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RECON for October 20, 2020RECON for October 20, 20202020-10-20T05:00:00Z2020-10-20T05:00:00Z

RECON Real Estate Center

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Starting Jan. 1, 2021, the Real Estate Center will begin operating under its given name, the Texas Real Estate Research Center. The name change ushers in the Center's 50th anniversary year. Keep reading today's RECON to learn more about our "new" name. (Photo by Center Photographer JP Beato III.)
October 20, 2020

Real Estate Center gets 'new' name

COLLEGE STATION (Real Estate Center) – On Jan. 1, 2021, the Real Estate Center at Texas A&M University will have a new name. Sort of. After 35 years with its current name, it’s going back to its given identity, the Texas Real Estate Research Center.

The Center was officially created and named the Texas Real Estate Research Center by an act of the state legislature in 1971. The name was unofficially shortened in 1986 to assist in marketing.

"The operating environment has changed over the years," said Center Executive Director Gary Maler. "We are no longer the best kept secret in Texas. Omitting the word 'research' from our name has spawned imitators and caused confusion.

"We are reassuming and reasserting our claim to our official name," he said. "Texas Real Estate Research Center defines us properly as an applied research organization focused on Texas and the needs of our business leaders and citizens."

Maler said a "growing list of imitators" is a primary reason for the change. An Internet search for "real estate center" yields more than 2.9 billion possibilities.

The "new" name ushers in the Center’s 50th anniversary year.
econ indicatorThe Texas Weekly Leading Index decreased for the second straight week, according to the Center's latest COVID-19 Impact Projections on Texas' Economy report. The index's overall trend indicates the state's economy is on the path to recovery, but it was losing steam at the start of October. The recovery's pace continues to be hindered by the incomplete reopening of the economy and future uncertainty regarding the pandemic.

Pandemic cost U.S. economic $16T

CAMBRIDGE, Mass. (Journal of the American Medical Association) – ​​The total cost of the pandemic is estimated at more than $16 trill​ion, or approximately 90 percent of the annual gross domestic product (GDP​​​​​)​​ o​​f the U.S​.​, acco​rding to researchers from Harvard University.

Approximately half of this amount is the lost income from the COVID-19-induced recessi​on; the remainder is the economic effects of shorter and less healthy life.​

According to the report, the crisi​​s cost the economy over $7.59 trillion in lost GDP. 

Health loss totaled around $4.38 trillion in premature death, $2.57 trillion in long-term health impairment, and $1.58 trillion in mental health impairment.

Since the onset of COVID-19 in March, around 60 million unemployment insurance claims have been filed as of September.
Helping Texans make the best real estate decisions since 1971

Texas hiring slows in September

AUSTIN (Texas Workforce Commission) – The Texas unemployment rate rose to 8.3 percent in September after dipping for the 13.5 percent high in April 2020 during the peak of COVID-19 impact.

The increase was due to the civilian labor force shrinking as the number of individuals actively looking for work contracted, while the unemployed rose.

According to the Texas Workforce Commission, the state added 40,70​0 nonfarm jobs last month.

The national unemployment rate is 7.7 percent.

Amarillo had the lowest nonse​asonally adjusted unemployment rate in the state​ at 5.1 percent. Odessa had the highest at 13.2 percent. 

All employment sectors had seasonally adjusted job losses since September 2019. Mining and logging had the largest job loss with employment falling 22.6 percent. Financial activities had the smallest, falling only 0.3 percent.​
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

Public-private partnership working on $1B destination project

​​​​LEANDER (Commercial Property Executive) – The city and Leander Springs LLC, a division of iLand Development Group, is developing a 78-acre mixed-use destination project.

The $1 billion Leander Springs will be at the southwest intersection of FM 2243 and 183A Toll Rd.

It will have a four-acre crystalline lagoon surrounded by ten acres of boardwalk and commercial development, which includes:
  • 1,600 multifamily units,
  • 253,000 sf of retail space,
  • 856,000 sf of office space,
  • a 275-key hotel, and 
  • 20,000-sf conference center. 
The city will provide as much as $22 million in performance-spaced tax incentives. 

STG Design is the designer.

The city council will make the final zoning determination by the end of the year. ​
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Realty.com buys one million sf office portfolio

HOUSTON (Commercial Property Executive) – Realty.com has purchased one million sf of office space from Oxle​​y Leasing.

The deal included 114,711 sf in Dallas and 919,703 sf in the Houston market. 

The Dallas buildings are One West Hills and Two West Hills on S. Hampton Rd. They were built in 1984 and 1977, respectively. 

Oxley purchased​ both assets in 2014 for $​3.3 million.

The Houston assets include 363 North Belt, a 376,277-sf office building.

The Center, a three-building campus totaling 377,126 sf, was also purchased. It was built in 1979 at 8303, 8313, and 8323 Southwest Fwy.

Realty.com will launch its VIP Office Space coworking program at the properties. 
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246-unit multifamily delivers in McKinney

​​McKINNEY (REBusiness Online) – KWA Construction has completed Axiom Hub 121, a 246-unit apartment community at 7201 Henneman Way within the Craig Ranch master-planned development. 

