Office in San Antonio “Ok” and not sliding too much; 15% vacancy citywide, with average rents $21.85 down from $22.50 this time last year; robust development market; tenants beginning to return to offices
Some landlords working with tenants on short-term renewals to build tenant goodwill, and to retain them.
The hybrid work from home and office model is here to stay, although the productivity metric for this formula is not fully known yet.
Company culture is “at the office” and it is especially important to for new hires to interact with peers and senior employees as they learn and absorb the company culture.
When pandemic recedes, we will be quick to return to old habits and dense environments, office and social; in 18-24 months we will be back to normal here
8% unemployment in S.A.
The Minneapolis office of Colliers Mortgage, part of Colliers International, recently closed a $14.6 million loan for the refinancing of Beckley Townhomes, a 100-unit affordable multifamily housing property located in Dallas. The 35-year term and amortization HUD 223(f) loan was arranged for borrower TX Timbercreek Housing, L.P. Amenities at the pet-friendly property include on-site laundry facilities, fitness center, outdoor playground, swimming pool and picnic/grilling areas.
Keynote Speaker: Mark Dotzour, PhD We should have a solid economy ongoing in Houston and Texas, with a few ‘clouds’, such as election year uncertainty, China trade issues, and the Covid19 virus scare. Energy exploration and production will be curtailed due to lack of capital from investor/lenders, which should eventually lead to an upward trend in oil prices. Our current economic expansion is into its 129th month, and going strong. 2020 will be a little slower but consumer confidence and most other economic indicators remain strongly positive. Commerce is so interconnected on the planet that trade disputes will inevitably need to be worked out. Even if 2020 is a little slower, it should create pent-up demand for 2021. Wages are up about 3.5% a year, and lots of job openings remain, despite steady increase of hiring, which has been in the range of 200-300,000 new jobs per year in recent years. Housing starts are up and household debt is down; corporate profits are leveling off-companies did not reinvest savings from last tax cut but instead bought own stock. Unemployment claims are way down, and interest rates are low and going lower. It is a ‘given’ that we will have a recession in next five years but it is not on the immediate horizon. Click to read more at www.rednews.com.
There’s been a lot of talk that the industrial market—particularly that segment serving e-commerce companies—is proving to be resilient to the economic damage wrought by COVID-19. Two Texas markets are helping lead the way as the country forges a path forward during the pandemic. New research by Transwestern suggest that there remained strong demand for large scale industrial space across the country during the first half of
the year. This demand is revving the engines of development, investment and leasing activity. Transwestern indexes the health of the national industrial market by tracking deal velocity and construction activity in 11 growth regions. Dubbed the “Elite 11,” these markets are perennial targets
for both global investors as well as the most sought-after locations for big-box distribution users, lastmile logistics, e-commerce and manufacturing
companies. Two Texas markets, Dallas-Fort Worth and Houston, make Transwestern’s Elite 11, along with Atlanta, Chicago, Lehigh Valley (PA), New Jersey, Northern California, Seattle, South Florida, Southern
California and Washington/Baltimore. These core markets are proving that this is one asset class that can’t be beaten by the pandemic. “Many sectors of the real estate market have been put on pause since March—but not the industrial real estate sector, which continues to flourish,” said Transwestern’s Matt Dolly, director of research. “Prior to the pandemic, the core markets led investment activity, and this movement has only intensified in recent months.” Click to read more at www.rednews.com.
Cavaness Insurance Agency, LLC leased 2,180SF at 14110 N. Dallas Parkway for 5 years. Steven Wilkerson with Search Commercial Healthcare & Office Real Estate Services represented the tenant and Noah Burns represented the landlord, Hartman Income REIT.
Lument provided a $21.5 million Freddie Mac unfunded forward commitment loan to facilitate the substantial renovation of Jackie Robinson Memorial Apartments, an affordable multifamily property in El Paso, Texas. Lument is the combined organization of legacy industry experts Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group. “By combining the Freddie Mac unfunded forward loan with tax credit equity and other soft funding sources, we were able to put in place an attractive debt structure to help improve these much-needed affordable apartments,” said Josh Reiss, director at Lument. Originally built in 1975, Jackie Robinson is a 186-unit, 4 percent low-income housing tax credit (LIHTC) community in the Housing Authority of the City of El Paso (HACEP) portfolio. As part of the transaction, the property will receive Section 8 assistance that will facilitate the conversion to long-term, project-based voucher rental assistance. Subsequently, all 186 units will be restricted to tenants earning income at or below 60 percent area median income. The $21.5 million Freddie Mac loan features a low, fixed-interest rate, 18-year term with three years of interest only, and a 35-year amortization schedule. The forward commitment term will be 30 months with one six-month extension. Jackie Robinson will undergo substantial interior and exterior construction, including a gut renovation of all residential units, from new drywall to new kitchen appliances. In addition, exteriors will be improved with new windows and doors, repaired or replaced roofs and new stair towers. Construction began in October 2020 and is expected to be complete within 24 months. Reiss and the Lument team have financed over 960 units in partnership with HACEP, totaling $41 million. Since 2015, the team has financed over $565 million in RAD transactions for a total of approximately 6,500 units.