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RECON for March 22, 2019RECON for March 22, 2019Bryan PopePope
2019-03-22T05:00:00Z2019-03-22T05:00:00Z

Real Estate Center Online News
Rendering of Rayzor Ranch Town Center
Fidelis Realty Partners has purchased over 90 acres in the Rayzor Ranch Town Center in Denton. Keep reading today's RECON for the details on this story and more. (Photo from O'Brien Architects.)
March 22, 2019

Texas unemployment holds, 17,700 jobs added in February

​​​​AUSTIN (Texas Workforce Commission) – February marked the 106th consecutive month of annual nonfarm employment growth as 17,700 seasonally adjusted positions were created, according to the Texas Workforce Commission. ​

Texas' seasonally adjusted unemployment rate held at 3.8 percent.

The Texas metro with the lowest nonseasonally adjusted unemployment rate was Midland at 2.2 percent. McAllen-Edinburg-Mission had the highest at 6.6 percent.

The mining and logging industry saw the most seasonally adjusted growth in employment from February 2018 to February ​2019, growing 8.4 ​percent. The information industry was the only sector to see a drop in employment, falling 1.5 percent.
Border Housing Sales jan 2019
In an environment of modest economic growth, housing sales along the Texas-Mexico border improved in January 2019. Potential headwinds include uncertainty on immigration reform, trade, and Mexico's future economic performance. Get the details in our latest Texas Border Economy report. 

Austin CRE holds steady in 2018

AUSTIN (Real Estate Center) – Fourth quarter 2018 commercial vacancy rates across the metro were below their estimated natural rates, according to the Real Estate Center's first-ever Texas Quarterly Commercial Report​.

Office

Actual vacancy has hovered around 9 percent since mid-2015, well below the natural vacancy of 13 percent. It is expected to stay constant in the near-term, averaging 9.4 percent for 2019.

Rent growth is expected to slow to 2 percent in 2019.

The quarter ended with approximately 100,000 sf under construction. Net absorption has declined quarterly since the beginning of 2017, with 4Q2018 seeing 167,000 sf of negative absorption.

Construction values indicate that there will be a decrease in construction activity due to the significant decrease in values seen in 4Q2018.

Retail

Actual vacancy continued to hover around 4 percent in 4Q2018, still much lower than the natural vacancy of 6 percent. Rent growth is expected to slow through 2019, averaging 1 percent for the year.

Retail space under construction totaled approximately 153,000 sf, the lowest in over ten years.

The supply of retail space has exceeded demand over the past two quarters, with 4Q2018 seeing a low of approximately –140,000 sf absorbed.

Warehouse

Actual vacancy measured below the natural vacancy of 11 percent, totaling 6 percent in 4Q2018. It is expected to average 4.8 percent in 2019, a level well below the natural vacancy. This should spur new development.

Rent growth has continued its downward trend throughout 2018, ending 4Q2018 at –​2.3 percent. Over 2019, rent growth is expected to average 1.5 percent, bolstered by strong warehouse and transportation employment growth.

Net absorption measured positive over 2018, ending the fourth quarter around 225,000 sf.
Real Estate Red Zone logoGenerally, better schools result in higher area home prices (and, consequently, higher property taxes). The factors behind this trend are complex. Center Senior Data Analyst Joshua Roberson joins us in this week's Red Zone podcast to talk more about this. So pull up a desk for a lesson in the relationship between school quality measures, home prices, and taxes. (9 min. 41 sec.) 

Dallas, Houston face home buying pressures

​​​BOCA RATON, Fla. (Florida Atlantic University) – Dallas and Houston were among the top U.S. housing markets experiencing significant pressure discouraging homeownership,

According to the BH&J Index by Flo​​rida Atlantic University and Florida International University, 19 of the 23 markets studied are experiencing downward pressure on the demand for homeownership.

Dallas and Houston scored .98 and .72, respectively. Denver is also among the top metros, scoring a .81. 

BH&J Index scores approaching “1” indicate significant downward pressure on the demand for homeownership. Scores hovering around “0” indicate neutral pressure, while scores approaching “-1” imply strong upward pressure on the demand for homeownership.​
Helping Texans make better real estate decisions since 1971

Collaborate gathers 43 acres for $145M Village Center

JERSEY VILLAGE (Community Impact Newspaper) – Collaborate has purchased 43 acres south of US​​ 290 and Jones Rd. for its Village Center mixed-use development. 

The project will include retail, office, hotel, and high-end multifamily housing. There will also be a parking garage, water features, parks, and other green spaces.

E​ngineering work on a new city hall in the development could begin in late 2019 with construction starting in 2020. 

The $145 million Villiage Center will be completed within 36 to 48 months. 

Greatland Co. will handle leasing and management. Page is the designer, and SWA Group is the landscape architect. 
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Investors buy 90-acre Denton retail development

DENTON (Dallas Business Journal) – Fidelis Realty Partners has acquired 91.65 acres at Rayzor Ranch Town Center at the intersection of US​​​​ 380 and I-35. ​

The deal includes existing retail space, five ground leases, and 60 undeveloped acres.