The 340,000-sf property offers one- and two-bedroom floor plans. Monthly rents start at $1,150.​

Amenities include a pool with a tanning ledge, car wash facility, sports lounge with coffee bar, 24-hour fitness center, bocce ball court, Amazon package lockers, and coworking space. 

The community was designed by Domus Studio Group and developed by Seneca Investments.
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.

California online retailer takes Mesquite warehouse space

​​​MESQUITE (Dallas Morning News) – Tustin, Calf.-based Best Choice Products is taking more than 400,000 sf of distribution space for a new shipping hub. 

The hub will be at the Prologis Mesquite business park at 5151 Samuell Blvd.

Cushman & Wakefield handled leasing.
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Copyright © 2020, 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=419
RECON for October 16, 2020RECON for October 16, 20202020-10-16T05:00:00Z2020-10-16T05:00:00Z
RECON Real Estate Center
Boots on fences
The October 2020 issue of TG magazine is on its way to Texas real estate licensees. If you can't wait for the magazine to hit your mailbox, you can read the full issue online for free. (Photo of Boot Hill outside Hunt in Kerr County by Center photographer JP Beato III.)
October 16, 2020 

Texas jobless claims reverse downward trend

COLLEGE STATION (Real Estate Center) – ​Initial unemployment insurance claims in Texas increased to nearly 42,900 the week ending Oct. 10, reversing a four-week downward trend. 

This brings the total number of initial claims to 3.65 million, according to data from the U.​S. Department of Labor (DOL).​

"The slowing claims decrease is worrisome, signaling distress in labor market conditions and reaffirming that much work still needs to be done," said Real Estate Center Research Economist Dr. Luis Torres.

Last week's number, though an improvement over previous months' numbers, is higher than expected.

"For eight months now, we have had more than 40,000 people filing for unemployment each week," continued Dr. Torres. "During the Great Recession, unemployment claims peaked at 49,000 the week of Sept. 27, 2008."​

Continuing unemployment claims decreased for the fifth consecutive week, falling to 734,400 the week ending Oct. 3. 

"The bright spot is that more people continue to the leave the ranks of the unemployed, signaling improvements in the labor market,” Torres said. "However, we don't know if these people have become re-employed or have permanently​ left the labor force."

Claims also reverted a downward trend at the national level. ​​Almost 64.5 million Americans have filed initial unemployment claims in the past 30 weeks. New claims increased last week to 898,400.​ 

The U.S. is struggling more than Texas to decrease the number of people filling for unemployment, indicating labor market recovery in other parts of the country is on more uneven ground.​

Labor market recovery in Texas' major and border metropolitan statistical areas remains precarious as more people filed for initial unemployment in those metros during the week ending Oct. 3. 

Almost 1,100 people filed new unemployment claims in Brownsville, almost double the previous week (550 claims). 

Using data from the DOL and the Employment and Training Administration, the Center estimates that from March 21 to Oct. 3 ​over 835,300 seasonally adjusted claims were filed in Houston-The Woodlands-Sugar Land. The metro continues to lead the state in total number of claims.

In the past 29 weeks, an estimated 795,200 claims were filed in Dallas-Fort Worth-Arlington, 252,700 in San Antonio-New Braunfels, and 214,900 in Austin-Round Rock. ​
Along the border, an estimated 98,000 claims were filed in McAllen, 83,000 in El Paso, 43,800 in Brownsville, and 25,600 in Laredo.​​

Healthcare/social assistance​, administrative​/support/waste management/remediation services, ​​retail trade, construction, and accommodation and food services had the most unemployment claims through the week ending Oct. 3.​​
Texas Real Estate TodayReal Estate Center economists will share their insights and answer viewer questions about the state's housing market on "Texas Real Estate Today," a livestream event Friday, Oct. 23. Center Chief Economist Dr. Jim Gaines, Research Economist Dr. Luis Torres, and Research Associate Wesley Miller will pay particular attention to how COVID-19 is affecting housing market conditions. The half-hour program will stream on Facebook and YouTube at 10 a.m. CST. RSVP on Facebook or subscribe to our YouTube channel so you don't miss the event.

Texas dominates list of best telecommuter cities

​​​​​AUSTIN (LawnStarter) – Eight Texas cities have landed on LawnStarter's list of 2020's ten best telecommuter cities. 

Ranking first overall, McKinney was second in work environment, second in connectivity and convenience, ninth in cost, and 25th in opportunity and​​ earning potential. It ranked second in highest average Internet speed.

No. 2 Frisco ranked first in both work environment and connectivity and convenience​. It was sixth in opportunity and earning potential and 72nd in costs. 

Frisco had the highest average Internet speed and most home office and coworking space. 

