Category: News & Market Reports

Growing Architecture, Engineering and Construction Firm Consolidates North Texas Operations

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KAI Enterprises, a nationally recognized architecture, engineering and construction firm, has subleased 12,648 square feet of office space in Irving, Texas. CBRE represented KAI in the deal with Cushman & Wakefield representing ownership. Headquartered in St. Louis, KAI is one of the largest Black-owned businesses in the country. The company has been operating in Texas since 1999. KAI plans to occupy the new space by November 1. KAI will consolidate their two existing offices in the Dallas-Fort Worth metroplex into the new space at 5010 Riverside Commons. The company made this decision to have more space for company expansion and to enhance the overall company office culture. The new office space will serve as their Texas hub as they continue to grow and build off of the energy in North Texas. “In a market as fluid and ever-changing as North Texas, we were presented with several hidden gems that allowed us to make the right decision for KAI,” said Darren L. James, FAIA, president of KAI. “With the help of the CBRE team, we were able to discern and find space in our desired geographic area with the office-feel we were looking for. We are excited about the location and environment as KAI continues to invest in our people and Texas.” CBRE’s Josh White, Chelby Sanders and Ryan Buchanan represented KAI in the sublease negotiations. Travis Boothe with Cushman & Wakefield represented Riverside Commons. “In the midst of an uncertain real estate market, KAI is expanding and planting a flag in North Texas,” said White, executive vice president with CBRE. “KAI’s commitment to their people is evident by the investment they are making to create an environment that allows an already great company and culture to flourish.” Centrally located, Riverside Commons is ideal for KAI’s workforce, who were previously located between KAI’s two offices in Dallas and Arlington. With extensive build outs from the previous tenant, KAI will only need to add their own corporate touches and will be able to take occupancy quickly.

Industrial Age: Texas Cities are Drawing Investors Looking to Capitalize on the Industrial Boom

Posted on by Sarah

Industrial is far and away the hottest sector in commercial real estate right now and the hottest industrial markets are scattered throughout Texas, each one creating a unique draw for investors and developers.

Houston
The largest city in the Lone Star State also boasts the most absorption of industrial space so far in 2020: just more than 6.4 million square feet. According to CBRE research, nearly 3.9 million of that got leased up just in Q2. In that same period, though, about 8 million square feet came on the market, which boosted vacancy rates to 6.9 percent. About 18 million square feet of new industrial is under construction in the Houston market with the southwest (8.5M SF) and northwest (4.8M SF) sectors bringing in the most space. “Houston is very competitive,” said Alfredo Gutierrez, president of industrial-focused investment firm SparrowHawk Real Estate Strategists. “Because of the setback in oil prices, some investors are perceiving a pullback in real estate by some of the energy companies. That provides a window of opportunity to invest in industrial real estate in Houston.” He predicts this window will close in late 2021 as the energy sector rebounds, e-commerce increases and the benefits of trade with Mexico expand in Houston.

Dallas-Fort Worth
When it comes to new construction, it’s hard to beat the numbers coming out of the Dallas-Fort Worth area. CBRE reports that in Q2, more than 23 million square feet was underway. Thing is, that space is getting eaten up as soon as it hits the market. For example, DFW had about 3.4 million square feet in completions and 2 million square feet of net absorption this spring, marking 39 consecutive quarters of positive net absorption. “I think Dallas is the strongest market in the United States right now,” Gutierrez said. “Dallas is just screaming hot.” Two of the three largest leases signed in Q3 are distribution-focused companies. FedEx scooped up about 750,000 square feet of available space, opening a new distribution center in South Dallas, while packaging and fulfillment firm AmeriPac expanded to a new 400,000 square-foot facility near DFW Airport.

El Paso
Experts agree El Paso is the market to watch as near-shoring adds production to Mexico and manufacturers are looking for convenient locations to store their goods before they’re shipped across the U.S. That’s why vacancy rates are some of the lowest in the country. Right now, only 2.9 percent of industrial space (a record low) is available in El Paso, boosting the asking rate to a record high: $5.38 PSF. To answer demand, CBRE reports 3.4 million square feet of space is currently under construction, including a new three-story industrial build-to-suit project. Another project is a 370,000-square-foot warehouse/distribution complex from Hunt Southwest Real Estate Development Co. Hunt Southwest president, Preston Herold, told the El Paso Times the company picked the border town because of its low vacancy rates, calling them “market fundamentals you want to see as an investor and developer (in real estate).”

Central Texas
While they’re not making the headlines of the other Texas markets, Austin and San Antonio are holding their own in the industrial sector. CBRE reports that strong tenant demand for distribution space contributed to Austin’s 25th consecutive quarter of net absorption. Vacancy in the capital city is down to 9.7 percent as Q3 saw no new projects delivered. The opposite is the case in San Antonio, where more than 800,000 new square feet came to market in Q3. As a result, vacancy bumped up to 14.2 percent. And more projects are on the way. Per CBRE, a whopping 1.8 million square feet are under construction.

