October 28, 2014
Oil, Gas Fueling Houston Industrial Market
HOUSTON (Colliers International) – The local industrial market remains one of the healthiest in the country thanks largely to continued expansion in the oil and gas industry, reports Colliers International in its third quarter industrial market report.
"A significant part of the industrial leasing activity is tied to suppliers entering the Houston market or expanding existing facilities," the report said. "Texas is expected to produce more oil and gas than all but one of the OPEC nations in 2014 due to the booming Eagle Ford Shale and Permian Basin plays, and Houston’s industrial real estate market will benefit from that rapidly increasing production."
During the third quarter, 2.9 million sf of the city's industrial inventory was absorbed, pushing the year-to-date net absorption to a positive 7.6 million sf. Industrial leasing activity, which includes renewals, reached 3.1 million sf, almost 1.5 million sf more than the totals for third quarter 2013.
Year-to-date new product deliveries reached 6.9 million sf, boosted by 1.3 million sf of new product delivered in the third quarter. In addition, 5.6 million sf of industrial space is currently under construction.
Houston’s average industrial vacancy rate decreased from 5.5 to 5.1 percent between quarters, and decreased from 5.3 percent a year ago.
The citywide average quoted industrial rental rate decreased 0.3 percent between quarters from $6.09 to $6.07 per sf triple net, and increased 3.6 percent on a year-over-year basis from $5.86 per sf triple net.
Land Conservation Easement Workshop Nov. 3 in Floresville
FLORESVILLE (Texas A&M AgriLife Extension Service) – The Texas Agricultural Land Trust, in cooperation with Green Spaces Alliance, San Antonio River Authority and the Texas A&M AgriLife Extension Service office in Wilson County, will present a conservation easement workshop here Nov. 3.
“Protect, Conserve, Pass Down: A Strategy for Saving Family Lands,” will be from 9 a.m.–1:30 p.m. at the Floresville Event Center at 600 SH 97 West.
“The workshop will focus on topics of interest to Wilson County landowners, including mitigating the impact of oil and gas production and of feral hogs, land trends in Wilson County, and the use of conservation easements as an estate tax and income tax planning tool,” said Bryan Davis, AgriLife Extension Service agent for agriculture and natural resources.
Cost is $15 per person. For more information and to register, contact Davis at 830-393-7357 or firstname.lastname@example.org.
Street Level Investments Building its Legacy
HOUSTON (RealtyNewsReport.com) – Street Level Investments is acquiring an infill site for a mixed-use project.
Legacy is expected to include a 400,000-sf Simon Premium Outlet retail center, 600,000 sf of office space, 60 acres of multifamily development and a hotel.
Located near the 12200 block of the Southwest Fwy. between Kirkwood Rd. and West Airport Blvd., the 192-acre site is currently the campus of Texas Instruments, which is vacating and selling the property.
JBL Partners is expected to develop the project's multifamily component, which will have about 2,400 units at build-out.
Plano Business Park Goes Platinum with 166,000-SF Office Building
PLANO (Dallas Morning News) – Platinum Park is coming to Legacy Business Park.
Stream Realty Partners will break ground in November on the five-story, 166,000-sf office building at the southwest corner of Tennyson Pkwy. and Communications Dr.
Platinum Park is being built on spec. Stream Realty will market it.
Cardinal Swoops On Turtle Creek Office Property
Cardinal Capital Partners Inc. bought the 140,000-sf 3131 Turtle Creek.
The new owner plans to fully renovate the building, which was built in 1972. Updates will include new lobby, signs, exterior landscaping and mechanical upgrades.
Staffelbach has been hired to plan the redo. Lincoln Property will oversee leasing.
Second-Phase Work Begins on Landmark Southpark, Landing
AUSTIN (Oden Hughes) – Oden Hughes has begun phase-two work on two of its multifamily properties here.
The firm will add 285 units immediately south of its Landmark Southpark community at the intersection of South First St. and Slaughter Ln. The project will include one-, two- and three-bedroom units that will rent for between $950 and $1,800 a month. Units will be available next October.
Meanwhile, 276 more units are being built next to The Landing (formerly known as Landmark Double Creek), which was completed in 2013 and sold to Brass Enterprises.
The project, located three miles south of Landmark Southpark on the north side of Onion Creek Pkwy., is scheduled to open next August with one-, two- and three-bedroom units renting for between $920 and $1,750 a month.
Both properties will operate independently of the existing complexes and will be named once opened.
Oden Hughes Taylor Construction will be the general contractor on both projects. Oden Hughes Management will be in charge of leasing and operations upon completion.
All is Fairmont in Downtown Austin
AUSTIN (GlobeSt.com) – A 1,000-plus-room, 37-story hotel will break ground Nov. 3.
The Fairmont Austin will have 1,066 rooms with four levels of underground parking totaling 1.4 million sf. At about 595 feet, the hotel will be the second tallest structure on downtown Austin’s skyline.
Located on 1.74 acres at the northeast corner of Cesar Chavez and Red River streets, the property will be connected to the Austin Convention Center by an aerial promenade being designed by Thomas Phifer and Partners.
Manchester Texas Financial Group secured project financing from Colony Capital LLC for the $370 million luxury hotel.
APF Parts with Galleria Office Property
HOUSTON (GlobeSt.com) – APF Properties has sold a 200,000-sf office property in the Galleria submarket after owning it for only a year.
The Class-A building on 4.2 acres at 2200 West Loop South has been sold to the building’s main office tenant, Tenaris.
Built by Hines in 1974, the property was extensively renovated in 2000.
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:
- Fortune maps Houston
- American Campus student housing 4Q 2014 occupancy
- O'Connor: San Antonio apartment overview Oct. 2014
- Walmart steps into Big Country footprint
- 'Natural growth' worth $100 million in SW McAllen
NewsTalk Texas is updated each weekday, throughout the day.