After suffering the greatest performance declines in the history of the U.S. lodging industry during 2020, the nation’s hotels will benefit from what is expected to be a relatively rapid economic turnaround in 2021 and 2022, according to the June 2020 edition of CBRE’s Hotel Horizons forecast report. By year-end 2020, the Austin-area hotel market occupancy level is forecast to decline to 40.4 percent, representing a 44.0 decline from 2019 levels. Average daily room rates (ADR) are estimated to fall to $103.13, which is a 28.4 percent decrease from 2019 levels. Resulting revenue per available room (RevPAR) falls from $103.89 in 2019 to $41.66 in 2020, a 59.9 percent decline. Looking forward, occupancies are expected to increase to the mid-60 percent levels by 2022, but not to the relatively high occupancy level of 72.1 percent experienced in 2019. Average daily rates are projected to have strong annual increases, but not surpassing 2019 levels until 2023. While RevPAR estimates show strong annual increases, RevPAR is not expected to surpass 2019 results until the third quarter of 2023. “Austin is a resilient market with many strong, diverse sources of room-night demand, but like the rest of the world, the lodging sector has been hit hard by the pandemic,” said Jeff Binford, managing director of CBRE Hotels South Central Division. “Once travel and social gathering restrictions can be safely lifted, Austin should see recovery more quickly than many other markets. Our expectation is the first wave of travel will be leisure travelers originating from reasonable driving distances, followed closely by business travelers. Groups, events and conventions may take a little longer before full recovery. Once travelers feel safe, many of the great Austin events will be back on the calendar.” Click here to read more at www.rejournals.com.
Freight Dispatch Service Agency has signed a full-building lease at the I-35 Logistics Center, a 131,718-square-foot, speculative industrial development in Laredo, Texas. Joshua Aguilar with CBRE in San Antonio represented the landlord/owner, Tailwind Real Estate Equities and the developer, Gulf Corporation. Joey Ferguson with NAI Swisher & Martin Realty represented the tenant. The development broke ground in August of 2019 and was completed in April of this year. Freight Service Agency—a local customs broker servicing multiple accounts handling warehousing and distribution services on behalf of its clients—took occupancy on June 1. This property was selected due to the size, building efficiencies, such as clear height, heavy trailer parking, heavy dock door count and minimal in-place office. In addition, the owner was able to provide a speed to market and a fast finish out. “What this speedy fulfillment of this property showcases is that the Laredo industrial market continues to have strong demand, with much of the new speculative construction already spoken for,” said Aguilar, first vice president at CBRE. “Despite the challenges of the current environment, Laredo has shown signs that trade is going to continue with no signs of slowing down. New development will be key in meeting the demand in the marketplace.” To continue to meet the growing demands of the Laredo industrial market, Gulf Corporation will soon break ground on another 300,000 square foot speculative development at Pinnacle Industrial Park.
The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant net leased Walmart property located at 2103 Milam St in Columbus, Texas for $3,650,000.
The 44,754 square foot building is strategically positioned immediately off of Interstate 10 (29,157 VPD). Walmart benefits due to the lack of competition in the area as it pulls from multiple nearby communities. The nearest Walmart is approximately 25 miles away from the subject property. The Walmart property is ideally located in a retail corridor with H-E-B, McDonald’s, AT&T, Whataburger, and AutoZone. Columbus is located approximately 70 miles west of Houston, 125 miles east of San Antonio, and 87 miles south of Austin.
Walmart has a long operating history at the location since 1983. Walmart exercised multiple lease renewal options which demonstrate their commitment to the location. The lease was most recently extended in 2019 and there are now over five years remaining in the primary term of the absolute triple net lease.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The buyer was a private Texas-based investor and the seller was a New York-based investment group.
“Investors seeking higher yields are buying shorter-term leased properties with quality real estate fundamentals,” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investment-grade tenants continue to garner significant interest amongst private investors.”
Media Contact: Randy Blankstein
The Boulder Group
Marcus & Millichap brokered the sale of a 13,190-square-foot, net-leased CVS property located in Brownsville, Texas, according to Steven D. Weinstock, regional manager and first vice president of the firm’s Chicago Oak Brook office. The asset sold for $7,332,246. Austin Weisenbeck and Sean R. Sharko, senior vice presidents and Matt Emerick, associate, and investment specialists in Marcus & Millichap’s Chicago Oak Brook office, had the exclusive listing to market the property on behalf of the seller, a private investor. Tim Speck assisted in closing this transaction as the broker of record in Texas. The CVS is located at 4531 S. Padre Island Hwy in Brownsville and is shadow-anchored by The Home Depot. CVS has a 25-year absolute-net lease with over 14 years remaining. The property had a fully accepted offer within a week of marketing at 98 percent of the list price.
A revised site plan submitted earlier this year by Apple Inc. includes a new 6-story hotel at the technology giant’s upcoming Northwest Austin campus. The new plan, approved by the city on April 29, includes a map that shows the new 75,500-square-foot hotel at the intersection of Dallas Drive and West Parmer Lane. According to the revised site plan, this new hotel will feature 192 rooms. No hotel brand is listed on the new site plan documents. Apple originally unveiled its plans in December 2018 for its newest campus, located at 6900 W. Parmer Lane on a 133-acre tract of land in the Williamson County portion of Northwest Austin on the roughly 8,000-acre Robinson Ranch property. At that time, Kristina Raspe, Apple’s vice president of local real estate, said the first buildings at this campus will begin operations sometime in 2021. On Nov. 20 of last year, Apple announced it broke ground on its new $1 billion campus and updated its timeline for opening the first buildings to 2022. Click to read more at www.communityimpact.com.
NORTHBROOK, Ill., May 13, 2020 /PRNewswire/ — Hilco Real Estate, LLC announces Thursday, June 11, 2020, as the managed bid deadline for the sale of 60± acres of development land located along State Highway 29, northwest of Austin in Liberty Hill, Texas. Liberty Hill is located just 33 miles north of downtown Austin and 11 miles west of Georgetown. The Austin area has experienced significant growth over the last few decades. Liberty Hill is on a similar growth trajectory, for the coming years, with both its population and economy. According to Best Places’ website, Liberty Hill’s future job growth is projected to exceed 51% over the next ten years, higher than the national average of 33.5%. The subject property offers an excellent opportunity for buyers to take advantage of the swiftly expanding Austin metropolitan statistical area (MSA). This excellent development site offers 1,100 feet of frontage on well-trafficked State Highway 29 and is bordered on the south by a rail line operated by Capital MetroRail. Just south of the track sits Liberty Hill Elementary School. The city has shown a great commitment to education with 2018 voters approving a proposed $98.6 million bond package to address the Liberty Hill’s growing school population. In addition to having one of the top school districts in all of Central Texas, as well as a 15-1 student-teacher ratio, the city has a business-friendly environment with a proactive economic development team that has been integral to fostering entrepreneurial development, downtown revitalization and destination tourism. The city also boasts a strong health care presence as 11% of the population is employed by a health care sector employer. Click to read more at www.prnewswire.com.