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RECON for October 15, 2019RECON for October 15, 20192019-10-15T05:00:00Z2019-10-15T05:00:00Z

RECON Real Estate Center
Texas and American flags fly over a brick walkway at Frisco Commons Park in Frisco, Texas, at sunset. The sky is blue and orange with sparse clouds
Eight Texas cities have landed on WalletHub's list of the top 30 fastest-growing cities in America. Which ones made the cut? Keep scrolling to find out. (Photo of Frisco Commons Park from Center files.)
October 15, 2019

Eight Texas cities among nation's fastest-growing

WASHINGTON (WalletHub) – Eight Texas cities have landed on WalletHub's list of the top 30 fastest-growing cities in America.​​​

​​Frisco ​was fifth overall, ranking third in sociodemographics and 155th in jobs and economy. It was third in midsize cities with the highest growth. 

It tied for first with Enterprise, Nev.; Sugar Land; McKinney; Meridian, Idaho; and Lehigh Acres, Fla. in highest population growth.

Frisco​​ also tied for first with Meridian, Idaho; McKinney; Bend, Ore.; Fort Meyers, Fla.; and Murfreesboro, Tenn. in highest job growth.

Round Rock and College Station ranked tenth and 11th overall, respectively. The former was 15th in sociodemographics and 28th in jobs and economy. Aggieland ranked 13th and 50th in those metrics.

McKinney was 13th overall, followed closely by No. 14 Midland and No. 15 Austin. McKinney and Midland were tenth and 16th in sociodemographics and 129th and 99th in jobs and economy, respectively.

The Texas capital was the fastest-growing large city on the list. It ranked 27th in sociodemographics and 39th in jobs and economy.

Sugar Land ranked 21st overall. It was first in sociodemographics and 472nd in jobs and economy. It had the fifth-lowest income growth. Allen had the third-lowest income growth.

Pearland was 27th overall and ranked seventh and 349th in sociodemogrphics and jobs and economy, respectively.

Mission had the fourth-lowest poverty rate decrease.

Lehigh Acres, Fla., was the fastest-growing city on the list. WalletHub compared 515 cities based on 17 measures of growth and decline over seven years to determine the rankings.
Texas Border Economy August 2019 summary
Weaker labor market conditions on both sides of the Texas-Mexico border weighed on local economic growth in August. Read more in our latest Texas Border Economy report. 

Kroger buys 56 acres for Dallas distribution center

DALLAS (Dallas Business Journal) – The Kroger Co. has purchased 56 acres near the northwest corner of Telephone and Bonnie View Roads to build a 360,000-sf distribution center.

The automated distribution center will service direct-to-consumer home deliveries. It will employ 400.

JLL represented Kroger. CBRE represented the seller, a joint venture between Ridgeline Property Group and Archway Properties.

Construction will begin by early 2020 and deliver 24 months later​.

The city council approved $5.7 million in property and business tax abatements and bond funds for the project.
Helping Texans make the best real estate decisions since 1971

Hartman Income REIT purchases 255K-sf portfolio 

​​​​​HOUSTON (JLL) – Hartman Income REIT has purchased a three-building office portfolio totaling 254,225 sf.

Two buildings are at 16420 Park Ten Pl. and 1400 Broadfield Blvd. in the Park 10 Business Park in the Energy Corridor. The third is at 7915 FM 1960.

T​he portfolio is 55 percent leased. 

JLL marketed the property on behalf of the seller, HighBrook Investors, and procured the buyer.
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. 

Duncan-Rincon picks up mixed-use property 

​​​​SAN ANTONIO (Connect Media) – A joint venture between Duncan Hillsley Capital and Rincon Real Estate Investments has purchased Vistana, a downtown mixed-use property, from Area Real Estate LLC.

Delivered in 2009, the development at 100 N. Santa Rosa St. offers 427 apartments. Floor plans range from studios to three-bedroom units. 

Multifamily amenities include a pool, fitness club, private garage, and storage facility.  

There is also 30,000 sf of retail space.

Berkadia arranged a five-year, 3.1 percent fixed-rate, nonrecourse loan on behalf of the buyers.
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. 

Work wraps up on Hebron 121 Station

LEWISVILLE (GlobeSt.) – Construction has wrapped on phase five of Hebron 121 Station, Huffines Communities' $300 million multifamily community at 880 Union Station Pkwy.

