DALLAS – Texas employment will grow 2.1 percent this year, according to the Texas Employment Forecast by the Federal Reserve Bank of Dallas. Based on the forecast, the state will add 263,700 jobs this year. Employment in December 2019 will reach 12.9 million. This prediction comes after incorporating September 2019’s annualized employment growth of 0.7 percent and a decrease in the leading index. “After strong growth in June and July, Texas jobs decelerated in August and September,” said Keith R. Phillips, Dallas Fed assistant vice president, and senior economist. “The weakness in oil and gas extraction is spilling over to other sectors such as transportation and warehousing, which experienced job losses in both August and September. “Manufacturing employment continues to grow at a good pace, however, in part driven by continued strength in petrochemical and refining activity. Construction activity also remains robust.” Click to read more at www.recenter.tamu.edu.
Two big North Texas real estate players are joining forces. Dallas-based property firm Peloton Commercial Real Estate is being acquired by JLL, the Chicago-based international real estate services firm. More than 130 professionals in Peloton’s Dallas and Houston offices will join JLL, which already has a huge presence in the area. It’s JLL’s second recent major acquisition. It just completed a purchase of Holliday Fenoglio Fowler LP, the Dallas-based investment sales and finance firm. JLL said its purchase of Peloton will accelerate the growth of the company’s leasing and property management businesses. “This is a momentous step in our journey to become a market-leading player in Texas,” JLL’s regional director David Carroll said in a statement. “With the exceptional growth we have seen in those markets, Peloton’s position as a leading provider of leasing and property management services will greatly enhance our business capabilities and breadth of services. Click to read more at www.dallasnews.com.
DALLAS-FORT WORTH – Office developers remain active as corporations continue to capitalize on North Texas, according to a Marcus & Millichap report. An estimated 8.1 million SF of space is expected to come online in 2019, up more than 25 percent over the year. This total is still 2.3 million SF below the cyclical high posted in 2017. Office vacancy is predicted to remain steady at 18.9 percent this year. The rate inched up 20 and 70 basis points in the previous two years. The average asking rent will remain relatively affordable compared with the nation’s other major metros. The figure will rise 2.2 percent to $25.89 per SF.
A recent survey of commercial real estate investors ranked Dallas-Fort Worth as one of the top two target markets for investment among Americas metros, second only to Los Angeles/Southern California.
CBRE’s 2018 Americas Investor Intentions Survey, which covered all asset types, shows that 88 percent of investors plan to either maintain or increase spending in 2018—up from 83 percent in 2017.
Click to read more at CBRE.
The Texas office market had a rather slow fourth quarter, with dollar volume and average prices both falling below the levels of the previous years. Dallas-Fort Worth and Houston were the most active markets during the final three months of the year. Nevertheless, Yardi Matrix office data shows that, while the Lone Star State recorded a less-than-stellar quarter, the whole of 2017 showed average prices reach a five-year peak, as buyers competed to grab quality office assets.
Yardi’s year-end analysis also shows that Dallas-Fort Worth remains the top target for new office construction in Texas, even if office properties in Houston fetch much higher prices. The DFW market welcomed nearly 6 million square feet of new office space during 2017, and is scheduled to deliver an additional 9 million square feet by the end of 2018.
Read more at GlobeSt.com
Phoenix-based NexMetro Communities plans to invest upwards of a half-billion dollars in the next few years on new luxury leased communities in Dallas-Fort Worth. The investment plan comes after the company closed a deal in excess of $100 million with Trez Capital, one of the largest private non-bank lenders in North America.
Trez Capital, which has an office in Dallas, will initially help back five of NexMetro’s Avilla Homes communities this year in Phoenix, Dallas and Denver. The lending relationship will be managed from the Canadian-based firm’s Dallas office.
Click to read more at Dallas Business Journal.