REBusinessOnline

Heightened Border Activity Drives Down Industrial Vacancy in Rio Grande Valley

The industrial market of the Rio Grande Valley (RGV) is off to a blistering start in 2018, thanks to a combination of increased commercial activity around the U.S.-Mexico border and renewed political and military interest in the region. We use the tri-city area of McAllen-Edinburg-Mission, now the fifth-largest MSA in Texas, as a yardstick for our regional analysis. According to CBRE, industrial vacancy in this market registered an all-time low of 3 percent during the first quarter. In …

Fate of NAFTA, Foreign Trade to Shape Rio Grande Valley Office Market in 2018

The economy of the Rio Grande Valley (RGV) has always been closely linked to foreign trade. The region’s numerous port markets and its proximity to Mexico — in particular, the robust industrial market of the Mexican border city of Reynosa — have always ensured that international commerce plays a key role in the economic success of the RGV. Manufacturing and distribution have always been major drivers of growth in the RGV. We often analyze the performances of these sectors when gauging …

Rio Grande Valley Multifamily Market Playing Catch-Up on Class A Product

Commercial real estate sectors in secondary and tertiary markets often suffer from a lack of current, comprehensive data and metrics. Until a few years ago, the multifamily market of the Rio Grande Valley (RGV) was no exception. Much of the region’s multifamily product consists of “clusters” of fourplexes. In many cases, different investors own different units within these properties, which generally do not have management and leasing offices with hard data. Consequently, for years …

Texas Office Markets: Who’s Hot, Who’s Not

From Dallas-Fort Worth’s (DFW) explosive rate of corporate relocations and expansions to Houston’s reliance on oil prices to Austin’s strong supply of tech talent, there’s very little common ground among the office sectors of Texas’ biggest cities. And whereas the pace of sales, development and absorption for certain property types — industrial, multifamily, self-storage — are strong across DFW, Houston, Austin and San Antonio, it’s the office sectors of these metros that truly …

Downtown Renaissance Drives El Paso Office Market, Multifamily Growth

For decades, El Paso was a big, sleepy town nestled on the banks of the Rio Grande that relied on a slow-paced, but consistent economy. In those days, housing was always affordable. Pricing levels for single- and multifamily properties were below national averages, but so too were wages. The city’s office market, which has traditionally served as a leading indicator for multifamily growth, hummed along without ever experiencing strong asset appreciation or interest from outside investors. …

El Paso Retail Market Embraces Entertainment Concepts

Compared to the four major MSAs in Texas, El Paso has often been overlooked by national and regional retailers. But times change, and interest in retail real estate in West Texas is at an all-time high. Major retailers that have taken space in El Paso are experiencing steady sales growth and expanding their footprints. Over the last couple years, we’ve seen new leases for major retailers, including At Home Furniture — which leased more than 100,000 square feet at its newest location — …

Industrial Vacancy Tightens in El Paso Despite Heavy Construction

Trade and politics are nothing new for El Paso, Texas and its sister city Ciudad (Cd.) Juarez, Mexico. The history of the region is rooted in the interrelationship between two countries, three states and a trading route that originally ran from Mexico City to Santa Fe along the Camino Real. [caption id="attachment_200632" align="alignright" width="100"] Christian Perez Giese, CBRE[/caption] Today, international trade and political fights from elsewhere still have a considerable influence …

Student Housing Developers Infiltrate Secondary Markets

The National Center for Education Statistics (NCES) reports that about 20.4 million students attended American colleges and universities in 2017. That figure represents an increase of 5.1 million students from 2000 and is expected to exceed 22 million by 2023. As this enrollment growth carries forward, developers of student housing properties have been holding steady volumes of new product on their books. According to CoStar Group, developers have added about 22,000 new units each year since …

Texas Ports Invest in Infrastructure

Seaports are often considered the economic engines of the markets they occupy. So when a port is increasing its business and handling more product, that growth is usually accompanied by a spike in industrial development in the surrounding metro areas. Such is the case in Texas, a state where port activity encompasses more than 1.5 million jobs and $360 billion in economic impact, according to the Texas Ports Association. The organization also states that the value of product passing through …

San Antonio Nonprofit’s Warehouse Search Captures Trends in Industrial Market

As the retail sector continues to adapt and evolve to meet consumer demand for e-commerce and next-day or same-day delivery, industrial real estate will hold its place in 2018 as the top-ranked property sector. The property type has held this title for the past four years, according to the annual Emerging Trends in Real Estate study, conducted by PwC and the Urban Land Institute. The growth of e-commerce has been so rapid that the demand for industrial warehouse space has far outpaced supply …

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