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RECON for December 15, 2017RECON for December 15, 2017Bryan PopePope
2017-12-15T06:00:00Z2017-12-15T06:00:00Z

Real Estate Center Online News
Bird's-eye-view of a green suburban neighborhood.
San Antonio-New Braunfels and Austin-Round Rock saw continued home sales growth last month, according to SABOR and ABOR. Plus, luxury home sales are the smallest but fastest-growing segment of the Texas housing market. Get details on these stories and more in today's RECON. (Photo from Center files.)
December 15, 2017

Luxury home smallest but fastest-growing Texas housing segment

AUSTIN ​​(Texas Association of Realtors) – Texas luxury home sales were up 19.1 percent this year, according to the 2017 Texas Luxury Home Sales Report from the Texas Association of Realtors (TAR). 

Luxury homes—those sold for $1 million or more—are the fastest-growing Texas housing segment. Vicki Fullerton, chairman of TAR, attributes this to rising home prices, high-end remodeling activity, and relocation activity from out-of-state residents.

From October 2016 to November 2017, Texas luxury home sales jumped to 4,622 sales. The sales dollar volume was over $7.5 million, a 19.9 percent increase over the prior year.

The median price so far this year remained unchanged year over year at $1.35 million. The average price per square foot for luxury homes was $349, a 1.9 percent increase from the first ten months of 2016. That's more than double the $122 average price per sf for the median Texas home.

From January to October 2017, luxury homes in Texas spent an average of 98 days on the market, an increase of three days from the same time frame in 2016.
Four Tierra Grande issues from 2017 spread on a table
With 2017 nearly in the books, now seems an appropriate time to reflect on the past year and look at which stories meant the most to Tierra Grande readers. Last week, we asked RECON subscribers and our social media followers which article from the past 12 months was most useful to them. See what they said in this week's Mixed-Use Blog post.

Three Texas streets among the most expensive

​CHICAGO (JLL) – Three Texas streets have landed on JLL's 2017 Most Expensive Streets study.

The average full-service office rent on No. 10 Congress Ave. in Austin is $58.25. Renters on McKinney Ave. in Dallas (No. 14), and Main St. in Houston (No. 21) pay $51.17 and $44.24, respectively. 

The average full-service rent on No. 1 Sand Hill Rd. in suburban San Francisco is $119.38. 

San Francisco, New York City, and Boston dominated the rankings.​ ​
Real Estate Red Zone logoSit in on our chat with Wesley Miller, former safety with the Buffalo Bills and now the REC's new research associate. He talks about his past life in pro football as well as his research interests here at the Center. Also, go with us to Live Oak, Deep Ellum in Dallas, Texas A&M University-Galveston, and Port A. All this and much more in the latest Red Zone podcast. (20 min. 36 sec.) 

San Antonio home sales growth continued in November

​SAN ANTONIO (San Antonio Express-News) – ​​Local home sales and prices surged last month, staying on track to set another record this year.

In November, homes sales in the San Antonio-New Braunfels MSA increased 7.2 percent to 2,324 sales, according to the San Antonio Board of Realtors.

Almost 28,300 homes have been sold so far this year, a 4.2 percent increase from a year ago. The market is set to pass the record set last year when 29,607 homes were sold.

The median price was $216,900 last month, 8.5 percent above the median price of $199,900 in November of last year. A tight supply of homes and a local shortage of construction workers and materials has been pushing up home prices in recent years.
Helping Texans make better real estate decisions since 1971

Finisar breathing new life into shuttered plant

​SHERMAN (REBusiness Online) – Finisar will open a 700,000-sf operation in a previously shuttered manufacturing plant.

Apple Inc. is funding the project with a $390 million grant. Approximately 500 new jobs will be created.

The facility will begin production by the second half of 2018.

Finisar manufactures optical communications components used in Apple products.

Austin-Round Rock home sales up 3.7 percent

AUSTIN (Austin Board of Realtors) – While single-family home sales declined in Austin proper, sales across the metropolitan statistical area (MSA) increased for the second month in a row.

According to a report from the Austin Board of Realtors, city home sales declined 3.3 percent to 653 sales in November. During the same time frame, Austin-Round Rock MSA sales increased 3.7 percent year over year to 2,196. 

At the county level, Williamson County home sales jumped 10.2 percent to 778. Hays County sales were up 14.3 percent to 280. Travis County sales fell 1.3 percent to 1,032. 
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North Texas led nation in October apartment permits

​​DALLAS (Dallas Morning News) – ​​According to Richardson-based Real Page, North Texas led the country in October apartment permits with over 3,182 units on the way.