The $33.5 million, 301,931-sf phase consists of 272 units across 35 three-story apartment buildings, 22 "Big House" apartments, and 13 townhomes.

​Amenities include a swimming pool and ​dog park.

KWA Construction was the general contractor, and Humphreys & Partners Architects designed the project. 
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American Cross-Dock & Storage inks 103K-sf deal

​​​PASADENA (REBusiness Online) – American Cross-Dock & Storage has signed a 102,863-sf industrial lease within Bayport North Logistics Center I.

Avison Young represented the tenant in the lease negotiations. ​

CBRE represented the landlord, Triten Real Estate Partners.
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.

GAF opens 250K-sf Ennis warehouse

​​​​ENNIS (Dallas Business Journal) – GAF Materials Corp. has opened a 250,000-sf warehouse with the capacity to store roofing materials for more than 100,000 homes.

The warehouse at 3805 Old Dallas Hwy. is GAF's largest and most advanced.​

The company has approximately 265 employees locally.

Everly Apartments trades hands 

HOUSTON (REBusiness Online) – The Praedium Group has acquired the Everly Apartments, a 387-unit multifamily community at 2827 Dunvale Rd. 

Built in 2018, the property offers one- and two-bedroom floor plans ranging​ from 659 to 1,292 sf.

Amenities include a pool with cabanas, a fitness center, indoor golf simulator, outdoor beer garden, and a Wi-Fi lounge with private conference rooms. 
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Copyright © *|CURRENT_YEAR|*, All rights reserved.
Material herein is published according to the fair-use doctrine of U.S. copyright laws related to non-profit, educational institutions. Items attributed to sources other than the Real Estate Center at Texas A&M University should not be reprinted without permission of the original source. To send news items for consideration, e-mail Hayley Rieder. The Real Estate Center is part of Mays Business School at Texas A&M University in College Station - the heart of the Research Valley.


https://www.recenter.tamu.edu/news/recon/?Item=318
RECON for October 11, 2019RECON for October 11, 2019Bryan PopePope
2019-10-11T05:00:00Z2019-10-11T05:00:00Z

RECON Real Estate Center
Iconic Aggieland water tower viewed from Military Walk across Ross St. behind Milner Hall. It is sunny out, and the live oak trees are lush and green.
What's happening in Texas real estate? College Station named nation's seventh-best college town, Imelda disaster aid available in six counties, and Houston home sales up 9.5 percent in September. Keep reading today's RECON for all this and more. (Photo from Center files.)
October 11, 2019

Houston home sales jump 9.5 percent YOY

HOUSTON (Houston Association of Realtors) – Local single-family home sales jumped 9.5 percent year over year​ to 7,035 units sold in September, making last month the second largest one-month sales volume this year, according to the Houston Association of Realtors (HAR). 

On a year-to-date basis, home sales are running 3.8 percent ahead of 2018's record volume.

The median price of a single-family home reached the highest level ever for a September, climbing 4.7 percent to $244,000. The average price also achieved a September record, rising 1.5 percent to $298,947.

Single-family pending sales grew 18.9 percent to 7,285.​ 

Housing inventory edged up to a 4.1-month supply, 0.1 month ahead of last year. The Real Estate Center considers a six- to 6.5-month supply a balanced market. 

Single-family home leases increased 6.9 percent with the average rent up 1.5 percent to $1,838.

"I cannot recall a fall in Houston when home sales and rentals were quite this brisk," said HAR Chair Shannon Cobb Evans. "Historically low interest rates and a strong overall local economy have drawn more buyers than usual to the market and kept Realtors like myself extremely busy. We remain on track for another record year."

Sales for all property types increased 9.5 percent, with 8,430 units sold. Total dollar volume shot up 10.8 percent to $2.4 billion. Active listings rose 7.3 percent to 44,172 listings.

The Real Estate Center's Texas Housing Insight report has more information on Houston-area housing.
Helping Texans make the best real estate decisions since 1971.

Imelda disaster aid available in six counties

​​​​AUSTIN (Texas Workforce Commission) – The Texas Workforce Commission (TWC) is accepting applications for Disaster Unemployment Assistance​ (DUA) as a result of Tropical Storm Imelda. 