Anchor tenants include WinCo and Alamo Draft House. Other tenants​ are Embassy Suites Hotel, Andy B’s Entertainment Center, In-N-Out Burger, and Rooms To Go.

A partnership led by Fidelis Realty Partners owns the nearby Rayzor Ranch Marketplace.​

2.5M-sf mixed-use project coming to Midtown

​​HOUSTON (Connect Media) – Caydon Property Group will develop a 2.5 million-sf mixed-use project in Midtown dubbed Laneways.

It will be on 3.5 acres at Drew and Dennis Streets and have high-rise multifamily buildings, a boutique hotel, restaurants, health and wellness offerings, and green spaces. 

Construction begins in early 2020.
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.

$117M courthouse construction underway

SAN ANTONIO (KSAT News) – Construction has started on the new federal courthouse at the corner of Santa Rosa Ave. and W. Nueva St.

The $117.4 million, 225,127-sf courthouse will have an upgraded design with eight courtrooms and more security. It will open in April 2022. 

Lake Flato and Munoz and Company are the architects.

Eagle acquires 750 multifamily nests

HOUSTON (REBusiness Online) – Miami-based Eagle Property Capital has acquired three local multifamily assets totaling 750 units. 

The properties include the:
  • 312-unit Landmark at Barker Cypress at 2931 Barker Cypress Rd.;
  • 246-unit Champions Park Apartments at 13050 Champions Park Dr.; and 
  • 192-unit Champions Centre Apartments at 13222 Champions Centre Dr.
Berkadia arranged acquisition financing for the buyer.
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Arbors on Saratoga blooms under new ownership

CORPUS CHRISTI (REBusiness Online) – ClearWorth Capital LLC has acquired the 252-unit Arbors on Saratoga apartment complex at 6225 Saratoga Blvd. 

Built in 1998, the Class B property has a clubhouse with a conference room and business center, fitness center, pool, outdoor kitchen, pet park, and sports court. 

The new owner will upgrade unit interiors, amenity spaces, and landscaping.

SRS Distribution building 100K-sf McKinney campus

McKINNEY (Dallas Business Journal) – Locally based SRS Distribution Inc. is building a 100,000-sf corporate campus on 4.2 acres at the northwest corner of Sam Rayburn Tollway and Alma Rd.

Construction on the corporate campus within the Hub 121 entertainment district will begin this spring.

KDC is the developer. Gensler designed the build-to-suit project. ​

According to an incentives agreement with the city, SRS plans to create 150 jobs over the next ten years. 
Quote about Real Estate Center from Texas Realtors
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=258
RECON for March 19, 2019RECON for March 19, 2019Bryan PopePope
2019-03-19T05:00:00Z2019-03-19T05:00:00Z

Real Estate Center Online News
Jim Gaines at MIPIM
Dr. Jim Gaines shares his insights at the MIPIM 30th edition Engaging the Future conference in Cannes, France. He represented Texas real estate at the international event. (Photo courtesy of Texas Realtors.)
March 19, 2019

JLL acquiring HFF for $2B

​​​CHICAGO (Realty News Report) – Jones Lang​​ LaSalle Inc. (JLL) will acquire all the outstanding shares of Holliday Fenoglio Fowler (HFF) for $2 billion.

Both firms have a significant presence across Texas and are major forces in capital markets and office, land, retail, and industrial brokerage.​​​

Since 1998, HFF has closed more than $800 billion in over 27,000 transactions, achieving record revenue in 2018 of more than $650 million. 

HFF shareholders will receive $24.63 in cash and 0.1505 JLL shares for each HFF share.​
Helping Texans make better real estate decisions since 1971

WalletHub: Texas 15th most innovative state

​​​​​​​​​​WASHINGTON (WalletHub) – Texas is the 15th most innovative state with a 47.58 score on WalletHub's State Innovation Index.

The Lone Star State ranks 14th in innovation environment and 18th in human capital. 

Texas also ranks:
  • 18th in share of STEM (Science Technology Engineering and Math) professionals;​​​
  • 14th in projected STEM job demand by 2020;
  • 27th in eighth-grade math and science performance;
  • 25th in share of science and engineering graduates aged 25 or older;
  • 14th in share of technology companies;
  • 31st in research and development spending per capita; and 
  • 17th in venture-capital funding per capita. 
Massachusetts is the most innovative state on the list. Mississippi ranks last.

To compile the rankings, WalletHub compared the 50 states and the District of Columbia across 24 key indicators of innovation-friendliness. The data set ranges from share of STEM professionals to R&D spending per capita to tech-company density. 

The United States ranks sixth on the Global Innovation Index. The nation will spend an estimated $581 billion on research and development, more than any other country in the world and about 25 percent of the world's total. 
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.

Four million sf of industrial underway in southeast Houston

​​​​HOUSTON (NAI Partners) – The Southeast submarket has four million sf of industrial space underway, one-third of the total industrial construction in the metro.

The submarket recently experienced a more than $50 billion petrochemical expansion that​​​ is positively affecting demand for industrial supply, particularly for plastics and logistics.