Other Texas cities in the top ten were:

  • No. 3 Plano, ranking 13th in opportunity, third in work environment, 55th in connectivity, and 28th in cost;
  • No. 4 Irving, 19th in opportunity, 24th in work environment, 29th in connectivity, and second in cost;
  • No. 5 Garland, 29th in opportunity, 44th in work environment, 29th in connectivity, and 12th in cost;
  • No. 7 Austin, 62nd in opportunity, 21st in work environment, eighth in connectivity, and 54th in cost;​
  • No. 8 Fort Worth, 78th in opportunity, 46th in work environment, tenth in connectivity, and 17th in cost;​ and
  • No. 9 Dallas, 90th  in opportunity, 26th in work environment, 16th in connectivity, and 40th in cost.

Yonkers, N.Y., and Orlando, Fla., ranked sixth and tenth, respectively. 

Other Texas cities in the top 50 were ​​No. 14 Arlington, No. 23 San Antonio, No. 29 Houston, No. 38 Lubbock, No. 40 El Paso, and No. 46 Corpus Christi. 

To compile the rankings, LawnStarter compared the 150 biggest U.S. cities across 15 key factors such as remote job opportunities, Internet speed, and the cost of renting a home office.

Here are major findings from our latest Texas Housing Insight report: 
  • Total Texas housing sales declined 4.1 percent in August from an all-time high the previous month as pent-up demand from the economic shutdown normalized. Nevertheless, sales were up 3.1 percent YTD compared with activity during the first eight months of 2019.
  • Months of inventory fell to a record-low 2.4 months, with inventory for homes priced less than $300,000 sliding below 1.8 months.
  • Texas’ average days on market decreased to 57 days, corroborating robust demand despite the pandemic.
  • A shift in the distribution of sales toward higher-priced homes pushed the median home price up 8.4 percent annually to $261,300.
  • The Real Estate Center’s single-family housing sales projection expects sales to rebound 13.1 percent in September.
Download the report for free on our website, and subscribe to receive email notifications each time this report is published. 

TWC reinstates work search requirements for unemployment insurance

AUSTIN (Texas Workforce Commission) – The Texas Workforce Commission (TWC) will reinstate state work search requirements, which had been suspended since March, but will resume on Nov. 1,​ 2020. 

Work search is a federal requirement to receive unemployment benefits. Ind​ividuals will continue to receive benefits but must show an active effort to obtain new employment.

All individuals receiving unemployment benefits will need to complete the designated number of work searches, beginning on the date listed in their work search notification document. 

Furloughed workers with a definite return to work date that is within 12 weeks of the layoff are exempt from work search requirements. Return to work dates beyond 12 weeks can result in the waiver of work search at the discretion of TWC. 

While self-employed individuals who intend to reopen their business do not need to complete work search activities, they do need to take steps to reopen their business. Self-employed individuals who do not intend to reopen their businesses will need to complete work search activities.

TWC has a list of acceptable work search activities on their website.
Helping Texans make the best real estate decisions since 1971.

Houston home sales surge in September

HOUSTON (Houston Association of Realtors) – Strong home sales continued into September​ as consumers took advantage of historically low mortgage interest rates amid a pandemic. 

According to the Houston Association of Realtors (HAR), 9,101 single-family homes sold last month, a 29.1 percent increase and the fourth straight month of positive sales.

"September sales defied expectations with many Realtors busier than ever. However, we anticipate that the pace of sales will soon slow down since there just aren’t a whole lot of homes out there for consumers to buy," said HAR Chairman John Nugent. 

The single-family home median price rose 8.3 percent to $265,000 while the average price increased 10.1 percent to $329,801. Both figures are record highs for a September. 

Year-to-date sales are currently 5.4 percent ahead of 2019’s record pace.

Sales of all property types totaled 11,137, up 31.9 percent from September 2019. Total dollar volume surged 43.6 percent to $3.4 billion. 

The lease market cooled in September with declines in single-family housing while townhouse/condo leases were unchanged.

S​ales for homes priced at $750,000 and up leapt 81.5 percent over the year. That was followed by the $500,000 to $750,000 housing segment, which jumped 58.1 percent year-over-year. 

Homes between $250,000 and $500,000—which comprise the market’s biggest share of sales—also had significant increases over last year.​
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Work requirements return for TWC's subsidized child care program

AUSTIN (Texas Workforce Commission) – The Texas Workforce Commission (TWC) will reinstate work requirements for parents receiving subsidized child care benefits. 

The change goes into effect Nov. 1. How​​ever, parents currently on the program who have already received at least three months of childcare following a permanent job loss will continue to be covered until Nov. 27.

TWC removed the work requirement as part of its COVID-19 response to provide short-term relief and greater stability for child care providers. With more Texas businesses getting back to work, however, the lack of a work requirement makes it more difficult for working families to access those funds. 

Currently, 39,000 Texans are on waiting lists for the program.
market viewer screen shotTexas Realtors' MarketViewer tool helps members and their clients quickly understand the market statistics in their area. This powerful tool is a member benefit available exclusively to Texas Realtors and local Realtor associations in Texas. Data are compiled and analyzed through a research agreement between Texas Realtors, the Real Estate Center, and all MLSs across the state. 

