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RECON for May 25, 2018RECON for May 25, 2018Bryan PopePope
2018-05-25T05:00:00Z2018-05-25T05:00:00Z

Real Estate Center Online News
The front entrance of the Dallas Cowboys' Valley Ranch complex
The Dallas Cowboys' former Valley Ranch compound is becoming a 282-home housing community. Get the details on this story and more in today's RECON. (Photo from the Dallas Morning News.)
May 25, 2018

U.S. Census Bureau: Frisco fastest-growing large city in nation

​​​WASHINGTON (U.S. Census Bureau) – Texas dominated the U.S. Census Bureau’s list of the 15 fastest-growing large cities and towns in 2017.

​​Frisco ranked first, growing 8.2 percent between July 2016 and July 2017. New Braunfels and Pflugerville ranked second and third with 8 percent and 6.5 percent increases, respectively.

Other Texas cities on the list are: no. 6 Georgetown, 5​​​​.4 percent; no. 9 McKinney, 4.8 percent; no. 11 Flower Mound, 4.3 percent; and no. 13 Cedar Park, 4.2 percent.

​Texas also dominated the Census Bureau’s list of the 15 cities with the largest numeric increase in 2017. San Antonio ranked first, adding 24,208 people between July 2016 and July 2017.

​No. 3 Dallas and No. 4 Fort Worth each added 18,935 and 18,664 people, respectively. No. 9 Frisco added 13,470 people, and no. 12 Austin added 12,515. ​
The Real Estate Center will be closed Monday, May 28, for Memorial Day.

Dallas Cowboy's Valley Ranch becoming housing community

​​​​​​IRVING (Dallas Morning News) – Centurion American Development Group is buying the old Dallas Cowboys headquarters and practice center in Valley Ranch for a high-density housing community. 

The 35-acre Legends Crossing community will include 282 villas, townhomes, and bungalows​​​​. Builders Pulte Homes, Oakdale Homes, and Our Country Homes will build the houses. 

The sale​​​​​ will close on June first.

The former Cowboys compound was built in the late 1980s and has been empty since the team moved to The Star in Frisco in 2016. ​​​​
Real Estate Red Zone logoThe Real Estate Red Zone Podcast has won another Bronze Quill award from the Houston IABC. In celebration, we report the biggest real estate news from around the state. Take a listen. (16 min. 39 sec.) 

2,300-acre sand mine planned near Eagle Ford

​ATASCOSA COUNTY (San Antonio Express-News) – Fort Worth-based Black Mountain Sand is constructing a new ​​sand mine south of San Antonio near the Eagle Ford Shale.

The 2,300-acre property will churn out 2.2 million metric tons of sand annually and employ 75 people. The proposed mine's total sand capacity is already sold out through long-term contracts.​

The company is financially backed by Dallas-based NGP Energy Capital.
Who Builds the House infographic from Bank of America Merrill Lynch
Materials constitute roughly 25 percent of the sales price of a new home, says a Bank of America Merrill Lynch report. Center Senior Editor David Jones elaborates in today's Mixed-Use Blog post.

DFW data center rates at historic lows

​​​DALLAS (CBRE) – Local data center market rates are at historic lows, including low electricity rates (3.8 cents to 6.5 cents per kWh),​ according to a CBRE report. 

The market had​​​ steady leasing activity in first quarter 2018 with 9.4 megawatts (MW) of net absorption in the colocation market. The construction pipeline is strong with 47.4 MW under construction. There is 38.6 MW currently​ available. 

Low power costs, abundant fiber connectivity, attractive tax incentives, and a low hazard-risk profile combine to make DFW an attractive data center market, the report says. 

Vacancy is down 4.4 MW to 18 percent. Inventory sat at 409 MW in first quarter 2018. ​​​
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If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

Multifamily developers remain positive in 2018

​​​WASHINGTON (National Association of Home Builders) – ​​Confidence in the multifamily ​market remained positive in first quarter 2018, according to two National Association of Home Builders (NAHB) indices.  

The Multifamily Production Index (MPI) remained unchanged from last quarter, coming in at a reading of 53. 

The MPI measures builder and developer sentiment about current conditions in the apartment and condo market. A number over 50 indicates more respondents report conditions are improving thanreport conditions are worsening. 

The Multifamily Vacancy Index (MVI) remained essentially unchanged, increasing one point to 42.​ 

The MVI measures the multifamily housing industry's perception of vacancies. A number over 50 indicates more property managers report more vacant apartments. A reading of 42 is considered healthy. 

"Multifamily builders and developers are reporting solid demand around the country, as shown in the vacancy rate for the first quarter," said Steve Lawson, chairman of NAHB's multifamily council. “We anticipate steady demand through the rest of the year as household formations continue to grow."​
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.