The largest projects under construction include: Port of Houston facilities set a record for total tonnage at 35.7 million tons, which reflected an increase of 9 percent from 2017. It remains a leading port in the U.S., and development activity is expected to continue at an accelerated pace for the foreseeable future.
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. 

Lubbock still a seller's market

​​​​​​LUBBOCK (Lubbock Avalanche-Journal) – Local home sales slowed but the median price increased in February, according to data from the Real Estate Center and the Lubbock Association of Realtors.

Home sales were down 5 percent from February 2018 with 280 homes sold. The median price increased 13 percent to $182,500.

The number of active listings grew 7 percent over the year at 1,024 listings.

Monthly housing inventory decreased from 2.9 months to 2.7 months in the same period. The Center considers a six- to 6.5-month inventory a balanced market.

Homes spent an average of 87 days on the market. ​

For more on the Lubbock housing market, read the Center's latest housing report​​.​
Chicken crowing with Texas Land Markets logo
There's only one week left to register for our 29th Annual Outlook for Texas Land Markets conference at early-bird pricing.The conference on April 25-26 in San Antonio provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. Don't forget to RSVP to our Facebook event to stay in the loop. 

PenFed credits San Antonio for new service center

SAN ANTONIO (PRNewswire) – PenFed Credit Union is purchasing two contiguous sites at 19500 Bulverde Rd. for a new financial service center.​

One 12-acre site has a two-story, 146,000-sf office building, structure parking for over 500 vehicles, and surface parking for over 450 vehicles. Employees will start occupying the space in April.

The 16-acre second site can house between​ 100,000 and 140,000 sf of office space.

The project will create over 500 jobs including management positions in research, mortgage and loan operations, financial service center operations, collections, information technology, and human resources.​​
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Did you know you can get notified every time one of our new economic reports is released? Check out our brand-new email notification feature to get the latest economic data sent directly to your email inbox for free. 

746K-sf industrial portfolio sold along the border

​​​​BROWNSVILLE, Mc​ALLEN (REBusiness Online) – A 746,136-sf industrial portfolio in South Texas has been sold.

Texas Realty Capital has arranged the acquisition financing. The non-recourse loan featured a loan-to-cost structure of 71 percent. 

For ​information on the economy along the border, read the Center's Texas Border Economy ​​report. ​

29th Street Capital picks up 438 Houston units

HOUSTON (Multi-Housing News) – 29th Street Capital has acquired the 438-unit Limestone Apartments at 14723 W. Oaks Plaza St.

Built in 1999,​ the property is near the Shell Technology Center five miles south of the Energy Corridor. 

The new owner will upgrade unit interiors, landscaping, signage, and amenities. 

The Lynd Co. was the seller, according to Yardi Matrix.​
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.

East Austin office development opening fall 2019

AUSTIN (Community Impact Newspaper) – A 115,000-sf office development at 2010 E. Sixth St. will open this fall. 

Aquila C​ommerci​al's project will offer three floors of office space and four levels of garage parking. ​

GoDaddy, a domain registrar and web-hosting company, will be the tenant.

Investor upgrades, flips Plano apartments

PLANO (Morningstar) – New York-based The Praedium Group has sold the 346-unit Legends at Chase Oaks apartments within the Watters Creek golf course.

Built in 1997 at ​701 Legacy Dr., the property consists of 32 two-story buildings with a majority of the units having direct-access garages. 

Praedium acquired the property in 2014​ and upgraded unit interiors and common areas.
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Looking for reliable rural land data for Mississippi, Louisiana, Alabama, and Texas? We've got you covered. Get the data exclusively from the Real Estate Center.
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=257
RECON for March 15, 2019RECON for March 15, 2019Bryan PopePope
2019-03-14T05:00:00Z2019-03-15T05:00:00Z

Real Estate Center Online News
Real Estate Center Business Coordinator Pamela Canon presents Director Gary Maler with a commemorative pin in honor of his 40 years of service at Texas A&M University.
Real Estate Center Business Coordinator Pamela Canon presents Director Gary Maler with a commemorative pin recognizing his 40 years of service at Texas A&M University. (Photo by Center Art Director Bob Beals.)
March 15, 2019

DFW, Houston top metros for retail, hotel construction

​​​CHICAGO (CultureMap Dallas) – Two major Texas metros rank among the top areas in the U.S. for retail and hotel construction, according to JLL's 2019 Constructi​on Outlook report.

Houston ranks first in retail construction with 4.1 million sf of retail space underway. Dallas-Fort Worth follows at number four with 3.3 million sf in the pipeline. 

Dallas-Fort Worth ranks third in 2019 hotel construction with 7,454 new rooms coming online this year. That makes up 5 percent of the entire national hospitality pipeline.

Houston ranks fifth in hotel construction with 4,576 rooms opening this year, and fourth for retail space under construction.​
Outlook for Texas Econ cover
Texas' economic expansion continued but with less momentum. Falling oil prices and signs of weakness in the European and Asian economies weighed on domestic activity. While growth is moderating, the outlook remained positive among a healthy labor market. Read our latest Outlook for the Texas Economy report for more. 

