NAIOP Projects Negative Absorption of Office Space to Continue in the Short Term; Expects Positive Trend to Begin in the Second Quarter of 2021

A new office space demand forecast published by the NAIOP Research Foundation projects a period of negative absorption through late 2020 and early 2021, but total net absorption from Q2 2021 to Q3 2022 will exceed negative absorption from the recession, resulting in overall gains. In addition, the forecast negative absorption is less than the negative absorption that has been reported for the last two quarters. “Given the continued challenges facing the U.S. economy, office net absorption is forecast to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021,” according to the forecast. “The coronavirus pandemic has led to conditions that are remarkably different from past recessions but are nonetheless challenging for the office sector.” “Although vacancy rates have risen, there are many multiyear leases that are set to outlast the projected return to the office,” said Thomas J. Bisacquino, president and CEO of NAIOP. “Office space users face a unique dynamic presented by the pandemic, but the shift to remote work has allowed businesses to keep going in certain sectors.” For example, October unemployment rates in the financial-activities sector (3.8%), information sector (5.8%) and professional and business services sector (6.1%) were below the U.S. national average of 6.9%. Click to read more at www.naiop.org.

Transwestern Secures Full-Building Lease at Houston Industrial Property

Transwestern Real Estate Services (TRS) announced that TAXA Outdoors has signed a 69,356-square-foot lease to occupy the entire building at 7930 Blankenship Drive in Houston. Transwestern managing director Nick Peterson, SIOR, and executive managing director John Ferruzzo, SIOR, provide agency leasing services on behalf of the building owner, Prologis. TAXA Outdoors was represented by Geoff Perrott and Jeff Venghaus of JLL. The property has convenient access to Highway 290, Loop 610, and Beltway 8. The building amenities include two fenced truck courts, two-story office space and outside storage capabilities.

Oil & Gas Firm Mustang Samplings Renews 4,650-SF Lease in Houston

NAI Partners recently arranged a 4,650-square-foot renewal for Mustang Samplings at 3955 World Houston Pky in Houston. NAI Partners’ Chris Caudill represented the tenant in the transaction. Dayne Wunderlich, with Insite Realty, represented the landlord, EastGroup Properties. Mustang Samplings provides custom solutions of products for the natural gas and natural gas liquids, renewable natural gas and liquefied natural gas industries.

CBRE Brokers Sale and Arranges Financing for 180-Unit Multifamily Property in Euless

CBRE announces the sale and financing of Riverside Villas, a 180-unit, Class A multifamily community located at 3741 Post Oak Boulevard in Euless, Texas. First Capital Advisors (FCA) purchased the property from Dallas-based Trinity Postoak Ltd. Chris Deuillet, Jeremy Faltys and William Hubbard with CBRE capital markets’ investment properties in Dallas represented the seller. Jeff Stein, Michael Thompson and Brock Hudson with CBRE capital markets’ debt and structured finance team in Houston arranged the financing on behalf of FCA. This is the second multifamily purchase for FCA as they re-enter the Dallas-Fort Worth market. They were encouraged by the strong DFW market fundamentals and foresee the area as a core market for multifamily ownership across the country. “With Riverside Villas coming out of its initial lease up in the midst of the pandemic, collections were not affected,” said Deuillet. “This was one of our first assets to market in a post-COVID environment and Dallas-Fort Worth is still a very desirable location for solid returns. I was surprised on the level of interest we received.” The CBRE debt and structured finance team worked with FCA to secure attractive 10-year fixed rate agency financing from Freddie Mac. “Riverside Villas garnered intense lender interest from both agencies, but in the end, Freddie Mac was able win the assignment by allowing FCA to lock rate immediately and got comfortable with borrower projections on a property that was just stabilizing amidst COVID-19,” said Stein. Constructed in 2019, Riverside Villas offers residents high quality interior features and community amenities including a resort-style pool, 24-hour fitness center and business center. The property has close proximity to several major Dallas-Fort Worth employers, including DFW Airport, American Airlines, General Motors, Lockheed Market and the University of Texas at Arlington. The property was 94 percent occupied at the time of sale.

New Construction Multifamily Property Sells in Plano

Coldwell Banker Commercial represented a local investment group in the acquisition of a 24-unit multi-family property located at 1514 E 15th Street in Plano, Texas. The property, located just east of downtown Plano near the DART transit line and north of the Telecom Corridor, traded for just under $5 million. The newly constructed property consists of 16 one-bedroom units and eight two-bedroom units on a 1-acre site. The complex, The Touraine, has high-end finishes, offers 24 parking spaces and a gated entrance. “The Dallas metro area is fast-growing and there continues to be high demand for quality, affordable, residential rental units,” said Angela Harwell, CCIM who represented the buyer in the transaction. “The Touraine property offers excellent accessibility and quality construction with popular, modern finishes for tenants. For the investor, the new construction status of the property offers minimal maintenance and desirable price point in the market.”

Constructing Tomorrow’s Buildings: Expect an Explosion in Modular Design

Next year, a new Hyatt Place Hotel will rise in Waco, Texas. Though it will have all of the typical amenities and features of a modern, new construction hotel, it’s what the guests won’t ever see that will be truly groundbreaking. The project is using the latest evolution in modular design and construction. This process has grown in maturity over the years, with recent innovations that endow tremendous time and cost advantages. The Waco Hyatt project, for instance, will be constructed almost entirely off site, in the fabrication facility that ModularDesign+ operates in Euless, Texas. A strategic partner of global architecture firm CannonDesign, ModularDesign+ hopes to change the way that owners, developers, architects and contractors think about modular construction. The 110-room, eight-story Hyatt Place Hotel Waco, designed by MWT Architects, will feature both rooftop and ground-level restaurants, a shopping center and a parking garage—all of which will be fabricated in Euless. Once completed, 140 stackable units will be shipped over the course of only three to four weeks to their final destination in Waco. That’s the largest incentive that modular offers: speed to market. The quicker that an owner or developer can begin generating revenue on a space, the better. Click to read more at www.rednews.com.