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RECON for October 13, 2020RECON for October 13, 20202020-10-13T05:00:00Z2020-10-13T05:00:00Z

RECON Real Estate Center
The Real Estate Center will host its first-ever Texas Real Estate Today livestream on Friday, Oct. 23, at 10:00 a.m. CST. Join us as Center Chief Economist Dr. Jim Gaines and other economic experts discuss how Texas' housing markets reacted to the COVID-19 pandemic. Follow us on Facebook and subscribe to our YouTube channel for more event updates.
October 13, 2020

Foreign homebuyers add $6.6B to Texas economy

AUSTIN (Texas Realtors) – International home sales added $6.6 billion to the Texas economy from April 2019 to March 2020, according to Texas Realtors' Texas International Homebuyers Report.

Texas was third in the U.S. for homes sold to international buyers, behind Florida and California. Around 13,900 Texas homes were sold to foreign buyers, 9 percent of the 154,000 homes sold to foreign homebuyers nationally​​. ​

Eight percent of home sales in Texas were from international homeowners.

The U.S. saw a 16 percent decline in the number of foreign-buyer purchases compared with the last reporting period.

"Texas continues to enjoy strong international real estate sales activity. From relocations to commercial or residential, foreign buyers choose Texas because of our resilient economy, job availability, investment opportunities, and friendly business climate," said Texas Realtors Chairman Cindi Bulla. "Despite the slight drop in foreign buyers compared with the previous reporting period, Texas remained a top state for international buyers, particularly those coming from Latin America."

According to the report, 42 percent of international buyers in Texas came from Latin America/Caribbean. Texas was also a top destination for international homebuyers from Mexico and Brazil. 

Of all U.S. homebuyers from Mexico, 28 percent purchased a home in Texas. The next closest state, California, had 14 percent of the total homebuyers from Mexico. 

Twelve percent of buyers from Brazil chose Texas, tying for second with Minnesota and behind only Florida. 

Texas accounted for 9.5 percent​​ of new immigration in the United States in 2018.

Two Texas metros—No. 5 Houston-The Woodlands-Sugar Land and No. 9 Dallas-Fort Worth-Arlington—were among the top ten destinations for immigration in the country​.

On the commercial side of international real estate transactions, Texas was the third-most popular destination for buyers who work with Realtors, according to the 2020 Commercial Real Estate International Business Trends report from the National Association of Realtors.​
Texas Weekly Leading IndicatorThe Texas Weekly Leading Index took a modest step backward the week ending Oct. 3. The index's overall trend indicates the state's economy is on the path to recovery. The recovery's pace continues to be hindered by the incomplete reopening of the economy and future uncertainty regarding the pandemic. Prospects for the state economy's reopening and recovery took another hit the week ending Oct. 3 as the number of new cases registered an uptick. Further waves of infections can reverse increased mobility and spending, affecting the path to recovery. Read our latest COVID-19 Impact Projections on Texas' Economy report for more. 

Three Texas cities among top ten for multifamily investments

AUSTIN (CBRE) – Three Texas cities have landed on CBRE's list of the top markets by multifamily​ investment in the last five years. ​

Since 2015, Dallas​-Fort Worth has pulled $2.8 billion in multifamily investment. It ranks fifth nationally in dollar ​volume.

Austin and Houston ranked ninth and tenth with $2.1 and $2 billion in investment, respectively. 

Global capital to the U.S. multifamily sector in the first half of 2020 decreased by 49.2 percent year over year to $3.1 billion. Second quarter volume, which fell nearly 90 percent, accounted for most of the decline so far this year.

Other cities in the top ten are:
  • No. 1 New York City, $10.6 billion in investment​​ volume;
  • No. 2 Los Angeles, $3.9 billion;
  • No. 3 Atlanta, $3.8 billion;
  • No. 4 Washington, $3.6 billion;
  • No. 6 Phoenix, $2.8 billion;
  • No. 7 Boston, $2.1 billion; and 
  • No. 8 San Francisco, $2.1 billion.​
Helping Texans make the best real estate decisions since 1971

Frisco fastest growing city in Texas

​​WASHINGTON (WalletHub) – According to a WalletHub study, Frisco is the fastest growing city ​​​in Texas.

Ranking sixth nationally, the North Texas city was second in sociodemographics and 241st in j​obs and economy. It also had the highest population and job growth in the country, tying with Sugar Land and McKinney, among others​.​​​​

Round Rock also landed in the top ten, ranking eighth overall, 13th in sociodemographics, and 57th in jobs and economy.

Other ranked Texas cities include No. 11 McKinney, No. 16 Sugar Land, No. 17 Midland, No. 20 College Station, No. 36 Pearland, and No. 30 Richardson.
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. 

It has to be good: Goya expanding in Brookshire

​​​BROOKSHIRE (Houston Business Journal) – ​New Jersey-based Goya Foods Inc. is working on an $80 million expansion project at its manufacturing and distribution facility at 30602 Goya Rd.

Work has already started on the 400,000-sf addition, which will double production capacity with a new freezer and high-speed processing line in the facility. ​

Goya will create 50 additional jobs for the facility.

Houston-based KDW is the general contractor.

This is not the first expansion project at the campus. In 2017, Goya added 324,000 sf to its existing​ 380,000-sf facility. 
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. 

El Paso industrial construction, rents at new high

EL PASO (CBRE) – The local industrial vacancy rate ​​fell to a record low of 2.9 percent in 3Q2020, 60 basis points below the previous record set in the first quarte​r, according to a CBRE report.

Last quarter closed with nearly 646,400 sf of net absorption, more than double the net absorption in 3Q2019.

The average asking rate increased over the quarter​ to $5.38 per sf, a record high.​

Over 222,700 sf of industrial space came online in 3Q2020. There are 11 projects totaling 3.4 million sf under construction, the largest amount seen since CBRE began tracking the market. 
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Capital Commercial starts on 195-acre business park 

​​​​​​AUSTIN (Austin Business Journal) – Capital Commercial Investments Inc. is developing Bergstrom Technology Park, a 195-acre business park near Austin-Bergstrom International Airport. 

The first building was delivered in March 2019. Another four buildings are planned west of the airport. 

The business park will have multiple turnkey office buildings called Bergstrom Tech Centers.

Amenities will include a park, gaming area, public disc golf course, and hike-and-bike trails.
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.

Energy exploration firm takes 105K sf for Plano HQ

​​​​​P​LANO (REBusiness Online) – Denbury Inc. has signed a 104,841-sf office lease at Legacy Union One, a 318,852-sf building at 5851 Legacy Cir.

The tenant subleased three floors from Prosperit​​y Bank and one floor from Aimbridge Hospitality. 

About 300 Denbury employees will work in the new office space. 

Cushman & Wakefield represented the subtenant.

Weatherford Farms nursery slated for industrial project

​​​​​STAFFORD (Connect Media) – Crow Holdings Industrial has purchased Weatherford Farms, a 34.3-acre commercial property at 13223 Murphy Rd.

The new owner is planning a three-building, 568,084-sf industrial project​ on the site, which fronts FM 1092 and Mula Rd. 

Delivery is set for fall 2021. 

Colliers International represented the seller and will handle leasing. 
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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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