Texas foreclosures increase counter to U.S. trend

​​​IRVINE, Calif. (ATTOM Data Solutions) – Texas foreclosures were up 9 percent year over year in February 2019, counter to the national trend, according to ATTOM Data Solutions. 

Houston was one of the large metros that saw an increase in foreclosure starts, growing 73 percent over the year. 

Last month, there were 54,783 U.S. properties with foreclosure filings, down 3 percent over the month and down 11 percent over the year. This is the eighth consecutive​ annual decrease in foreclosure activity.

A total of 29,735 properties across the nation started the foreclosure process last month, up 1 percent from January 2019 but still down 9 percent from February 2018. 

Other states with foreclosure start increases are Florida (68 percent), Oregon (46 percent), Louisiana (34 percent), and Illinois (9 percent).

​Banks repossessed 11,392 U.S. properties in February 2019, down 7 percent from the previous month and down 12 percent from a year ago.
Graphic comparing buying stocks or homes
Weighing the financial benefits of buying a home versus renting and investing in the stock market is complicated. Factoring in expenses associated with buying, holding, and selling a home or a stock portfolio is enough to make your head spin. This guide can help.

North Dallas' Park Cities have Texas' most expensive homes

​​​​DALLAS (Dallas Morning News) – The Park Cities have Texas' most expensive home listings, according to Realtor.com.

The top-price ZIP code in the state was 75205, which includes Highland Park and southern University Park. Homes for sale in that area had a median asking price of more than $1.6 million.

In 2018, homes sold for an average of about $1.2 million in the Park Cities, up 7 percent from 2017. That works out to about $380 per sf.

By comparison, last year's median sales price in North Texas was $265,000 or $134 per sf.​

For more on luxury housing, read "Livin' Large: ​​Texas' Robust Luxury Home Market​."
The Center will be closed Friday, March 15. Happy Spring Break!

ABOR: Spring has arrived in Central Texas

​​AUSTIN (Austin Board of Realtors) – Area Realtors sold more homes last month than in any February on record, according to the Austin Board of Realtors' (ABOR) February 2019 Central Texas Housing Market Report.

Central Texas home sales increased 6 percent over the year to 2,101 sales. This indicates that the spring selling season may have started early this year. 

"We've been hearing from our members that buying and selling activity has really picked up over the past month," said ABOR President Kevin P. Scanlan. "We're seeing a lot of development in North Austin as major tech employers are looking for space with ample room for housing development and access to major transportation arterials. Mobility has become such a problem that employees want to live closer to where they work if they can afford to move.”​

Across the metro, the median home price decreased by 0.3 percent from $296,000 in February 2018 to $295,000. 

​New listings rose 7.3 percent to 3,015, and active listings increased 18.9 percent to 5,858. Pending sales increased 16.6 percent to 2,715. ​​

Inventory increased 0.3 months to 2.3 months of inventory. The Real Estate Center considers a six- to 6.5-month inventory a balanced market.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Silver lining to DFW's flat February housing market

​​​​​​​DALLAS-FORT WORTH (Dallas Morning News) – North Texas home sales inched up 1 percent over the year in February according to data from the Real Estate Center and the North Texas Real Estate Information Systems.

Median home prices were flat from February 2018 levels, while average sales prices fell 1 percent. 

​​So far this year, single-family home sales through the Multiple Listing Service are down 5 percent.

The number of properties on the market grew 25 percent from February 2018 to nearly 22,000. Condo listings​​ were up 43 percent.​

Days on market rose over the year ​​to 60 days.

Pending sales—houses under contract for purchase but not yet sold—increased 4 percent in February.

For more on the North Texas housing market, read the Center's latest housing report​.
Helping Texans make better real estate decisions since 1971

19-story tower kicking off near future soccer stadium

AUSTIN (Austin Business Journal) – Capella Capital Partners is building the Arena Tower at 10615 Burnet Rd. adjacent to the site of the future Major League Soccer stadium near The Domain.

The 19-story, 450,000-sf high-rise will include ten stories of office space, ground-floor retail, and 12 levels of above- and below-ground parking.

Office levels will have floor plates ranging from 35,000 to 50,000 sf.

Development will start in fourth quarter 2019 and wrap up in first quarter 2021.

Site plans originally called for a 21-story residential tower and a six-story office tower but were amended due to high office demand in the area.
Outlook for Texas Land Markets graphic
Register today for our 29th Annual Outlook for Texas Land Markets on April 25-26 in San Antonio! The conference provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. Register by Tuesday, March 26 for early-bird pricing Don't forget to RSVP to our Facebook event to stay in the loop. 

Mockingbird Station sings with development

DALLAS (Dallas Morning News) – Convexity Properties has broken ground on The Crossing at 6080 North Central Expressway next to DART's Mockingbird Station near Southern Methodist University.

The high-rise will include 330 apartments and 90,000 sf of retail space. 

A 20-story residential tower with retail space on the ground floor will be built as part of phase one. 

Triten Corp. owns the development site, which already includes the eight-story Twin Sixties office tower and the Magnolia Hotel.
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.

Every river starts with a stream

AUSTIN (Austin Business Journal) – Stream Realty Group has broken ground on RiverSouth, a 15-story, 350,611-sf office high-rise at 401 S. 1st St., across Lady Bird Lake from downtown.