JV developing San Antonio self-storage

​​​​SAN ANTONIO (REBusiness Online) – ​​HPI​​ Horne Storage ​​​​is developing a 979-unit self-storage facility at 10126 Potranco Rd. 

The property will total 134,000 sf of net rentable space. Completion is slated for April 2019.

SBS Construction is the general contractor. Arch-Con Architecture is designing the property.

HIP Horne is a joint venture between HPI Real Estate Services & Investments​​ and Hugh Horne. 
Helping Texans make better real estate decisions since 1971

Work starts on 336-unit Midtown apartment tower

​​​​​HOUSTON (REBusiness Online) – ​A partnership between PM Realty Group and AECOM has broken ground on 3300 Main, a 336-unit apartment tower.

The property will include 14,390 sf of retail space and 521 parking spaces. Construction is scheduled ​to take 24 months. 

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

Construction to start soon on Valor Club veterans' project 

​​​​​​SAN ANTONIO (Connect Media) – ​Work will soon begin on the Valor Club, a 200-acre residential project geared​ toward veterans and their families. 

The $225 million development on Pecan Valley Dr. will offer affordable apartments and single-family homes. 

Corpus Christi multifamily under new ownership

​​CORPUS CHRISTI (REBusiness Online) – New York-based Castle Lanterra Properties has purchased the 350-unit Sendera Baypoint multifamily community. 

Built in 1998, the community was sold by Austin-based Sendera Investment Group.  

Institutional Property​ Advisors arranged the sale.​​
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=175
RECON for May 22, 2018RECON for May 22, 2018Bryan PopePope
2018-05-22T05:00:00Z2018-05-22T05:00:00Z

Real Estate Center Online News
Midland, Texas, skyline
For the second year in a row, Midland snagged the top spot on SmartAsset's list of the fastest-rising housing markets in the country. Get the details on this story and more in today's RECON. (Photo from Center files.)
May 22, 2018

Texas adds 39,600 jobs in April

​​​​​​​​​AUSTIN (Texas Workforce Commission) – The Texas economy added 39,600 seasonally adjusted nonfarm jobs in April, marking​ 22 consecutive months of employment growth. 

According to the Texas Workforce Commission, the state added 332,300 jobs over the year for an annual employment growth rate of 2.7 percent. Texas’ seasonally adjusted unemployment rate was 4.1 percent, up slightly from 4 percent in March.

Midland had the lowest unemployment​ rate at 2.1 percent. McAllen-Edinburg-Mission had the highest at 6.5 percent.

Mining and logging had the largest percent change over the month, growing 2 percent since March 2018. Financial activities lost the largest percent of jobs, dropping 0.3 percent in April. ​
A drone carries a small house through the city.
New-home inventories in Texas are well below the six- to 6.5-month equilibrium level. Rising land prices and lagging labor productivity prevented a sufficient supply-side response following the Great Recession. Read "Home Delivery: Where is All the New Housing?" a Tierra Grande digital first by Center Research Economist Dr. Luis Torres and Research Associate Wesley Miller.  

SmartAsset: Midland fastest-rising housing market

​​​​​​​​​​NEW YORK​ (SmartAsset) – Midland is the fastest-rising housing market for the second year in a row,​ according to SmartAsset's 2018 survey.

​Median home prices in Midland grew 22.43 percent from 2012 to 2016. During that time, median incomes grew 20.21 percent. Population in the West Texas city grew 12.76 percent. 

Frisco was the only other Texas city in the top ten, snagging the ninth spot with a 20.84 percent median​ home value change from 2012 to 2016. Median incomes grew 8.5 percent, and population grew 27.67 percent. 

Other Texas cities in the top 25 are:​
  • No. 12 Odessa, 27.27 percent ​median home price growth;
  • No. 15 Austin, 18.97 percent;
  • T-18 Round Rock, 14.52 percent;
  • T-18 Richardson, 1​4.17 percent;
  • No. 20 League City, 14.58 percent; and
  • No. 22 McAllen, 8.90 percent​.
Colorado and California dominated the top ten rankings. ​
A cartoon woman chases after a house on a stick/fishing line, barely reaching it. Although Texas' housing market as a whole remains relatively affordable, a recent shift from lower-priced, entry-level new homes to more expensive homes has reduced affordability for lower-income earners in some markets. Center Research Economist Dr. Luis Torres and Ph.D. student Wayne Day say more in their latest Tierra Grande digital first, "Out of Reach? Texas Affordable Housing."

Work to start on Austin's tallest office tower

​​​​AUSTIN (REBusiness Online) – Trammell Crow Co. is developing a 709,000-sf office tower at 200 W. Sixth St. 

