Category: News & Market Reports

Thanks to Office, DFW to Hit Third Consecutive Quarter of Positive Net Absorption

Posted on by Sarah

Dallas-Fort Worth is proving itself to be one of the hottest markets in all areas of CRE. And right now, the numbers are pointing toward a third consecutive quarter of positive net absorption for the first time since 2018.

That’s according to CBRE’s DFW Q2 Office Market Report. In fact, Dallas’ numbers are trending up in nearly every regard.

The Bureau of Labor Statistics, as of May 2022, reported the national unemployment rate as 3.6%, maintaining the same level in April 2022. DFW’s unemployment rate during the same period was 3.3%, and Dallas has increased its number of non-farm jobs by 7.7% — nearly 300,000 — year-over-year.

Vacancy continued to drop and stood at 24.4%, down by 70 basis points from Q1 2022, marking yet another decline in vacancy and the longest streak since 2019, Deliveries were up 76.1% from 327,400 square feet to 576,550 square feet in Q2 2022 due to the recent completion of The Epic — Phase II and the PGA of America HQ. Click to read more at www.rednews.com.

Tarantino Announces the Sale of 2100 West Loop South Office Building

Posted on by Sarah

[Houston, TX] – October 6, 2022 – Tarantino announces the sale of 2100 West Loop South, a Class A, 16-story, 162,878 square foot, office tower. A private investment firm from Houston and Chicago acquired the building. Tarantino was engaged to provide management, leasing, and the sale for 2100 West Loop South.

This asset is located at the “main & main” of the Houston Galleria market on Loop 610 South between San Felipe and Westheimer. Tenants and customers are offered easy and quick access to Loop 610, and to close by restaurants and shopping to Galleria Mall, Uptown Park and River Oaks District.

Anthony Tarantino, Patrick Frese, and Meghan Holliday of Tarantino Properties represented the seller.

About Tarantino Properties, Inc.

Tarantino Properties is a real estate investment and service company based in Houston, Texas, specializing in income-producing properties since 1980. The company manages more than $2 Billion in assets throughout the United States providing a full complement of quality services including management, brokerage, leasing and construction services for multifamily and commercial properties.
Contact:
Angela Sandoval
Director of Marketing and Leasing
Tarantino Properties, Inc.
7887 San Felipe, Suite 237
Houston, TX 77063
713-974-4292, ext. 155 Phone
asandoval@tarantino.com
www.tarantino.com

Texas Office Rebound is One of the Strongest, but What’s Going on with Houston?

Posted on by Sarah

Texas’ office market has proven itself to be one of the strongest in the U.S. The market has continued to reflect positive trends throughout its post-pandemic recovery, though the numbers differ slightly from city to city.

Houston, for example? Vacancy and availability continue to rise, despite office brokers reporting increased activity and leased commitments. To break it down, Partners recently analyzed the area’s activity during the first eight months of the year — August 2022 compared to August 2021.

Houston Office Vacancy at 25.5%

Overall vacancy was at 25.5% in August 2022, based on the report, up 100 basis points from last year’s 24.5%. Availability was nearly 30%, up 80 basis points from August 2021. Partners said the difference between this figure and the vacancy rate reflects expected future move-outs. Houston has recorded 9.3 million square feet of leasing activity of both new leases and renewals, which is down 13% from the 10.7 million square feet recorded at this time last year. Net absorption is at negative 100,000 square feet, up from negative 2.2 million square feet year-over-year. In addition, the amount of construction underway is at 2.5 million square feet — down almost 30% from last year. Click to read more at www.rednews.com.

Leading Commercial Real Estate Financial Firm Lument Signs 22,000-SF Office Lease in Dallas

Posted on by Sarah

CBRE announced that Lument, a leading commercial real estate finance firm, has leased 22,725 square feet of office space at Plaza of the Americas at 700 N. Pearl Street in downtown Dallas. Lument will occupy a full floor in one of the two-buildings that make up the 1.1 million-square-foot property.

