• Positive job growth, low unemployment and increased population contribute to Houston’s healthy economy.
• The metro’s industrial market is experiencing record construction
levels with land prices prompting “out migration” from parts of the city.
• Major retailers are expanding e-commerce operations into larger
warehouse and distribution centers due to the area’s growing consumer base.
• Following a global trend, developers are incorporating new technology into buildings as tenants seek both efficiency and amenities to recruit and retain top talent.
Innovation and technology are increasingly important economic drivers as Houston’s research community expands in the healthcare and aerospace industries. Click to read more at www.avisonyoung.com.
According to new market research by CBRE, tech hubs, business-friendly Texas cities and high-growth Florida metro areas top the ranks of U.S. markets set to expand their base of office-using jobs the fastest in the coming years. CBRE analyzed the forecasts of its CBRE Econometric Advisors unit to identify which markets are expected to generate the largest percentage growth in office-using services jobs – such as tech, professional and business services, legal, and others -this year. It found that job growth in tech markets continues to defy high costs and tight labor supplies. Meanwhile, the relatively lower cost of living and strong growth of Texas and various southeastern cities continue to stoke job gains. “U.S. consumer confidence and spending remain healthy – supported by a strong stock market and high home values — which underpins most U.S. economic expansion and job growth,” said Ian Anderson, CBRE Americas Head of Office Research. Click to read more at www.worldpropertyjournal.com.
Texas and California represent opposite poles on the spectrum of government ideology—the Golden State’s Democratic supermajority versus the conservative Lone Star State’s regulation-averse independent streak—and in recent years, starkly different results when it comes to housing policy and production. Predictions for this coming year highlight the divide. According to the recently released Texas A&M Real Estate Center’s outlook for 2020, the state’s homebuilding industry will still have a banner year, despite forecasts for muted economic growth. “Both the Texas and U.S. economy will likely slow in 2020 yet still register solid growth,” says Real Estate Center research economist Luis Torres. “With uncertainty around trade wars and the current crude oil trajectory, two of the strongest economic drivers for Texas will decrease economic momentum. In contrast, one of the star performers of the 2020 economy will be the housing market, with double-digit growth in new home construction for the first time since 2017.” California flips that idea on its head. Instead of attracting residents with a surfeit of new housing options despite low growth, it’s posting job growth above the national average, even beating the economies of many European nations when it comes to growth and performance metrics, yet still pushing away many residents—making it harder for lower- and middle-income residents to stay—as a result of soaring housing prices and continued difficulty building new supply. Click to read more at www.curbed.com.
COLLEGE STATION – “A marriage made in heaven.” That’s what Julio Laguarta called the partnership between Texas Realtors and Texas A&M University when the Real Estate Center was created nearly 50 years ago. Laguarta, former National Association of Realtors and Texas Realtors president, died Jan. 3. “Julio was the father of the Center,” said Executive Director Gary Maler. “Creating an organization to conduct real estate research for Texas was his idea. Although he was a Longhorn, he was ecstatic when Texas A&M agreed to house the Center he envisioned.” Appointed to a six-year term on the Center’s first advisory committee, Laguarta was elected its first chairman. Read more about Laguarta’s role in creating what was known at the time as the Texas Real Estate Research Center. Click to read more at www.recenter.tamu.edu.
One of Texas’ best-known commercial property firms is beefing up its industrial business with the hiring of a new regional partner from a competitor. Denton Walker is joining Transwestern Development Co. as a regional partner after more than 30 years with developer Trammell Crow Co. At Transwestern, Walker plans to significantly expand the firm’s logistics and industrial building operations across all of Texas’ major markets. “It’s the most exciting opportunity in my career in terms of the times we are in,” Walker said. “It was the right time and the right company and the right product type. “I think industrial is a great opportunity for me,” Walker said. “It also includes the Southwest region — I’m overseeing Houston, Austin, San Antonio, and Dallas.” Transwestern currently has more than 4 million square feet of logistics projects in the pipeline in Dallas, Houston, and Austin. Texas is one of the country’s biggest warehouse and industrial markets. Click to read more at www.dallasnews.com.
Bed Bath & Beyond shares jumped nearly 5% on Monday after the retailer said it had completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital, netting it $250 million in proceeds. The embattled company’s new CEO, Mark Tritton, who just took the reins in November, said the deal, which entailed selling real estate and leasing it back, “marks the first step toward unlocking valuable capital … that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value.” Bed Bath & Beyond said in a press release that the properties it has sold represent about 2.1 million square feet of commercial real estate, which includes stores, office space, and a distribution center. Bed Bath & Beyond, which also owns Buy Buy Baby and Harmon drugstores, has roughly 1,500 locations in total. The company said it is continuing to work with outside financial advisors to review its real estate and determine the best uses “to optimize its asset base and enhance shareholder value.” Click to read more at www.cnbc.com.