Individuals affected by the storm in Chambers, Harris, Jefferson, Liberty, Montgomery, and Orange Counties can apply ​online through Unemployment Benefit Services or by calling a TWC Tele-Center Monday through Friday between 8 a.m. and 5 p.m. at 800-939-6631.

DUA, which is an unemployment insurance benefit made available especially for victims of disaster, is available to individuals who:​
  • have applied for and used all regular unemployment benefits from any state, or d​​​​o not qualify for unemployment;
  • worked or were self-employed or were scheduled to begin work in the disaster area;
  • can no longer work ​because of physical damage or destruction to the place of employment as a direct result of the disaster;
  • establish that the work or self-employment they can no longer perform was their primary source of income;
  • cannot perform work or self-employment because of an injury as a direct result of the disaster; or
  • became the breadwinner or major support of a household because of the death of the head​ of household.
Applications must be submitted by November 7, 2019. Individuals should specify that their applications are related to the damage caused by Tropical Storm Imelda.​
Podcast 436: Helping Texans understand military's impact on housing.
Texas' strong military presence adds an interesting twist to the state's housing market. Real Estate Center Senior Data Analyst Joshua Roberson explains on our latest Red Zone podcast. Take a listen. 

Aggieland named seventh-best college town

​​​​​​​NASHVILLE, Tenn. (Livability) – ​College Station has ranked seventh on Livability's list of the top ten best college towns in America. 

Home to Texas A&M University, the city—nicknamed "Aggieland"—has a population of more than 101,000.

The 69,000 A&M students participate in over 1,100 student organizations, and the school generated over $922 million in research dollars in 2018. 

College Station recently ranked tenth on Apartment Guide's list of the top ten most affordable college towns for renters​. Lubbock also made that list, ranking fourth.

​The rest of Livability's top ten includes:
  • No. 1 Ithaca, N.Y., Cornell University;
  • No. 2 Manhattan, Kan., Kansas State University;
  • No. 3 Ames, Iowa, Iowa State University;
  • No. 4 Fairbanks, Alaska, University of Alaska Fairbanks;
  • No. 5 Corvallis, Ore.,​ Oregon State University;
  • No. 6 ​Lawrence, Kan., University of Kansas;
  • No. 8 Champaign, Ill., University of Illinois;
  • ​No. 9 Greenville, N.C., East Carolina University; and
  • No. 10 Gainesville, Fla., University of Florida. 
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Flood protection project approved for Harris County 

HOUSTON (Community Impact Newspaper) – The city council will give 13 acres in Meyerland to the Harris County Flood Control District (HCFCD) for the construction of three interconnected detention basins. 

The $1.2 million project will provide about 30 acre-feet of detention for diverting storm water and flood mitigation. 

HCFCD will design and construct the basins along Brays Bayou at I-610 and South Braeswood Blvd.

Construction will start in December and wrap up April 2020. 

Real Estate Center Senior Data Analyst Joshua Roberson took a closer look at how flooding in Meyerland has affected the neighborhood's housing market in "Ebb and Flow: A Geographic Look at Houston's Stormy History." He was interviewed about his findings on the Real Estate Red Zone podcast.
Remodeling Impact by Projects by NAR
According to the National Association of Realtors' 2019 Remodeling Impact Report, new roofs and kitchens are the most popular home improvement projects for both homeowners and Realtors.

SmileDirectClub drills down on Kyle dental lab 

KYLE (Austin American-Statesman) – Nashville, Tenn.-based SmileDirectClub Inc. is developing a high-tech dental manufacturing lab in the Hays Logistics Center at 300 Vista Ridge Dr.

The plant will occupy 150,000 sf in the logistics center, which is part of a 108-acre industrial park.   

The project will add 850 new jobs. It is the biggest jobs announcement in the city's history.​​

SmileDirectClub will receive a $2.2 million incentives deal from the Texas Enterprise Fund. 

Work underway on 500K-sf AllianceTexas distribution center

NORTHLAKE (Connect Media) – Schluter-Systems is developing its first Texas site​ at Hillwood's AllianceTexas.

The 500,000-sf regional distribution center at Alliance Northport 1​ ​​at I-35 W and SH 114 will employ 300.

The facility will deliver by first quarter 2020. ​​​
market viewer screen shotTexas Realtor's 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. 

Garza Ranch closes in on final construction phase

AUSTIN (Austin Business Journal) – Brandywine Realty Trust is developing a 25-story office building as the final phase of Garza Ranch.