During the 12 months ending with October, DFW apartment builders have filed permits to start 22,061 new units. That's second only to New York City's 31,060 multifamily building permits.​

Austin was also a leader in multifamily permits. Just over 10,450 units were permitted for the 12 months ending October 2017, a 7.9 percent change. Austin apartment builders filed permits for 1,019 units in October.  

Head to the Real Estate Center's website for more Dallas-Fort Worth-Arlington and Austin-Round Rock building permit data.

Avera picks up 369 La Porte acres

LA PORTE (Houston Business Journal) – Houston-based Avera Cos. has purchased two tracts totaling 369 acres from Pittsburgh-based PPG Industries. ​​​

One tract is 235 acres, and the other is 134 acres. Both sit along Bay Area Blvd.

Avera sold the 235-acre plot to Beazer Homes, which will develop a master-planned community on the land. Avera will develop the remaining land with retail and commercial space to cater to Beazer's community. ​
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

13-acre mixed-use community underway

​​FLOWER MOUND (REBusiness Online) – Greystar is developing Elan Flower Mound, a 13-acre mixed-use community.

The property will feature 426 apartments ranging from 493 to 1,558 sf and 40 townhomes ranging from 1,309 to 1,848 sf.​ There will also be 15,000 sf of retail space.

Meeks + Partners designed the project​, and construction is currently underway. Delivery is slated for fourth quarter 2018.

German financial company expanding in AllianceTexas

​​FORT WORTH (Dallas Morning News) – Mercedes-Benz Financial Services USA LLC will move into a new 200,000-sf office building in 2019.

Hillwood is developing the building in the AllianceTexas development. Work starts in early 2018.

BOKA Powell will design the building, and JLL will provide development services. Cushman & Wakefield negotiated the new lease.

The German financial company has been at AllianceTexas since 2007 in a 164,000-sf building at 13650 Heritage Pkwy.
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Two North Texas apartment communities sold for $100 million

​​DALLAS (Dallas Morning News) – SWBC Real Estate LLC has sold two apartment communities to Weinstein Properties for $100 million.

The 358-unit River Walk Village at ​4000 S. Broadway Ave. delivered in 2016. The 304-unit Timberview Ranch at 6310 SH 360 in Grand Prairie opened this year. 

Institutional Property Advisors, a division of Marcus & Millichap, brokered the sale.

430-unit Class A Austin apartments sold

​​AUSTIN (REBusiness Online) – Massachusetts-based Northland Investment Corp. has acquired Park at Monterey Oaks, a 430-unit, Class A apartment community.

Built in 2000, the complex at 4​​701 Monterey Oaks Blvd. consists of 15 two- and three-story buildings.
Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, 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 Bryan Pope. 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=133
RECON for December 12, 2017RECON for December 12, 2017Bryan PopePope
2017-12-12T06:00:00Z2017-12-12T06:00:00Z

Real Estate Center Online News
IKEA in the Live Oak Town Center rendering
Weitzman is developing Live Oak Town Center, an 830,000-sf retail center in greater San Antonio. The development will be anchored by IKEA's first South Texas location. Get the details on this story and more in today's RECON. (Rendering from REBusiness Online.)
December 12, 2017

DFW home sales soared in November

​​​DALLAS (Dallas Morning News) – North Texas saw double-digit percentage gains from a year ago for the second month in a row. ​​

Over 8,600 preowned single-family homes were sold by area real estate agents last month, an increase from the 8,376 houses in October and the 7,569 purchases in November 2016.

So far this year, nearly 98,000 houses have traded hands in the metro. That puts North Texas on track to break last year's record 101,500 preowned home sales, according to data from the Real Estate Center and North Texas Real Estate Information Systems.

Median home prices in the area in November rose 5 percent from a year ago to $242,100. Preowned home prices are 9 percent higher than they were in the first 11 months of 2016.

About 20,000 houses are listed for sale with real estate agents, an 8 percent increase from last year.

There's currently about a 2.2-month supply of houses for sale in the real estate agents' Multiple Listing Service, far short of the six-month inventory that is considered a normal market. It took an average of 48 days to sell a home in November.

Read the Real Estate Center's third-quarter housing ​reports for Dallas-Plano-​Irving and Fort Worth-Arlington for more information.
It's December, so that means it's time for the Center's Annual Report + Calendar giveaway! Just answer one quick question to get your hands on the 2018 edition of our always popular calendar (while supplies last). Offer ends December 15. 

IKEA assembling first South Texas store

​​​​​LIVE OAK (REBusiness Online) – Weitzman will develop Live Oak Town Center, an 830,000-sf retail center anchored by​ South Texas' first IKEA.

