RECON for June 17, 2022RECON for June 17, 20222022-06-17T05:00:00Z2022-06-17T05:00:00Z
View this email in your browser
RECON Texas Real Estate Research Center
TUBING THE GUADALUPE RIVER in New Braunfels is a popular way for Texans to cool down in the summer. The river's flow rate is normally between 100 and 300 cubic feet per second. But, If you don't want to 'drag bottom,' check the flow before you go. The 'current' report is here.  (Photo by Center photographer JP  Beato III)
June 17, 2022

'Signs of weakness emerging' in new-home market

COLLEGE STATION (Texas Real Estate Research Center) – Residential building permits in North Texas have slid over the past year, reports the Dallas Morning News. Supply-chain issues continue to be a major factor behind the decline, says a housing expert with the Texas Real Estate Research Center.

"The constant supply-chain issues have resulted in a growing back-log of homes either under construction or waiting to begin construction, according to national data from the Census Bureau covering up to April," said Center Lead Data Analyst Joshua Roberson. "The story is no different in DFW, where demand has acutely outpaced construction output."

Roberson said that while Texas, and DFW in particular, has been operating at capacity, "signs of weakness are emerging in the national new home market." 

Sales of new homes have gradually fallen since January, according to seasonally adjusted data from the Census Bureau. The biggest drops were in March and April and included all Census Bureau regions, including the South, which contains both Texas and Florida.

"We’ll know by the end of the summer how robust the Texas market is performing in light of rising economic uncertainty," Roberson said.

Helping Texans make the best real estate decisions since 1971

Fed makes largest rate hike in nearly 30 years

WASHINGTON (Associated Press) – The Federal Reserve has raised its key interest rate by three-quarters of a point—its largest hike in nearly three decades

"The increase is in response to continued high inflation," said Dr. Harold Hunt, research economist with the Texas Real Estate Research Center. "This is intended to help dampen inflation by cooling demand. Guidance from the Fed calls for further rate increases, which is likely to translate into increased mortgage rates through at least the end of this year."

The Associated Press reports that "borrowing costs have already risen sharply across much of the U.S. economy in response to the Fed's moves, with the average 30-year fixed mortgage rate topping 6 percent, its highest level since before the 2008 financial crisis, up from just 3 percent at the start of the year.

"The yield on the two-year Treasury note, a benchmark for corporate borrowing, has jumped to 3.3 percent, its highest level since 2007."

One million-sf spec industrial project underway in Kyle

KYLE (REBUSINESS) – A partnership between Alliance Industrial Co., Kyle Economic Development, and the Greater San Marcos Partnership is moving forward with plans for a one million-sf speculative industrial project.

Kyle/35 Logistics Park will comprise five facilities ranging from 140,000 to 475,000 sf.

Features include clear heights at 36 to 40 ft., single-load and cross-dock configurations, and trailer parking.

The project will be finished in first quarter 2023.

Come and Take It? Not So Fast

Eminent Domain Revised
Kerri Lewis, Tierra Grande, No. 2350
June 2022

Recently passed laws will change the state's eminent domain process, improving transparency of the process and the initial offer made by the entity seeking to use private property.

Port San Antonio’s next-gen expansion plan begins with 300,000-sf tower

SAN ANTONIO (San Antonio Business Journal) – Port San Antonio has announced plans for a 300,000-sf office tower near the entrance of its campus. 

The tower will house DeLorean Motor Co.'s corporate headquarters along with as many as 450 employees. Moving forward, Port San Antonio looks to house local businesses as well. 

The tower is part of a larger expansion plan that will include new structures, greater connectivity among organizations, and a mobile strategy that embraces new technology. 

Once complete, this will be one of south San Antonio's largest buildings. 

Construction begins late this year and will conclude by first quarter 2025.

$10 million expansion brewing for Houston coffee producer

HOUSTON (Houston Business Journal) – Locally based FreshBrew, a private-label coffee and tea producer, has begun a $10 million expansion of its roasting and production plant at 11600 Big John St.

Construction is now underway to transform 40,000 sf of vending space to allow for extraction, bottling, and canning production in-house. FreshBrew acquired an additional 25,000 sf of space, creating a combined total of 140,000 sf for the roasting plant and warehouse.

As part of the expansion, FreshBrew upgraded its existing roasters and purchased two additional roasters, which will arrive later this summer, and added 11 packing lines, bringing the total to 25.

The expansion, which should be completed early next year, is expected to increase FreshBrew’s production capabilities to 100 million pounds annually.

M&M Architecture and Designs will oversee construction.

TRERC'S ANNUAL REPORT EXCELLENT IN HOUSTON.  The Center's annual report + calendar won a 2022 Bronze Quill Award of Excellence from the Houston Chapter of the International Association of Business Communicators (IABC). TRERC Graphic Designer Alden DeMoss, center, accepted the award, the 30th recognition for the annual report in the last 20 years. See the Center’s award-winning annual report here.    

Caterpillar moving global HQ to Irving

IRVING (WCBU) – Caterpillar Inc. has announced plans to move its global headquarters from Deerfield, Illinois, to an existing office in Irving.

A spokesperson said the majority of the 230 employees in the Deerfield office will be relocated to the Dallas suburb over time. Currently, about 120 people work at the Irving office.

The mining and construction equipment-maker will begin transitioning its headquarters this year.

Connect with the Texas Real Estate Research Center on Facebook, Twitter, LinkedIn, Instagram, and YouTube.

Affordable housing complex coming to southwest Austin

AUSTIN (Austin Business Journal) – Heartwood Real Estate Group is planning a 72,400-sf affordable housing complex at 1418 Frontier Valley.

The site was originally zoned for mobile homes, but due to the Affordability Unlocked Development Bonus Program, denser multifamily housing is being allowed. 

Of the 101 units planned, 51 will be affordable. 1418 Frontier Valley will offer studio and one- and two-bedroom options. 

Construction begins Dec. 1 and will last 15 months. 

Market Square Architects PLLC is the architect.

Are you subscribed to RECON?
If not, click here to head to our website, where you can fill out this simple form for free. Once you do, the biggest headlines in Texas real estate will come straight to your inbox twice a week. Oh, and did we mention it's free?
Copyright © 2022, All rights reserved.
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 Texas Real Estate Research 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 Wiley. The Texas Real Estate Research Center is part of the Division of Academic and Strategic Collaborations at Texas A&M University in College Station - the heart of the Research Valley. 

You can update your preferences or unsubscribe from this list


 Search RECON Issues