Friday, May 30, 2014
Well-located big box vacancies are growing increasingly scarce, so there’s speculation about what could happen to the two Barnes & Noble stores closing in Fort Worth in University Park Village and Sundance Square. (The answer is probably in a book in the Barnes & Noble adaptive reuse section. But we'll keep looking in romance.) The Weitzman Group managing director Bob Young tells us the recent completion of Sundance Square’s expansion and revitalization makes that Barnes & Noble space ideal for repurpose, especially on the first level; it's ideal for restaurants or other concepts that've been unable to locate in the (basically) full submarket, Bob says.
The darling of commercial real estate
continues to skip along happily. Hendricks-Berkadia senior director of research
highlights three multifamily
trends to continue all year. (As for us, we're happy Jersey Boys is coming to
the big screen this summer.)
1) Apartments everywhere
David (left center, with his research team)
says developers are active in both
lower- and higher-priced submarkets. In contrast, builders are opting for pricier areas
in Dallas-Fort Worth; they shy away from submarkets where rents are $750/month or less.
Roughly one-half of
all units under construction are in the Metroplex’s 10 priciest submarkets,
with sub-marketwide asking rents ranging between $1,020 and $1,680/month. Both
big and small builders are active in Texas, David says, with JLB Partners, Greystar, and Trammell Crow among
the most active
with a combined 21 projects and 7,400 units underway in DFW, Austin, and San
2) Building in the ‘burbs
The majority of development is in the
suburbs. In the Metroplex, more than 17,250
units are in the works in the outlying areas, and another 6,600
market-rate rentals are underway in the near-in submarkets, David tells
us. Despite infill
development constituting 30%
to 40% of all units in development, these near-in submarkets
represent a fraction of the overall market area. Based on the projects under
construction, apartment inventory in centrally located submarkets will expand by 6.6%,
compared to a 3.5% increase in suburban apartment stock.
3) Finding the finish line
Job creation is expected to persist well into 2016, David says. In
2013, DFW payroll grew by 98,700 jobs. Over the next two years, more than 235,000 new jobs are expected.
Construction output is expected to peak in 2014, he says, and deliveries will
be substantial in the DFW area this
year as 12,600
units come online. Nevertheless, the 114,000 new hires during
that same span will be even more significant and will help tamp down vacancy.
(They move in as fast as you build 'em. Careful when laying foundation, as
there may already be some residents down there getting a head start.)
-Real Estate Bisnow
As the housing market recovery continues to push forward,
Generation Y, also known as the Millennial Generation, are
starting to make their mark and are reenergizing the market
across the country. In fact, Millennials now make up 78 percent
of current first-time homebuyers.
What are the defining characteristics of Generation Y? Also
referred to as the Millennial Generation, Eco Boomers and the
Internet Generation, this group has grown up in an environment
of Internet resources, instant worldwide communications, digital
technologies, intense multitasking and rising student debt.
Millennials now make up 78 percent of
current first-time homebuyers.
Although previous generations saw first-time homebuyers
entering the market at an earlier age, typically in their early
twenties, the Millennials have taken their time and are just now,
collectively in their late twenties and early thirties, starting to
enter the market. As the largest generation currently living, these
entry-level homebuyers and their influx of new activity offers
a potential added jump-start to the slowly improving housing
Generation Y faces a few additional barriers. Limited inventory,
increasing home prices and managing a larger student loan debt
than any generation before are all hurdles this group must jump
before actually getting their foot in the door. In addition, the
importance of credit scores in securing a mortgage approval
are more important than ever before – and adaptations to credit
scoring models have made securing and maintaining a high credit
score more difficult for Generation Y and younger consumers
with limited credit lines and shorter credit histories.
What the market is revealing is that
Millennial homebuyers carry a median
income of $73,600 and tend to purchase
older homes averaging 1,800 square feet
and costing around $180,000.
In fact, 20 percent of this age group had to put off a home
purchase in order to save up for a down payment, where
in previous generations they were able to receive financial
assistance from families or dealt with lower down payment
requirements. Of that group, 56 percent said student loan debt
was the biggest obstacle.
The good news is that those who recently bought homes are very
optimistic about their decision. Of Millennials under 33 who
recently bought a home, 87 percent consider their purchase to be
a sound financial investment.
What the market is revealing is that Millennial homebuyers carry
a median income of $73,600 and tend to purchase older homes
averaging 1,800 square feet and costing around $180,000.
As this generation pushes forward, their homebuying activities
will no doubt be closely watched and the impact on the housing
market will be felt across the country.
By Marcus McCue, Executive Vice President Guardian Mortgage Company, Inc.
Wednesday, May 28, 2014
Tuesday, May 27, 2014
It's almost time for the fifth annual Bisnow Dallas State of the Market event on May 29 at the Westin Galleria. Last year, we were talking budget sequestration and how Uptown, Preston Center, and Legacy were dominating the development. (Funny how some things changed and others are like money in the bank, literally.) Plenty of project talk should be on the agenda from Granite Properties COO Greg Fuller and Beck Ventures prez Scott Beck, as well as Billingsley Co partner Lucy Burns, among the host of commercial real estate titans with they eyes on trends in 2014. Don't hesitate, sign up now.
We knew you guys had a lot of heart and you demonstrated it in a big way on Thursday night when you raised $256k for former Transwestern SVP Tommy Van Zandt.
Here’s Tommy surrounded by his wife, Robyn Van Zandt and the “reunion” organizers Hall Financial Group director of leasing Kim Butler, Transwestern principal Randy Garrett, and Transwestern central region prez Jack Eimer. About 200 DFW commercial real estate folks gathered on the Saint Ann Restaurant patio to mark the fifth anniversary of the first fundraising event for Tommy to help offset the massive medical costs associated with his healthcare since a fall left him a vent-dependent quadriplegic in early 2009.