RECON for September 24, 2019RECON for September 24, 2019Bryan PopePope

RECON Real Estate Center
Aerial view of industrial complex
What's happening in Texas real estate? San Antonio industrial absorption up in August, Texas maintains record-low unemployment, and supply-demand imbalance raises Austin-area home prices. Keep reading today's RECON for all this and more. (Photo from Center files.)
September 24, 2019

Texas maintains record-low unemployment

​​​AUSTIN (Texas Workforce Commission) – Last month, Texas' unemployment rate held steady at 3.4 percent, matching the record-low rate set in June 2019, according to the Texas Workforce Commission. 

The state economy added 18,200 seasonally adjusted nonfarm jobs in August. So far this year, 305,300 jobs were created.

Total nonfarm annual employment growth was at 2.4​ percent and has held above 2 percent since February 2018.

The Texas metro with the lowest nonseasonally adjusted unemployment rate was Midland at 2.2 percent. McAllen-Edinburg-Mission had the highest at 6.4 perc​​ent.

The construction industry saw the most seasonally adjusted growth in employment from August 2018 to August 2019, growing 5.9 percent. The information industry was the only sector to see a drop in employment, falling 1 percent​.​

Read the Real Estate Center's latest Monthly Review of the Texas Economy report for more. The Center also has employment data by MSA on its website. 
man holding soilTexas A&M University researchers want to hear from Texas row-crop farmers. They are interested in your soil management practices and how you value soil health when purchasing or leasing land. If you are a row-crop farmer in Texas, please consider taking this 20-minute survey. The results will aid policy makers in making informed decisions that benefit the soil and farmers of Texas.

Supply-demand imbalance raises Austin home prices 

AUSTIN (Connect Media) – The cost of single-family homes in the metro is rising because of an imbalance between supply and demand. 

The Austin Board of Realtors (ABoR) recorded 3,189 home sales through the MLS in August 2019, a 5.8 percent increase from last year.

However, while home sales continued increasing, market listings continued to decrease.

New listings dropped 7.1 percent year over year to 3,457 listings. Active listings decreased 9.3 percent to 7,074. ​

"While it’s typical to see a decrease in housing inventory and listings at the end of the summer, the continued year-over-year decrease in supply is proof that Austin’s housing stock is critically limited,” said ABoR's Kevin P. Scanlan.​​

Due to the lower supply and higher demand, the median price for single-family homes increased 2 percent over the year to $326,000.

For more on home affordability, read "Out of Reach? Texas Affordable Housing."
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TxDOT seeking TTP 2050 input

​​​AUSTIN (Texas Department of Transportation) – The Texas Department of Transportation (TxDOT) is hosting a second round of public meetings to gather input on the Texas Transportation​ Plan 2050 (TTP 2050).

TTP 2050 will guide TxDOT’s planning and programming for the next 30 years and set long-range goals for all forms of transportation.

Meeting dates, times, and locations can be found online

Texans who can't make the meetings in person can take an online interactive survey by visiting www.txdot.gov and searching for “TTP 2050." Online surveys will close Friday, Nov. 15, 2019.

To receive information or submit comments, email TTP_2050@txdot.gov or call 855-TEXAS50 (839-2750). Public comments will be accepted throughout the development of the TTP 2050 until early 2020.

Persons with disabilities who plan to attend and who may need assistance, or persons with special communication needs or who need an interpreter, should contact Casey Dusza at 512-486-5149 or casey.dusza@txdot.gov at least three business days before the meeting.
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. 

Texas A&M building trio moving along

COLLEGE STATION (The Battalion) – Three new buildings are opening on Texas A&M University's campus within a year.

The 95,000-sf Student Services Building is opening this month along Houston St. near the Memorial Student Center. It will house the disability services, student counseling services, residence life, and student life departments.

The 21st Century Classroom Building next to Cain​ Garage on Gene Stallings Blvd. will finish in summer 2020. The 118,000-sf building will seat 2,200 in ten classrooms.

Polo Garage, located behind the Z​achry Complex on Polo Rd., will open in June 2020. ​​​The 546,000-sf parking garage will have 1,685 ​parking spaces, a food court, and a recreation center. 
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. 

SA industrial net absorption up by 2.1M sf

SAN ANTONIO (Connect Media) – Local industrial vacancy hit 6.8 percent in August 2019, up from 6.2 percent a year ago, according to NAI Partners.

Despite this, net absorption increased by 2.1 million sf over the year to 2.3 million sf.

So far this year, 870,000 sf of industrial space has been delivered to the market.

The total area under construction decreased from 4.3 million sf in August 2018 to 2.4 million sf.

The average asking rent decreased to $0.50 per sf. 

Read the Center's latest Texas Quarterly Commercial Report.
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Equus picks up 300K-sf Legacy Place office pair

PLANO (Dallas Business Journal) – Equus Fund XI, an affiliate of Equus Capital Partners, has snapped up 300,000 sf of Class A office space in Legacy Place.

The acquisition includes two six-story buildings on 15.3 acres along Tennyson Pkwy.—Legacy Place I and II—and two parking garages.

Equus will enhance the outdoor patio space, upgrade the lobby, and expand the fitness center and tenant lounge. 

The office pair will be rebranded as Legacy Place East and West.

They ​were 88 percent lease​d at the time of purchase.​

Navistar's San Antonio plant to bring 600 jobs

​​​SAN ANTONIO (REBusiness Online) – Lisle, Ill.-based truck and bus manufacturer Navistar is opening a $250 million plant along I-35.

The project will create about 600 jobs.

Construction will begin later this year and finish within two years. 

JLL assisted Navistar in site selection.
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.

Frost Tower opens its doors

SAN ANTONIO (San Antonio Business Journal) – Locally ba​sed Weston Urban and Dallas-based KDC have unveiled Frost Tower, the city's first downtown tower in more than 30 years.  

Frost Bank occupies 280,000 sf of the 23-story, 460,000-sf tower at 111 W. Houston St​​​​. Three additional firms occupy 100,000 sf.

More than 85,000 sf remains vacant. CBRE is handling leasing.​

Work began on the tower in March 2017. Tenants moved in earlier this summer. 

14 Texas retail properties sold in portfolio deal

DALLAS (CBRE) – A 14-property Texas retail portfolio was sold as part of a larger eight-state, 27-property deal. 

The total portfolio includes 677,979 sf of retail space with a current combined occupancy rate of 92 percent.

Properties include six grocery stores, five home improvement stores, three auto parts stores, three fitness centers, three dollar stores, two U.S. post offices, one pharmacy, and one gas station.

Nineteen of the properties are single-tenant and eight are multitenant with no more than three tenants.

The average rent for the portfolio is $6.25 per sf and $4.24 per sf after expenses.

CBRE represented the seller, Rainier Companies.​
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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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