Nation's largest psychiatric hospital coming to Houston

HOUSTON (Houston Chronicle) – The UTHealth Behavioral Sciences ​is building the nation's largest public educational mental health hospital near the Texas Medical Center.

The 220,000-sf facility will be the first of its kind built locally in over 30 years. 

Located at 5601 W. Lela​​​nd Anderson St., the project will consist of two buildings connec​ted by a bridge. It will be surrounded by green space. 

With 264 inpatient beds, the educational hospital will provide mental healthcare and substance use intervention, treatment, and medical care.

Perkins+Will designed the facility. Vaughn Construction is the general contractor. 

Construction began in summer 2019. Opening is slated for late 2021. ​

Dalfen Industrial acquires five buildings in Fort Worth, San Antonio

​​​​DALLAS (Connect Media) – Dalfen Industrial has purchased five industrial buildings across two properties in Fort Worth and Schertz.

Built this year, the three-building, one million-sf Mark IV Commerce Center is at the intersection of I-35 and I-820 in Fort Worth. AER Manufacturing has leased 80,660 sf in the industrial park.

Built in 2016, Tri-County 5 and 7 total 211,950 sf off of I-35 in Schertz. Tri-County 7 is fully leased.
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Work begins on $53M addition to Midlothian high school

​​MIDLOTHIAN (Connect Media) – Adolfson & Peterson Construction began renovations and construction of a 185,000-sf addition for Midlothian Independent School District’s Heritage High School.

The $53 million project includes a second-level classroom wing, two gymnasiums, fine arts complex, cafeteria expansion, and four new athletics facilities. 

A new entrance pavilion will also be constructed along with parking lot expansions and a new football field. 

Completion is scheduled for Summer 2022.

VLK Architects will serve as planning architect.

Bill Miller Bar-B-Q cooking up $60M HQ on West Side

​​​​​SAN ANTONIO (San Antonio Business Journal) – Locally based Bill Miller Bar-B-Q is developing a 335,000-sf headquarters at 5330 SH 151. 

Construction begins Jan. 4, 2021, and will wrap up June 1, 2022. 

RVK Architects Inc. is the designer.
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Copyright © 2020, 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=418
RECON for October 13, 2020RECON for October 13, 20202020-10-13T05:00:00Z2020-10-13T05:00:00Z

RECON Real Estate Center
The Real Estate Center will host its first-ever Texas Real Estate Today livestream on Friday, Oct. 23, at 10:00 a.m. CST. Join us as Center Chief Economist Dr. Jim Gaines and other economic experts discuss how Texas' housing markets reacted to the COVID-19 pandemic. Follow us on Facebook and subscribe to our YouTube channel for more event updates.
October 13, 2020

Foreign homebuyers add $6.6B to Texas economy

AUSTIN (Texas Realtors) – International home sales added $6.6 billion to the Texas economy from April 2019 to March 2020, according to Texas Realtors' Texas International Homebuyers Report.

Texas was third in the U.S. for homes sold to international buyers, behind Florida and California. Around 13,900 Texas homes were sold to foreign buyers, 9 percent of the 154,000 homes sold to foreign homebuyers nationally​​. ​

Eight percent of home sales in Texas were from international homeowners.

The U.S. saw a 16 percent decline in the number of foreign-buyer purchases compared with the last reporting period.

"Texas continues to enjoy strong international real estate sales activity. From relocations to commercial or residential, foreign buyers choose Texas because of our resilient economy, job availability, investment opportunities, and friendly business climate," said Texas Realtors Chairman Cindi Bulla. "Despite the slight drop in foreign buyers compared with the previous reporting period, Texas remained a top state for international buyers, particularly those coming from Latin America."

According to the report, 42 percent of international buyers in Texas came from Latin America/Caribbean. Texas was also a top destination for international homebuyers from Mexico and Brazil. 

Of all U.S. homebuyers from Mexico, 28 percent purchased a home in Texas. The next closest state, California, had 14 percent of the total homebuyers from Mexico. 

Twelve percent of buyers from Brazil chose Texas, tying for second with Minnesota and behind only Florida. 

Texas accounted for 9.5 percent​​ of new immigration in the United States in 2018.

Two Texas metros—No. 5 Houston-The Woodlands-Sugar Land and No. 9 Dallas-Fort Worth-Arlington—were among the top ten destinations for immigration in the country​.

On the commercial side of international real estate transactions, Texas was the third-most popular destination for buyers who work with Realtors, according to the 2020 Commercial Real Estate International Business Trends report from the National Association of Realtors.​
Texas Weekly Leading IndicatorThe Texas Weekly Leading Index took a modest step backward the week ending Oct. 3. The index's overall trend indicates the state's economy is on the path to recovery. The recovery's pace continues to be hindered by the incomplete reopening of the economy and future uncertainty regarding the pandemic. Prospects for the state economy's reopening and recovery took another hit the week ending Oct. 3 as the number of new cases registered an uptick. Further waves of infections can reverse increased mobility and spending, affecting the path to recovery. Read our latest COVID-19 Impact Projections on Texas' Economy report for more. 