The project at the southwest corner of I-35 and Loop 1604 will include the 300,000-sf IKEA and 530,000 sf of other retail space. 

Development also includes the addition of a public road, named IKEA RBFCU Pkwy. 

Work will begin in spring 2018 and finish in spring 2019.
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. 

REC blog ranked among Texas' 50 best

COLLEGE STATION (Feedspot) – The Real Estate Center's Mixed-Use Blog has been named one of the top 50 Texas blogs​ and websites​ by content reader website Feedspot.

Selections were based on Google search rankings, popularity on social media sites, and quality and consistency of posts. In addition, Feedspot's editorial team reviewed all blogs.

​Other sites selected included Texas Monthly, Texas Tribune, Ebby Halliday Realtors, and Bloggin the Boys (Dallas Cowboys fan community).
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

Bob Moore completes Sherwin-Williams distribution center

​​​WACO ​​(REBusiness Online) – Bob Moore Construction has completed a new distribution center for Sherwin-Williams.

The 609,000-sf facility, which will service Texas, Oklahoma, New Mexico, and Louisiana, can expand by 33 percent​. Roughly 260 employees will move here.

Work started on the project early last year. 

Facebook adding to AllianceTexas campus

​​​​FORT WORTH (Dallas Business Journal) – Facebook is adding two data halls to its $1 billion data center campus in the AllianceTexas development​.​​

DPR Construction, which is​ behind the $1 billion campus, filed two building permits, one for $182.6 million and one for $181.9 million.
Helping Texans make better real estate decisions since 1971

Fannie Mae moving 1,000 workers to Granite Park

​​PLANO (Dallas Morning News) – Mortgage giant Fannie Mae is ​​​consolidating 1,000 workers from three North Texas locations to a new tower in Granite Park.

Granite Properties just finished the ten-story, 330,000-sf building at the Dallas North Tollway and SH 121.

BOKA Powell designed​ the tower, which is the seventh office building in Granite Park. 

Denver investor picks up 232 units near UTSA

​​SAN ANTONIO (San Antonio Business Journal) – Denver-based MBP Capital Inc.​​ has acquired the 232-unit Avistar at Chase Hill from the American Opportunity for Housing.

The community on 11 acres at 15800 Chase Hill Blvd.—near La Cantera and the University of Texas at San Antonio—offers one- and two-bedroom floor plans. 
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High-rise to replace Deep Ellum industrial strip

​​​DALLAS (Dallas Morning News) – ​​North Carolina-based Crescent Communities will replace a strip of old industrial buildings at Canton St. and Malco​lm X Blvd. with a seven-story mixed-use project.

The high-rise will include 230 apartments and 10,000 sf of retail space.

Building permits totaling over $27.5 million have been filed. Crescent bought the block from 42 Real Estate last week. 

Remington Katy sold, rebranded

​ KA​TY (CBRE) – The Valcap Group has purchased the Remington ​​Katy from a buyer sponsored by Conti Street Partners LLC.

The 353-unit apartment community at 22631 Colonial Pkwy. has been rebranded as Luxe at Katy Apartments.

Built in 2013, the property is 97 percent occupied and consists of units averaging 940 sf.

CBRE represented the seller, Katy Remington LP, and arranged financing for the buyer.
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Work starts on 1,753-unit Houston self storage

​​​HOUSTON (REBusiness Online) – E.E. Reed Construction LP has started on a 1,753-unit self storage facility for Proguard Storage.

The six-story, climate-controlled facility will total 268,593 sf. Edgecomb & Associates designed the project, which is expected to open in November 2018.

Tech the Halls buys Irving facility

​​IRVING (Coldwell Banker Commercial) – Tech the Halls LLC, an affiliate of SkyWalker Property Partners, has purchased a vacant 136,000-sf industrial facility.

The Tier IV-designed facility is at 6001 Campus Circle Dr. W. 

Coldwell Banker Commercial Advisors represented the buyer. CBRE represented the seller.
Real Estate Center economic reports advertisement
Copyright © 2017, 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 Bryan Pope. 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=132
RECON for December 8, 2017RECON for December 8, 2017Bryan PopePope
2017-12-08T06:00:00Z2017-12-08T06:00:00Z
​ ​
Real Estate Center Online News
Snow covering cotton fields in Brazos County
Did you take any good photos during this week's snowfall? Post them on Instagram for a chance to be featured on our social media channels. Follow us (@tex.rec), tag us in your picture, and use the hashtag #TexRecSnow. This photo was taken in a Brazos County cotton field by REC Art Director Bob Beals.
December 8, 2017

DFW second busiest office building market in 2018

​​DALLAS (Dallas Morning News) – Dallas-Fort Worth and Austin are on a new national list of cities expected to have the most suburban office construction in 2018.

