April 15, 2014
Houston's Strong Economy Boosts Retail Construction
HOUSTON (Colliers International) – The city's retail market got off to a strong start this year, reports Colliers International in its latest market report.
Houston had 573,000 sf of positive net absorption in the first quarter. Among the tenants that opened new locations during the quarter include Whole Foods Market, Spec’s, Rue21, Sears Outlet Center, Jack’s Carpet and Mattress One.
The average citywide vacancy remained unchanged from the previous quarter at 6.6 percent. Currently, there is 1.3 million sf in Houston’s retail construction pipeline, which includes a 102,000-sf Kroger Marketplace just south of The Woodlands on Kuykendahl Rd. and W. Rayford Rd., and an 80,000-sf HEB on the north side of FM 518, just west of Pearland Pkwy.
The citywide average quoted rental rate for all property types increased 0.3 percent from $14.69 to $14.73 per sf between quarters and 0.1 percent from $14.71 in first quarter 2013. Houston retail rental rates vary from $10 to $70 per sf, depending on location, property type and building class.
New Irving Business Park a Royal Endeavor
IRVING (Dallas Morning News) – A 511,500-sf warehouse building is being built near the DFW International Airport.
The building is the first phase of developer Jackson Shaw's 30-acre Parc Royal business park on Royal Ln. A second phase of the development would increase the project to 641,500 sf.
The property will open in late 2014.
Capital Bank provided financing for the project and Mycon General Contractor Inc. is the builder. GSR Andrade Architects designed the building, and Stream Realty Partners will oversee leasing.
Partnership Gets to the RiverPoint
GRAND PRAIRIE (Dallas Morning News) – A partnership has broken ground on two industrial buildings.
J.P. Morgan Asset Management and Stream Realty Partners are building the RiverPoint Commerce Center.
The 603,000-sf center will be on 42 acres in the 3000 block of Roy Orr Blvd.
Construction is scheduled for completion late this year on the two speculative warehouse buildings.
The partnership is targeting tenants in the market for 75,000 to 200,000 sf.
Texas Jobs Up, Unemployment Down in February
COLLEGE STATION (Real Estate Center) – The Texas economy gained 301,500 nonagricultural jobs from February 2013 to February 2014, an annual growth rate of 2.7 percent compared with 1.5 percent for the United States.
According to the Real Estate Center’s latest Monthly Review of the Texas Economy, the state’s nongovernment sector added 264,100 jobs, an annual growth rate of 2.9 percent compared with 1.9 percent for the nation’s private sector.
All Texas industries had more jobs in February 2014 than in February 2013. The state’s mining and logging industry ranked first in job creation followed by the leisure and hospitality industry, the transportation, utilities, and warehousing industry, and the construction industry.
All Texas metro areas except Wichita Falls, Beaumont-Port Arthur, and Texarkana had more jobs than a year ago. Midland ranked first in job creation, followed by College Station-Bryan, Austin-Round Rock-San Marcos, Lubbock, Dallas-Plano-Irving and Houston-Sugar Land-Baytown.
Texas’ seasonally adjusted unemployment rate fell to 5.7 percent in February 2014 from 6.5 percent a year ago. The nation’s rate decreased from 7.7 to 6.7 percent.
The state’s actual unemployment rate in February 2014 was 5.9 percent. Midland had the lowest unemployment rate, followed by Odessa, Amarillo, Lubbock, College Station-Bryan and Abilene.
PinPoint's the Way to New Mixed-Use Development
HOUSTON (Houston Business Journal) – PinPoint Commercial is building a mixed-use complex near Exxon Mobil’s new campus.
Dubbed Woodland Creek, the 75 acres at 1823 Sawdust Rd. will include an apartment and townhome complex as well as single-family residences. A commercial side will include mid-rise offices and retail.
The developer plans to start construction on some of the residential projects by the third quarter.
Woodland Creek could be valued upward of $250 million.
Capital City Office Occupancy, Rents Fly High
AUSTIN (Austin American-Statesman) – Rent and occupancy rates in the city's office market in the first quarter are both higher than they were the same quarter a year ago.
Oxford Commercial said the occupancy rate for Class-A office space in Austin averaged 90 percent at the end of March, up from 87.3 percent for first quarter last year.
The city's overall vacancy rate dipped below 10 percent to 9.9. Nearly 400,000 sf of net space was leased in the first quarter, 82 percent more than a year ago.
Meanwhile, rents averaged $32.70 per sf per year, up from $31.14.
More than 142,000 sf of net space was leased downtown, a 96 percent increase from all of 2013.
Amarillo Sees Beginning of Multimillion Dollar Town Square Development
AMARILLO (Amarillo Globe-News) – Construction is underway on the Residences at Town Square.
The apartment complex will have 480 units. Each building will have enough ground-floor retail space for a big-box retailer.
Preleasing could begin this month for the first building, with potential move-in come fall.
The complex will contain one- to three-bedroom units, with one-bedroom unit rents between $750 and $1,250 a month.
More construction will come next month with the 240-unit Ridgewood Apartments at Arden Rd. and Soncy, in what will be the Heritage Hills neighborhood.
Construction will also start on the first phase of 52 homes in midsummer. They'll range from 8,000 to 12,000 sf and be priced from $300,000 to $1 million.
These projects are part of Town Square Village, a multimillion development being spearheaded by local developer The Williams Group.
Alamo City Home Prices Continue Rising
SAN ANTONIO (San Antonio Business Journal) – The local single-family home market had year-over-year price increases, according to the latest report by the San Antonio Board of Realtors. The average price of a home in San Antonio was $211,247 in March — 10 percent higher than the $192,589 of last March.
The median price of a home in great San Antonio is $172,400, which is 8 percent higher than the $158,900 posted a year ago.
Last month, 61 percent of homes sold in the area were less than $200,000.
The mid-price market is gaining ground, as homes price between $200,000 and $500,000 accounted for 35 percent of March home sales — a market that accounted for 29.2 percent of sales during the same time a year ago.
News, News and More News
COLLEGE STATION (Real Estate Center) – Hungry 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.