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Table of Contents 2013: Reading the Retail Tea Levels.....10, 21
9 Trends to Watch.....14, 15
US Retailer Report Card.....16, 17
Developing Houston 2013.....30
Landmark Awards.....32
Transforming Urban Neighborhood.....32
Mobile Devices Grab Higher Online Market.....36
Selected Retailers Opening 40+ US Locations.....36
Houston Makes Top 5.....40, 41
E.D. Wulfe Retail Recap.....38
REcon Map.....43
On the Cover:
LaCenterra at Cinco Ranch is a 34-acre Main Street-style town center development nestled in the heart of one of the nations’ top-selling master planned communities of Cinco Ranch. The center features over 50 distinctive retailers and restaurants, Class A office space and, upon completion, a 350-unit luxury mid-rise. LaCenterra offers an open-air pedestrian-friendly environment highlighted by lush landscaping, water features and outdoor common areas.
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Central/South/West (Austin/San Antonio/Midland) Advertisers Index ...............................42 Announcements & Deals Done....5, 18, 20 Calendar of Events..............................18 Commercial Organization Contacts......18 Industrial............................................13 Networking.......................................18 Office..................................................5 Office Medical.....................................5 Retail............................................5, 44 Vacant Land.........................................5
North Texas (Dallas/Ft.Worth Metroplex) Advertisers Index ...............................42 Announcements & Deals Done.......22, 44 Calendar of Events .............................22 Commercial Organization Contacts .....22 Networking ......................................23
Southeast Texas (Metro Houston) Advertisers Index ...............................42 Announcements & Deals Done..26, 27, 28 Calendar of Events..............................26 Churches...........................................37 Commercial Organization Contacts......26 Industrial......................................13, 35 Networking........................................27 Office......................2, 3, 29, 31, 32, 35 Office/Medical...........................2, 3, 31 Retail..........................1, 7-9, 12, 13, 15 Vacant Land...9, 11, 29, 33, 35, 37, 39, 42 Commercial Services Environmental ....................................26 Lending ............................................42
You can get daily recaps of CRE News from 40+ different sources at www.REDNews.com
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2013: Reading the Retail Tea Leaves
BDO offers up “2013: Reading the Retail Tea Leaves.” The following are excerpts from their Spring 2013 Consumer Business Compass by David Berlinger, Doug Hart, Alan Sellitti and Stephen Wyss
The New Year has gotten off to an uncertain start for retailers. The fourth quarter of 2012 brought disappointment in the form of natural disaster-induced business interruption, less-than-stellar holiday sales and a drop in previously robust consumer confidence. In late January, retailers received the news that after three quarters of modest growth, the U.S. economy grew only by an extremely conservative 0.1 percent in the final quarter of 2012, significantly below expectations. At the same time, retailers saw mixed samestore sales results. Some retailers, such as Macy’s and Kohl’s, reported strong gains, while others, including Wal-Mart, saw softer sales. On the consumer confidence side, the housing market — a key indicator of consumer confidence — began to rebound, but gas prices remained stubbornly high and the payroll tax holiday expired. According to our 2013 Retail Compass Survey of CFOs, retail executives are hedging their expectations in the midst of all these contradictory signals: they project a 3.2 percent increase in total store sales, down from last year’s expected 4.5 percent increase. How are retailers to read the ambiguous tea leaves and plan for the year ahead? We’ve identified a few trends that retailers should be keeping an eye on as the year progresses. The “holiday season” is being redefined Over the past several years, we’ve seen the holiday shopping season start earlier and earlier, and now it’s started to extend into January. As retailers consider their holiday performance, January can no longer be ignored for two major reasons. First, we are increasingly seeing a dual-polarization of holiday sales: a big burst in sales early in the season, then a slowdown of spending until post-holiday markdowns. Second, gift cards have become incredibly popular holiday
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purchases. Gift card purchases are not recognized as revenue until they are redeemed, which means that retailers get a better picture of holiday sales in January when consumers start cashing in their gift cards. This year, January sales were strong for many retailers and gift cards were likely responsible, at least in part, for the better-than-expected results. As retailers think about their holiday promotions for 2013, they will be carefully considering January 2014 sales and how they can capitalize on the renewed seasonal momentum. Consumer confidence likely to remain uneven The beginning of 2013 saw consumer confidence at a one-year low. Consumers watched nervously as policymakers squabbled over the fiscal cliff, reaching resolution only at the last minute. Part of that deal involved ending the payroll tax holiday that Americans had enjoyed since 2010, and consumers saw their take-home pay decrease starting with the first paycheck of 2013. In addition, higher-income consumers (those making $400,000 per year or more) saw their taxes go up for the first time in 20 years. While higher-income consumers were able to weather these changes, lower-income consumers felt the crunch acutely: they faced the triple blow of tax increases, higher gas prices and delayed tax refunds. The strong sales results for department stores at the beginning of the year--and the weaker results for chain and discount retailers--reinforce this stratification of consumer confidence. Yet the Washington debate over the future of U.S. fiscal policy continues. The debt ceiling remains an ongoing thorn in lawmakers’ sides, and spending cuts remain contentious. Meanwhile, in his 2013 State of the Union address, the president indicated that he would seek further tax increases on higherincome Americans. Consumers at all income levels are understandably concerned that higher taxes loom on the horizon as policymakers broker deals to avert another economic downturn. Nevertheless, consumer confidence is often shaped by breathless media coverage and is not always based on firm developments on the ground. Consumers are generally inclined to spend, and it’s unlikely that there will be a mass clos-
ing of pocketbooks in the coming year. Rather, retailers can expect to see consumer confidence ebb and flow based on how each piece of the fiscal puzzle falls into place against the backdrop of perennial consumer patterns: increased spending around federal holidays, back-to-school shopping and the end-of-year holiday blitz. Continued on page 21...