DFW ranked second behind the San Francisco Bay Area in a forecast by Yardi Systems Incorporated, which provides real estate software for the property management industry.

DFW is expected to have more than five million square feet of suburban office buildings completed next year. Austin is third with just over two million square feet lined up for completion next year.

More than a dozen DFW office buildings are set to open their doors in 2018. Most of the new buildings are in Frisco and Plano.
Center's 2018 Calendar on wooden table surrounded by pine branches and berries
It's December, so that means it's time for the Center's Annual Report + Calendar giveaway! Just answer one quick question to get your hands on the 2018 edition of our always popular calendar (while supplies last). Offer ends December 15. 

936,600-sf Houston industrial portfolio sold

​​​HOUSTON (Holliday Fenoglio Fowler) – ATCAP Fund I LP has purchased a four-property light industrial portfolio from Stockbridge Capital Group.

The properties are:
  • the 206,483-sf Astro Business Park, 8825-9087 Knight Rd.;
  • two buildings totaling 225,475 sf at 5990-6018 Griggs Rd.;
  • the 298,081-sf McCarty Business Park at 245-309 McCarty St.; and 
  • four buildings totaling 206,569 sf at 8710-8798 Westpark Dr.
  • The portfolio is 95 percent leased to 57 tenants. 
HFF represented the seller and acquired financing for the buyer through Global Atlantic Financial Group. ​​
Real Estate Red Zone logoThis week, we chat with Center Research Attorney Rusty Adams about the public's right to use navigable rivers and streams in Texas, even when those waterways cross private property. We also head to Houston for one of the largest local real estate transactions ever, and to Lubbock for a $91 million TTUHSC expansion. Also, which two Texas cities are among the safest in the nation? Tune in to the Real Estate Red Zone podcast to find out. (14 min. 51 sec.) 

U.S. warehouse sizes doubled since 2000

​DALLAS (D Magazine) – According to a new CBRE report, U.S. warehouses have doubled in size since the early 2000s.

Nationally, newly built warehouses average 185,000 sf. ​The report credits the rise in e-commerce for the growing size of industrial warehouses.

In Dallas-Fort Worth, warehouses built from 2012-17 average 247,304 sf, up from 135,000 sf since the 2002-07 development boom. The metro has the second highest new construction in the country.

Since 2012, 82.8 million sf of warehouse space has been built in DFW.
Electrical outlet sparking by Christmas tree
O Christmas tree, O Christmas tree, how dangerous you can be! In this week's Mixed-Use Blog post, get some useful tips on how to safely decorate your home for the holidays. 

1,600 Houston homeowners may need to raise their homes

​HOUSTON (Houston Chronicle) – ​​The Public Works Department will notify 1,611 property owners in floodplains that their structures have been declared "substantially damaged." 

The properties will need repairs costing over 50 percent of the structure's market value to stay up to code. For most, that will mean physically raising the homes, a pricey upgrade that can cost well more than $150,000.​

Homes will need to follow the city's elevation standard, which is 12 inches above the base flood elevation in a 100-year floodplain, or 18 inches in a floodway.​

The department said 30,523 structures that lie within the 100-year floodplain or floodway took on some flooding during Harvey. The substantial damage designation applies only to properties in these areas.

​Some homeowners may be eligible for up to $30,000 in federal funds to help with the cost of raising the home.​​​
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

Work starts on Port of Corpus Christi oil storage terminal

​CORPUS CHRISTI (Corpus Christi Caller-Times) – Junction Energy Capital and Castleton Commodities International have broken ground on their new Corpus Christi Marine Storage Terminal.

The facility will be on 83 acres near the Joe Fulton International Trade Corridor.

It is permitted for about 4.5 million barrels of crude oil storage. It will process 100,000 barrels per day and have three docks to load tankers that will ship out of the port. The terminal will create 30 to 40 full-time jobs for operations. 

The $128 million first phase will have six 250,000-barrel storage tanks and one dock to begin.

​Construction will create 100 jobs. ​The terminal will come online in the second half of 2019.
Phone with Outlook for the Texas Economy on it
The Texas economy advanced as Houston's recovery continued. The statewide unemployment rate fell to a record low 3.9 percent but failed to significantly boost wages. A combination of higher oil prices and declines in the Texas trade-weighted value of the dollar boosted crude oil exports to record levels. Read more in the latest Outlook for the Texas Economy.

