Houston developers land anchor tenants
Two Houston-based developers have made out-of-market deals recently.
Hines, in partnership with Invesco Real Estate, announced that Microsoft Corp. has agreed to be the sole tenant in the two-building Atlantic Yards office development under construction in Atlanta.
Microsoft, which will create 1,500 new hightech jobs in the West Midtown area, will occupy 523,000 square feet beginning in summer 2021. The project, slated for completion late this year, is part of the Atlantic Station redevelopment. PCCP is the construction lender.
Hines recently announced leases in the Atlantic Station redevelopment with Facebook, Macy’s Tech and Interior Architects at its adjacent T3 West Midtown office building. The redevelopment includes new retail and restaurants, additional hospitality options and new multifamily residential units.
And Patrinely Group, in partnership with USAA Real Estate of San Antonio, will build an office building for Q2 Holdings at its Aspen Lake complex in the northwest technology corridor of Austin.
Aspen Lake Three, a 128,990-square-foot build-to-suit development at 10355 Pecan Park Blvd., will accommodate the long-term operations for Q2, a provider of cloud-based virtual banking solutions. The four-story building is slated for completion in April 2021. Other tech companies in the region include IBM, Apple and Visa.
Mortgage rates fall to new low
Mortgage rates have fallen to yet another all-time low.
The average rate for a 30-year fixed-rate mortgage fell to 3.15 percent for the week ending May 22, according to a Freddie Mac survey, the lowest in recorded history. The rate marked the third time since the coronavirus pandemic began that mortgage rates have fallen to the lowest levels in history.
The low rates are a consequence of the economic uncertainty surrounding the pandemic. When investors are unsure of how the economy will fare, they tend to move their money into the relative security of mortgage debt. The increased demand for mortgage debt drives down the rate of returns investors are willing to accept.
For the past six weeks, the number of people applying for a mortgage to purchase a new home has risen from its precipitous drop in April, according to Mortgage Bankers Association data. Freddie Mac reported that purchase demand has rebounded from a 35 percent year-over-year decline in mid-April to an 8 percent increase as of last week.