Three Texas cities among top ten for multifamily investments

AUSTIN (CBRE) – Three Texas cities have landed on CBRE's list of the top markets by multifamily​ investment in the last five years. ​

Since 2015, Dallas​-Fort Worth has pulled $2.8 billion in multifamily investment. It ranks fifth nationally in dollar ​volume.

Austin and Houston ranked ninth and tenth with $2.1 and $2 billion in investment, respectively. 

Global capital to the U.S. multifamily sector in the first half of 2020 decreased by 49.2 percent year over year to $3.1 billion. Second quarter volume, which fell nearly 90 percent, accounted for most of the decline so far this year.

Other cities in the top ten are:
  • No. 1 New York City, $10.6 billion in investment​​ volume;
  • No. 2 Los Angeles, $3.9 billion;
  • No. 3 Atlanta, $3.8 billion;
  • No. 4 Washington, $3.6 billion;
  • No. 6 Phoenix, $2.8 billion;
  • No. 7 Boston, $2.1 billion; and 
  • No. 8 San Francisco, $2.1 billion.​
Helping Texans make the best real estate decisions since 1971

Frisco fastest growing city in Texas

​​WASHINGTON (WalletHub) – According to a WalletHub study, Frisco is the fastest growing city ​​​in Texas.

Ranking sixth nationally, the North Texas city was second in sociodemographics and 241st in j​obs and economy. It also had the highest population and job growth in the country, tying with Sugar Land and McKinney, among others​.​​​​

Round Rock also landed in the top ten, ranking eighth overall, 13th in sociodemographics, and 57th in jobs and economy.

Other ranked Texas cities include No. 11 McKinney, No. 16 Sugar Land, No. 17 Midland, No. 20 College Station, No. 36 Pearland, and No. 30 Richardson.
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

It has to be good: Goya expanding in Brookshire

​​​BROOKSHIRE (Houston Business Journal) – ​New Jersey-based Goya Foods Inc. is working on an $80 million expansion project at its manufacturing and distribution facility at 30602 Goya Rd.

Work has already started on the 400,000-sf addition, which will double production capacity with a new freezer and high-speed processing line in the facility. ​

Goya will create 50 additional jobs for the facility.

Houston-based KDW is the general contractor.

This is not the first expansion project at the campus. In 2017, Goya added 324,000 sf to its existing​ 380,000-sf facility. 
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. 

El Paso industrial construction, rents at new high

EL PASO (CBRE) – The local industrial vacancy rate ​​fell to a record low of 2.9 percent in 3Q2020, 60 basis points below the previous record set in the first quarte​r, according to a CBRE report.

Last quarter closed with nearly 646,400 sf of net absorption, more than double the net absorption in 3Q2019.

The average asking rate increased over the quarter​ to $5.38 per sf, a record high.​

Over 222,700 sf of industrial space came online in 3Q2020. There are 11 projects totaling 3.4 million sf under construction, the largest amount seen since CBRE began tracking the market. 
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Capital Commercial starts on 195-acre business park 

​​​​​​AUSTIN (Austin Business Journal) – Capital Commercial Investments Inc. is developing Bergstrom Technology Park, a 195-acre business park near Austin-Bergstrom International Airport. 

The first building was delivered in March 2019. Another four buildings are planned west of the airport. 

The business park will have multiple turnkey office buildings called Bergstrom Tech Centers.

Amenities will include a park, gaming area, public disc golf course, and hike-and-bike trails.
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.

Energy exploration firm takes 105K sf for Plano HQ

​​​​​P​LANO (REBusiness Online) – Denbury Inc. has signed a 104,841-sf office lease at Legacy Union One, a 318,852-sf building at 5851 Legacy Cir.

The tenant subleased three floors from Prosperit​​y Bank and one floor from Aimbridge Hospitality. 

About 300 Denbury employees will work in the new office space. 

Cushman & Wakefield represented the subtenant.

Weatherford Farms nursery slated for industrial project

​​​​​STAFFORD (Connect Media) – Crow Holdings Industrial has purchased Weatherford Farms, a 34.3-acre commercial property at 13223 Murphy Rd.

The new owner is planning a three-building, 568,084-sf industrial project​ on the site, which fronts FM 1092 and Mula Rd. 

Delivery is set for fall 2021. 

Colliers International represented the seller and will handle leasing. 
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Copyright © 2020, 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=417
RECON for October 9, 2020RECON for October 9, 20202020-10-09T05:00:00Z2020-10-09T05:00:00Z
RECON Real Estate Center
6th street bar district in Austin at night
Texas bars allowed to reopen with restrictions next week, state jobless claims fall for fourth straight week, and Texas Workforce Commission receives $28 million for dislocated workers. Read today's RECON for the details on this story and more. (Downtown Austin photo from Center files.)
October 9, 2020

Texas jobless claims fall for fourth straight week

COLLEGE STATION (Real Estate Center) – ​​Weekly initial unemployment claims in Texas fell to 41,800 in the week ending Oct. 3, bringing the total since March 21 to 3.6 million, according to data from the U.S. Department of Labor (DOL).​​

This is the fourth straight week of decreases following an upward revision to the previous week's numbers. ​​

"Still much work needs to be done as the revision pushed up the numbers, slowing the rate of decrease with respect to previous weeks,​​​" said Real Estate Center Research Economist Dr. Luis Torres. 

