the city's office market is fast, competitive, and expensive according to a Colliers International report. Keep reading today's RECON for more. (Photo from Center files.)
August 10, 2018

Real Estate Center Advisory Committee gets two new members

​​​AUSTIN (Office of the Governor) – Governor Greg Abbott has appointed Troy Alley, Jr. and JJ Clemence to the Real Estate Center Advisory Committee for terms set to expire on January 31, 2023.

The governor also reappointed Russell Cain ​​to the committee. 

​Alley of DeSoto is executive vice president of Con-Real Support Group LP and division president of Real Estate & Capital Assets. He is a member of the Appraisal Institute and holds a MAI designation. 

Clemence of Sugar Land is a pricing and fundamental specialist for Enbridge and is a certified internal auditor. She is a member of The Institute of Internal Auditors, treasurer of Enbridge Leadership Development, and a communication officer for the Enbridge Professional Multi-Culture Committee. 

​​​​​Cain of Port Lavaca is a broker and owner of Russell Cain Real Estate. He is a member of the Texas Association of Realtors, National Association of Realtors, and the Port Lavaca Rotary Club. 

The committee has three public members and one each representing residential, commercial, and industrial properties. Others represent real estate brokerage, construction, and finance. Each is appointed by the governor for a six-year term. The Texas Real Estate Commission is represented by an ex-officio member. 

The committee approves the Center's research plans and reviews findings. Members also approve the Center's proposed budget before it is submitted to the university.

Person holding phone with money falling behind

Celebrate National Dollar Day by tuning into the latest Red Zone podcast. On this week's episode, we have news from San Antonio, Austin, and McAllen. Plus, we look at two new Real Estate Center reports. (10 min. 51 sec.)

​Austin office market red hot

​​​​AUSTIN (Colliers International) – The local offic​​e market is fast, competitive, and expensive, according to a Colliers International report. 

Total inventory was at 51.9 million sf in second quarter 2018 with a vacancy rate of 12.3 percent. ​The average rental rate increased to $34​.51 per sf. In the central business district, Class A rates have climbed to $56.98 per sf. 

Currently, there is 4.09 million sf under construction with 2.1 million sf pre-leased.

In second quarter 2018, the metro had 446,698 sf of negative net absorption. So far this year, the office market had 684,045 sf of negative net absorption​. ​​​​

Foreign Buyer Home Purchases and World GDP Growth
International home buying activity dropped 21 percent so far this year across the nation. Media outlets nationwide reported that the decline was due to Chinese buyers purchasing fewer U.S. homes. However, this is just a small part of the story. Center Research Economist Dr. Luis Torres explains what happened in this week's Mixed-Use blog post

Four Texas cities among nation's biggest 'boomtowns'

​​​NEW YORK (Magnify Money) – ​​Four Texas cities have landed on Magnify Money’s list of the biggest "boomtowns" in America. 

Austin ranked first on the list, showing the greatest five-year growth in population and housing. However, the 10 percent increase in housing units isn’t keeping up with the 16 percent population growth. 

Austin had the highest workforce and earnings score on the list due to a 23 percent drop in unemployment and a 9 percent increase in median wages.  

Dallas, San Antonio, and McAllen ranked seventh, ninth, and tenth, respectively. Houston followed closely behind at eleventh. 

The rest of the top ten rankings include Provo, Utah; Raleigh, N.C.; Charleston, S.C.; Nashville, Tenn.; Denver; and Boise, Idaho. 

To create the rankings, Magnify Money looked at the 100 largest metropolitan statistical areas, tracking changes in population and housing, workforce and earnings, and business growth. 

Helping Texans make better real estate decisions since 1971

Houston multifamily rents, occupancy continue upward

​​​HOUSTON (CBRE) – Local multifamily occupancy continued its upward climb in second quarter 2018, hitting 89.9 percent, according to a CBRE report. 

The average rental rate was also up to $1.16 per sf. 

The net absorption (3,907 units) was nearly double the deliveries (1,987 units)​​, spurring the price and occupancy increases. 

As of the end of the quarter, 10,619 units are under construction. 