Deep Ellum gets first multifamily high-rise

​​​DALLAS (REBusiness Online) – StreetLights Residential has opened The Case Building, a 17-story apartment community at 3131 Main St.

The 337-unit tower is the Deep Ellum neighborhood's first multifamily high-rise. Floor plans range from 500 to 1,300 sf. 

SLR Construction was the general contractor. WDG Architecture designed the building. Westdale will manage the property. 
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If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

Royal groundbreaking in RGV

​​​​​​EDINBURG (RightQuest Real Estate Advisors) – RightQuest Edinburg, LLC, an affiliate of Dallas-based developer RightQuest, has broken ground on the 144-unit, Class A Royal Vista Apartments.

The multi​phase development is on about ten acres fronting Sugar Rd. near Owassa Rd., just west of I-69/US 281.

Rents will range from $721 to $1,110 for efficiency and one- and two-bedroom units. The first units will be available for occupancy in summer 2018.

​RightQuest is developing the property on behalf of Brownsville-based JTMR LLC, a privately held company. B&A Architects of San Antonio and locally based civil engineering firm Melden & Hunt Inc. designed it. Houston-based Nations Construction Inc. is the general contractor. IBC Bank is providing financing, and BBG Inc. provided the market feasibility and demand analysis.​
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

Partnership building Harbor Urban Center Apartments

​​ROCKWALL (REBusiness Online) – AMCAL Equities LLC and Atticus Real Estate Development are ​building the 228-unit Harbor Urban Center Apartments.

The U.S. Department of Housing and Urban Development is financing the $34.8 million project through its 221(d)(4) program.

Humphreys & Partners Architects designed the community, which will deliver in October 2019.​​
Helping Texans make better real estate decisions since 1971

Mohr buys vacant University Park building

​DALLAS (REBusiness Online) – Mohr Capital has acquired a 100,000-sf office building in University Park.

​Mohr will invest in capital improvements and add 150,000 sf to the vacant building on 13.8 acres.

Cresa represented the buyer. 
Texas Association of Realtors quote about Real Estate Center
Copyright © 2017, 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 Bryan Pope. 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=131
RECON for December 5, 2017RECON for December 5, 2017Bryan PopePope
2017-12-05T06:00:00Z2017-12-05T06:00:00Z

Real Estate Center Online News
Office buildings rendering in Dallas Midtown Redevelopment Zone.
Seritage and KDC have teamed up to develop one million sf of office space within the 430-acre Dallas Midtown Redevelopment Zone. Details on this story and more in today's RECON. (Rendering from Omniplan.)
December 5, 2017

Rent spread keeps Class B, C Austin apartment demand healthy

​​AUSTIN (Marcus & Millichap Real Estate Investment Services) – With local job growth slowing and the labor market tightening, Marcus & Millichap says the apartment market is showing signs of stabilizing.

"Healthy in-migration trends and employment gains are producing strong demand for units, and development will reach a new peak in 2017," the firm said in its fourth quarter 2017 report. "Housing needs are rising as new households are formed at a stable pace, and net absorption reaches one of its highest levels in the last ten years as more than 10,200 units are filled."​

New supply will outstrip demand for a second consecutive year, but vacancy remains at 6 percent, contributing to a steady increase in the metro’s average effective rent.

Vacancy is tightest for Class C units, reaching 5.3 percent in the third quarter.

​"Low vacancy in this segment has encouraged strong rent gains over the last 12 months, with the average effective rent climbing more than 4 percent to over $1,000 per month," according to the report. "Development activity is concentrated in the Class A segment, and the spread between effective rents in the two classes is large enough to keep many renters from moving into newer luxury buildings. As a result, demand for upgraded older properties will remain strong."
It's December, so that means it's time for the Center's Annual Report + Calendar giveaway! Just answer one quick question to get your hands on the 2018 edition of our always popular calendar (while supplies last). Offer ends December 15. 

DFW sixth nationally for office rent growth

​​​DALLAS (CBRE) – ​​North Texas saw the sixth greatest rent growth in the nation, according to CBRE's annual Tech-30 report.

​“Dallas-Fort Worth is identified as one of five markets with the greatest growth potential. The depth of a market’s talent pool is even more important to employers than the cost of doing business, and DFW is the largest tech labor market in Texas,” said Jeff Eiting, first vice president of CBRE. “Our large labor pool attracts the tech companies, and tech workers are attracted to the market because of the diverse job opportunities we offer.” 

Thirteen of the Tech-30 markets posted rent growth of 10 percent or more between second quarter 2015 and second quarter 2017.

