RECON for November 5, 2019RECON for November 5, 2019Bryan PopePope

RECON Real Estate Center
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The Real Estate Center's first-ever Texas Quarterly Apartment Report is now online. The report summarizes important economic indicators that help discern apartment real estate trends in Texas' major metros. Read this issue for second quarter 2019 data. (Photo from Center files.)
November 5, 2019

New REC report: Texas multifamily market outlook positive

COLLEGE STATION (Real Estate Center) – ​​The outlook for Texas' apartment sector for the rest of 2019 is positive, according to the Real Estate Center's newly released Texas Quarterly Apartment Report

Overall market trends for the majority of Texas areas (metropolitan and micro) show positive occupancy rate growth combined with positive rent growth. Only Bryan-College Station and Lufkin registered negative rent growth. 

​​With the supply of single-family starter homes being constrained, young adults continue to rent units in the apartment sector. The outlook for the rest of 2019 appears to be positive for the major Texas metros due to the strength of the U.S. and Texas economies.

Interest rates should continue to remain low as inflation pressure remains subdued combined with low future growth expectations. A declining trade environment and a slowing world economy are the greatest headwinds to the Texas economy, challenging some of the state's most productive industries like oil and manufacturing.

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Texas Quarterly Apartment Report

Austin second-best large city for veterans

​​​​​WASHINGTON (WalletHub) – Austin has ranked as the second-best large city for veterans, according to a WalletHub study. Tampa, Fla., topped the list.

The Texas capital ranked seventh in quality of life, 11th in employment, 17th in economy, and 20th in health. 

Four other Texas cities landed in the top 25 overall rankings. They were:
  • No. 13 Fort Worth, ranking fifth in economy, 20th in health, 32nd in quality of life, and 70th in employment;
  • No. 14 Plano, ranking tenth in quality of life, 20th in health, 44th in ecoomy, and 82nd in employment;
  • No. 19 Laredo, ranking first in economy, 20th in health, 33rd in employment, and 78th in quality of life; and 
  • No. 21 San Antonio, ranking 19th in quality of life, 27th in economy, 29th in employment, and 47th in health. 
Laredo had the second lowest percent of veterans in poverty. 

Lubbock (​38th overall) and Arlington (31st) tied for first with Santa Ana, Calif.; Madison, Wis.; Durham, N.C.; and Boise, Idaho in lowest veteran unemployment rate. 

To determine the rankings, WalletHub compared the 100 most populated U.S. cities using 20 metrics. ​

Veterans are a key segment for Texas' many military housing markets. Due to their population size and high homeownership rate, they can have a strong impact. For more on this, read "Home Front: How the Military Influences Texas Housing Markets." ​​
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San Antonio’s homeownership rate typically trends higher than the statewide average. But according to U.S. Census Bureau data, the metro's rate dropped below the state's in 3Q2019. Why? REC's Paige Silva looks at the data in our latest mixed-use blog.

Life Time opens tenth Houston-area location 

HOUSTON (Club Industry) – Life Time Greenway, a 150,000-sf resort, has opened at the site of the former Houston City Club at 960 Memorial City Way.

Features include a 54,000-sf rooftop pool deck, 5,500-sf lounge, 3,000-sf LT recovery space, spa, cafe, kids' gym, fitness studios, two basketball courts, and an outdoor aquatic center. 

The $34 million resort is Life Time's tenth location in the greater Houston area. 

The company acquired the Greenway Plaza property in 2017 and began construction in 2018.​
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. 

Construction takes off on Southwest's LEAD center expansion

DALLAS (Connect Media) – Construction is underway on a 141,000-sf expansion project for Southwest Airlines' Leadership and Aircrew Development Center.

The three-story project at the airline's local campus will add more space for flight simulators and smaller training devices.

McCarthy Building Cos. is leading the work.

Opening is set for fall 2020.
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. 

Cielo stacks 31-story tower onto Block 87 

AUSTIN (Austin Business Journal) – Cielo Property Group is developing a mixed-use tower on Block 87, adjacent to the Austin Resource Center for the Homeless.

The development calls for:
  • 325,000 sf of office space,
  • 360 apartments,
  • 15,700 sf of retail space, and​​
  • 12,000 sf of restaurant space.
Construction will start in third quarter ​2020. 
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166K-sf Bent Tree office tower sold in Addison

ADDISON (REBusiness Online) – Regent Properties has sold Bent Tree Tower II, an eight-story, 166,000-sf office building, to a partnership formed by Hudson Peters Commercial.

The seller recently invested $4.7 million in capital improvements, including an entrance remodel, lobby and common areas upgrade, the addition of a large monument sign, and a modernization of mechanical systems.​

Forney Corp. is Bent Tree's anchor tenant. Colliers International brokered the deal. 
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CIM Group picks up 270K-sf portfolio

AUSTIN (Connect Media) – Los Angeles-based CIM Group has acquired a three-property, 270,000-sf portfolio from 3423 Holdings LLC.

The portfolio consists of:
  • the Rail Spur Building, a Class A, 75,000-sf creative office building at 618 Tillery St.;
  • a creative office building at 507 Calles St.; and
  • a warehouse at 1300 E. 5th St. ​​​
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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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