The 36-story, Class A building will be the ​​​tallest office tower in the city. 

Indeed has signed a long-term lease to occupy the top ten floors, totaling about 307,000 sf. 

Construction will begin within the next few weeks with a target completion date of 2021. 

Page Southerland​ Page is the project architect, and DPR is the general contractor. CBRE will handle marketing and leasing. ​
Helping Texans make better real estate decisions since 1971

Texas employment could grow 3.6 percent in 2018

​​​​​​DALLAS (Federal Reserve Bank of Dallas) – Jobs will grow 3.6 percent this year, predicts the Federal Reserve Bank of Dallas' Texas Employment Forecast. ​​

The forecast shows​​​​ 444,100 jobs will be added in the state this year, pushing employment to 12.8 million in December 2018. 

​​​According to Dallas Fed Assistant Vice President and Senior Economist Keith Phillips, Texas job growth picked up in April. The state has added 151,200 jobs year to date, the most over a four-month period in almost four years. 

"Combined with continued growth​ in the leading index, this makes it very likely that job growth will be strong in the second half of 2018," said Phillips. 
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 office leasing cools

​​SAN ANTONIO (CBRE) – Local office market fundamentals leveled out in first quarter 2018 as leasing cooled, said a CBRE report. 

Vacancy ticked up to 15.8 percent as net absorption fell to negative 152,788 sf. 

The office market saw no new deliveries come online so far this year. There were ​​​998,131 sf of office space under construction. The average asking rate fell to $21.04 per sf. 

Unemployment​ in San Antonio rose from 3 percent in December 2017 to 3.4 percent in February 2018. 
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. 

Water-efficient, Energy Star sales tax holidays this weekend

​​​​AUSTIN (Texas Comptroller of Public Accounts) – ​​​Sales tax holidays for water-efficient and Energy Star products are set for May 26-28.

The Texas Comptroller's office estimates shoppers will save about $10.7 million in state and local sales tax during the Memorial Day weekend sales tax holidays.

There's no limit to the number of water-efficient or water-conserving products you can purchase tax-free.

For information on qualified products, visit the Texas Comptroller's website. 

Energy/Water savings when using eco-friendly appliances chart

Las Colinas office sells after upgrade

​​​​​IRVING (Dallas Morning News) – A New York property firm has sold the 122 W. Carpenter Fwy. building after spending more than $5 million in upgrades. 

Built in 1982, the over 200,000-sf property is home to Enterprise Financial Group, AmeriHome Mortgage, and Blue Ridge Mountain Resources. 

Locally based Par Capital–122 West LLC pu​rchased the building. The seller had owned the building since 2014. 

HFF brokered the sale. ​​

TREC launches new name management tool for brokers

​​​​​AUSTIN (Texas Real Estate Commission) – The Texas Real Estate Commission (TREC) has launched its new Name Management Tool to allow broker license holders to manage all of their business names online and remain in compliance with the updated advertising rules.

The tool is available only for business and individual broker license holders. Sales agents looking to register team names or DBAs must do so through their broker.  ​

TREC has a video showing brokers how to use the new tool. More ​​information on advertising changes is on their website.​
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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. 

The Rim getting new hotel

​​​​​SAN ANTONIO (San Antonio Business Journal) – Edinburg-based Tesh LLC is developing a​​ ​Marriott Towneplace Suites on 4.3 acres at 17934 La Cantera Pkwy. ​​within The Rim development.

McAllen-based Boulti​nghouse Simpson Gates Architects designed the 119-room hotel, which could cost up to $8.1 million. 

Utility and site work will begin as soon as possible. Delivery is set for June 2019.​

Interwood Business Center under new ownership

​​HOUSTON (Holliday Fenoglio Fowler) – ​Black Equities Group Ltd. has purchased the Interwood Business Center from Stockbridge Capital Group. 

The two-building, Class A industrial project totals 192,000 sf. It sits on 10.9 acres within Interwood Business Park at 14430-14440 John F. Kennedy Blvd. and 14445-14449 Heathrow Forest Pkwy. 

​​HFF represented the seller. 
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.

245,945-sf El Paso industrial portfolio sold

​​EL PASO (CBRE) – ViaWest Group has sold Merchant Industrial, a four-building industrial​​​ portfolio, to Stonelake Capital Partners. 

The 245,945-sf portfolio is at 7155, 7157, 7177, and 7189 Merchant Ave. It is 94 percent leased.

CBRE represented the seller and procured the buyer. ​​

HEB opening 871-acre San Antonio facility

​​​SAN ANTONIO (REBusiness Online) – HEB is opening an 871-acre distribution center​​ for food processing and storage.

