RECON for October 4, 2019RECON for October 4, 2019Bryan PopePope

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

Record-low industrial vacancy increases El Paso rents 

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

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

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

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

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

Read our latest Texas Border Economy report for more on El Paso's economy.
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MetroNational hunkers down on Bunker Hill 

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

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

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

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

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

Both developments will deliver by summer 2021. 

Ziegler Cooper Architects designed the projects. Anslow Bryant is the general contractor. ​
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McAllen industrial market hits record-low vacancy rate 

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

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

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

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

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

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

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

Rastegar Property plans new 26-story Uptown Dallas tower

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

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

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

The building was designed by Solomon Cordwell Buenz. 
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430-home community coming to SA's east side 

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

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

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

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

Virginia investor acquires Temple industrial pair

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

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

Stream ​Capital Partners LLC arranged the sale-leaseback transaction. ​
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480K-sf Waller warehouse kicked to Sealy Industrial 

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

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

CBRE represented the seller.

TTI drives change with new headquarters 

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

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

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

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

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

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

The first two phases will open in late 2020.

Down by the Riverside: Dual-branded hotel planned 

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

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

John T. Camp & Associates Inc. is the designer.
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