Commercial Real Estate Pricing Drops Nationally For Ninth Month Straight In January

Commercial real estate pricing entered 2018 on a low note. Nationwide prices fell 0.3% last month, representing the ninth consecutive month of declines. “We edged off historic highs. The declines over the last three quarters have been mild and more of a stagnation than a decline,” Ten-X Senior Quantitative Strategist Chris Muoio said. “Prices have plateaued.”

As prices continue to fall, the industry’s aggressive fundraising efforts have left an abundance of dry powder — cash reserves set aside for investment purposes — in the market.  Billions in capital that is not deployed, coupled with a lack of attractive investment opportunities, has contributed to the slight drop in commercial real estate valuations. 

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Dallas-Fort Worth still ranks as a top U.S. market for real estate investors

Even though Dallas-Fort Worth has fallen in the rankings from the top spot two years ago to the No. 5 ranked city in the Emerging Trends in Real Estate 2018 report, PwC Partner Mitchell Roschelle said there’s no indication investor interest has swayed from Big D.

Dallas-Fort Worth, the most populous city in the Lone Star state, ranked behind smaller U.S. cities, including Seattle (No. 1), Austin (No. 2), Salt Lake City (No. 3) and Raleigh-Durham, North Carolina (No. 4), on the investor sentiment published by PwC and the Urban Land Institute.

Real estate investors have had a growing interest in smaller cities because of their relative affordability, coupled with a concentration of young, skilled workers, said Roschelle, who authored the report based on interviews and survey responses from more than 1,600 real estate professionals.

Click to read more at Dallas Business Journal. 

Amazon Reinforces Importance of Brick-and-Mortar Presence, leaps Into Grocery Business With Acquisition of Whole Foods

Amazon enters grocery business with $13.7 billion purchase of Whole Foods. After testing a variety of concepts to enter the grocery store segment, Amazon recently announced an agreement to acquire Whole Foods Market for $13.7 billion. The purchase gives the e-commerce giant instant access to the grocery store business, which accounts for consumer spending of more than $636  billion per annum. More importantly the purchase highlights the importance of omnichannel platforms, which incorporate a blend of brick-and-mortor establishments with an online footprint to drive traffice and sales.


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Marcus & Millichap

Recent Legislative Updates: E.V. “Rusty” Adams, Research Attorney Real Estate Center Texas A&M University

A number of bills passed creating and/or empowering MUDs and giving them road district powers.

  • HB 777: Effective immediately. Prevents the loss of open space ag appraisal while owner is on military deployment or stationed outside the state.
  • HB 1288: Effective immediately. County commissioner’s courts may contract with a broker to lease property owned by the county.
  • SB 345: Effective immediately. Certain municipalities may use certain tax revenue from hotel projects to pay certain hotel-related bonds or other obligations.
  • SB 550: Effective immediately. Deals with sale or assignment of tax credits for certified rehabilitation of certified historic structures.
  • SB 1086: Effective immediately. Prohibits a state agency from public internet posting of information that identifies taxable receipts of an individual business if they are contained in or derived from information required to be provided in a HOT tax report.
  • SB 1229: Effective immediately. County commissioner’s courts may contract for solid waste services in certain municipal ETJs.
  • SB 1365: Effective immediately. Use of HOT taxes for sporting event tourism expanded.
  • HB 807: Effective 9/1/17. Clarifies provisions relating to choice of law and venue for construction contracts.
  • HB 1774: Effective 9/1/17. Clarifies procedures and damages in deceptive, unfair, and prohibited insurance practices. Provides for an increase in damages.
  • SB 347: Effective 9/1/17. Regional water planning groups and their committees are subject to the Open Meetings Act.

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Amazon $13.7bn Whole Foods bid aims to deliver basketful of economies

With its $13.7bn deal to buy Whole Foods Market, Amazon may finally have answered a question that has stumped executives in charge of its nascent groceries business. How can an online supermarket that has fewer customers than a provincial convenience store chain buy enough food to stock a virtual cornucopia?

Amazon dominates online shopping in the US, with $136bn in annual revenues. But its grocery delivery service has made faltering progress since launching in 2007.

Click to read more at Houston Business Journal.

Suburban shift or urban revival? The numbers show more sprawl, y’all

The nationwide urban renaissance narrative that has reverberated during the latest expansion cycle may very well just be a short-lived trend. Suburban growth surpassed urban densification, according to the latest census county population estimates.

  • Not only are suburbs growing at a rapid rate, Texas ‘burbs are leading the country in population growth. Four of the five fastest-growing large cities, for the 12 months ending July 2016, are located in Texas. CBRE Research sorted through the data to give you the heads up.

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