RECON for January 14, 2020RECON for January 14, 20202020-01-14T06:00:00Z2020-01-14T06:00:00Z
RECON Real Estate Center
High-rise buildings in Plano Legacy business park
What's the scoop? The Lone Star State has fastest-growing GDP nationally, Real Estate Center welcomes new research economist, and North Texas city leads Texas in office development. Today's RECON has all the details.  (Photo from Center files.)
January 14, 2020

Lone Star GDP fastest-growing in 3Q2019

​​WASHINGTON (U.S. Bureau of Economic Analysis) – Texas' gross domestic product (GDP) grew 4 percent in third quarter 2019, faster than any other state, according to the U.S. Bureau of Economic Analysis. 

​The United States' GDP grew 2.9​ percent over the quarter.

The state's third quarter growth rate was lower than the first and second quarters, which were 5.3 and 4.7 percent, respectively.

"Nondurable goods manufacturing, retail trade, and professional, scientific, and technical services were the leading contributors to the increase in Texas real GDP," said Real Estate Center Research Economist Dr. Luis Torres. "Surprisingly, oil and gas extraction was another top contributor to the growth."
Texas Housing at a Glance

Real Estate Center welcomes new research economist

Adam Perdue headshotCOLLEGE STATION (Real Estate Center) – Dr. Adam Perdue is a new research economist for the Real Estate Center at Texas A&M University.

Perdue's research with the Center will focus on public policy and ​urban, real estate, and spatial economics.

​Perdue, a Houston native, received​ two B.S. degrees—one in civil engineering and one in economics—from the University of Houston (UH). 

After working as a transportation engineer in Houston, then in San Antonio​, he returned to UH to obtain his M.A. and Ph.D. in economics. 

Before coming to work for the Center, Perdue worked as an economist at the UH Institute for Regional Forecasting. He focused​​ on the spatial distribution of Houston economic activity and the local real estate industry. 

Perdue also previously worked as an oil and gas consultant for IHS and a real estate consultant for John Burns Real Estate Consulting.
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Plano leads office developing in Texas 

​​​SANTA BARBARA, Calif. (CommercialCafé​​) – ​​Plano added nearly 10.6 million sf of office space since 2009, making it the top small Texas city for office development, according to CommercialCafé​.

The North Texas city had a total of nearly 37.2 million rentable sf of office space at the end of 2019, up 39.67 percent from 2009, when it had 26.6 million rentable sf. 

At the end of the decade, Plano had 395,333 sf of office space under construction. 

The other small (population under 300,000) Texas cities in the top ten are Irving, The Woodlands, Richardson, Spring, Frisco, Midland, Katy, Sugar Land, and Round Rock. ​​​

Top 10 Cities for Office Development in Texas

Former Mary Kay HQ getting makeover

​​​DALLAS (Connect Media) – Locally based The Ricchi Group has acquired Optima Business Park, a two-building, 200,000-sf office complex that was once home to Mary Kay Inc.'s headquarters. 

The asset at 8777 N. Stemmons Fwy. includes the eight-story Tower I and five-story Tower II. They opened in 1976 and 1985, respectively. 

Mary Kay relocated from the buildings to Addison in 1995. Current tenants include the Salvation Army and Transport Workers Union.

Ricchi has begun renovations on the property, which will be renamed El Dorado Towers. Improvements will include a gym, lounge, and interior and exterior upgrades.

Cushman & Wakefield represented the seller, Optima Stemmons LLC. The buyer was represented by Pan American Group LLC. 
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. 

Hotel-condo combo opens in downtown Austin

AUSTIN (Austin Business Journal) – Austin Proper Hotel & Residences, downtown's newest high-rise, is now open.

The 32-story hotel and condominium building at 600 W. 2nd St. offers 244 guest rooms and suites, 99 luxury condo units, 14,000 sf of meeting space, and four restaurants run by McGuire Moorman Hospitality.

Handel Architects LLP and Kelly Wearstler handled the design.

Proper Hotels is managing the hotel. Developer The Kor Group and Den Property Group are selling the condos.
Helping Texans make the best real estate decisions since 1971

Southwest opens 240K-sf complex at Hobby Airport

HOUSTON (Dallas Business Journal) – Southwest Airlines Co. opened its new 240,000-sf maintenance complex at William P. Hobby International Airport.

The multipurpose facility includes offices, training facilities, warehouse space, and a 140,000-sf hangar.

The site can service up to six 737 aircraft indoors and an additional eight aircraft outside of the hangar. It has paved aircraft parking areas, aircraft washing facilities, taxiway connections, parking, and loading docks.

Nearly 400 locally based technical operations employees will staff the complex.​​​​​​

McCarthy Building Companies Inc. was​ the general contractor.
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. 

325-unit San Antonio mixed-use project underway 

SAN ANTONIO (Austin Business Journal) – Sabot Development is building a ten-story multifamily and retail tower near the Pearl, a revitalized former industrial site.

The development at Euclid Ave. and Locust St. will span a city block with 325 residential units, 400 underground parking spaces, and 14,000 sf of ground-floor retail space.

The project has been approved by the Historic and Design Review Commission and the Planning Commission. It is awaiting city council approval.

Gensler is the architect and KFW Engineers is the civil engineer. Project Control will oversee project management. 

Groundbreaking is set for second quarter 2021.
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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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