The project is expected to create 300 jobs over the next five years. 

Construction will begin later this year with completion​ set for late 2019. 
Real Estate Center economic reports advertisement
DATELINE (Source) – Copy.
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=174
RECON for May 18, 2018RECON for May 18, 2018Bryan PopePope
2018-05-18T05:00:00Z2018-05-18T05:00:00Z

Real Estate Center Online News
Texas Gov. Preston Smith signing legislation with Real Estate Center supporters behind him. 1971
On this day in 1971, Texas Governor Preston Smith signed legislation creating the Texas Real Estate Research Center and placing it at Texas A&M University. (Photo from Center files.)
May 18, 2018

1.1 million East Texas timberland acres under contract

​​ATLANTA (PR Newswire) – A partnership led by CatchMark Timber Trust Inc. is acquiring 1.1 million acres of East Texas timberlands for $1.39 billion. 

The deal is one of the largest U.S. timberland transactions in over a decade. 

The buyer assumes existing sawtimber and pulpwood supply agreements until at least 2029 and 2027, respectively.

Campbell Global sold the property on behalf of the owners. 

Other investors in the partnership include BTG Pactual Timberland Investment Group, Highland Capital Management, Medley Management Inc., and a Canadian investor. 
A small country home on green grassy land
Most Texas homeowners are aware of the homestead law that exempts them from certain taxes, but the law provides two other key provisions: homestead protection from creditors and the right of occupancy. For more, read "Homestead Advantage," a Tierra Grande digital first by Center Research Attorney Rusty Adams. 

Home production drops but remains near post-recession high

​​​WASHINGTON (National Association of Home Builders) – Housing production fell 3.7 percent in April to a seasonally adjusted annual rate of 1.29 million units, according to data from the U.S. Department of Housing and Urban Development and the Commerce Department. 

March's upwardly revised reading of 1.34 million marked an 11-year high. 

The drop in production is in part due to a decline in the multifamily sector after a strong March. Multifamily starts fell 11.3 percent in April to 393,000 units. Meanwhile, single-family starts remained flat, inching up 0.1 percent to 894,000 units. 

Single-family starts are up 8.3 percent year over year in first quarter 2018, higher than forecasts from the National Association of Home Builders (NAHB). 

“However, builders must manage supply-side hurdles, such as ongoing building material price increases and shortages of land and labor, to meet growing housing demand," said NAHB Chief Economist Robert Dietz. "Lumber prices continue to rise, with recent increases adding more than $7,000 to the price of an average single-family home." 

Overall permits inched down 1.8 percent in April to 1.35 million units after a post-recession high in March. Single-family permits ticked up 0.9 percent to 859,000. Multifamily permits fell 6.3 percent to 493,000 after a 20.4 percent jump in March. 

In the South, combined single- and multifamily housing production increased 6.4 percent in April. Permits rose 12 percent in the region.​

The Real Estate Center has monthly and yearly building permit data by state, MSA, or Texas county. 
A woman holds a phone with the Red Zone podcast on it in front of the El Paso skyline.

On this week's Real Estate Red Zone podcast, we head down to the Texas-Mexico border to see how the economy's doing. We also have a "homestead advantage" with our latest Tierra Grande digital first. Tune in for all this and more. (13 min. 58 sec.)

Downtown Dallas has most development potential in U.S.

​​​​DALLAS (Dallas Morning News) –​​ Big D has the greatest development potential in the country, according to a new study by Yardi System Inc. 

Downtown has over 86 acres of undeveloped space, the most of the 25 cities Yardi looked at. 

​​​​​​Las Vegas ranks second with over 75 undeveloped acres. Austin and San Antonio follow with 71​​ and 42 acres, respectively​. Phoenix rounds out the top five with 31 acres. ​

Houston ranks 19th on the list with only 8.9 acres.

"In the South, Texas is king—​​​208 acres of undeveloped land are scattered across the central business districts of Dallas, Austin, San Antonio, and Houston," the report concludes. 

Of city residents polled, 77 percent picked more housing and parks as their most desired additions to downtowns.​
Helping Texans make better real estate decisions since 1971

TDI urges homeowners to consider flood insurance

​​AUSTIN (Texas Department of Insurance) – With hurricane season only two weeks away, the Texas Department of Insurance (TDI) is urging homeowners to review their insurance policies and consider flood insurance.

"There were more than 2.5 million residential policies in force in counties affected by Harvey, but only about half a million flood policies," said Insurance Commissioner Kent Sullivan. "I encourage Texans to remember that if it can rain, it can flood. At a minimum, talk to your agent about flood insurance even if your mortgage doesn't require it."