The number of Texans who continue to claim unemployment insurance decreased the week of Sept. 26 to 807,200.

Unlike with the U.S. as a whole, Pandemic Unemployment Assistance (PUA) is not the main driver of jobless claims in Texas, representing around 15 percent of claims at the state level compared with 58 percent nationally.

Fewer people in the Houston, Dallas-Fort Worth, and San Antonio metros filed new unemployment claims during the week ending Sept. 26, the third straight week of improvements. New claims also fell in Laredo after increasing the previous week.

New claims increased in Austin, reverting a two-week downward trend. More claims were also filed in El Paso, McAllen, and Brownsville after decreasing the previous three weeks. 

Using data from the DOL and the Employment and Training Administration, the ​Center has estimated unemployment claims for Texas' major and border metros since March 21:​
  • Houston-The Woodlands-Sugar Land, 825,200 claims;
  • Dallas-Fort Worth-Arlington, 784,500 claims;
  • San Antonio-New Braunfels, 249,700 claims;
  • Austin-Round Rock, 212,400 claims;
  • McAllen-Edinburg-Mission, 96,600 claims;​
  • El Paso, 82,000 claims;
  • Brownsville-Harlingen, 42,700 claims; and
  • Laredo, 25,300 claims.
Administrative/support/waste management/remediation services, retail trade, healthcare and social assistance, construction, and accommodation and food services represented the sectors with the most unemployment claims.

Last week, new national unemployment claims decreased to 834,000, bringing the 29-week total to 63.6 million. The previous week's numbers were also revised upward.
Save the Date! The Real estate center will host an exclusive livestream event on Friday, Oct. 23, 2020 at 10 a.m. cst. Feat. Center Chief Economist Dr. Jim Gaines & other economic experts
The Real Estate Center will host its first-ever Texas Real Estate Today livestream on Friday, Oct. 23, at 10:00 a.m. CST. Join us as Center Chief Economist Dr. Jim Gaines and other economic experts discuss how Texas' housing markets reacted to the COVID-19 pandemic. Follow us on Facebook and subscribe to our YouTube channel for more event updates.

TWC receives $28M for dislocated workers

​​​​AUSTIN (Texas Workforce Commission) – The Texas Workforce Commission (TWC) has received $28 million to provide temporary jobs related to COVID-19 recovery. This is in addition to the $12 million already received from the Department of Labor’s Disaster National Dislocated Worker Grant (NDWG) program. 

The funds are being used assist local health departments with jobs related to virus response, food banks, and other humanitarian work. The grant supports the delivery of career services, training, and supportive services including transportation and supplies to help support a successful return to work.

The dislocated worker grants are used during natural disasters. Texas received a similar grant in the wake of Hurricane Harvey. The grants provide funds for jobs specifically designed for recovery efforts.

If you or someone you know has been dislocated as a result of COVID-19, please email TWC at ndwg@twc.state.tx.us. 
Podcast 450Just like the rest of the economy, the Texas housing market took a blow when stay-at-home orders hit the nation. However, the market weathered the pandemic better than expected. Real Estate Center Senior Data Analyst Joshua Roberson shares his insights on our latest podcast.

Texas bars may reopen with restrictions

AUSTIN (Office of the Texas Governor) – Gov. Greg Abbott has allowed bars and similar establishments to open up to 50 percent capacity in conjunction with county officials. 

In counties where COVID-19 hospitalizations are below 15 percent of hospital capacity, judges can opt their county into opening bars beginning Oct. 14, provided they assist in enforcing health protocols. 

Dance floors at bars and similar establishments must remain closed. Consistent with protocols for restaurants, all patrons must be seated while eating or drinking (with limited exceptions for sampling at breweries, distilleries, and wineries), and they must wear masks when they are not seated at a table. Additionally, tables are limited to no more than​ six individuals, and all establishments must follow specific curfew guidelines. 

The order also increases the occupancy levels for all business establishments other than bars to 75 percent.  
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$150M distribution center slated for El Paso Airport

​​​EL PASO (El Paso Times) – Marmaxx Operating Group, a TJX Cos. unit, is planning a 1.7 million-sf warehouse and distribution center at Global Reach Dr. and George Perry Blvd. 

Marmaxx will lease the​ 200 acres, owned by the El Paso International Airport, for $595,494 over 40 years. 

The city and county will provide $14.3 million in tax rebates and other incentives. El Paso Water will pay $1.4 million to relocate a water well from the site. 

The $150 million facility will distribute products to over 1,130 Marshalls clothing stores. It will create 950 jobs within five years.

