After a couple of lackluster quarters, the US office sector rebounded in the second quarter in terms of net occupancy growth, according to Cushman & Wakefield. Nationally, rents continued to ascend to a new high; however, rising construction levels slowed the appreciation rate in most markets. In the second quarter, absorption increased to 12.8 million square feet, up from 6.3 million square feet in the first quarter and the highest level since the third quarter of 2016. Of the 85 markets tracked by Cushman & Wakefield, 66 reported positive net absorption of office space, while 19 reported declines. Of course, the Southern states including the Texas metros are not immune to those gangbuster levels of activity, with development and leasing most acute in Dallas and its suburbs.—Lisa Brown

BY THE NUMBERS

HOUSTON—NAI Partners released its second quarter industrial report, which indicated flat net absorption with healthy future commitments, dominating warehouse space demand and overall, the industrial market is in good shape due in part to e-commerce demand.

SAN ANTONIO, TX—NAI Partners released its second quarter office report, which indicated increased supply with steady demand nudging vacancy up, net absorption in the red only two quarters out of the past 23 and average full-service asking rate reaching all-time high.

NEWS AND NOTABLES

DALLAS—Fidelis Realty Partners announced the hire of Mike Watson as vice president of leasing, adding to the growing team in its Dallas office.

DEAL TRACKER

ADDISON, TX—Palm Harbor Homes Inc. extended its lease of 11,370 square feet at The Spectrum, 15301 Spectrum Dr. Ryan Evanich, Chase Lopez and Jordan McFarland with Stream Realty Partners represented the landlord. Scott Collier with Jones Lang LaSalle represented the tenant.

AUSTIN, TX—NAI Partners recently represented Tarrytown Specialty Pharmacy, an extension of the Austin institution's retail pharmacy that has been serving West Austin locals since it first opened its doors back in 1941, in a 1,867-square-foot lease at The Jefferson, 1600 West 38th St. The transaction now gives the company three locations in Austin, and represents an expansion of the retailer's specialty drug clinic. Patrick Hill and Tim Laine of NAI Partners represented Tarrytown in the transaction, while Deborah Maldonado represented landlord Healthcare Realty.

CARROLLTON, TX—Sidran LLC renewed its 34,787-square-foot lease at Marsh Business Park West, 1050 Venture Ct. Eric Crutchfield with Stream Realty Partners represented the tenant.

CARROLLTON, TX—Word of Faith Christian Center Church leased 13,900 square feet at 2104 Hutton Dr. Luke Davis and Mackenzie Ford with Stream Realty Partners represented the landlord, Roheen Real Estate LLC. Republic Realty Advisors represented the tenant.

CENTENNIAL, CO—Holliday Fenoglio Fowler has closed the sale of Greenwood Plaza, a 266-unit apartment community. HFF marketed the asset exclusively on behalf of the seller, and procured the buyer, Waterton. Greenwood Plaza has 14 garden-style buildings offering a mix of one-, two- and three-bedroom units averaging 947 square feet.  Apartment homes feature generous balconies, full-size washers and dryers, and a mix of attached and detached garages. The 11.7-acre community is located at 7610 E. Caley Ave. in Denver's booming Tech Center submarket, positioning it near many major employers.

DALLAS—1539 Round Table Associates LLC sold its 7,500-square-foot building at 3422-3426 Doug Dr. to David Dennis. Jason Moser with Stream Realty Partners represented the seller.

DALLAS—Devin Longmore leased 12,396 square feet at 3811 Halifax St.  Jeremy Mercer with Mercer Company represented the landlord, KP Argon LLC. Hanes Chatham with Stream Realty Partners represented the tenant.

DALLAS—Citiquartz DFW LLC leased 22,050 square feet at 2474-2482 Southwell Rd. Ryan Boozer and Todd Poticny with Stream Realty Partners represented the landlord, Maxcom Properties LLC.

DENVER—CityView has acquired a property that it will develop in partnership with The Dinerstein Companies, one of the nation's largest developers. The proposed class-A, 350-unit multifamily development will be named Colorado Station, replacing an underutilized retail center which currently exists on the site. The property is located minutes from Cherry Creek and is a short light rail ride to both Downtown and the Denver Tech Center, Denver's primary employment hubs. The transit-oriented development will anchor the southeast corner of Colorado Boulevard and Evans Avenue.