Did you know... According to our 2013 BDO Compass Survey of Retail CFOs, retail executives expect online sales to increase 6.9 percent in the coming year. Trustwave’s 2013 Global Security Report finds that the retail industry was the target of 45 percent of cybercriminal attacks in 2012. PCWorld reports that mobile payments are expected to total $1 trillion by 2015. Restaurant industry job growth reached a 17-year high in 2012, reports the National Restaurant Association. Our recent IPO Outlook Survey found that 30 percent of capital markets execs expect retail IPOs to increase in 2013, up from 23 percent in last year’s survey. According to comScore, mobile transactions account for 11 percent of ecommerce spending.
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Colliers Retail offers up “9 Trends to Watch” for 2013. The following are excerpts from their 2013 Outlook | Retail by Ann T. Natunewics, Manager, Retail Research |USA.
that qualifies for free shipping. Another benefit of more carefully managed shipping programs: fewer fraudulent returns, which the National Retail Federation estimates currently cost U.S. retailers $8.9 billion annually.
MORE PART-TIME WORKERS The retail industry is facing personnel challenges as it restructures customer service and selling programs to function seamlessly across multiple channels. Even for companies with exceptional reputations in brick-andmortar customer service, expanding into e-commerce means an accelerated pace of transactions—and dealing with customers who hold omnichannel to the same standards as they do established in-store programs. As the majority of e-commerce infrastructure platforms are still in their infancy, there are far more places for customers to slip through the cracks. We expect that retailers, as they continue to invest in systems upgrades, will opt to mitigate risk by adding more employees in both customer-facing and back-office functions. Restaurant operators are also being pressured to prioritize service improvements and protect market share as patrons continue to scrutinize discretionary spending. Throughout the sector this should translate into more part-time employees.
TAX REFORM FEARS DRIVE SALE TRANSACTION VOLUME, CAP RATES The prospect of a 2012 year-end increase in the U.S. capital gains tax rate motivated sellers and made Q4 a record-breaker for retail investment sales. Real Capital Analytics reported that total transaction volume reached $52.8 billion, up 20% from 2011, with individual asset sales driving most of the December surge. The newly adopted 20% capital gains rate, up from 15%, is unlikely to materially impact investors’ willingness to dispose of properties—yet. As the tax reform debate expands this year, though, the prospect of an additional increase could launch another period of frenzied dealmaking and then, if implemented, bring transaction activity to a standstill, especially if combined with significant changes to 1031 exchange rules. Extreme cap rate compression over the past two years illustrates the impact that lack of both quality inventory and yield-generating alternatives had on pricing and transaction velocity, especially in the single-tenant net lease space. Investor demand for retail product has become an impetus for new development, just to create inventory that can then be sold. In addition to the prospects of higher future taxes, the specter of higher interest rates (given the coming change in Federal Reserve leadership) should move a broader cross-section of sellers off the sidelines.
BRICK-AND-MORTAR RETAILERS REEVALUATE SHIPPING PROGRAMS Free shipping on purchases and returns began as a service differentiator, but it has evolved into a cost of doing business for all retailers, especially brick-and-mortar chains looking to neutralize operational cost advantages enjoyed by pure-play online firms. What retailers gain in customer loyalty, though, they sacrifice in margins. Citi Research estimated in October 2012 that free shipping reduced gross margins by up to 100 basis points for the companies it covers. What’s more, these estimates don’t take into account January increases by UPS, FedEx, and the U.S. Postal Service in shipping rates for ground, air, and less-than-truckload freight. As we said in our Q3 2012 report, it would be disastrous for retailers to eliminate free shipping—customers would revolt—but executives’ comments in recent earnings calls suggest there won’t be too many “sacred cows” in their quest to rein in costs. Future program tweaks might include placing limits on the amount of merchandise that can be returned without a penalty, or raising the order dollar value
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IN-STORE FULFILLMENT: ALTERNATIVE TO SHIPPING? Brick-and-mortar retailers also have the option of expanding in-store fulfillment in lieu of risking potentially unpopular changes to free shipping programs. Walmart, Ann Taylor, Macy’s, and Pier 1 are among those experimenting with these programs that, in bringing customers back into stores to pick up their orders, provide opportunities for incremental sales of in-store (and potentially higher-margin) merchandise. Effective execution requires significant technology investment to link sales and inventory tracking between distribution centers and store locations, factored against predictive analyses of customer buying patterns to better predict where specific merchandise might be needed. Aside from cost savings at the company level, the future real estate impact of in-store fulfillment could be significant.