Anderson Towne Crossing in Mount Pleasant, TX Repurposes Former City Water Supply & Lake for Mixed-Use Development

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MPEDC is excited to finally go public the following video & images of Anderson Towne Crossing. The 117-acre mixed-use development will redevelop/re-purpose an underutilized City-owned lake (former City water supply) & leverage a high-traffic location along Interstate 30 & Highway 271 to bring new commercial & housing opportunities to Mount Pleasant, TX. A 64,000 SF Atwoods kicked off the project (target opening date of November 2020) and development is expected to begin in mid-2021 on Anderson Towne Center. Developer: Emersons Commercial Real Estate (Craig Wagner, VP Investment, Sales, & Leasing.) Click to read more at www.mpedc.org.

Thompson Realty Capital and Trez Capital Break Ground on New Apartment Community Outside of Austin

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A partnership between Thompson Realty Capital and Trez Capital has broken ground on a new apartment community that will be called The Dalton. The partnership is developing the 21-acre luxury apartment community located in Pflugerville, Texas, a growing suburb just outside Austin and adjacent to neighboring Round Rock. Financing for the project was provided by Texas Capital Bank. “The Dalton will provide an ideal living space for future residents in this rapidly growing area” said Tom Field, CEO, Thompson Realty Capital. “The array of units and amenities will accommodate everyone from recent graduates to families to empty nesters, no matter what stage of life you are in.” Future residents can choose between one-, two- and three-bedroom floorplans with granite or quartz counter tops and stainless-steel appliances. Residents will also have access to attached or detached garage spaces. Complete with a luxurious clubhouse overlooking a resort-style pool and courtyard, community kitchen spaces, a social bar, firepits and entertainment seating, the amenities space is designed to provide a welcoming, social atmosphere for residents and guests. Other community amenities also include independent study rooms, a fitness space attached to a yoga yard complimented by flex space for individualized fitness classes, green walking paths and access to a pet-washing facility and dog park. Strategically located just east of Interstate Highway 35 and just south of Texas Highway 45, residents will have immediate access to the main thoroughfare to Round Rock and Austin as well as the surrounding retail areas and major employment hubs. “Travis County has seen explosive growth over the years, and we are always looking for opportunities within high-growth areas,” said John Hutchinson, president, central and southwestern U.S., Trez Capital. “We know residents will be attracted to the essential accessibility to the Austin area coupled with the quality product that Thompson Realty Capital delivers on all of its projects. We are excited to see project completion.” The Dalton is expected to be complete in 2021. This is Thompson Realty Capital’s fourth project with Trez Capital.

Texas Ranked Best State For Business For Eighth Consecutive Time

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AUSTIN, TX – Governor Greg Abbott today issued a statement after a new survey of U.S. corporate executives ranked Texas the number one state for business for the eighth consecutive time since 1996. The survey was released at the International Economic Development Council (IEDC) Annual Conference, which is being held from Dallas virtually. “Thanks to our talented workforce, welcoming business climate, and state-of-the-art infrastructure, Texas has been named the best state in the nation for business for the eighth consecutive time since 1996,” said Governor Abbott. “I want to congratulate the Texas Economic Development Corporation on their well-earned recognition as one of the premier economic development marketing organizations in the nation. TxEDC, working together with my Economic Development & Tourism Office and other public and private sector partners throughout the state, play a pivotal role in bringing more investment and jobs to our state. As we safely and strategically mitigate the spread of COVID-19, Texas will continue to expand economic opportunity for all Texans and build a more prosperous future for the Lone Star State.” Conducted by Development Counsellors International (DCI) every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996. The 2020 “Winning Strategies” survey is based on the aggregate responses of 316 corporate executives with site selection responsibilities. Texas has consistently held the number one ranking since 1996, making this its eighth consecutive win. Texas earned the number one spot this year by a wide margin, with 48% of survey respondents favoring the state’s business climate compared to second place Georgia’s 25% favorability. “We are honored to once again rank as the No. 1 State for Business among corporate executives,” said Robert Allen, president and CEO of TxEDC. “Texas has been recognized as the top state for business thanks to the leadership of Governor Greg Abbott and the incredible team of economic developers working every day in communities across the state to let businesses know that they can Go Big in Texas.” Texas was a favorite among survey respondents thanks to many key factors. In addition to recognizing Texas’ overall business climate, 36% of respondents named the state as having one of the most favorable tax climates, 20% cited Texas’ overall pro-business environment and 17% specified its access to talent. In addition to Texas, rounding out the top five states for business are Georgia at number 2 with 25%, followed by North Carolina at number 3 with 22%, Florida at number 4 with 18% and Tennessee at number 5 with 13%.

Source: Office of Governor Greg Abbott

Cravey Real Estate Services Recently Awarded Property Management of 51,300 SF Building in Corpus Christi

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Cravey Real Estate Services, Inc. was recently awarded the property management of a 51,300 SF building located at 4201 Greenwood Drive in Corpus Christi, Texas.  The property was recently purchased by SGP Corpus Christi, LLC. The building has a single tenant, the Texas Department of Family and Protective Services. Matthew Cravey, President of Cravey Real Estate Services, heads the property management team. 

About Cravey Real Estate Services, Inc.

Cravey Real Estate Services is a full service commercial and industrial real estate company based in Corpus Christi, Texas. We sell, lease, and manage Commercial, Industrial, Warehouse, Office, Retail, Shopping Centers, Land, and Investment Properties in Texas. To learn more, visit our website at //craveyrealestate.com/.

Contact
Matthew Cravey, SIOR, CCIM
President
TX #203443
matt@craveyrealestate.com
(C) 361.877.2463
(O) 361.221.1915
(F) 361.221.1915