The 150,000-sf, Class A facility will be the second office building in the 34-acre mixed-use development at William Canon Dr. and MoPac Expy.​

​Page Southerland Page is the designer. 

JLL will lease the building. 

Emergent Cold leases entire 300K-sf chilled warehouse

FORT WORTH (Dallas Morning News) – Emergent Cold has leased all 300,000 sf of the DFW ColdSpot building in the Carter Industrial Park.

The warehouse on Will Rogers Blvd. near I-35W is fully refrigerated.

CBRE negotiated the lease. Hunt Southwest​​ developed the property.​
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H-E-B planning Far West Side store 

​​​SAN ANTONIO (San Antonio Express-News) – H-E-B is developing a $15.4 million, 111,553-sf store at 14325 Potranco Rd. 

The grocer is also developing a parking lot, gas station, car wash, and two retail buildings on the land.​

H-E-B purchased the 26-acre site at the intersection of Portranco Rd. and SH 211 from Houston-based Weingarten Realty in 2017.​​

Work will start on the main store ​​early next year and wrap up in June. 

Arlington industrial pair totaling 152K sf sold

ARLINGTON (REBusiness Online) – Two industrial buildings totaling 151,700 sf have been sold.

The properties at 2000 and 2030 E. Arbrook Blvd. are less than a mile from I-20.

Lee & Associates represented the seller, Hamilton Commercial LLC. EastGroup represented the buyers.
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Copyright © 2019, 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=317
RECON for October 8, 2019RECON for October 8, 2019Bryan PopePope
2019-10-08T05:00:00Z2019-10-08T05:00:00Z

RECON Real Estate Center
Home with foreclosure sign
High home values have pushed home foreclosure rates across the country to the lowest level in 20 years. Only 0.4 percent of U.S. homes were in foreclosure in July. How do Texas' major metros compare? Keep reading today's RECON to find out. (Photo from Center files.)
October 8, 2019

North Texas foreclosure rate at 0.2 percent

​DALLAS (Dallas Morning News) – ​​Only 0.2 percent of North Texas homes were in foreclosure in July, according to CoreLogic data.

During the worst of the recession in 2010, about 1.5 percent of all area home loans were in foreclosure.

In Dallas-Fort Worth, 3.7 percent of home mortgage holders were one or more payments late. 

With higher home values, fewer homeowners with loans are underwater, making foreclosure less likely.

"The strong performance of the DFW economy has led to a sound housing market," said Real Estate Center Research Economist Dr. Luis Torres. "The metro has had vigorous job growth. Migration of companies and people caused housing prices to rise and home equity to increase, leading to a fall in foreclosure rates."

​Austin-Round Rock had the lowest foreclosure rate of the major ​Texas metros at 0.1 percent. It also had the lowest​ mortgage delinquency rate at 2.3 percent. 

San Antonio-New Braunfels and Houston-The Woodlands-Sugar Land had foreclosure rates of 0.3 and 0.4 percent, respectively. San Antonio's delinquency rate was 4.9 percent, and Houston's was 4.7 percent.

Nationally, 0.4 percent of homes were in foreclosure—a 20-year low. The mortgage delinquency rate w​as also at a two-decade low at 3.8 percent.

The Real Estate Center has Texas housing activity data online for free.

134K-sf World Houston 44 breaks ground 

HOUSTON (Houston Business Journal) – EastGroup Properties has broken ground on World Houston 44, a 134,415-sf industrial development at 4120 Consulate Plaza Dr.

The $44 million project will feature 32-ft clear heights, an ESFR sprinkler system, 39 dock doors, four oversized drive-in ramps, 185-ft to 200-ft truck courts, 225 parking spaces, and 30 trailer parking spaces.

The site also includes 2.4 acres for fenced-in outdoor storage. 

Delivery is set for March 2020.

Method Architecture designed the facility, and Rosenberger Construction is the general contractor. InSite Realty will lease the property.​
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. 

Frisco's tallest building preparing to open

FRISCO (Dallas Morning News) – Atlanta-based Novare Group is wrapping up construction on SkyHouse Frisco Station, a 25-story apartment tower within the Frisco Station mixed-use development.

The 322-unit building is on the west side of the Dallas North Tollway near John Hickman Pkwy.​​ It will be the tallest​​ building in the city.

