Heading into 2020, forecasts for the Texas construction industry called for continued expansion, boosted by the state’s strong job market and continued growth. As we wrap up the year that was, we’re reflecting on the pandemic’s impact by talking to experts from Dodge Data & Analytics and Cumming. “In the early days and weeks of the crisis, many parts of the country shuttered construction activity putting people out of work,” said Dodge’s chief economist, Richard Branch. “As the economy has reopened, construction activity has recovered somewhat, but the impact of the still very weak economy has meant the delaying and canceling of planned projects.” Experts expect the rebound will not be as lengthy as it was following the 2008 recession. While it took 10 years for construction volume levels to bounce back after that, they predict volume will return to 2019 levels in three to four years. “Projections this time last year had a steady growth in the market for construction volume between 3 percent and 5 percent (dependent upon the sector and geographic location). However the pandemic has reduced these to a contraction in 2021 of approximately 7 percent, with a reversal positive 7 percent in 2022 and between 4 percent and 5 percent for the following years,” said Dan Pomfrett, Cumming’s vice president of forecasting and analytics. So where does Texas stand at this moment? Through nine months of 2020, total building construction value in the Lone Star State is down 6 percent from the same time period in 2019. Pomfrett attributed some of that slowdown to the petrochemical industry. “The impacts of lower fuel prices, production rate changes and, in some
cases, a pause on construction are starting to ripple through the region,” he said. While hospitality and retail sectors are garnering headlines for taking the brunt of the pandemic’s blow, Pomfrett said green shoots are starting to be seen “particularly in the renovation and repurposing of existing buildings.” Another bright spot is housing, per Branch. “Within Texas, the residential market stands out as a clear winner driven by strong single-family activity, while nonresidential buildings are on the decline,” he said. According to Dodge research, San Antonio is showing the most growth, posting a 10 percent year-to-date gain for building construction, largely built on the strength of single-family activity. Click to read more at www.rednews.com.

Partners Capital—the investment arm of NAI Partners—announced that it has launched Partners Investment Fund IV, the entity’s fourth commercial real estate investment vehicle. The Partners Capital team is looking to raise at least $50 million in equity in order to continue its success in identifying and acquiring high-quality office, industrial and retail assets in attractive markets. “We are incredibly excited to launch our fourth fund in four years,” said Andrew Pappas, head of Partners Capital. “Our team remains highly focused on using technological sophistication and leveraging proprietary data to generate value for our investors. We are very excited about what the future holds for our platform in 2021 and beyond.” It’s been a busy month for Partners Capital, which recently announced a rebrand to Partners Capital from the NAI Investment Fund earlier in October, announced the acquisition of The Trails at 620 retail property in Austin and another retail center in Blanco, Texas. These sales represented Partners Capital’s fourth and fifth acquisitions in Fund III and the platform’s 13th and 14th deals overall, pushing its portfolio to 1.2 million square feet and over 400 tenants. “Partners Capital’s goal is to build a portfolio of $1 billion of assets under management in the next few years,” Pappas said, “and we look forward to reaching that milestone.”