Construction will wrap up on the 1.4-acre triangular site in early 2021.

The project includes five underground and five above-ground levels of parking, ground-floor retail space, and nine office floors.

RiverSouth, which comes with $3.1 million for infrastructure improvements and community benefits, is in the South Central Waterfront Initiative. The plan is to replicate the density and walkability of downtown on the other side of Lady Bird Lake.

The development team includes design builder The Beck Group, Dwg, Big Red Dog Engineering, Cardno and MEJ & Associates. QuadReal Property Group is the equity partner.
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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?

Gulf BK Bank(s) on 252K-sf business park 

HOUSTON (REBusiness Online) – CUNA Mutual Investment Corp. has sold Brookhollow West Business Park to Gulf BK LLC.

The 251,569-sf industrial property was built in 1977 on 15.4 acres at 9777 W. Gulf Bank Rd. 

​Abco Industrial Properties represented the buyer. Colliers International represented the seller.

San Antonio retail center changes hands

SAN ANTONIO (REBusiness Online) – A joint venture has purchased HEB Crossing, a 150,582-sf retail power center at the intersection of Bandera Rd. and E. Charles William Anderson Loop. 

The property is fully leased to anchor tenants Conn’s HomePlus and Academy Sports + Outdoors. Other tenants include Starbucks, Chase Bank, and H&R Block. 

It is shadow-anchored by a 182,000-sf HEB grocery store.

The venture is made up of Rainer Realty Investments LP and an affiliate of Continuum Investments LLC. 
Texas Association of Realtors quote about Real Estate Center
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=256
RECON for March 12, 2019RECON for March 12, 2019Bryan PopePope
2019-03-12T05:00:00Z2019-03-12T05:00:00Z

Real Estate Center Online News
Exterior rendering of The Quincy mixed-use development
Endeavor Real Estate Group and MetLife Investment Management have started work on The Quincy, a 30-story mixed-use development in Austin's Rainey Street district. Keep reading today's RECON for the details on this story and more. (Rendering from Ziegler Cooper Architects.)
March 12, 2019

Dallas Fed: 1.5 percent job growth predicted for Texas

​​​DALLAS (Federal Reserve Bank of Dallas) – Texas employment will grow 1.5 percent this year, according to the Texas Employment Forecast by the Federal Reserve Bank of Dallas. 

The prediction comes after incorporating January 2019's annualized employment growth of 2.6 percent. 

​Based on the forecast, the state will add 191​,000 jobs this year. Employment in December 2019 will reach 12.8 million.​

According to Dallas Fed Assistant Vice President and Senior Economist Keith R. Phillips, businesses are more optimistic now about 2019 growth than they were at the end of last year. 

​Texas had started 2019 ​with increased uncertainty due to the fourth-quarter decline in oil prices, trade uncertainty, and volatility in financial markets.
Texas Housing Insight report
Texas housing sales in January 2019 grew 1.2 percent but remained on a flat trajectory. Supply-side activity inched forward amid temperate weather and falling material costs. Overall, the healthy labor market, population growth, and the economic expansion supported housing demand. Our latest Texas Housing Insight report has more.

WalletHub gives Plano reason to smile

​​WASHINGTON (WalletHub) – Plano has ranked first on WalletHub's list of America's happiest cities in 2019. 

The Collin County city ranked ​​​​sixth in income and employment, seventh in emotional and physical well-being, and eighth in community and environment. It was also fourth in lowest separation and divorce rate.

Two other Lone Star cities made the top 25: seventh Grand Prairie and 14th Austin. Grand Prairie was sixth in community and environment, 35th in income and employment, and 20th in emotional and physical well-being. The Texas capital ranked ninth, 53rd, and 23rd in those categories. 

Laredo ranked second in lowest suicide rate but fourth in lowest sports-participation rate. Brownsville was fifth in lowest sports participation. 

Corpus Christi tied for fourth with Cheyenne, Wyo., for most work hours. 

The rest of WalletHub's top five are Irvine​​, Calif.; Madison, Wisc.; Fremont, Calif.; and Huntington Beach, Calif. ​
Cartoon of kids walking to school from suburban homes
Conventional wisdom suggests better schools result in higher area home prices. While that’s generally true, the factors behind it are complex. Pull up a desk for a lesson in the relationship between school quality measures, home prices, and taxes. Read "Adding it Up" for more. This Tierra Grande digital first was written by Center Senior Data Analyst Joshua Roberson. 

JV starts on Austin mixed-use asset

​​AUSTIN (Columbus Communications) – Endeavor Real Estate Group and MetLife Investment Management have broken ground o​​​n The Quincy, a 30-story mixed-use tower in the Rainey Street District. 

The project on Red River St., bounded by Driskill St. to the north and Davis St. to the south,​​ will include:
  • 10,360 sf of ground-level retail with one level of below-grade parking;
  • seven floors of above-grade parking;
  • 77,540 sf of Class A office space ​​across three floors called Offices at The Quincy;
  • 347 apartment​s across 19 floors; and
  • guestrooms for v​isitors. 
Office amenities include outdoor terraces, bike storage, a dedicated ground-floor lobby, and showers on every floor. 