Monthly rents range from $1,400 for a studio unit to $4,000 for the largest three-bedroom.

Amenities include a coworking and business center, tenant lounge, fitness center, swimming pool, and outdoor terraces.

The tower is being built in partnership with Batson-Cook Development. Balfour Beatty Construction is the general contractor.
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. 

240-bed Austin State Hospital breaks ground

AUSTIN (Community Impact Newspaper) – The Texas Health and Human Services Commission and the University of Texas Dell Medical School have broken ground on the first round of construction at the 240-bed Austin State Hospital.

The new three-story, 380,000-sf mental health facility will replace old buildings currently on the ​campus along Guadalupe St.

Opened in 1867, the original Austin State Hospital was the oldest mental health facility in Texas.

The project is one of five across the state to restore or reconstruct psychiatric health facilities.

Lawmakers have approved $180.5 million of the $304.6 million project budget.

Construction will finish by June 2023.​
man holding soilTexas A&M University researchers want to hear from Texas row-crop farmers. They are interested in your soil management practices and how you value soil health when purchasing or leasing land. If you are a row-crop farmer in Texas, please consider taking this 20-minute survey. The results will aid policy makers in making informed decisions that benefit the soil and farmers of Texas.

Work starts on 834K-sf Sam Houston Distribution Center 

HOUSTON (REBusiness Online) – Transwestern Development Co. has broken ground on Sam Houston Distribution Center, an 833,720-sf industrial project at the corner of Fallbrook Pines Dr. and Windmill Park Rd. 

The Class A development will consist of three front-load and cross-dock buildings ranging from 138,720 to 494,800 sf​. Ceiling heights range from 32 to 36 ft.

The property has land for added trailer storage or a build-to-suit opportunity, as well as space for car parking and trailer stalls.

Completion is set for second quarter 2020. 

Lincoln-Kor advances Eastbound

AUSTIN (Austin Business Journal) – Dallas-based Lincoln Property Co. and Fort Worth-based Kor Group are developing Eastbound, an office project at 3232 E. Cesar Chavez St.

The project will feature 221,000 sf of office space spread across two four-story buildings. There will also be a parking garage.

Amenities include a bicycle storage room, communal workspace, conference center, rooftop terrace, restaurant, and shower-equipped locker rooms.  

Floorplates will range from 13,983 to 41,348 sf.

Construction starts early next year. 
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Construction begins on Greens Prairie Reserve 

​​​​​​COLLEGE STATION (The Eagle) – Locally based Oldham Goodwin Group LLC is starting the first phase of home construction at Greens Prairie Reserve.

The 370-acre development at the intersection of William D. Fitch Pkwy. and SH 6 will have an all-purpose sports field, community event center, ponds, and 12 miles of trails.

Lots range from 70 ft​ to one acre.

The project will open​ in spring 2020. 

Katerra plans 600K-sf San Marcos manufacturing facility

SAN MARCOS (Connect Media) – Menlo Park, Calif.-based Katerra is developing a 600,000-sf manufacturing facility near I-35 and Yarrington Rd.   

The $109 million facility will be a regional hub for the company and will ship cabinets, windows, walls, floors, and roof tresses.

Construction starts in December.  
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.

PREP Property Group acquires 611K-sf shopping center

CEDAR HILL (Connect Media) – PREP Property Group is buying Hillside Village, a 611,232-sf shopping center, from Trademark Property. 

The center is 16 miles southwest of downtown Dallas on US 67.

Tenants include Dick's Sporting Goods, Dillard's, Barnes & Noble, Old Navy, Ulta, H&M, Champ's, Victoria's Secret, and Express.

Amenities include an interactive fountain, children's play area, village green, and an electronic vehicle charging station.​

FGF Brands baking up 600 jobs at new HQ

​​​​​SAN ANTONIO (Connect Media) – Toronto-based FGF Brands is developing a $129 million manufacturing plant and U.S. headquarters on 100 acres at 6425 SH 151.

The project ​will add 600 new jobs.

