RECON for October 1, 2019RECON for October 1, 2019Bryan PopePope
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RECON Real Estate Center
Rendering of Project Tech Building 2
A new tech building is en route to Port San Antonio, a solar farm is coming to light in China Spring, and an 18-story tower rises near UT. Keep reading today's RECON for all this and more. (Photo from Port San Antonio.)
October 1, 2019

Growth in store for Austin retail market

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

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

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

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

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

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

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

New tech building docks in Port San Antonio

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

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

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

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

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

Solar farm comes to light in China Spring 

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

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

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

Construction will begin in fourth quarter 2020 and wrap up in 2021. 
Sketchy drawing of commercial buildingsThe Real Estate Center's Texas Quarterly Commercial Report looks at past, present, and future commercial real estate activity in the state's four major metropolitan areas. It covers the office, retail, and warehouse sectors. Read and download the report for free, and subscribe to know when the next issue is published. 

SA flexible office space doubles since 2014 

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

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

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

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

For more San Antonio-area office news, check out the Center's latest Texas Quarterly Commercial Report.
NewsTalk Texas logoHungry for more Texas real estate news? Then feast your eyes on NewsTalk Texas, our online news database. Here are a few of the stories you'll find there this week: NewsTalk Texas is updated each weekday, throughout the day. 

Madison Marquette picks up NW Austin office 

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

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

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

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

192-unit multifamily underway in Burleson

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

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

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

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

Houston's Heritage Plaza getting facelift

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

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

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

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

Construction will​ be complete in December 2021. 

The 53-story tower at 1111 Bagby St. has​ 1.1 million sf of office and 28,535 sf of retail space.​
Communication Matters video seriesThe Real Estate Center's Texas Home Price Index measures price appreciation changes for residential single-family homes. It provides data for eight different Texas metros across three different price ranges.

18-story tower rises near UT Austin 

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

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

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

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

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

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

The new owner will rebrand the property and introduce smart home technology​.
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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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