Multifamily amenities include a terrace with a pool, firepit, cabanas, observation deck, and exercise lawn. There will be a 30th-floor sky deck overlooking Lady Bird Lake with a dog-grooming spa, sports lounge, media room, coworking space/business center, package lockers, and carpool waiting lounge. ​​

The project will open in first quarter 2021. 

Ziegler Cooper Architects designed the 360-foot-tall tower. Kimley Horn is the project's engineer, Brockette Drake Davis is the structural engineer, and Blum Consulting Engineers is the MEP engineer. IBC Bank is the lender. Rogers-O'Brien Construction Company Ltd. 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. 

Hines pours up 1.1M-sf Texas Tower 

HOUSTON (Houston Business Journal) – Foundation work has started on Hines' 1.1 million-sf Texas Tower development at 801 Texas Ave.

The 47-story building will feature coworking space, a fitness center, library, adaptable amenity spaces, and multiple tenant gardens on levels 12 and 13. 

Office spaces will have 30,000-sf floor plates with ten-ft, full-height windows and an underfloor HVAC system.

The project is being developed in partnership with Canada-based Ivanhoé Cambridge. Pelli Clarke Pelli is the design architect.

Completion is set for late 2021.
The Texas Rural Leadership Program's 2019 Engaging Rural Communities Conference will be at the Holiday Inn - Austin Midtown at 6000 Middle Fiskville Rd. It begins at 2:00 p.m. on Thursday, April 4, and ends at 2:00 p.m. on Friday, April 5. Conference registration is $200 if you register before March 14. The hotel stay is $119 per night. 

JCHS: Home improvement spending hits record high in 2017

​CAMBRIDGE, Mass. (Harvard Joint Center for Housing Studies) – As homebuilding struggled to meet the nation’s growing housing needs, spending on improvements and repairs to both owner-occupied and rental properties hit a record of nearly $425 billion in 2017.

According to Improving America's Housing 2019 by the Harvard Joint Center for Housing Studies' Remodeling Furtures Program, the U.S. home remodeling market expanded by more than 50 percent since the end of the Great Recession.​​

Steady home price growth in many markets and the aging population are driving increased home improvement spending. The growing home equity provides owners both the incentive and the means to undertake more and larger projects. 

Households 55 and over account for half of all improvement spending by homeowners today. 

Almost seven million rental and vacant units were converted to owner occupancy in 2016 and 2017. Their owners invested $50 billion in improving their condition. The $30 billion in natural disasters repair spending accounted for 6 percent of improvement expenditures in 2016–2017.​

More than half of projects costing $50,000 or more in 2017 were funded by cash.
Man signing a will
Face it, landowners: You can’t take all that acreage with you, but you can leave it to your kids or other heirs. And there’s no time like the present to get started. In "Leaving a Legacy: Wills and Trusts," Center Assistant Research Scientist Dr. Erin Kiella discusses two tools that can help. 

Class A apartments underway in Euless

​​​​EULESS (Digital Journal) – Embrey Partners has broken ground on the 285-unit Domain at Founders Parc just south of Airport Fwy. and Industrial Blvd.

The Class A project will have​ three- and four-story buildings with elevator access and surface parking. ​

The project is on 8.5 acres within Euless Founders Parc, which also includes restaurants and single-family homes.

​​​​The first units will be available in spring 2020.​
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.

Skyloft trades hands for $100M

AUSTIN (REBusiness Online) – California-based Nelson Partners has acquired Skyloft, a student housing property at 507 W. 23rd St., for $100 million. 

The 18-story, 674-bed property is just one block from the University of Texas. Amenities include a rooftop pool, fitness center, marketplace, study lounges, and full-meal vending machines. 

The property was fully occupied at the time of sale and is 77 percent preleased for the 2019-20 academic year.
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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. 

Round Rock getting 433 multifamily units

​​​​​ROUND ROCK (Connect Media) – Simon and Columbus Realty Partners will develop the 433-unit Parkside at Round Rock apartment complex.

The development off N. Mays St. will be adjacent to the Round Rock Premium Outlets.

The project will offer one- and two-bedroom units and three-bedroom townhomes. Amenities include a resort-style cabana pool, fitness center, dog park, and athletic field. 

The first units will open in first quarter 2020. Completion is set for summer 2020. 

JHP Architecture/Urban Design designed the project.
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Register today for our 29th Annual Outlook for Texas Land Markets on April 25-26 in San Antonio! The conference provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. ​Early-bird pricing ends in two weeks on Tuesday, March 26. Don't forget to RSVP to our Facebook event to stay in the loop. 

Sterling acquires 230-unit San Antonio apartments

SAN ANTONIO (REBusiness Online) – Sterling Real Estate Partners has acquired Sierra Ridge Apartments, a 230-unit multifamily community at 1401 Patricia.

Built in 1981, the property was 94 percent occupied at the time of sale. 

The new owner will upgrade unit interiors and amenity spaces, which include a pool, resident clubhouse, and an outdoor grilling area. 