The baked goods maker is building the facility with $1.7 million in tax abatements from Bexar County. ​​
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Copyright © 2019, 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=316
RECON for October 4, 2019RECON for October 4, 2019Bryan PopePope
2019-10-04T05:00:00Z2019-10-04T05:00:00Z

RECON Real Estate Center
El Paso's industrial market hit a record-low vacancy rate of 4.4 percent in third quarter 2019. That's down 30 basis points from the previous record low set in the second quarter. Keep reading today's RECON for the details. (Photo from Center files.)
October 4, 2019

Record-low industrial vacancy increases El Paso rents 

​​​​​​EL PASO (CBRE) –​ The local industrial market experienced record-low vacancy and increasing rents in third quarter 2019, according to a CBRE report. 

Vacancy fell to 4.4 percent, down 30 basis points from the previous record low set last quarter. 

Net absorption fell to 300,179 sf, below the record high set last year but still above the 50-quarter trailing average and historical third-quarter average.

The continuous trend of strong positive net absorption and demand for space has pushed marketwide industrial asking rents to $4.91 per sf. That's up by $0.27 per sf from last quarter and $0.73 per sf from last year. 

There is 305,600 sf of industrial space under construction across the metro. Last quarter, 210,733 sf of space came online. ​

Read our latest Texas Border Economy report for more on El Paso's economy.
Texas Housing at a Glance
Read more in our latest Texas Housing Insight. Don't forget to subscribe to email notifications so you always know when a new report is released. 

MetroNational hunkers down on Bunker Hill 

HOUSTON (Houston Business Journal) – MetroNational is developing a 25-story residential tower and a nine-story office building at the southwest corner of Bunker Hill Rd. and I-10.

Located at 9757 Katy Fwy., the 332,231-sf multifamily tower—dubbed The McKinley Memorial City—w​​ill offer 278 one-, two-, and three-bedroom apartment units.

The building’s top two floors will be dedicated to deluxe penthouse units. There will be 4,500 sf of street-level retail and restaurant space.

The 190,000-sf office building at 9753 Katy Fwy. will include ground-floor retail and restaurant space, a two-level lobby, and conference rooms. A skybridge on the second level will connect the building to a gated parking garage.

Work has already started on the multifamily​ tower, but the office building won't break ground until early 2020. 

Both developments will deliver by summer 2021. 

Ziegler Cooper Architects designed the projects. Anslow Bryant is the general contractor. ​
Helping Texans make better real estate decisions since 1971

McAllen industrial market hits record-low vacancy rate 

McALLEN (CBRE) – The industrial market registered positive net absorption despite dwindling availability and a lack of speculative development during third quarter 2019. 

According to a CBRE report, local net absorption​ fell to 86,317 sf. There is 772,124 sf of industrial space under construction across the metro, and no space came online last quarter. 

The marketwide vacancy rate dipped 30 basis points (bps) from 2.8 percent in 3Q2018 to 1.3 percent, a new record low. 

The Class A vacancy rate ended the quarter at 2 percent, declining by 70 bps quarterly and by 40 bps annually. It was the lowest Class A vacancy rate in the market.

Since third quarter 2018, marketwide asking rents grew by $0.56 to $4.90 per sf. Class A and B asking rents grew by $0.23 and $0.50 per sf, respectively.​

The quarter closed with users seeking 1.7 million sf, 590,000 sf more than the available total and five times more than the total amount of vacant space in the market.

Read our latest Texas Border Economy report for more on McAllen's economy.

Rastegar Property plans new 26-story Uptown Dallas tower

DALLAS (Dallas Morning News) – Rastegar Property is building​ a 26-story, 270-unit residential high-rise on a triangular block at McKinney Ave. and Akard St. just north of downtown.

Plans include a curved glass tower with landscaped balconies, ground-floor café, underground parking garage, and park on McKinney Ave.

The developer needs a zoning change to allow for the height of the project.

The building was designed by Solomon Cordwell Buenz. 
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:
 

430-home community coming to SA's east side 

SAN ANTONIO (San Antonio Business Journal) – A joint venture between Los Angeles-based Resmark Cos., Houston-based Johnson Development Services, and locally based Heartwood Development Co. has formed to develop​ Willow Point, a 430-home community.

​The community will sit on 120 acres ​east of I-410 near Foster Rd.

The first 107 homes will break ground this fall and be complete in summer 2020. Later phases will be completed by 2025.

Pulte and M/I are the builders for Willow Point. 

Virginia investor acquires Temple industrial pair

​​​TEMPLE (GlobeNewswire) – McLean, Va.-based Gladstone Commercial Corp. has acquired two industrial assets from Texas Hydraulics.