The report measures the tech industry's​ impact on office rents in the 30 leading tech markets in the U.S. and Canada.
Obtaining a Texas Real Estate License coverObtaining a Texas Real Estate License is the most complete guide found anywhere to obtaining a Texas real estate salesperson's license. Everything from what activities require a license to actual application forms. This report has been reviewed by the Texas Real Estate Commission. 

CoreLogic: Dallas home prices cooling

​DALLAS (Dallas Morning News) – Double-digit percentage gains in area home prices have made North Texas one of the top markets in the country for home price appreciation, but CoreLogic says growth is slowing.

In October, Dallas home prices were 6.9 percent higher than they were the year before. That's slightly less than the nationwide year-over-year price gain, according to CoreLogic.

The firm's home price index (HPI) forecast indicates that prices will increase by 4.2 percent on a year-over-year basis from October 2017 to October 2018.​

Even with the slowdown, median home prices are at an all-time high of about $250,000.

The Dallas Morning News says most analysts agree that the rate of DFW home price growth will slow in 2018 after rising by more than 40 percent in the last four years.

"Home prices statewide will revert somewhat to a long-term trend rate of increase of 4 percent to 5 percent," said Real Estate Center Chief Economist Dr. Jim Gaines. "DFW home prices will be up 5 percent-plus."
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. 

Brookfield buys 4.2 million-sf Houston Center

​​​HOUSTON (Realty News Report) – Brookfield Property Partners has purchased the 4.2 million-sf Houston Center in one of the biggest real estate transactions ever completed in the city.

The 72 percent-occupied property sold for $875 million. It includes a 196,000-sf retail center and four skyscrapers:
  • the 51-story Fulbright Tower, 1.2 million sf, at 1301 McKinney St.;
  • the 46-story LyondellBasell Tower, 1.1 million sf, at 1221 McKinney St.;
  • the 40-story 2 Houston Center, one million sf, at 909 Fannin St.; and 
  • the 16-story 4 Houston Center, 674,000 sf, on Lamar St.
HFF represented the seller, J.P. Morgan Asset Management, which first bought stake in the property in 2004. 

Brookfield has brought on Transwestern to handle leasing. The buyer is expected to spend over $50 million on improving the more than 30-year-old development.

KDC, Seritage bringing office space to Dallas Midtown

​​​DALLAS (Sunwest PR) –​​ Seritage Growth Properties and KDC have teamed up to develop one million sf of office space in the 430-acre Dallas Midtown Redevelopment Zone.

The development will feature two Class A office towers with anchor retail and entertainment space. It's part of Seritage's planned 23-acre mixed-use project within Dallas Midtown. 

The 40-block Dallas Midtown surrounds the former Valley View Mall. It will be constructed in three phases, the first of which is expected to open by the start of 2021.
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Are you subscribed to RECON? If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?

HUD, GLO launch PA campaign on Hurricane Harvey relief

​​WASHINGTON, D.C. (Texas General Land Office) – The U.S. Department of Housing and Urban Development (HUD) and the Texas General Land Office (GLO) launched a public awareness campaign to inform homeowners affected by Hurricane Harvey that help is available to avoid foreclosure and to finance repairs. 

Over one-quarter of home loans in Texas are insured by the Federal Housing Administration (FHA), an agency within HUD, which offers a range of payment and other relief options for borrowers living in Presidentially Declared Major Disaster Areas (PDMDAs). 

Borrowers who are having trouble making mortgage payments should contact their servicers to discuss available resources. In addition, HUD-approved housing counselors can assist in connecting impacted homeowners with the right options for relief. HUD also offers help for borrowers and loan servicers through its FHA Resource Center, (800) CALL-FHA.

According to Texas Land Commissioner George P. Bush, Hurricane Harvey affected nearly 50,000 square miles of Texas and damaged or destroyed over a million homes.

Plano, Brownsville among 2017's safest cities

​​​​WASHINGTON, D.C. (WalletHub) – Plano and Brownsville ranked eighth and tenth on WalletHub's 2017's Safest Cities in America list.

Brownsville has the second-fewest traffic fatalities per capita, behind only Oxnard, Calif. The city has the second-lowest natural disaster risk level, behind only Dover, Del. 

Corpus Christi and El Paso have the least and the fifth-fewest hate crimes per capita, respectively. Austin has the lowest unemployment rate. 

Dallas, Laredo, and Brownsville have the first-, third-, and fifth-highest percent of uninsured population. 

Other U.S. cities in the top ten are Nashua, N.H.; South Burlington, Vt.; Warwick, R.I.; Columbia, Md.; Gilbert, Ariz.; Fargo, N.D.; Lewiston, Maine; and Portland, Maine. 

