REBusinessOnline

Office Amenities Influence Talent Wars in Texas

Office buildings that have been newly constructed or recently rehabilitated are fielding the greatest demand from large companies, which are banking on the idea that lifestyle-enriching amenities and a vibrant surrounding neighborhood create advantages in attracting and retaining talent. According to the Bureau of Labor Statistics, during the 12-month period ending in July, the four major office markets of Texas added more than 200,000 new jobs combined. The state’s unemployment rate was …

Competition Floods Class B Multifamily Space in DFW

The unprecedented job and population growth that Dallas-Fort Worth (DFW) has experienced during this cycle has brought a plethora of new buyers to the Class B multifamily space, and the simple economics of high demand and low supply are re-shaping the landscape of the investment market. According to CoStar Group, the average price per unit in the Class B space has increased by 4.3 percent year-to-date, and deal volume on sales of Class B assets is down from 2017. These trends attest to the …

Austin, San Antonio Apartment Markets Perform Similarly As Fourth Quarter Unfolds

In both Austin and San Antonio, consistent job creation and in-migration contributed to solid household formation and rental demand over the 12-month period ending in June. Many of these new households comprise younger professionals that favor the renter lifestyle. Following stretches of rampant construction, solid apartment demand from this demographic was met with fewer project deliveries in both markets over the past year. The decline in supply additions, coupled with strong absorption, …

Austin, San Antonio Office Markets Move Closer While Retaining Distinct Drivers

The phenomenal growth taking place in Austin and San Antonio has shown little sign of slowing over the past several years. These two mid-size Texas cities are developing quickly and continue to undergo rapid change. Both are ranked in the top 10 fastest-growing metro areas in the country and both have unemployment levels at near-record lows. Tenant Profiles The industries driving the economy in these two central Texas cities are quite different. Each has strong tourism sectors, but that is …

DFW Multifamily Lenders Remain Disciplined

The joint effects of heavy supply additions, rising construction costs and the possibility of an looming recession have multifamily lenders in Dallas-Fort Worth (DFW) exercising caution and restraint on new construction financing, even as jobs and people continue to flow into the metroplex and fuel demand for housing. The sector’s fundamentals are very encouraging. According to data from CoStar Group, the metroplex has added approximately 23,000 new units over the past 12 months. At just …

Use Restrictions Can Lower Your Tax Bills

Most property managers and owners can state their property’s most productive use and reel off a list of potential uses as well. But not all of them know their property’s specific use restrictions, and fewer still realize how those limitations affect the property’s value for tax assessment purposes. Government Restrictions Local zoning laws impose the most common use restrictions, and their impact on property uses and potential values is commonly understood. A property zoned for …

With Oil Still Recovering, Midland Office Market May See Higher Vacancy in 2019

Throughout the first half of 2018, when oil prices appeared to be on a steady upward trajectory, Midland, Texas, saw a number of energy firms up their stakes in the city’s office market. Major names such as Chevron, Anadarko, Apache and Natural Gas Services Group announced build-to-suit office projects in Midland during this time, adding a significant amount of supply to this 6 million-square-foot market. In addition, strong leasing activity by an array of energy firms looking to bolster …

Housing, Labor Fundamentals Showcase Midland-Odessa Retail Market’s Potential

The Midland-Odessa retail market continues to get stronger, even with the slight dip in oil prices over the last year. West Texas Intermediate crude oil prices stood at $56.11 per barrel as of August 28, 2019. The economy has remained very strong, with the average unemployment rate in the Midland and Odessa MSAs averaging 2.4 percent in 2018 — essentially full employment. That unemployment rate is also about two percentage points lower than it was in 2012. Housing Drives Retail This strong …

While the City Thrives, Amarillo Industrial Market Faces Hurdles

Amarillo has continued on the path of steady growth with a strong unemployment rate of 2.7 percent. Along with its sturdy economy, Amarillo’s commercial market has followed a path of consistent advancement, but there are clouds on the horizon and hints of a stall are visible. Our core market indicators are showing cracks. There are fewer jobs now than there were a year ago. Commodities have been flat at best. Oil prices have experienced declines in excess of 10 percent from this time last …

Strong Economy Propels Lubbock Multifamily Market Despite Uptick in Concessions

It’s an exciting time to be living in Lubbock, Texas. The amazing smells of Evie Mae’s Beef Ribs fill the air. McPherson, llano Estacado and English Wineries are producing gold medal wines, on point with anywhere in the country. The Texas Tech men’s basketball team was 30 seconds away from a national championship; the men’s track team won the NCAA Championship; and the Red Raiders’ Meat Judging Team continued its dominant reign. Winning has infected the community culture, …

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