EL PASO – The local industrial market closed out the year with record-low vacancy and record-high rents, according to CBRE. Click here 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.
The North Central Texas land market has seen no significant influence modifying its prior three years of sales and absorption activity, with the exception of increasing values and scarcity of inventory in most developable submarkets. In reviewing last year’s North Texas Land Absorption report, only a few minor observations have changed. For many years, our Investments/Land Group, a division of Younger Partners, has produced a report designed to assist investors in deciding the viability of acquiring for investment undeveloped land for medium and long-term positive returns. Since our 2018 report was distributed, DFW has experienced continued active growth in virtually every commercial and residential product type. Transaction volume held steady for both user and investment product. Absorption of developed, undeveloped (land without access to infrastructure permitting immediate use), and underutilized land progressed at a comparable rate to 2018. Click to read more at www.dmagazine.com.
Developers have taken the wraps off a major new high-rise project planned on the northern edge of downtown Dallas. Called the Field St. District, the massive mixed-use development is planned for a two-block, 6-acre property on Woodall Rodgers Freeway. One of the largest vacant properties downtown, the huge building site was purchased this summer by Kaizen Development Partners and Woods Capital. Since then, the new owners have been working on preliminary building plans for the property, which is zoned for up to 5 million square feet. The initial construction plans call for a combination of office space, retail space and apartment units. Kaizen and Woods Capital formed a partnership with Dundon Capital Partners for the more than $1 billion project. Dallas architect HKS designed the buildings. Kaizen Development CEO Derrick N. Evers said he hopes that site work for the construction can start by late next year. The Field St. District is in a corner of downtown that is already seeing significant construction. Click to read more at www.dallasnews.com.
You hear the statistics in the news all the time: people and businesses are moving to the nation’s South and Southwestern regions at an unprecedented pace. Thanks to the low cost of living, appealing tax benefits and its namesake clear, sunny weather, the Sunbelt—which includes states across the lower half of the country—is the new boom region. But while this trend has gained more attention lately, it’s not necessarily new. Thirty years of U.S. Census data paint a clear picture of the South and Southwest as long-standing hotspots for population growth in the U.S. In fact, the regions that compose the Sunbelt have edged out the East and Midwest in terms of net growth over 28 of the past 30 years of data. That population boom has translated into strong business performance for the region. Economic growth for Florida, Texas and California alone accounted for more than 28% of the total Gross Domestic Product in the U.S. through 2018. Click to read more at www.benzinga.com.
Biggest office year yet-up to $36-37 rents; traffic bad in CBD; much of CRE growth is actually north of Austin where development permitting is much faster (1-2 months instead of 10+)
• Cap rate compression; many groups are scouring the market looking for value-add opportunities in the various segments; offerings are picked over; what’s left is at a premium
• “Houston is a better place to find value-adds”
• Austin total has less than 70 million SF industrial total, and much of it is in R & D and specialized manufacturing, such as in wafer chips which cannot have a building with any vibrations; minimal number of distribution centers; not much bulk distribution
• Development west of MoPac is on strong limestone ground, BUT is in the Edwards Aquifer Recharge Zone and there are strict limits on impervious cover; on the east side of MoPac the ground is ‘gumbo’, clay that expands and contracts with the moisture content in the soil-each area provides unique challenges and costs to developers
• Austin is only large Texas city with no Loop Road around the city
Click to read more at www.rednews.com.