Person holding phone with border economy report on screen in front of el paso skyline
Data revisions revealed a less optimistic outlook on the border in June as historically low unemployment failed to stimulate wages, primarily in Laredo and McAllen. Read the latest Texas Border Economy report for the details. 

Downtown Tyler office building under new ownership

​​​​TYLER (L2 Marketing) – The Genecov Group has sold downtown's Plaza Tower to a local real estate investor group after ten years of ownership.

The 20-story, Class A office building at 110 N. College Ave. is 209,264 sf. 

Real Estate Center Senior Data Analyst Joshua Roberson discusses the metro’s downtown transformation in a 2017 article titled “Tyler Renaissance.​” 

Headquarters Ranch slated for mixed-use development

​​​FRISCO (PRNewswire) – ​​Hunt Realty Investments Inc. is developing a mixed-use project on the largest contiguous tract​​​​ in the city. 

The 2,544-acre Headquarters Ranch has frontage along the Dallas North Tollway, Preston Rd., and SH 380. ​

Development is expected to begin in 2019.

​​Hunt purchased the site with its lea​​d investment partner, Chief​ Partners LP, from the Estate of Bert Fields Jr. Other investors include CrossTie Capital Ltd., the Karahan Cos., and the Estate of Bert Fields Jr. ​​​​​

Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

UHV Jaguars get record land donation

​​​​VICTORIA (University of Houston-Victoria) – The University of Houston-Victoria (UHV) has received a gift of 65 acres from the Bennett-Wood family.​

This is the largest donation ever made in support of UHV athletics and the second-largest in university history.​

The land, valued at $820,000, is off Houston Hwy. on ​​Big Bend Rd. near the Victoria Regional Airport. ​

The gift will allow the university to establish and expand its athletics program. It will be home to the school's athletics complex. 

Mexican fund makes Houston debut

​​HOUSTON (Holliday Fenoglio Fowler) – ​Mexico-based The Aztec Fund Inc. has purchased the 313,420-sf Westway Plaza from Transwestern Development Co. 

​​​The Class AA property sits on 9.85 acres at 11330 Clay Rd. Completed in 2015, the LEED Gold building is fully leased to three tenants: General Electric Corp., Superior Energy Services, and Tesco Corp. 

HFF represented the seller.

The purchase is Aztec's first in the metro. ​​

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.

Hilltop picks up Memorial City apartments

​​HOUSTON (Holliday Fenoglio Fowler) – Hilltop Residential has purchased the 398-unit Villas at Bunker Hill​ multifamily community​​ from SouthStar Communities. 

The four-story​, Class A property at 9757 Pine Lake Dr. in the Memorial City area offers one- and two-bedroom units averaging 963 sf. It includes a five-level attached parking garage. 

HFF marketed the property on behalf of the seller. It also secured acquisition financing for the new owner. 

Florida investor acquires Aggieland student housing asset

​BRYAN (REBusiness Online) – Florida-based Waypoint Residential has purchased the 864-bed Z Islander student housing community.

The property at 3803 Wellborn Rd. features one- to four-bedroom floor plans across 380 units. It serves Texas A&M University and Blinn College students. 

ARA Newmark represented the seller, Virginia-based ILM Capital. 

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?

WT Waggoner Building under new ownership

​​FORT WORTH (Fort Worth Business Press) – XTO has sold the historic WT Waggoner Building ​​to Northland Properties Corp.

The 119,846-sf office building at ​​​810 Houston St. was built in the 1920s.

JLL represented the seller while CBRE represented the buyer. 

Sentry Self Storage sold

​HOUSTON (Bellomy & Co.) – Public Storage has purchased the 941-unit Sentry Self Storage. 

Built in 2006, the 104,025-sf property​​​ sits on five ​​​acres at 707 Maxey Rd. 