Marmaxx will later add an additional 346,104 sf to the project, bringing the total to over two million sf. 

Construction will take two years. 
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3Q2020 TWC reimbursement payment deadline extended

AUSTIN (Texas Workforce Commission) – The Texas Workforce Commission (TWC) has extended payment deadlines for 3Q2020 for designated reimbursing employers that are required to pay a share of unemployment benefits. 

Designated reimbursing employers include non-profits, local governments, school districts, and other qualifying employers who reimburse TWC for the full amount of unemployment benefits to be paid to eligible former employees.

The due date has been extended from Nov. 30, 2020, to Dec. 31, 2020. TWC still needs wage reports by Nov. 2, 2020, for ensuring accurate processing of unemployment claims. 

Reimbursing employers are due to receive 50 percent credit for their bill under the Federal Coronavirus Aid, Relief, and Economic Security Act legislation, which TWC is working to implement by the end of October. Employers will receive additional information regarding their reimbursements later this month.

This action also waives interest and penalty ​​charges during the same time period and does not reduce or eliminate this payment for reimbursing employers. Instead, it provides more time for these employers to secure resources to meet these and other liabilities as they deal with the implications of COVID-19. This extension also does not delay or prevent Texans who qualify for unemployment benefits from receiving these resources.
market viewer screen shotTexas Realtors' MarketViewer tool helps members and their clients quickly understand the market statistics in their area. This powerful tool is a member benefit available exclusively to Texas Realtors and local Realtor associations in Texas. Data are compiled and analyzed through a research agreement between Texas Realtors, the Real Estate Center, and all MLSs across the state. 

Austin industrial market defies expectations in 3Q2020

​​​AUSTIN (CBRE) – The local industrial market defied expectations in 3Q2020, according to CBRE.

Strong tenant demand for distribution space drove the market to its 25th consecutive quarter of positive new demand. Net absorption increa​​sed to nearly 696,000 sf. 

Average asking rates rose $0.24 over the quarter to $9.88 per sf.

Vacancy dropped 40 basis points to 9.7 percent. 

The development pipeline also remained robust with 1.34 million sf under construction. There were no deliveries last quarter. 
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207K-sf garage parks next to SAISD’s HQ

​​SAN ANTONIO (San Antonio Business Journal) – The San Antonio Independent School District is developing a 206,882-sf parking garage at 727 N. Flores St. 

The four-story garage will be adjacent to the district’s new headquarters building, which opens early next year.

Joeris General Contractors is the general contractor. 

Office project in The Woodlands delivers

THE WOODLANDS (REBusiness Online) – Transwestern Real Estate Services has completed the 134,938-sf Research Forest Lakeside Building 9. 

The six-story, Class A office building includes floor-to-ceiling glass, a climate-controll​​ed parking garage, and p​​​roximity​ to a four-acre green space.

The 77-acre Research Forest Lakeside mixed-use development will include 1.8 million sf of commercial space.
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Copyright © 2020, 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 October 6, 2020RECON for October 6, 20202020-10-06T05:00:00Z2020-10-06T05:00:00Z
RECON Real Estate Center
Texas A&M and Medistar Corp. have broken ground on the half-billion-dollar Innovation Plaza near the Texas Medical Center in Houston. The three-tower project will be finished by 2024. Keep reading today's RECON for the details on this story and more. (Image from the Texas A&M University System.)
October 6, 2020

Texas’ manufactured housing outlook positive, demand strong

​​​COLLEGE STATION (Real Estate Center) – Texas’ manufactured housing industry continued to ramp up production in September as new orders and sales volume maintained a steady climb, according to the latest Texas Manufactured Housing Survey (TMHS).

"The manufactured housing industry is providing a product that is increasingly attractive to many homebuyers, especially those looking to migrate outside of urban areas," said Real Estate Center Research Economist Dr. Harold Hunt.

Supply-chain disruptions and contractions in the labor supply, however, prevented production at full capacity and contributed to a large increase in backlogs.

A combination of robust demand and supply-side constraints have translated to higher sale prices, but the price of raw materials has also elevated in recent months. Lumber prices in particular have spiked since March and may remain elevated in the aftermath of the forest fires on the West Coast. Manufacturers, however, anticipate inflationary pressures to subside by the end of the year.

"Manufactured-home shipments generally decline in September, but the TMHS indicates that plant production expanded," according to Rob Ripperda, vice president of operations for the Texas Manufactured Housing Association (TMHA). "That's good news and means plants are ramping up as we move into October, typically their most productive month. Quoted deliveries are extending well into 1Q2021, so materials shortages are the most pressing concern on factory manager's minds, but it hasn't slowed them down yet."

The ongoing COVID-19 pandemic has generated significant uncertainty throughout the economy, but housing manufacturers remained optimistic about business activity and the overall outlook heading into fall. This confidence has led to higher capital expenditures and preparations for further investment early next year.

