Tag Archives: tenant

The Apartment Market is On Fire, But Burning Tenants

Post By : admin 20 November 2015 Leave a comment

Post Uptown VillageI don’t normally write about anything but office and warehouse properties since those are the ones which most of my clients lease or buy. But many of their employees live in apartments so I thought they might be interested in what’s going on the Dallas Fort Worth market.

Earlier this week I heard a presentation by Greg Willet, the chief economist for MPF Research, which is a company owned by RealPage which produces property management software for the owners of apartment properties. That software gives RealPage the ability to collect an incredible amount of data which their MPF Research arm can then analyze and provide insight into the market at any given time.

To say the least, DFW apartment owners are having a very good time right now. Occupancies are high. Rents are going up. And credit quality of renters is the highest it’s ever been. Here are some interesting facts provided by Mr. Willett. For new renters (not including people just renewing their leases) in non-subsidized housing:

1. Average age is in the mid-30′s.

2. Average household income is $85,000.

3. Renters aren’t just leasing apartments until they are ready to buy a house. Renting is becoming a permanent or at least much longer lifestyle.

In the 6 years from 2010 to present,

1. 100,000 more apartments absorbed. Absorption is just the net change in the total number of apartments leased.

2. 65,000 have been built.

3. Occupancy is at 95.5%.

4.Rents have increased by 22.4%.

5. 53% renew their leases compared to a historic average in the mid-40′s.

But what about the future? That’s where it gets a little scary for developers as they may be overbuilding. There are 38,400 apartments under construction right now while only 15,000 were absorbed in 2015.

High-rise apartment buildings are where it is most out of whack. There are about 3,400 apartments in high-rise buildings now. But there are 13 properties under construction with another 3,000 units. And behind that are another 12 properties with yet another 3,000 units which are almost certainly about to break ground. While this market is looking good to developers with rents in the $3.00 per square foot per month range, it’s unclear how deep the renter supply is for those rental rates. How many people can afford $3,000 a month for a 1,000 square foot apartment?

With the extreme shortage of single-family homes, I wanted to know if Mr. Willett had any research showing the supply and demand of the total market for housing units. Unfortunately, he doesn’t, but it would certainly seem logical that many people moving to DFW are leasing apartments instead of buying homes simply because they can’t find them to buy right now.

Stay tuned. It will certainly change in the future.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

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American Cities Grow Most Since Recession

Post By : admin 1 October 2015 Leave a comment

CNN Money recently reported that U.S. cities had economic growth of 2.3% in 2014 which is the best it’s been since 2006 – before the last big recession. In 2013, it was only 1.9%. These numbers come from the U.S. Commerce Department.

They reported that big cities high-skilled jobs are driving this growth. Small cities, however, were finding growth mainly in low-wage jobs like retail.

So which cities are doing the best? No surprise, Dallas is Number 1. Here are the top 10.

1. Dallas: 8.5%

2. San Francisco: 5.2%

3. Atlanta: 3.0%

4. Boston: 2.6%

5. New York City: 2.4%

6. Los Angeles: 2.3%

7. Chicago: 1.8%

8. Houston:1.8%

9. Philadelphia: 1.1%

10. Washington, D.C.: 0.3%

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

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Most Creative Office Building Design in Dallas

Post By : admin 24 August 2015 Leave a comment

Harwood International unveiled the concept drawing of its latest office building to be built in Uptown’s Harwood District – The Rolex Building.

The 7-story building will be 137,000 square feet and is expected to be complete in late 2016. The lead tenant will be Rolex which will move out of the current Rolex Building. No word on what that building Rolex buildingwill be renamed.

The new building is a joint design of HDF, LLC and Tokyo-based Kuma & Associates. Landscaping is by Sadarfumi Uchiyama. The building is a very unique design with each floor rotating a little from the floor below it. The result is a white twisting tower set in a street-level garden with additional landscaping on the balconies of each floor which carries the garden skyward.

I really like the rendering (see picture below) and think it will be a welcome change from the typical rectangular box that we usually see. At least this is a twisting rectangle.

What do you think? Like it? Hate it?

 

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

 

Categories: Uncategorized