Charmel Storage Capital and Bellomy & Co. represented the seller and procured the buyer, Public Storage. ​​

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=197
RECON for August 7, 2018RECON for August 7, 2018Bryan PopePope
2018-08-07T05:00:00Z2018-08-07T05:00:00Z

Real Estate Center Online News
San Antonio skyline on a clear blue night
San Antonio apartment occupancy ended July at 90.4 percent, up 40 basis points from June, according to an ApartmentData.com report. For details on this story and more, keep reading today's RECON. (Photo from Center files.)
August 7, 2018

New Center report: Declining trade greatest challenge for Texas economy

​​COLLEGE STATION (Real Estate Center) – Texas' economic expansion continued amid increased activity in the goods-producing industries, but rising input costs, resulting from domestic tariffs, could deflate the rate of growth. 

According to the Real Estate Center's latest Outlook for the Texas Economy report, employment growth moderated to more sustainable levels after explosive growth to start the year. The improved workforce environment pushed the labor force participation rate to a three-year high. Average earnings remained stagnant but extended to a broader base of workers. Upward inflationary pressure, however, weighed on Texans' purchasing power. 

Shortages of entry-level homes lifted shelter costs and hindered housing sales despite strong demand. A declining trade environment remains the greatest headwind to the Texas economy, challenging some of the state's most productive industries.

Subscribe to email notifications​ to get this report sent directly to your inbox once a month. The Outlook for the Texas Economy is written by Center Chief​​​ Economist Dr. Jim Gaines, Research Economist Dr. Luis Torres, ​Research Associate Wesley Miller, and Student Intern Paige Woodson. 
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. 

San Antonio apartment market healthy

​​​​​SAN ANTONIO (San Antonio Business Journal) – Local apartment occupancy ended July at 90.4 percent, up 40 basis points from June, according to an ApartmentData.com report. 

The average price per unit rose $5 to $939, raising the average price per sf per month one cent to $1.10. 

With no new apartment deliveries in July, the average unit size across the metro stood at 850 sf. In the last 12 months, 25 new communities totaling 5,970 units have delivered. 

Currently, there are 25 communities totaling 6,307 units under construction, and 31 communities totaling 8,960 units have been proposed.

Increased occupancy rates correlated with a slight drop in concessions in July, with 78,446 units receiving concessions, or 42 percent of the market. ​​
Dr. Luis Torres headshot over Houston skyline
Read "Houston Resilient: How Houston has met—and will meet—the challenges posed by Hurricane Harvey." The Center for Opportunity Urbanism's article includes insights from Center Research Economist Dr. Luis Torres.

U.S. hiring boosts DFW office demand

​​​​DALLAS (Marcus & Millichap) – ​​​Increased​ population growth ​​and ​​strong​ net migration ​​are luring companies to the Metroplex and driving office expansion, says a Marcus & Millichap report. ​

​​North Texas continues to lead the nation's major metros in job growth, a large chunk of which includes traditional office-using positions. 

Marcus & Millichap expects seven million sf of office space will deliver in 2018, down from the 9.4 million sf completed last year. Vacancy will climb 50 basis points to 20 percent, and average asking rents will increase 3.5 percent to $25.54 per sf. 
Helping Texans make better real estate decisions since 1971

Downtown Houston apartment occupancy up

​​​HOUSTON (Realty News Report) – Downtown has over 8,000 residents, up from 3,800 in 2012 when the city began its Downtown Living Initiative​, says a Central Houston organization report. 

Downtown apartment occupancy grew 11 percent over the year, hitting 70 percent occupancy​. Around 600 units are under construction in the area.

Across the city, 38 apartment communities totaling 10,207 units are under construction, according to a Transwestern report. An additional 65 multifamily projects with 18,238 units are proposed.

The citywide occupancy rate is 89.9 percent, reports Transwestern.  ​​
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. 

Work wraps up on Fourteen555

​​​​DALLAS (Hill & Wilkinson) – Construction has finished on Fourteen555, a 240,000-sf, ​Class A office building at 14555 Dallas Pkwy. 

The project is the first of two planned office buildings on the site and includes a four-story parking garage. There is a separate three-story amenities building called The Hub. 

Fourteen555 is 50 percent leased and was recently named Best Office Project at D Magazine's 2018 Dallas-Fort Worth Commercial Real Estate Awards.​​

Cawley Partners is the developer and Hill & Wilkinson is the general contractor. BOKA Powell is the architect.
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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. 