Flash floods are the most common natural disaster in Texas, but most home and commercial policies do not cover flood damage. A separate flood policy can be acquired through the National Flood Insurance Program. These policies typically have a 30-day waiting period before coverage takes effect.

For more information about flood insurance and how to prepare for hurricane season, visit the TDI website or FloodSmart.gov. ​
A suburban neighborhood with undeveloped dirt lots
Rising land costs contribute to rising home prices. As land costs increase, they account for a larger portion of a home's overall price. In 2016, land accounted for an average of 20.4 percent of the cost of a home in Texas. That's less than the average for the nation and most-populated states. Center Chief Economist Dr. Jim Gaines and Research Economist Dr. Ali Anari say more in "Dirt Isn't Cheap . . . Anymore: Land's Impact on Home Prices."

American housing market optimism erodes

​​DALLAS (PR Newswire) – Only 50 percent of all Americans believe the housing market is healthy, down 10 percent from last year, according to a ValueInsured homebuyer survey.

While 67 percent of U.S. homeowners think the market is healthy, only 33 percent of non-homeowners agree. 

Around 64 percent of Americans think buying a home today is a good investment, compared with 77 percent of homeowners and 52 percent of non-homeowners. 

Only 32 percent of non-homeowners think they can afford a home. ​

According to ValueInsured, rising home prices, mortgage rate hikes, and price sustain​ability​​ doubt are lowering homebuyer confidence. 

Sixty-eight percent of Americans say a market correction will happen within the next two years. A majority (62 percent) of Americans say people who buy a home now will have buyer's remorse. 

For info on Texas housing affordability, read the Center's latest Texas Housing Insight report. 
The outline of Texas in front of graphs and charts

Ranking 27th nationally, Austin was named the best city overall in Texas to be a real estate professional by WalletHub. But can data alone determine which city is best for you to practice real estate? Center Research Data Scientist Gerald Klassen says more in today's Mixed-Use Blog post.

113,000-sf Houston industrial property sold

​HOUSTON (REBusiness Online) – ​​Locally based Quasar GP LLC has purchased a 113,000-sf industrial asset at 13827 W. Hardy Rd.

The two-building, crane-served property was built in 1981 and includes 5,700 sf of office space.

Lee & Associates represented the seller​. NAI Partners represented Quasar. ​

540-acre industrial park coming to El Campo

​​​EL CAMPO (NAI Partners) – Work will start next month on the 540-acre SW International Gateway Business Park off US 59.

It will include up to ten million sf of Class A warehouse, manufacturing, and rail-served distribution facilities. 

Kansas City Southern will offer cross-border transportation for the park, which is being developed by Ridgeline Property Group. Stonemont Financial Group is providing funding, and NAI Partners is marketing the property. ​​
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If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

PMRG developing Hidden Springs senior living

​​McKINNEY (REBusiness Online) ​– Houston-based PMRG is developing Hidden Springs, a $40 million senior-living community. 

The 215,000-sf asset will include 132 independent-living, 40 assisted-living, and 28 memory-care units. 

Work will start on the project this summer. Initial occupancy is set for July 2019. ​​

Atlanta investor buys, rebrands Houston apartments

​​HOUSTON (Carroll Organization) – Atlanta-based Carroll Org.​​ has acquired The Ava, a 321-unit property at 7600 Highmeadow Dr.​

The four-story mid-rise community has been rebranded as Arium Uptown West. 

Carroll Management Group will manage the property.​​

UT Tyler student housing under new ownership

​​​TYLER (REBusiness Online) – The 324-bed Reserve Apartments near the University of Texas at Tyler has been sold. ​​​

Marcus & Millichap represented the seller and procured the buyer.
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=173
RECON for May 15, 2018RECON for May 15, 2018Bryan PopePope
2018-05-15T05:00:00Z2018-05-15T05:00:00Z

Real Estate Center Online News
Trucks siting at an industrial building at dusk.
According to a Colliers International report, Austin industrial vacancy fell to 7.6 percent in first quarter 2018. Average asking rents increased marginally. Get the details on this story and more in today's RECON. (Photo from Center files.)
May 15, 2018

Developers struggling to meet North Texas retail demand

​​​DALLAS (Marcus & Millichap) – Despite developers bringing more than 21 million sf of new space online over the past five years, vacancy has retreated to a near decade low. 

According to a ​Marcus & Millichap report, an average of 75,000 people have moved to the Metroplex in each of the past five years, producing strong demand for retailers. 

Around 4.4 million sf of retail space is predicted to come online in the area in 2018. While completions will remain above the five-year average, deliveries are below last year's 5.5 million sf of retail space.

