Berkadia outlook: Multifamily stays strong in 2020

The mortgage banking and investment sales pros with Berkadia expect the multifamily sector to remain a strong one throughout 2020. But what could bring at least a minor hiccup to the sector? Interest rates and the presidential election. That’s according to Berkadia’s 2020 Outlook Powerhouse Poll, a collection of insights from more than 150 Berkadia investment sales brokers and mortgage bankers across 60 offices. According to the poll, investment sales brokers and mortgage bankers expect interest rates and the presidential election to have the greatest impact on multifamily investing and financing this year. A total of 86 percent of bankers cited interest rates in the study, while 44 percent pointed to the election. Rounding out the top three expected major trends, 44 percent of bankers cited GSE reform. For trends impacting multifamily investing, 77 percent of investment sales brokers cited interest rates, 63 percent the presidential election and 40 percent debt underwriting. The survey found, too, that 91 percent of mortgage bankers expect GSEs to see the most activity in 2020. Click to read more at www.rejournals.com.

Allied Orion Sells 281-Unit Beacon at Buffalo Pointe Apartments in Houston

The Beacon at Buffalo Pointe in Houston totals 281 units. The property was built in 2017.

HOUSTON — Locally based multifamily development and management firm Allied Orion Group has sold The Beacon at Buffalo Pointe, a 281-unit apartment community located near the Texas Medical Center in Houston.

Built on 32.4 acres in 2017, the property offers one-, two- and three-bedroom units averaging 862 square feet. Amenities include a pool with a sundeck and cabanas, outdoor grilling areas, a fitness center, a demonstration kitchen and coffee bar, a dog park and concierge service.

Chris Curry, Todd Marix and Bailey Crowell of JLL represented Allied Orion in the transaction and procured the buyer, Morgan Group Inc. The sales price was not disclosed.

Originally posted by Texas Real Estate Business

Avison Young – 2020 Expectations

EXECUTIVE SUMMARY
• 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.

Office User Growth Favors Tech-Friendly Cities in Texas and Florida in 2020

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.

As California comes to grips with housing crisis, Texas real estate rises in 2020

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.

In Memorium: Father of Real Estate Center Julio Laguarta

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.