Construction begins on Capitol Complex

​​​AUSTIN (Strategic Partnerships) – Work has started on the $581 million Capitol Complex in downtown. 

The first phase of the project includes:
  • a 14-story, 603,000-sf office building at 1801 Congress Ave. to be named after George H. W. Bush; 
  • a 12-story, 420,000-sf office building at 1601 Congress Ave.;
  • 3,800 parking spaces; and 
  • a pedestrian mall along Congress Ave. from Martin Luther King Jr. Blvd. to 16th St. 
​The Texas Facilities Commission expects the development to deliver in 2022. ​

13-story San Marcos building underway

​​​SAN MARCOS (Community Impact Newspaper) – Casey Development Ltd. has started construction on Concho Commons, a 13-story apartment community near Texas State University. 

The 310-unit building will include 585 bedrooms, retail space, and a parking garage along Concho St. 

The development was first proposed in 2008 as a three-story building.

Concho Commons will be among the city's tallest buildings once it delivers in 2020. 
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.

38 McKinney industrial acres sold

​​McKINNEY (Fort Worth Business Press) – Sentinel Capital LLC has purchased 37.65 acres zoned for industrial use from KONE. 

The tract is at the McKinney Industrial Park #2 at 1650 FM 546 near the McKinney National Airport. ​​

JLL represented the seller. 

Out-of-state investors pick up Cortland Waters Edge

​​​​FARMERS BRANCH (Dallas Morning News) – New York-based GTIS Partners and Atlanta-based Cortland Partners has purchased a 582-unit apartment community.

The 22-building Cortland Waters Edge community ​is at 1701 Royal Ln.

The purchase also includes​ a multifamily development in Orlando, Fla.
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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.
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RECON for August 3, 2018RECON for August 3, 2018Hayley RiederRieder
2018-08-03T05:00:00Z2018-08-03T05:00:00Z

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McAllen, Texas, street
Although local net absorption fell in second quarter 2018, industrial activity remained strong in McAllen. Get the details from the latest CBRE report in today's RECON. (Photo from Center files.)
August 3, 2018

TAR: Condo sales down, townhome sales up in 2018

​​​AUSTIN (Texas Asso​ciation of Realtors) – Texas condominium sales fell slightly while townhome sales grew​​​ between July 2017 and June 2018, according to a new Texas Association of Realtors (TAR) report. ​​​​

Condo sales dropped 2.1 percent to 14,279 sales. Total dollar volume was just​ over $3.4 billion. The median sales price for condos was $185,000 ($​187 per sf), up 3.4 ​​​percent. Inventory fell 0.2 months to 4.5 months, and the average Texas condo was on the market for 65 days. 

Town​​home sales grew 6.3 percent to 9,064 sales totaling over $2.3 billion. ​​The median sales price was $226,000 ($139 per sf), up 2.3 percent from July 2017. ​​​​​​​Inventory was 4.6 months, down 0.1 months. Townhomes spent an average of 61 days on the market. 

According to TAR, the condo and townhome ​market​ remains one of the most popular segments of the Texas housing market. ​​

Texas Housing at a Glance
For more, read our latest Texas Housing Insight report. Don't forget to subscribe to get this report sent directly to your inbox every month. 

Energy industry recovery bolsters Houston office activity

​​​HOUSTON (Marcus & Millichap) – Office completions are expected to fall to 1.6 million sf in 2018, says a Marcus & Millichap report. ​

Last year, nearly 3.5 million sf of office space came online in the metro, but developers are pushing back. 

Vacancy is expected to increase 20 basis points to 20.5 percent this year, the sixth consecutive annual rise. 

Marcus & Millichap predicts average asking rates will tick up 0.8 percent to $29.18 per sf, more than reversing last year's 0.5 percent dip. 

Increased energy prices and stabilization in the oil and gas industry have prompted hiring to resume, bolstering the office market. 