Marcus & Millichap expects vacancy will fall for the ninth consecutive year in 2018, dipping 20 basis points to 4.9 percent. 

Rent growth is predicted to slow this year, increasing 2.2 percent to $16.80 per sf. That rate ends the year 12 percent above the 2008 peak. ​
Helping Texans make better real estate decisions since 1971

Austin-Round Rock home sales keep climbing

​​​​AUSTIN (Austin Board of Realtors) – ​​The local housing market is becoming more competitive due to declining inventory and robust sales, says a newly released report from the Austin Board of Realtors (ABoR).

April 2018 ​​report highlights include:
  • New listings increased 5.6 percent to 4,139 listings, and active listings fell 2.8 percent to 6,154. 
  • Pending sales rose 14.3 percent to 3,320.
  • The median price of single-family homes in the area increased 3.8 percent year over year to $316,000 in April.
  • Housing inventory de​creased 0.2 months to 2.4 months. The Real Estate Center considers a six- to 6.5-months supply a balanced market. 
  • Homes priced between $150,000 and $250,000 stayed on market for 35 days.​ 
“In the Austin-Round Rock MSA, price classes across the board are seeing an increase in demand with a decrease in inventory,” said ABoR President Steve Crorey.​ “While new listings are up year over year, homes are selling faster than they can be listed on the market. This has led to a smaller number of active listings and an increasingly competitive market for homebuyers.”​
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. 

Rebounding employment encourages Houston retail growth

​​HOUSTON (Marcus & Millichap) – Rebounding employment and healthy demographics encouraged local retail growth in first quarter 2018, according to a Marcus & Millichap report.

Residents affected by Hurricane Harvey are still repairing their homes and replacing household goods. This helped boost spending in the metro at its fastest pace since 2014. A stronger rate of growth is expected again this year. 

Marcus & Millichap expects the metro to see 4.4 million sf of retail space come online in 2018. 

Retail vacancy is predicted to rise 20 basis points to 5.9 percent. Average asking rates are expected to advance at a healthy 3.3 percent.

In first quarter 2018, the area saw a 2.1 percent increase in total employment year over year. ​​

Austin industrial starts year off strong

​​AUSTIN (Colliers International) – The local industrial market posted 382,166 sf of positive net absorption in first quarter 2018, according to a Colliers International report.

Last quarter, 837,441 sf of industrial space came online, up from the 60,351 sf delivered in fourth quarter 2017. Nearly 1.1 million sf was in the pipeline in first quarter 2018, up from 653,846 under construction the quarter before.

Vacancy fell from 8.3 percent over the quarter to 7.6 percent. Average asking rates increased​​​​ marginally to $10.77 per sf from $10.70. ​

A man hold an iPad with the Texas Border Economy report on the screen.
According to our latest Texas Border Economy report, employment growth and historically low unemployment improved economic conditions on the Texas-Mexico border. The Texas border metros added 5,600 jobs in the first quarter as favorable currency fluctuations boosted retail trade. Trade activity reached record levels as the North American economy pushed forward. Subscribe to get email notifications every time this report is released. 

Dallas second nationally for office building, leasing

​​​DALLAS (Dallas Morning News) – ​​North Texas ranked second only to California's Silicon Valley as the top office-leasing market in the U.S. for the 12 months ending in first quarter 2018, according to Transwestern.

Seattle and Northern Virginia ranked third and fourth.

The Metroplex was also second in total office construction in first quarter 2018, behind only New York City. 

Transwestern estimates that net office leasing in DFW was over 5.5 million sf in the year ending with March.

Average asking office rents in the area were up by almost 3 percent year over year to $25.31 per sf. Local quoted office rents are about the same as the national average in Transwestern's survey.

With more than 15 percent of North Texas' building space empty, the average vacancy in the area is much higher than the 9.7 percent nationwide rate.​

Austin was eighth in the nation in total office construction.​
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

Austin retail market hot

​AUSTIN (Marcus & Millichap) – Healthy job growth and demographic trends are keeping retail vacancy near a ten-year low, according to Marcus & Millichap.​​​​ ​

The report said migration to the market has been robust. Rising prices inside the city have encouraged growth in the suburbs, where retail construction has been concentrated over the past five​ years.

Marcus & Millichap predicts 1.1 million sf of retail space will deliver this year. High land, labor, and material costs have prompted a slowdown, and deliveries could fall to a six-year low in 2018.

The absorption​​​​ of over 680,000 sf of retail space will push the vacancy rate up 20 basis points to 4.1 percent.