Walker & Dunlop provided acquisition financing.
The Center will be closed Friday, March 15. Happy Spring Break!

1960s apartments sell in metro Fort Worth

HALTOM CITY (Marcus & Millichap) – DIJ Properties has purchased the 246-unit Rio Vista apartments at 6324 Baker Blvd.

It was built in 1969 on nearly 20 acres northeast of Fort Worth.

The buyer will spend more than $2.5 million renovating the property to attract new tenants. Improvements will be made to the exteriors, common area amenities, and unit interiors.

Marcus & Millichap represented the seller.
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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=255
RECON for March 8, 2019RECON for March 8, 2019Bryan PopePope
2019-03-08T06:00:00Z2019-03-08T06:00:00Z

Real Estate Center Online News
Exterior of a modern Stucco house
New listings in El Paso were up nearly 50 percent in January, according to the Greater El Paso Association of Realtors. Keep reading today's RECON for the details on this story and more. (Photo from Center files.)
March 8, 2019

Texas unemployment inches up from historic low

​​​AUSTIN (Texas Workforce Commission) – After five straight months of historic unemployment lows, Texas’ seasonally adjusted unemployment rate rose slightly to 3.8 percent in January, up from 3.7 percent in December.

According to Texas Workforce Commission data, the state added 15,400 seasonally adjusted nonfarm jobs at the start of the year, marking 105 consecutive months of annual job growth. ​

The Texas metro with the lowest nonseasonally adjusted unemployment rate was Midland at 2.3 percent. McAllen-Edinburg-Mission had the highest at 7.6 percent.

The mining and logging industry saw the most seasonally adjusted growth in employment from January 2018 to January 2019, growing 10.6 percent. The information industry saw the least growth, increasing only 0.3 percent.
Dr. Jim Gaines headshotReal Estate Center Chief Economist Dr. Jim Gaines says the commercial real estate sector is still doing well as prices hold up and cap rates and inflation are down. What else does he say about this "reasonably strong" market? He breaks it down on this week's Red Zone podcast. Take a listen. (27 min. 48 sec.) 

North Texas CRE healthy heading into 2019

DALLAS-FORT WORTH (Real Estate Center) – Fourth quarter 2018 commercial vacancy rates across North Texas were well below their estimated natural rates, according to the Real Estate Center's first-ever Texas Quarterly Commercial Report.

Office
Actual vacancy (17.8 percent)  continued to mirror the natural vacancy of 18 percent. Rent growth saw a slight uptick in 4Q2018, ending the year at 2.6 percent.

Net absorption at the end of 2018 was DFW’s best in two years.

In 2019, actual vacancy is expected to average 18.5 percent. Rental rates are projected to average 0.9 percent.

Retail
Actual vacancy measured well below the natural vacancy rate of 8 percent at 5.5 percent. Rent growth slowed last quarter and ended 2018 at 3.2 percent.

Net absorption has continued to be positive, which indicates strong demand for Dallas retail space, but new construction has not kept pace with that demand.

In 2019, actual vacancy is expected to average 5.2 percent, and rent growth is expected to slow to 1.5 percent.

Warehouse
Actual vacancy has measured below the natural vacancy of 11 percent since 2012, coming in at 7.6 percent in 2018.

Asking rent growth, after largely trending downward through 2017, ended the year at 6.1 percent.

In 2019, actual vacancy is expected to average 7.7 percent, and rent growth is expected to average 4.3 percent.

New construction increased significantly from 2012 through 2015, which may have caused the suppressed rent growth by providing an onslaught of new deliveries.​
A nice house with a green lawn in Amarillo, Texas
Most weather experts will tell you Amarillo is the country’s windiest city (take that, Chicago), but that doesn’t mean its housing market is breezing along. After several years of growth, sales are calming. For the details, read "Shifting Winds: Amarillo's Housing Market Slowdown," a Tierra Grande digital first.

El Paso home listings nearly double since December

​​​​​​​​​EL PASO (Greater El Paso Association of Realtors) – In January 2019, 1,016 homes were listed across the metro, up 49.6 percent from 679 new listings in December, according to the Greater El Paso Association of Realtors' "​Monthly Listing Snapshot" report.

Throughout the month, 526 single-family homes closed for an average price of $171,650. The median sale price was $150,950. Sales were down 22.1 over the month. The average and median sale prices were also down from ​December, falling 4.7 and 5.7 percent, respectively.

There were 2,559 active listings in January. ​

Homes spent an average of 92 days on the market.
Texas rural land hills
If you hit the dusty trails just about anywhere in Texas, you’ll find land is still one of the state’s hottest commodities. Sales slowed in 2018, but prices continued trending positive, boosted by demand for recreational and investment properties. Read "Over Hill, Over Dale: Texas Land Markets' Peaks and Valleys" for more.

Million Air flying high

AUSTIN (Austin Business Journal) – The Million Air project is under construction on 20 acres at the Austin-Bergstrom International Airport.

The $40 million project will add seven hangars ranging from 15,000 to 20,000 sf. There will also be 14,500-sf building referred to as a "hotel lobby" offering food and catering services, restrooms, and car rentals.

