Texas Market Reports – REBusinessOnline

Borrowers Scramble to Lock In Rates

The Federal Reserve met during the second week of June, and as expected, the nation’s central bank opted to raise short-term interest rates for the second time this year. In short order, this means that borrowing costs for banks are going up, which means that increased borrowing costs for consumers will follow close behind. At least one more rate hike is anticipated to occur before year’s end as part of the Fed’s stated goal of increasing the federal funds rate from its current range of …

Energy Users Become Developers, Buyers in Midland Office Market

In early 2017, real estate professionals in West Texas began to see a noticeable boost in demand for industrial properties across the Permian Basin. In keeping with economic tradition, demand for space in the Midland office market is now catching up to the industrial sector after a 12- to 18-month lag period. The beginning of 2018 is when Midland’s office market really began to gain steam, riding not only a surge in oil prices but also a 2.4 percent unemployment rate, which is more than a …

August 3, 2018Market Reports, Office, Texas, Texas Market Reports

An Investor’s Guide to Financing Multifamily Assets in Lubbock, West Texas

Growing up in Lubbock in the 1990s, cotton fields were everywhere. No growth existed in the southwest part of town, and few new apartments were built. Today those same cotton fields are housing developments; the southwest part of town is filled with high-quality retail and more than 2,000 apartment units have been delivered since 2015. [caption id="attachment_207533" align="alignright" width="100"] Carl Pankratz, NorthMarq Capital[/caption] Lubbock is thriving behind its sub-3 percent …

July 27, 2018Market Reports, Multifamily, Texas, Texas Market Reports

Rising Oil Prices Seep Into Midland-Odessa Retail Development, Sales

The Midland-Odessa retail market continues to get stronger due to the rise in oil prices over the last year. West Texas intermediate crude oil prices have risen from around $46 per barrel in June 2017 to more than $72 per barrel as of June 27, 2018. According to a recent survey from the Dallas branch of the Federal Reserve, new technology is allowing energy companies to break even at $25 per barrel. In addition, the Midland Development Corp. (MDC) notes that the combined Midland-Odessa …

July 20, 2018Market Reports, Retail, Texas, Texas Market Reports

Building Size Matters in Amarillo Industrial Market

Amarillo’s industrial market is truly a tale of two sectors, as some form of that expression goes, and the key number is 50,000 square feet. The occupancy rate for industrial properties in the sub-50,000-square-foot range in Amarillo remains very high, with few properties of this size sitting on the market for extended amounts of time. With such high occupancy rates, several new developments have recently sprung up. Those with both large footprints and divisible floor plans to meet the …

July 13, 2018Industrial, Market Reports, Texas, Texas Market Reports

Fort Worth Office Market Embodies Live-Work-Play Mentality

Over the last 15 years, the office market of Fort Worth, as well as that of the metroplex as a whole, has experienced steady growth in both development and absorption of new product. DFW’s office vacancy rate currently sits at 15 percent, according to CoStar Group, indicating the ceiling for new growth has not yet been hit. [caption id="attachment_204878" align="alignright" width="100"] Jerry Merriman, Merriman Anderson Architects[/caption] The traditional drivers of job and population …

July 6, 2018Market Reports, Office, Texas, Texas Market Reports

Soaring Home Prices Drive Multifamily Absorption, Sales in Fort Worth

The Dallas-Fort Worth (DFW) metroplex will lead the nation in absolute job creation for a third consecutive year in 2018. [caption id="attachment_204862" align="alignright" width="100"] Kyle Palmer, Marcus & Millichap[/caption] Strong employment gains have produced healthy household formation trends as new residents migrate to the market and young adults continue to move out on their own. As a result, many new residents are filtering into apartments as homeownership in the metro falls …

June 29, 2018Market Reports, Multifamily, Texas, Texas Market Reports

Fort Worth Industrial Market Gaining Ground on Big Brother Dallas

Any commuter who takes Interstate 35 on a regular basis can tell that the Fort Worth industrial market is continuously growing. But the question is, how much longer will the growth last? [caption id="attachment_204854" align="alignright" width="100"] Sarah LanCarte, Fort Capital[/caption] Numerous signs point to the metro’s industrial market having considerably more runway for new development, as well as key factors in place to maintain strong positive absorption of existing industrial …

June 22, 2018Industrial, Market Reports, Texas, Texas Market Reports

University Submarket Emerging as Retail Hotspot in Fort Worth

For the last several years, Fort Worth’s retail market has posted a vacancy rate of 5 to 6 percent, suggesting that absorption is strong yet new construction is still permissible. [caption id="attachment_204848" align="alignright" width="100"] Chris Corbin, Venture Commercial Real Estate[/caption] However, there is a difference between Fort Worth’s vacancy rate and that of comparably sized markets wherein 95 percent of the retail space is occupied. In Fort Worth, occupancy is evenly …

June 15, 2018Market Reports, Retail, Texas, Texas Market Reports

Retailers That Cater to Single-Family Homes Find Success in Rio Grande Valley

As the number of jobs and people in the Rio Grande Valley (RGV) grows, the region’s retail market holds steady. Historically, vacancy in this market tends to hover between 5 and 7 percent. So the current retail vacancy rate in the McAllen-Edinburg-Mission MSA, which according to CoStar Group is 4.5 percent, represents a couple different trends. First, the vacancy figure illustrates positive absorption of newly constructed retail space. In 2016 and 2017, the market added about 770,000 and …

June 8, 2018Market Reports, Retail, Texas, Texas Market Reports