The 126,000-sf and 85,000-sf facilities along Range Rd. are used for the manufacturing, warehousing, and distribution of hydraulic cylinders.

Stream ​Capital Partners LLC arranged the sale-leaseback transaction. ​
market viewer screen shotTexas Realtor's 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. 

480K-sf Waller warehouse kicked to Sealy Industrial 

WALLER (Connect Media) – Sealy Industrial has acquired a 479,806-sf distribution warehouse ​​at 18140 Kickapoo Rd.

Broad Ocean, a China-based manufacturer of electric motors, developed and currently occupies the building.​​

CBRE represented the seller.

TTI drives change with new headquarters 

BRYAN (Texas A&M Transportation Institute) – The Texas A&M Transportation Institute (TTI) has opened its new headquarters at the RELLIS campus.​

The $71.8 million, 178,380-sf building houses 450 employees who previously worked in four different facilities.  

TTI's driving simulation and visibility research laboratories have also moved to the new headquarters. ​
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Construction begins on Mesquite 54-acre mixed-use project

MESQUITE (Dallas Morning News) – Centurion American Development Group has broken ground on Iron Horse Village, a 54-acre mixed-use project near Military Pkwy. and LBJ Fwy.

Plans call for 336 single-family homes, 130,000 sf of retail, restaurant and entertainment space, and 4.5 acres of open space.

The project will include townhomes, residential bungalows, villas, and urban row houses.

The first two phases will open in late 2020.

Down by the Riverside: Dual-branded hotel planned 

SAN ANTONIO (San Antonio Business Journal) – Primera Partners is adding a dual-branded hotel to its 20-story Riverside Towers at 111 Soledad St. 

The 350-room AC Hotel and​ Element Hotel will feature a rooftop bar, 70,000 sf of office space, and 10,000 sf of ground-floor retail space.   ​

John T. Camp & Associates Inc. is the designer.
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Copyright © 2019, 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=315
RECON for October 1, 2019RECON for October 1, 2019Bryan PopePope
2019-10-01T05:00:00Z2019-10-01T05:00:00Z
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RECON Real Estate Center
Rendering of Project Tech Building 2
A new tech building is en route to Port San Antonio, a solar farm is coming to light in China Spring, and an 18-story tower rises near UT. Keep reading today's RECON for all this and more. (Photo from Port San Antonio.)
October 1, 2019

Growth in store for Austin retail market

​​​AUSTIN (CBRE) – The metro has experienced a retail development boom, with 1.28 million sf of new space underway across the area.

Most of that development is outside of the urban core, with 890,000 sf of new product underway in the suburbs. 

According to CBRE's 3Q2019 local retail report, marketwide occupancy held steady at 95.9 percent.

Net absorption​ increased to 173,812 sf last quarter. Despite this increase, the average asking rate fell to $20.50 per sf.

Retail deliveries fell to 86,559 sf, but the development pipeline added 40,000 sf.

The report also ranks Austin in fifth place for the lowest unemployment rate of 2.9 percent in July 2019.

For more Austin-area retail news, check out the Center's latest Texas Quarterly Commercial Report.
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The Texas economy gained 303,500 nonagricultural jobs from August 2018 to August 2019, an annual growth rate of 2.4 percent. The private sector added 295,800 jobs, an annual growth rate of 2.8 percent, also more than the nation’s employment growth rate of 1.6 percent in the private sector. Texas’ seasonally adjusted unemployment rate was 3.4 percent, lower than the 3.7 percent rate in August 2018. Read our Monthly Review of the Texas Economy for more. 

New tech building docks in Port San Antonio

SAN ANTONIO (Connect Media) – Port San Antonio is developing a 174,000-sf, five-story office building on 16 acres at General Hudnell and General McMullen Drives.​

The $50 million building will follow the Port's Project Tech Building 1, which delivered in 2018.

Tenants in the 1,900-acre technology campus on the city's​ southwest side include Northrop Grumman, Booz Allen Hamilton, CACI, CNF Technologies, Lockheed Martin Cyber Solutions, Radiance Technologies, and Salient CRGT.​

Construction will begin this month​ and wrap up in early 2021.

Beaty Palmer Architects designed the building.  ​
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Texas' 13 U.S. military installations directly employed more than 224,000 in 2017. Factor in veterans and the mobile lifestyle of the typical service member, and the military adds an interesting twist to the state's overall housing market. Read more in "Home Front: How the Military Influences Texas Housing Markets."

