The Jim Cantore of CRE
| Our past few issues prove we're similar to the Weather Channel star in our headline: we love forecasts across the Metroplex. Only a few more to go, but when there may be positive indicators, its hard to put the ol’ dog down. | |
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At the Tarrant County Commercial Real Estate Forecast, Village Homes co-founder Rob Sell said infill residential shows signs of life: increases in affordability; interest rates inching upward after historic lows; equity market rebounds restoring confidence; and consumer confidence trending upward, with DFW well ahead of the national trend. But, with the good comes the bad: job losses; frugality being in fashion; and tightened lending parameters and regulation restraining demand in the condo market. | |
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The Westside market features continuing movement and Bisnowdrove through the Arts District and down West Seventh St to snap the up-and-coming homes. The ArtHouse at So7 by Hughes has 54 condos complete with 28 sold and 11 gallery homes complete with nine sold. Cost: from the $200s to the $420s. Luxury senior living can be found (but not until 2011) at The Stayton (developed by Senior Quality Lifestyles Corporation), a few blocks south of So7. With 200 units planned, the project already has 150 pre-sold. | |
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Across the street is Montgomery Plaza, which Rob calls the beacon project of West Fort Worth. The historic building was repositioned from a dying Montgomery Ward shopping center into 240 luxury residences with 178 contracts in place. Completed in May 2009, the units are priced from the $210s to $1.45 million(depending on if the room comes with HBO). We snapped this pic and even bypassed Gloria’s despite the urge for a pupusa or refried black beans. Rob’s predictions for 2010: a strong buyers market as excess urban inventory and tighter lending restrictions absorb and curb demand well into 2011; and conforming mortgage rates rising 2% by Oct. 1. | |
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Makens Company prez James Makens’ reminds us we're lucky to live in Texas—last into the recession and going to be the first out. Interesting retail tidbit: DFW has a larger concentration of Wal-Marts than any major US metropolitan area. Since 04, it has been the #1 grocer in the area, too. His good news: We’re leading the nation in population growth; unemployment has declined from previous months; cost of living is 9.1% lower than the national average, fifth lowest in the US; and no income tax. | |
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It was strictly business that lured us to the state’s top performing Belk at Alliance Town Center, currently 94% leased. The neighboring JC Penney has been the best performing store (out of 1100)nationally for the last two years. James calls Montgomery Plaza (mentioned above) a pioneer among FW lifestyle centers, at 93% occupied, losing only one 2k SF tenant in 2009. His 2010 predictions: sale prices fall, as do rents and occupancy; CAP rates rise; no new construction except grocery anchored centers; and assets that sell early in 2010 will bring higher prices than later in 2010. |