The report predicts a 3.5 percent increase in asking rent to $23.22 per sf. ​​ ​​​​

NAR: DFW home price gains smallest in almost four years

​​​DALLAS (Dallas Morning News) – Area home prices rose only 6 percent in first quarter 2018, the smallest year-over-year price gain in nearly four years, said the National Association of Realtors (NAR). 

​Still, North Texas home prices climbed to ​a near record-high of $250,700, up from $245,500.

Austin had the highest average prices in Texas at $296,400, a 4.5 percent increase. San Antonio posted the largest increase in the state with prices growing 8 percent to $218,900. Houston home prices jumped 3.4 percent to $229,800. 

​​​Nationwide median home prices grew 5.7 percent year over year in first quarter 2018. Home prices rose in more than 90 percent of the 178 metros NAR surveyed​​. Around 30 percent of the home markets had a double-digit percentage price jumps. ​
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Houston third in apartment absorption thanks to Harvey

​​​HOUSTON (Realty News Report) – Apartment occupancy jumped as Houstonians sought temporary shelter after Hurricane Harvey's flood. 

In its first quarter 2018 report, Berkadia ranked the region as the third best metro area for apartment absorption in the U.S.

Renters moved into 2,971 apartment units in first quarter 2018, behind the Dallas-Fort Worth rate of 4,340 and New York City’s absorption of 3,148 units.​

​“Houston is really exceeding expectations and outperforming many other multifamily markets across many metrics,” said Ryan Epstein, senior managing director of Berkadia Houston. “Investment activity reflects these more healthy dynamics, and we anticipate this trend to continue as the Houston area economy keeps seeing growth.”

​​Nationwide, 396,496 net units were absorbed in the last four quarters. 

Other highlights of Berkadia's report include:
  • 1,242 new apartment units deliv​​ered in first quarter 2018.
  • Occupancy reached 89.7 percent, up 1.4 percent year over year.
  • Effective rent stands at $1,022, up 4.6 percent year over year.​
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.

Work starts on tallest building in The Domain

​​AUSTIN (Connect Media) – TIER REIT has started site work on the 320,000-sf Domain 12 at 11700 Al​terra Pkwy.

The 17-story high-rise will be the tallest building in The Domain ​​mixed-use development. The first eight stories will be for parking, and the top nine will be offices. ​

Completion is set for year-end 2019.

Breaking Tradition: TAMU student housing gets new owner

​​COLLEGE STATION (REBusiness Online) – ​A subsidiary of Preferred Apartment Communities Inc. has purchased The Tradition​​, an 808-bed student housing community. 

The 427-unit property is at ​301 Church Ave. near Texas A&M University.

The buyer financed the purchase with a $30 million loan from Macquarie Group. ​ 
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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.
https://www.recenter.tamu.edu/news/recon/?Item=172
RECON for May 11, 2018RECON for May 11, 2018Bryan PopePope
2018-05-11T05:00:00Z2018-05-11T05:00:00Z

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The Houston housing market rebounded in April with the highest average and median prices of all time. However, local home payments continue running behind after Hurricane Harvey. Read more news from around the state in today's RECON. (Photo from Center files.)
May 11, 2018

Houston housing sales spring into April

​​​​​HOUSTON (Houston Association of Realtors) – After a sluggish March, the local housing market rebounded in April with its highest average and median prices of all time.

According to the Houston Association of Realtors, the median home price was $240,000 last month, a 5.3 percent increase from April 2017. The average price was $305,092.

Area Realtors sold 7,070 single-family homes, up 6.9 percent from a year earlier. Existing-home sales grew 6.1 year over year in April to 5,813. 

Inventory dropped from 3.8 months in April 2017 to 3.6 months. The Real Estate Center considers a six- to 6.5-months' supply a ​balanced​​ market. 

Sales for homes priced between $500,000 and $749,999 jumped 28.7 percent year over year, while sales for homes between $100,000 and $149,999 decreased by 21.3 percent. 

In total, over $2.4 billion worth of properties changed hands in the area last month. 
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Dallas-Plano-Irving's continued population growth is good for the local economy, but it presents challenges for the local housing market. Low inventory, expensive land, rising mortgage rates, and a trend toward higher-priced new homes mean fewer options for many potential homebuyers. Read more in Center Senior Data Analyst Joshua Roberson's latest article, "Dallas' Affordability Puzzle."

Houston home payments running behind after Harvey

​​​DALLAS (Dallas Morning News) – Houston still has one of the highest late home loan payment rates in the country thanks to Hurricane Harvey.​

​Almost 9 percent of Houstonians were at least one month behind on their home mortgage payments in February, according to CoreLogic. Almost 5 percent of Houston's home mortgages were​ seriously overdue. The nationwide late loan rate was just 4.8 percent.