The Real Estate Center and the TMHA have partnered to produce a monthly survey of business conditions and expectations surrounding the manufactured housing industry.
Texas Weekly Leading IndexThe Texas Weekly Leading Index increased for a third straight week. The overall trend indicates that economic activity continues to improve and the state's economy is on the path to recovery. The pace of the recovery continues to be hindered by the incomplete reopening of the economy and future uncertainty regarding the pandemic. Prospects for the state economy's reopening and recovery took another hit the week ending Sept. 26, as the number of new cases registered an uptick for a second straight week, reversing previous weeks' downward trend. Read our latest COVID-19 Impact Projections on Texas Economy report.
Houston says 'Howdy!' to Innovation Plaza
HOUSTON (Houston Business Journal) – The Texas A&M University System and Medistar Corp. have broken ground on the university's $500 million campus near the Texas Medical Center.

Texas A&M Innovation Plaza is on five acres at the corner of Holcombe Blvd. and Main St. ​It includes an existing tower and two new ones.

Discovery Tower is an 18​​​​-story existing office building at 1020 Holcombe Blvd. Texas A&M purchased the building in 2017 for $145 million. It will house the two-degree EnMed program, which allows students to turn a master's degree in engineering and a medical degree. Following renovations, opening is set for later this year.

Life Tower is a 19-story, 714-bed student housing tower. Texas A&M medical students and Prairie View A&M University nursing students have priority in the tower. Opening is set for June 2022. 

The 17-story, 485,000-sf Horizon Tower ​will be built atop a 13-story, 2,800-spot parking structure at 6929 Main St. It will include science, clinical, biomedical, technology, and office uses. Delivery is set for January 2024. JLL is handling leasing.

The campus will also feature a plaza, retail, and dining. 

Harvey Builders is building Life Tower and Horizon Tower. 

Medistar is developing the public-private partnership​​​​, which will total $401 million in private investment. American Triple I Partners is part of the financing team. 

Completion is slated for 2024.
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$561M mixed-use development coming to Government Hill

​​SAN ANTONIO (San Antonio Heron) – GrayStreet Partners and Midway are developing Broadway East, a 1.6 million-sf mixed-use development.

The multi-phased project will be on more than 20 acres at the intersection of Broadway and Pearl Pkwy. within the Government Hill neighborhood. ​

It will be built over the next ten years and​ include multifamily housing, retail and hospitality space, offices, and outdoor plazas. 

Phase one​ will include office and retail space and a 380-unit multifamily complex.
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

Second gypsum plant planned for Sweetwater

​​SWEETWATER (Connect Media) – Georgia-Pacific is building a gypsum wallboard production facility at FM 1856 and I-20​​. 

The $285 million plant is Georgia-Pacific's second in Nolan County and will be adjacent to the exiting facility.

​Construction will begin immediately with startup set for late 2022. Once operational, the plant will employ 120 full-time workers. 

With the new project​, the company will retire its Quanah facility​ in North Texas.
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. 

Residential community opens on Lewisville Lake

​​​​​OAK POINT (Dallas Morning News) – ​Taylor Morrison Homes has opened South Oak, a 230-home residential community on Lewisville Lake south of US 380.

Homes will range from 1,700 to 3,300 sf. They will be priced from $312,990 to $424,990.

Amenities include a clubhouse with resort-style pool, fitness space, walking trails, and community pond with fishing.

The community is within the​ Little Elm Independent School District. 
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University of the Incarnate Word expanding its Brooks campus

​​​SAN ANTONIO (San Antonio Express-News) – University of the Incarnate Word (UIW) has purchased seven buildings on 23.5 acres at Brooks, a 1,308-acre mixed-use development. 

The properties will house the university's health professions programs.  

Four of the buildings are currently occupied by the UIW School of Osteopathic Medicine. Two are vacant, and one is leased to another tenant.

216-unit Springs at University Drive trades hands

​​​BRYAN (REBusiness Online) – CEG Multifamily has purchased Springs at University Drive, a 216-unit apartment complex at 4050 Eastchester Dr. 

The property has studio and one-, two-, and three-bedroom units. Rents range from $896 to ​$1,701 per month. 

Amenities include a pool and fitness center. 

Institutional Property Advisors represented both the buyer and the seller, Continental Properties.
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.

344-room luxury hotel planned for downtown Austin

​​​AUSTIN (Austin Business Journal) – Turnbridge Equities is planning a 344-room luxury hotel at 617 Colorado St. 

The 17-story building ​will include 119,400 sf of hotel space and 4,800 sf of public amenities. 

Turnbridge is currently seeking a downtown density bonus to build the hotel. 

Baskervill is the project architect. Design Workshop is the landscape architect.

Houston office, warehouse building under new ownership

​​​HOUSTON (REBusiness Online) – DLAC Ventures LLC has purchased a 21,261-sf office and warehouse building on 1.3 acre​s at 3367 N. Sam Houston Pkwy. W. 

The property has two conference rooms​, executive offices, a gym, and two kitchen areas. 

Newcor Commercial Real Estate represented the seller, NOCNIR LLC. Avison Young represented the buyer.
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Copyright © 2020, 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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