No Texas cities landed in the top ten least safe cities.​
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$91 million expansion for TTUHSC

​​​​​LUBBOCK (Hill & Wilkinson) – Hill & Wilkinson General Contractors is partnering with Texas Tech University on a $91 million expansion for the Texas Tech University Health Sciences Center (TTUHSC).

The project involves adding 185,000 sf, which includes a 100,000-sf extension of the current Health Sciences Center. Two freestanding buildings—a conference center and the Education, Research, and Technology Building—are also under construction.

Perkins + Will is the project architect.

More than 1,800 TTUHSC students graduate per year. 

Two Dallas apartment communities sold

​​​DALLAS (Marcus & Millichap Real Estate Investment Services) – Marcus & Millichap has arranged the sale of two apartment buildings totaling 406 units.

The 164-unit Adira Apartments at 1301 W. Wheatland Rd. was built in 1972. The 343-unit The Corners at 7878 Marvin D. Love F​wy. was built in 1986.

Marcus & Millichap represented the separate sellers, a locally based partnership and a California-based investment fund. The team also secured the two separate buyers. 
Communication Matters video seriesIn a series of four videos, the Real Estate Center at Texas A&M University explores what it takes to be an effective communicator. The presenter is Mays Business School Executive Professor John Krajicek.

Investor picks up Fairway Park

​​​​​HOUSTON (Realty News Report) – Chicago​-based Brennan Investment Group has acquired Fairway Park, a five-building, 135,571-sf light industrial park.

The 84 percent-occupi​​​ed business park​ is at the corner of Hempstead Hwy. and Fairway Park Dr. It​​​​​​ has a mix of office and warehouse space. 

Tschannen Estates trades hands

​​DALLAS (Marcus & Millichap Real Estate Investment Services) – Locally based Cross Equities has purchased Tschannen Estates, a 372-unit apartment community.

The property was built in 1969 on just over 13.3 acres at 8039 Chariot Dr. It includes seven floor plans ranging from 562 to 1,018 sf. Cross is planning a multimillion dollar renovation on the property.

Marcus & Millichap marketed the property on behalf of the California-based seller and acquired the buyer.
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Copyright © 2017, 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 Bryan Pope. 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 December 1, 2017RECON for December 1, 2017Bryan PopePope
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Real Estate Center Online News
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Houston industrial sales are up 127 percent year-to-date, according to a November report from NAI Partners. Get the details on this and more in today's RECON. (Photo from Center files.)
December 1, 2017

San Antonio apartment market elevated

​​​SAN ANTONIO (Marcus & Millichap Real Estate Investment Services) – ​In its fourth quarter 2017 multifamily market report, Marcus & Millichap says "builders are not shying away from the San Antonio metro but are shifting to different submarkets."

About 1,700 apartments have been delivered on the city's southwest side since 2012. ​However, a number of new projects are underway in the sub​market, and more than 2,000 units are slated for completion through early 2019.

While vacancy in the area rose 300 basis points over the last 12 months, fewer than 1,000 apartments were vacant at the end of the third quarter. An increased pace of completions here over the next few quarters will likely keep vacancy elevated as these new units are leased, the report said.

Marcus & Millichap projects that 8,800 units will be completed locally by the end of this year, and vacancy will increase 7 percent.​ The firm expects effective rents to increase 4.5 percent.​
Texas Housing at a Glance - Oct. 2017


The Texas housing market continued to recover from the August hurricane shock. Housing sales expanded across the state despite shortages of homes priced under $300,000. Leading supply indicators rebounded but remained below 2007 levels. Housing demand remained robust, particularly for existing homes as buyers search for affordable housing. Short-term home price appreciation relaxed in Central Texas. But it's likely a temporary pause. Rising home prices continued to outpace Texas wage growth, augmenting affordability concerns. Details in the October 2017 Texas Housing Insight

Houston industrial sales strong

​​​​​​​​​​​​HOUSTON (Realty News Report) –​​ Industrial sales are up 127 percent since last year, according to a November report by NAI Partners.

So far this year, $984 million in industrial sales have been recorded. ​Institutional investors have accounted for 38 percent of the deals. Twelve percent of the buyers were REITs, and 10 percent were foreign investors.

NAI reports the​ largest transaction of the year was Pure Industrial REIT’s $63.5 million purchase of the one million-sf IKEA Distribution Center in Baytown.

Around 6.4 million sf has been absorbed year-to-date, and the current vacancy rate is 5.5 percent.
Real Estate Red Zone logoIn this week's Real Estate Red Zone podcast, we head to Austin, DeSoto, Conroe, Waco, Grand Prairie, Longview, Kilgore, and more. We’ll also read some constituent mail we’ve received over the past month and look at the latest publications from around the Center.  (17 min. 09 sec.) 