Homeowners were even further behind in their payments in the Miami area, where over 10 percent of mortgage payments were overdue.

​Only 4.4 percent of Dallas ​​homeowners were at least one month behind in their loan payments in February—down from 4.8 percent in February 2017. CoreLogic estimates 1.4 percent of Dallas homeowners are 90 days or more behind in payments.

Only 0.3 percent of DFW home mortgages were in foreclosure in February.

During the worst of the recession in 2010, more than 5 percent of Metroplex mortgages were seriously delinquent. About 1.5 percent of all loans were in foreclosure.

​For all of Texas, 6.1 percent of homeowners with loans were late with their payments and 0.3 percent of mortgages were in foreclosure.
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Texans already know how fun it is to live in the Lone Star State, but a WalletHub study backs us up. What does Texas have to offer? Center Communications Specialist Hayley Rieder says more in this week's Mixed-Use Blog post.

Howard Hughes partnering with Allen on Monarch City

​​​ALLEN (Dallas Business Journal) – Howard Hughes Corp. is partnering with ​​the city to build ​​Monarch City, an 8.7 million-sf, mixed-use development.

Plans for the 270-acre project include 4.5 million sf of office space; 300,000 sf of retail; 4,000 multifamily units; and two hotels. ​​The development will be centered around a 20-acre park.

The project is expected to begin within two years after zoning is approved. Construction will take between seven and ten years.​​​
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Center Chief Economist Dr. Jim Gaines joins us on this week's Red Zone podcast to talk about how land costs affect home prices. Plus, we have news from all around the state. Take a listen. (25 min. 56 sec.)

Friendswood launching Baytown master-planned community

​​​​BAYTOWN (Houston Business Journal) – Friendswood Development Co. is developing Baytown Crossings, a master-planned community on 514 acres at Garth and Wallisville Roads. 

The development will have over more than 1,400 homes starting in the $200,000s across four neighborhoods. ​​Homesites will include 50- and 60-ft lots. 

Baytown Crossings will also feature greenbelt trails, neighborhood parks, and lakes. 

Goose Creek Consolidated Independent School District is planning an elementary school nearby​

The first homesites will be available for builders early next year. The community's grand opening is set for summer 2020.
Reminder: The deadline to file property tax protests has changed from MAy 31 or May 15, or 30 days after th edelivery of the Notice of Appraised Value, whichever is later.

San Antonio medical office vacancy at 14.9 percent

​​​​SAN ANTONIO (Transwestern) – According to a Transwestern report, the local medical office market had a 14.9 percent vacancy rate in first quarter 2018. 

Total net absorption​​​ was negative 6,190 sf. Over 1.7 million sf of space was available. 

Gross rent for medical office buildings was $22.90 per sf last quarter. ​​​The average property was on the market for 19 months. ​
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Work starts on Hyatt hotel in Frisco

​​FRISCO (REBusiness Online) – Dallas-based Sam Moon Group has broken ground on the 303-room Hyatt Regency Stonebriar.

The 18-story property will include a conference center and parking garage. A 3,000-sf library will be attached to the Stonebriar Centre mall.

The project is expected to open in first quarter 2020. 

Architecture firm HKS Inc. is designing the hotel. Brasfield & Gorrie is the general contractor ​
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JV developing 150-acre Houston business park

​HOUSTON (Houston Business Journal) – ​​Hines and Katy Partners Ltd. are developing a 150-acre Class A business park at the northwest corner of I-10 and Igloo Rd.

The development, called Pintail Crossing, will have up to 2.2 million sf of distribution space. 

Boyd Commercial LLC will lease the build-to-suit park. 

1,210-unit San Antonio multifamily portfolio sold

​​​​​SAN ANTONIO (REBusiness Online) – ​​​​Locally based Kairoi Residential has acquired a 1,210-unit multifamily portfolio on the city's northwest side.

​The buyer will make capital imp​​rovements on all four properties. 
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Stream, LaSalle developing Grand Prairie industrial project

​​GRAND PRAIRIE (Dallas Morning News) – Stream Realty Partners and LaSalle Investment Management are building the Parkway Logistics Center.

The 271,794-sf project will be on 14.3 acres at 2911 S. Great Southwest Pkwy.

Completion is scheduled for later this year. ​

250 multifamily units coming to Fort Worth suburb

​​​​FORT WORTH (REBusiness Online) – Cincinnati-based North American Properties is developing the Byron at Trophy Club, an apartment complex in the Trophy Club suburb. 

The 250-unit luxury property will feature a 420-space parking garage. 

​​Chicago-based Pearlmark originated a $12.2 million mezzanine loan for the development. ​
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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.
https://www.recenter.tamu.edu/news/recon/?Item=171

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