Million Air will have short-term and long-term leases, onsite maintenance, and customizable spaces for private business aircraft.

The company will employ between 25 and 35 when the center delivers in August.​
Texas Quarterly Commercial Report
The Real Estate Center has released its first-ever Texas quarterly commercial real estate report. Read and download the report for free, and subscribe to know when the next issue is published.

Celina MPC expands with land purchase

CELINA (Dallas Morning News) – Cambridge Cos. has acquired 557 acres to expand its three-year-old Mustang Lakes master-planned community near Preston Rd. and Roseland Pkwy., north of US 380.

The additional 1,600 homes will bring the Collin County community to 3,400 homes. Prices range from $300,000 to $2 million.

Phase-three home sites will be ready by the end of 2019.

The more than $1 billion Mustang Lakes project includes a 12,000-sf community center with swimming pool, amphitheater, and tennis courts. There will be a 20-acre central park with hiking trails and a fishing lake.
Looking for more real estate news? Our NewsTalk Texas feed has all the latest headlines. Here's a sample:

Baystar breaks ground on $1.3B expansion

​​​​​PASADENA (Houston Business Journal) – Locally based Baystar/Bayport Polymers LLC has broken ground​ on​​ a $1.3 billion expansion at its petrochemical complex.

The construction of the 625-metric-ton-per-year polyethylene unit will require 1,750 workers. The company currently employs 116 at the site. 

The project is one of two new units Baystar has started construction on along the Gulf of Mexico—the other being a $1.7 billion, one million-ton-per-year steam cracker in Port Arthur.
Outlook for Texas Land Markets conference
Register today for our 29th Annual Outlook for Texas Land Markets on April 25-26 in San Antonio! The conference provides information on a variety of legal, economic, social, and natural resource issues influencing current land market dynamics. ​Register by Tuesday, March 26, for early-bird pricing. Don't forget to RSVP to our Facebook event to stay in the loop. 

Apartments saddle up for rebranding, renovation

SAN ANTONIO (San Antonio Business Journal) – DJE Texas Management Group has bought the 282-unit Saddlewood Apartments from KCB Real Estate Management.

Built in 1973, the garden-style community features one-, two-, and three-bedroom units that average 920 sf. Average rents are $808 per month.

DJE will invest nearly $1 million to renovate the apartment's leasing office, gym, and pool areas. Select units will receive interior upgrades.

The complex has been rebranded as Alamo Oaks.

The Bexar County Appraisal District last assessed the property at 2554 N.E. I-410 for $14.3 million.​​
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World Class checks out with Arboretum Crossing

AUSTIN (Commercial Property Executive) – World Class Property Co. has acquired Arboretum Crossing, a 191,760-sf retail center.

The 20-acre property is at 9333 Research Blvd. at the intersection of Mopac Expy., US 183, and Loop 360.

Major tenants include Bed Bath & Beyond, World Market, Mattress Firm, and Ferguson Enterprises. 

There is a rare 80,000-sf contiguous vacant space due to the bankruptcies of Toys 'R' Us and Mattress Pro and a space formerly occupied by Five Below.

Kimco Realty Corp.​ was the seller.
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.

Hurricane-damaged apartments get new owner

HOUSTON (REBusiness Online) – A partnership between Auerbach Funds and Blue Magma Residential has acquired Park Texas Apartments, a 587-unit multifamily complex at 11911 Martin L. King Jr. Blvd. 

Approximately 250 units have been damaged by hurricane activity and are currently uninhabitable. 

The new owners will restore the damaged units, renovate the clubhouse, perform roofing and mechanical repairs, and upgrade the landscaping and common areas. 

The property is within a tax increment reinvestment zone. 

Tower along Klyde Warren Park changes hands

DALLAS (Dallas Morning News) – The 17-story Advancial Tower at Woodall Rodgers Fwy. and Akard St. has been purchased by a partnership of Woodbine Development and First United Bank.

Built in 1984, the 147,000-sf Uptown high-rise will be upgraded to serve as the local headquarters for Oklahoma-based First United Bank. The tower overlooks Klyde Warren Park.

The new owners will add collaborative workspaces, a public community room, and other tenant amenities.

A real estate partnership headed by Mike Karnes, which had owned the property since 2015, was the seller.
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Molto Properties breaks ground on 137K-sf distribution center

CYPRESS (REBusiness Online) – Molto Properties has broken ground on the 136,651-sf 290 Northwest Business Center.

The distribution building will include 32-ft clear heights, an ESFR sprinkler system, 2,586 sf of office space, 121 parking spaces, and a loading area with 30 dock-high doors. 

The property, which will deliver in August, can accommodate one or two tenants. 

Lee & Associates will handle leasing.

660-unit Houston apartments sold

HOUSTON (REBusiness Online) – A joint venture between Fogelman Properties and DRA Advisors has acquired the 660-unit Artesian on Westheimer.

The apartment complex, which was 92 percent occupied at the time of sale, offers one-, two-, and three-bedroom units. 

The new owners will upgrade the property’s unit interiors and amenity spaces, including adding a new fitness center. 
Texas Association of Realtors quote about Real Estate Center
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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