TAB 2018 directors and senior officers installed

​​​​​​AUSTIN (Texas Association of Builders) – The Texas Association of Builders installed its 2018 directors and senior officers on Nov. 17.

They are:
  • President Justin MacDonald, MacDonald Companies, Kerrville;
  • First Vice President Robert Wood, Custom Homes by Robert Wood, Lubbock;
  • Vice President/Secretary Randy Bowling, Tropicana Homes, El Paso;
  • Treasurer Brett Martin, Tilson Home Corp., Houston; and 
  • Immediate Past President Rick McGuire, McGuire Builders Inc., Lubbock. 
The directors and senior officers are responsible for the member programs, representations, and education of the association.
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Middle-skill jobs in the U.S. have fallen over the past three decades as technology has improved in quality and declined in price. REC's Dr. Luis Torres talks more about job polarization in today's Mixed-Use Blog post.

$225.8 million flowing into Hays County water project

​​HAYS COUNTY (Strategic Partnerships) – ​A $225.8 million water supply project is set to begin in 2018 on a 95-mile pipeline to pump groundwater from the Carrizo-Wilcox Aquifer in Caldwell County.

Buda, Kyle, San Marcos, and other communities will receive an additional 13 million gallons of water per day beginning in 2023.

The Alliance Regional Water Authority (ARWA) conceived the plan for a pipeline, and the cost will be shared by Hays County’s three largest cities, the Canyon Regional Water Authority, and with a loan through the Texas Water Development Board’s bond program.

The ARWA has released a request for qualifications for a program management firm to oversee the $213.4 million, Phase 1B development. The RFQ is due by Dec. 21.

The first portion of the project, Phase 1A, will connect Buda’s and Kyle’s water systems at a cost of $12.4 million. Construction will run ​through 2019.
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1,460-acre Rocking W Ranch sold

​​​​MILSAP (Fort Worth Star-Telegram) – Walmart heiress Alice Walton has sold her luxury cutting horse ranch ​​​to the Three Amigos Investment Group.

The 1,460-acre Rocking W Ranch includes a 4,000-sf home, a 24-stall main show barn, and three-quarters of a mile of Brazos River frontage.

Walton originally listed the property for $19.75 million in 2015 before reducing the price twice to $16.5 million​​. 
City skylineMarket Research is your gateway to data on all 25 Texas metropolitan statistical areas, from Abilene to Wichita Falls. Whether you're looking for information on an area's demographics, top employers, or housing and commercial markets, chances are you'll find it here.

600,000 sf of industrial space coming to Buda

​​BUDA (Connect Media) – ​​Exeter Property Group, operating as Exeter​ Buda Land LP, will develop over 600,000 sf of industrial space.

The 30-acre site is east of the U.S. Foods Inc. distribution center at 2150 Fire Cracker Dr. ​

Work will start on two 300,000-sf buildings in 2018. Exeter will invest between $7 million and $14 million into the project. ​It will create over 50 jobs.
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Investment firm buys Las Colinas office tower

​​​​​IRVING (Dallas Morning News) – ​​Canal Centre Investors LLC has acquired Canal Centre, a ten-story, 237,894-sf office tower at 400 E. Las Colinas Blvd.

​The building, last appraised for $32.6 million, was 90 percent leased. Tenants include A10 Capital Power Line Services, Parallon Workforce Management, and Volkswagen. 

The property includes​ an adjacent six-story parking garage. 

Sperry Van Ne​ss represented the buyer. YH Professionals secured equity from Hong Kong and Honolulu. CBRE represented the sellers, Libitzky Property Companies and Sunwest Real Estate Group.
Home construction siteIn the market for Texas real estate data? Look no further. We're your one-stop shop for housing, rural land, building permit, employment, and population data.

GM Financial call center delivers 

​​​​SAN ANTONIO (REBusiness Online) – Bob Moore Construction has completed a 100,000-sf call center for General Motors Financial. ​

Designed by locally based RVK Architects, the two-story project will create up to 700 new jobs. 

The call center is the company's fifth in North America.

JV buys Hermann Park apartments

​​​​​​​HOUSTON (Houston Business Journal) – Hanover Co. and PGIM Real Estate have purchased Mosaic at Hermann Park, a 29-story apartment community. ​​

The​ 396-unit community at 5925 Al​meda Rd. includes 20,087 sf of ground-floor retail space. It has been rebranded as Hanover Hermann Park. 
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Copyright © 2017, 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 Bryan Pope. 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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