Hiring in September reaffirmed that job creation is moderating from the elevated levels of the past two years on a national level. Translating openings to actual positions remains somewhat challenging, however, indicating difficulties matching candidates' skillsets with job requirements. With the unemployment rate at 5% and the under-employment rate under 10%, a thinning pool of prospective workers will exert upward pressure on wages as employers intensify competition for workers. During the past 12 months, average hourly earnings rose 2.6%, according to a report by Marcus & Millichap. Despite healthy job creation and low interest rates, sales of existing single-family homes in some parts of the country have failed to advance as inventory constraints and high prices keep many would-be buyers from purchasing homes. Job growth and higher housing costs do not apply to the southern region, where areas such as Dallas continue its booming ways.—Lisa Brown
BY THE NUMBERS
DALLAS—CBRE third quarter retail market highlights include the following tidbits: Occupancy builds off the rebound of second quarter 2016; construction pipeline corrects as projects continue to deliver; and big box availability contracts as high quality spaces are scooped up. Solid absorption numbers combined with modest deliveries in DFW's tight retail market was the recipe for a continuing high occupancy rate in the third quarter 2016. This is the 24th consecutive quarter the occupancy rate has been more than 90%, and is holding steady at the 94% mark. Market expansion continues as area retailers are attracted to and benefit from the economic staples of the Metroplex. Development has seen a new milestone come and go as the post-recession under construction total has increased to more than 6 million square feet. As deliveries continue to come to market, the most overall growth continues to occur in the northern submarkets. In Central Dallas, one major completion occurred in Uptown with the opening of the Olive & McKinney mixed-use project, bringing 50,000 square feet of prime retail space to market. Finally, big-box absorption increased this quarter as higher valued locations were taken off market by various grocer, apparel and home improvement retailers. The recent bankruptcy announcement of Golfsmith, and store closings of Office Depot and Kmart, will result in some mid-level spaces soon being made available for lease.
ALBUQUERQUE—Current Albuquerque market trends data indicates a decrease of 2.1% in the median asking price per square foot for industrial properties compared to the prior three months, with a decrease of 10.6% compared to last year's prices. Countywide asking prices for Industrial properties are 2.1% lower at $69 per square foot compared to the current median price of $71 per square foot for industrial properties in Albuquerque.
NEWS AND NOTABLES
DALLAS—Industry veteran Ryan Tharp has joined Transwestern's Dallas office as director of research. In this role, Tharp will coordinate research efforts for local market reports, national trends and corporate analyses, supporting business development and expansion of all Transwestern service lines across North Texas.
DALLAS—Jackie Fraker Marshall, a seasoned commercial real estate professional, has joined CBRE's office agency leasing team. Marshall will join CBRE as a vice president specializing in the marketing and leasing of office projects in the Dallas/Fort Worth region.
DEAL TRACKER
IRVING, TX—OKI Data Americas will establish a new office to support the company's North American operations. OKI Data Americas is a subsidiary of the Japan-based OKI Data Corporation and markets a broad portfolio of solutions designed to meet a wide array of printing needs, including office, production and specialty graphics. The new office in Irving, which includes the Technology Solutions Center, will allow OKI Data Americas to expand its presence in order to better service US customers and channel partners. The opening of the new office will create more than 100 jobs, including executive, marketing, sales and administrative positions, in addition to $3.58 million in capital investment. A Texas Enterprise Fund award of $895,000 has been extended to OKI Data Americas.
CARROLLTON, TX—Shopoff Realty Investments has acquired a 36,000-square-foot retail center for approximately $8.1 million. The property, Hebron Heights, is located at 1012 W. Hebron Parkway in the North Carrollton submarket of the Dallas-Fort Worth metropolitan area. Anchored by Pet Supplies Plus, the retail center is approximately 100% leased to a mix of national, regional and local tenants. Hebron Heights was constructed in 2004 on 8.04 acres of land located less than one mile east of the Sam Rayburn Tollway.