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Real Estate Center Research Associate Wesley Miller joins us on today's Real Estate Red Zone podcast to talk about the economy along the Texas-Mexico border. We also head to Prosper, Fredericksburg, and metro Houston. Take a listen on our website or on iTunes. 

McAllen industrial absorption remains strong

​​McALLEN (CBRE) – Local industrial net absorption fell to negative 7,891 sf in second quarter 2018, but activity remained healthy, according to a CBRE report. 

​​The vacancy rate increased from first quarter's record low of 3 percent to 3.5 percent, still well below the historical average of 9.6 percent.

Average asking rents declined, hitting $4.47 per sf. Class A asking rents are up to $4.78. 

In the second quarter, 50,000 sf of industrial space was delivered. There was 585,000 sf under construction. 

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The real estate agent's role is changing from information broker to trusted advisor. Center Senior Editor David Jones elaborates in this week's Mixed-Use Blog post

Marcus & Millichap: Austin office deliveries to top 4 million sf

​​​AUSTIN (Marcus & Millichap) – Local office deliveries will top 4 million sf this year for the first time in over a decade, predicts Marcus & Millichap in a new second quarter 2018 report. 

​According to the report, vacancy could have a 50-basis-point increase this year as absorption​​ falls short of new supply. The vacancy rate could hit 10.9 percent in 2018. 

Marcus & Millichap expects asking rates to increase 1.4 percent to $34.22 per sf. 

Medical office assets are in high demand, and out-of-state buyer interest is strong across the market. ​

Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Site work begins on La Porte master-planned community

​​LA PORTE (Houston Business Journal) – Georgia-based Beazer Homes and Arizona-based Taylor Morrison Homes have started site work on Morgan's Landing, a more than 200-acre master-planned community. ​​

The project will be off Bay Area Blvd. between Fairmont Pkwy. and Spencer Hwy​. Taylor Morrison homes will be on 45-, 50-, and 60-ft lots with prices ranging from the low $200,000s to the $500,000s. 

The first of 600 homes will deliver by next spring.

Site plans from a city council meeting show a 7.5-acre tract marked for senior living and a 19-acre lot for multifamily. 

Kudela & Weineimer Landscape Architects worked on renderings for site plans. 

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Four more buildings flying into Passport Park

​​​​​IRVING (Dallas Business Journal) – Dallas-based Trammell Crow Co. will build over 2 million sf of speculative industrial space at Passport Park. 

The project includes four warehouse/logistics buildings ranging from 99,000 sf to 1.1 million sf. They will sit on 130 acres, which the developer has requested to lease for $2 million per year. 

Passport Park is Dallas Fort Worth International Airport's 600-acre mixed-use development.

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.

LA investor buys 588-unit apartment pair

​​​​​SAN ANTONIO (San Antonio Business Journal) – ​Los Angeles-based ​Gelt Inc​. has purchased a two-property, 588-unit​​​​​​​​​​​​​​​​​​​​​​​​​​ apartment portfolio near the medical center.

​​​​​The two adjacent ​properties are the 280-unit Barcelo at 3501 Pin Oak Dr. and the 300-unit Melia at 3431 Oakdale St. They feature one-, two-, and three-bedroom floorplans averaging 938 sf.

CBRE Group Inc. ​represented​ the seller, California-based Trinity Property Consultants LLC, which owned the properties since 2015.​​​

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The Dylan breaks ground in Fort Worth

​​FORT WORTH (REBusiness Online) – Irving-based ​Realty Capital Management and Atlanta-based ArchCo Residential have broken ground on The Dylan, a 227-unit apartment community.

The Class A project will also include 12,212 sf of ground-floor commercial space. 

Completion is set for January 2020. 

Dougherty Mortgage LLC secured a $31.8 million construction loan for the development. ​​

Chicago investor buys Houston-area apartment complex

​​THE WOODLANDS (REBusiness Online) – Chicago-based Waterton has purchased Plantation at The Woodlands, a 432-unit apartment community at 3720 College Park Dr. 

The property features one-, two-, and three-bedroom units. 

The buyer purchased the asset from a CBRE-controlled partnership as part of a 3,685-unit multifamily portfolio. ​​

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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.

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