FORT WORTH—Carroll Development purchased a 12,500-square foot building at 2828 West Lancaster Ave. and leased it to Summit Gyms. Luke Davis with Stream Realty Partners represented the purchaser and Summit Gyms. The Weitzman Group represented the seller.

GREENWOOD VILLAGE, CO—JLL's Capital Markets team secured $21.5 million in bridge financing for Quebec Court. The loan was secured on behalf of The John Madden Company, the original builder of Quebec Court as well as a number other class-A office buildings. The loan consists of a 79% loan-to-value with an 18-month interest only term and was used to pay off existing debt, finish construction and attract future tenants. Managing director Baxter Fain, along with Christina Grimme, led the JLL team on the financing.

HALTOM CITY, TX—LDW and Associates purchased a 10,000-square-foot building at 6505 Midway Rd. from Midway M & TP LLC. Seth Koschak and Forrest Cook with Stream Realty Partners represented the purchaser.

HOUSTON—NAI Partners recently arranged a 20,250-square-foot industrial spec building sale at 8316-C North Willow Place. John Ferruzzo and Travis Land of NAI Partners represented seller Steadfast Development during the negotiations. Bradley Buerger of Key 2 Texas Realty represented the buyer, Genesis 22:14 Developments LLC, a newly formed company as of June 2017. Steadfast Development is in the process of developing three more spec buildings at this location. Expected completion of one 20,000-square-foot spec building and another 11,250-square-foot spec building is fourth quarter of 2017.

HOUSTON—Lúa Viet Kitchen is opening its first location at Alabama Row, a development currently under construction at West Alabama and Mandell streets in the Montrose neighborhood. Transwestern's Alex Kelly, the exclusive advisor for Lúa Viet Kitchen, represented the fast casual Vietnamese restaurant in its 2,500-square-foot lease.

HOUSTON—CBRE Hotels has arranged the sale of Candlewood Suites Houston Medical Center (10025 South Main). This marks the second Texas Medical Center sale for the South Central US team, this year. Pika Hotel Group sold the hotel to Houston-based hospitality company, HH&S Hospitality LLC for an undisclosed price. CBRE Hotels' Michael Yu, Rahul Bijlani, Eric Guerrero and Agrama Mannapperuma represented both the buyer and the seller in the transaction. HH&S Hospitality LLC, which owns two other hotel assets in Houston, was attracted to this hotel due to economic growth within the TMC.

HOUSTON—Dyonyx LP signed a new 11,250-square-foot office lease at Granite Tower, 13430 Northwest Freeway. Eugene Terry and Louie Crapitto of JLL represented the tenant in the transaction. Sandy Benak and Steve West represented the landlord, Granite Properties.

MISSOURI CITY, TX—NAI Partners recently represented SGRE Pecan Plaza Ltd. in a 1,374-square-foot retail lease for JAMZ Party Store at the Pecan Plaza at 2855 Dulles Ave. Jason Gaines of NAI Partners represented SGRE Pecan Plaza Ltd. during the negotiations.

ROWLETT, TX—4210 Industrial LLC sold its 16,036-square-foot building at 4210 Industrial St. to J&M Pool Plastering Inc. Ryan Boozer, Matt Dornak, and Corbin Stall with Stream Realty Partners represented the seller. First Fidelity Real Estate Services represented the purchaser.

WACO, TX —JLL's Capital Markets experts announced the sale of a CVS Pharmacy, a 13,813-square-foot freestanding retail store located on approximately 2 acres at 601 N. Valley Mills Dr. to a Chicago-based private real estate company for $5 million. Matt Berres and Caroline Binning of JLL Capital Markets represented the seller, a private family trust based in Waco, TX.  Jack Stead with Northstar Real Estate represented the buyer, L2 Partners, in the transaction. The property is located at the northwest corner of North Valley Mills Drive and New Road within an established retail corridor.

BUILDING BLOCKS

ROUND ROCK, TX—California-based Mark IV Capital has broken ground on Summit II at La Frontera, a 95,000-square foot class-A office building that is the largest and best in class building under construction in the tight submarket. The two-story building near the intersection of Interstate 35 and SH 45 will be adjacent to the 87,186-square foot Summit I at La Frontera, which Mark IV purchased in 2013 and has since fully leased. Mark IV plans to connect the two buildings with a 10,000-square foot courtyard equipped with Wi-Fi, shaded seating areas and parking for local food trucks to create a cohesive campus.