AUSTIN, TX—Two deals were recently signed at The Campus at Arboretum. Plantronics expanded into 2,506 square feet. vAuto renewed its 19,633 square foot lease and expanded into 14,522 square feet. AQUILA Commercial represented the landlord and CBRE represented the tenants in both transactions. In other Austin news, NetLine has signed a sublease for 2,110 square feet at Austin Centre. AQUILA Commercial represented the tenant and Colliers International represented the sub-landlord in the transaction. In addition, AppSumo has signed a lease for 7,528 square feet at Eastside Village. This transaction brings the building to 100% occupancy. AQUILA Commercial represented both the tenant and the landlord in the transaction.
AUSTIN, TX—Holliday Fenoglio Fowler LP has closed the sale of and secured financing for The Parker, a 152-unit multi-housing community. HFF marketed the property exclusively on behalf of the seller, Icon Urban Group LLC. Austin Capital Advisors purchased the asset for an undisclosed amount. In addition, HFF assisted the new owner in securing a seven-year, fixed-rate acquisition loan through LStar Capital.
GEORGETOWN, TX—Brennan Investment Group LLC, a private real estate investment firm that acquires, develops, and operates industrial facilities, acquired a three building industrial campus at 3000 South Austin Ave. The property is located in the greater Austin market and contains 192,060 square feet and is 100% leased to Manitex Inc., a leading provider of engineered specialty lifting and loading products. The property has easy access to I-35, a major north-south route, which serves as a primary corridor from San Antonio and into Mexico to the south and to the north through Dallas.
WESLACO, TX—Planet Fitness has leased 19,413 square feet of space in Weslaco Shopping Center, located at 1901 W. US Expressway 83 at its intersection with North Westgate Drive, for a new location. Marcus Shaffer and Dan Mitchell with The Weitzman Group handled negotiations for the landlord.
SAN ANTONIO, TX—Holliday Fenoglio Fowler LP has closed the sale and arranged financing for The Pyramid, a 220,693-square-foot class-A office building. HFF marketed the property on behalf of the seller, Buchanan Street Partners, and procured the buyer, Taurus Investment Holdings LLC. Additionally, HFF secured floating-rate acquisition financing for the new buyer through the Austin office of Independent Bank.
DENVER—Built in 1911 as part of the Daniels & Fisher dry goods store, the Clock Tower, which is on the National Register of Historic places, was the tallest structure west of the Mississippi when it was constructed. LFC Marketing Services and local Denver real estate brokerage, Ruschmeyer Corporation, are marketing the top five floors (17 to 21) online by Tender Offer on FRE.com. A Tender Offer is an online transaction; a hybrid of a traditional sale and an online auction. There is no minimum bid and all offers will be reviewed by the seller. Ruschmeyer Corporation listed the Clock Tower in July 2016 and received an overwhelmingly positive response which led them to market the special property on a global level with LFC Marketing Services.
BUILDING BLOCKS
OKLAHOMA CITY—Associated Builders and Contractors of Oklahoma has hired Albert “Al” McCutcheon as division director of its ABC Oklahoma City office. A native Oklahoman, McCutcheon has lived in Oklahoma City since 1971 and participated in several capacities in ABC since 2004. ABC is the nation's leading commercial construction trade association, representing 22,000 members nationwide in 70 chapters. Fortune Magazine rated ABC has one of the “most influential” organizations in the United States.
ROGERS, AR—Eco3d, a portfolio company of Ecoark Holdings Inc., that measures existing topographic, structural, mechanical and architectural conditions using a variety of instruments in 2D and 3D, says its executives will be speaking at the Trimble Dimensions User Conference taking place November 6 through 9 at The Venetian in Las Vegas.
METAIRIE, LA—Homewood Suites by Hilton, part of Hilton's industry-first all-suites portfolio, announced its newest property, Homewood Suites by Hilton Metairie New Orleans. Offering 115 new suites, the hotel continues the brand's expansion after reaching its 400th property.
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