Jihane Boury and Clay Vaughn with CBRE in Dallas represented Lument in lease negotiations. Transwestern’s Kim Brooks, Justin Miller and Laney Delin represented the building owners. M-M Properties, in partnership with Clarion Real Estate, a global real estate investment manager, owns the two Class A towers that comprise Plaza of the Americas.

Lument made the decision to move its current offices from 2525 McKinnon Avenue to Plaza of the Americas because of the proximity to its parent company, ORIX Corporation USA, which is just a few blocks away. Other factors included the overall central location in Dallas, the ability to modernize their space and the high concentration of amenities within the building.

Based in New York, Lument is a nationally recognized leader in multifamily and seniors housing finance. Lument is a subsidiary of ORIX Corporation USA, which unified three of its legacy real estate brands—Hunt Real Estate Capital, Lancaster Pollard and RED Capital Group—under a single banner in October 2020. Lument’s Dallas office currently has approximately 120 employees.

Located in the Dallas Arts District, Plaza of the Americas is a premier mixed-use development with two 25-story office towers, a Marriott hotel with 40,000 square feet of event space, and a 13-story glass atrium that features more than 20 retail and restaurant options and an indoor urban garden. The project features onsite parking, fitness center, conference facility, connectivity to transit at the adjacent DART Pearl/Arts District Station with additional parking and retail options accessible via skybridges to adjacent buildings.

The NRP Group Hires Executive Vice President of Development to Lead Austin, Dallas-Fort Worth and Houston

Posted on by Sarah

The NRP Group announced the hire of Executive Vice President of Development Christopher O’Neill in Texas, reporting to Principal and President of Development Kenneth W. Outcalt.

The NRP Group continues to expand its footprint in Texas, with a current pipeline of approximately 4,045 market-rate and workforce housing residences underway. In his new role, O’Neill will oversee the expansion of the Texas development pipeline in addition to other western markets like Arizona, Nevada and Colorado, while supervising all aspects of project management for market-rate communities. O’Neill will leverage his more than 20 years of construction and multifamily development experience and leadership to pursue public-private partnerships in high-growth Texas and expansion markets.

O’Neill joins NRP from Hines, a global real estate investment and management services firm. During his tenure at Hines, he served as the first project manager for the Southwest region’s multifamily platform and managed the region’s first multifamily development, Waterwall Place. O’Neill also managed deals in the Southwest region for approximately 10 years and went on to scale the business group and spearhead Hines’ suburban multifamily efforts throughout Texas, Colorado and Arizona. O’Neill managed the development of nearly 8,000 units exceeding $2 billion in value.

A graduate from Texas A&M University, O’Neill received his degree in construction science and received his MBA from the University of Houston.

Reshoring Providing yet Another Boost to Industrial Market

Posted on by Sarah

Need more proof that the U.S. industrial market is still in boom mode? Just take a look at the September National Industrial Report from CommercialEdge.

According to the report, the country’s industrial sales volume hit $57.6 billion during the first eight months of this year. And in August, the industrial vacancy rate fell 30 basis points when compared to July, dropping to a low 4.1%.

One of the reasons for industrial’s current hot streak? CommercialEdge points to the reshoring. As the company’s report says, during the pandemic, U.S. manufacturers realized that making good abroad came with risks. Today, then, many businesses are reshoring the production of their goods to the United States. The semiconductor industry in particular is already beginning this process.

Congress and Pres. Biden this summer signed the CHIPS Act into law. This act allocates $53 billion in funding to support the domestic manufacturing of semiconductors. The government’s Inflation Reduction Act includes incentives to encourage companies to produce renewable energy products in the United States.

According to numbers from the Bureau of Labor Statistics, there are more workers in the U.S. manufacturing sector now than at any time since 2008. This sector’s employment growth has been higher than 3% year-over-year every month in 2022.

With the added boost of reshoring, then, it’s little surprise that the country’s industrial market continues to thrive. CommercialEdge reported that national in-place rents for industrial space averaged $6.64 a foot in August, a jump of four cents from July and an increase of 5.5% during the last 12 months.

Construction crews are racing to meet the demand for new industrial supply, with 703.5 million square feet of industrial space now under construction across the country, according to CommercialEdge. This pipeline of new construction continues to grow despite concerns over rising interest rates and inflation.