Solar farm comes to light in China Spring 

​​​CHINA SPRING (Waco Tribune) – A Fort Worth investment group is developing a $70 million solar farm with the capacity to generate electricity​​ for 14,000 households.

The Glory Leasing Solar Project will place 200,000 panels across 783 acres near the intersection of Mar​kum Ranch Rd. and FM 1637, close to the border of McLennan and Bosque Counties.

The 67-megawatt plant will generate $1.7 million in revenue for the China Spring Independent School District in its first 15 years.  

Construction will begin in fourth quarter 2020 and wrap up in 2021. 
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. 

SA flexible office space doubles since 2014 

SAN ANTONIO (CBRE) – Local ​flexible​ office space has nearly doubled since the end of 2014, growing by more than 300,000 sf by ​​the end of second quarter 2019.

The flexible space market makes up 1 percent of the metro's office market. It has increased by 95,000 sf from last year.

Dallas-Fort Worth is the fifth largest market by square footage with 3.4 million sf of flexible office space. 

By 2030, CBRE forecasts U.S. flexible office space will expand up to 600 million sf, or 13 percent of office space. Flexible office space currently occupies 71 million sf, or 1.8 percent of office space in 40 U.S. markets.

For more San Antonio-area office news, check out the Center's latest Texas Quarterly Commercial Report.
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. 

Madison Marquette picks up NW Austin office 

AUSTIN (Austin Business Journal) – Washington-based Madison Marquette has purchased The Millennium, now called Pennybacker Commons, from locally based National Instruments.   

The five-story, 128,617-sf office building at 6504 Bridge Point Pkwy. includes a fitness center, yoga studio, locker rooms, first-floor balcony, and fifth-floor terrace.

Madison Marquette will add a management​ and conference facility, upgrade the common areas, and construct office suites. 

The Class B building is 66 percent occupied by HotSchedules Inc., LeafHouse Financial Group, Ngage Live Chat, and ATX Energy Partners.  
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What has the Center been up to this month? Find out in the latest Total RECall, a free monthly update that combines all of the Center's latest research and more into one neat package. Read the September 2019 issue online for free and join the VIP list.

192-unit multifamily underway in Burleson

BURLESON (REBusiness Online) – Construction is underway on The Waverly Apartments, a 192-unit multifamily project.

The community will offer a clubhouse, pool with cabanas, outdoor kitchen areas, a business center, fitness center, children's play area, dog park, and a car wash area.

Dougherty Mortgage arranged the $29.7 million HUD construction loan on behalf of borrower Burleson Commons LLC.

Completion is slated for spring 2021.​
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Did you know you can get notified every time one of our new economic reports is released? Check out our email notification feature to get the latest economic data sent directly to your email inbox for free. 

Houston's Heritage Plaza getting facelift

HOUSTON (Houston Business Journal) – The Heritage Plaza tower ​​will undergo a massive remodeling project next month.

Renovations will be done on the building’s exterior, main lobby, tenant conferencing areas, and the 13th-floor sky lobby.

The remodel will also include a new glass curtain wall at the corner of Dallas and Brazos St.​

O’Donnell/Snider Construction is the general manager. Kirksey Architecture is the architect.

Construction will​ be complete in December 2021. 

The 53-story tower at 1111 Bagby St. has​ 1.1 million sf of office and 28,535 sf of retail space.​
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.

18-story tower rises near UT Austin 

AUSTIN (REBusiness Online) – Locally based Parallel Co. has started building an 18-story, 158-unit student housing community at 21st and Nueces Streets​.  

The 558-bed property will serve students at the University of Texas.​

Amenities will include a coffee bar, ​​​package room with lockers, study lounges, and a rooftop pool area with a hot tub, fire pit, outdoor TVs, and grills. 
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14220 at Park Row sold, rebranded

HOUSTON (REBusiness Online) – 29th Street Capital has acquired 14220 at Park Row Apartments, a 318-unit apartment community near the Energy Corridor.

Built in 1998, the property features one-, two-, and three-bedroom units. ​

Amenities include a pool, fitness center, outdoor grilling stations, business center, a resident clubhouse, and access to jogging trails. 

The new owner will rebrand the property and introduce smart home technology​.
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Copyright © 2019, 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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