NEW, BLENDED ROLES FOR CORPORATE EXECUTIVES As brick-and-mortar retail real estate companies rebuild their organizations to operate multichannel selling platforms, the next changes could come in the executive suites. Traditional corporate structures house separate divisions for real estate, marketing, management, information/technology, and merchandising (for retailers). Saks Incorporated’s February 7 announcement that it is formally tasking its senior executives with broader cross-channel responsibilities, and adjusting their titles accordingly, is the first of many corporate adjustments we expect this year. More broadly, we’re also looking for realignments in leadership of real estate versus online operations as more retailers combine divisional sales reporting.
SMALLER PROTOTYPES EXPAND AND EVOLVE Smaller prototype stores will continue to open in 2013 as more leases come up for renewal and companies rationalize real estate operations. As we toured smaller prototypes of existing box retailers this year, we were struck that the more successful ones—City Target, to name one—did not end up being significantly smaller than the parent chain’s existing full-line footprint. Therefore, shopkeeping unit (SKU) rationalization didn’t need to be dramatic: it could avoid a massive product overhaul and the risk that would accompany it. Looking at other chains that did launch with significantly smaller prototypes, though, we were less comfortable with the execution. We’ll see how the performance of
these smaller stores diverges in the coming year, especially as the marketplace provides more opportunities to evolve: Some big box chains that originally announced smaller prototypes (25,000 SF to 15,000 SF) are now moving right into testing of even smaller spaces, 6,000 to 7,000 SF.
OUTLETS, OUTLETS, OUTLETS During the early days of the economic recovery, outlet projects were among the few ground-up retail projects palatable to risk-averse lenders. Higher sales productivity did, and still does, make retailers more receptive to paying higher rents, and consumers’ surging demand for value-priced product suggests continued opportunity for sector growth. Late 2012–2013 marked the beginning of the surge in outlet center openings. How many of the proposed outlets will actually get built? If they all open, how many will perform well? Time will tell, especially in markets such as Toronto, Charlotte, and St. Louis, where multiple projects are competing fiercely for the same set of tenants.
FOREIGNERS STILL LOVE THE U.S. It remains one of our favorite analogies: The U.S. is “the cleanest shirt in the laundry” with respect to real estate investment. The concentration of quality assets—approximately 25% of the world commercial inventory according to Prudential Real Estate Investors—as well as the U.S.’s “safe haven” status will continue to comfort foreign investors and attract capital this year. Overseas investors, even those focused on capital preservation, are moving away from Treasuries and farther out onto the risk curve. Sovereign wealth funds have stepped up, led by Norway’s NOK3.7 trillion (USD $661 billion) Government Pension Fund Global, which announced before the holidays that it would begin investing in U.S. real estate: one-third of its five percent target for the asset class. Granted, its first commitment, announced last week, was for Core office space (a $1.2 billion deal with TIAA-CREF), but we see retail as a viable recipient of sovereign funds seeking partial interest in trophy assets either as an acquisition or a recapitalization opportunity with a good partner.
INCREASED COMFORT WITH SECONDARY MARKETS Savvy investors recognized improving macroeconomic trends during 2012, but the market’s risk-averse nature diverted the lion’s share of U.S. retail investment capital to Core markets despite their record-low yields. During our meetings with institutions last year, we heard many of them express interest in non-core markets—only to cite the execution challenge (especially for those representing foreign capital) of coaxing investors away from the top five or ten U.S. cities with well understood market fundamentals. Since Colliers began tracking secondary markets more than 18 months ago, we have tracked their accelerating improvements in housing and employment relative to Core markets. Aided in some areas by business-friendly corporate tax policies, strong secondary markets are becoming the economic growth engines that lift the performance and prospects of local real estate, especially for retail space which is so dependent on employment and consumer spending. This well-defined shift in risk-reward tradeoff is creating attractive yield potential on develop-to-core strategies or the acquisition of higher-vacancy properties. We project a significant increase in secondary market investment, from both domestic and foreign capital, in 2013, especially given future interest rate risk and increasing pressure being placed on institutions to deploy capital after years of conservative investing.
CONCLUSION Even as the economy improves, the retail real estate sector remains vulnerable to shocks that affect both consumer and investor sentiment. However, the slow recovery from the 2007–2008 downturn while it damaged aspects of the sector, also left behind as its survivors firms primed to outperform: they better understand what differentiates them in the eyes of their customers and know how they must operate to compete effectively. We expect process refinement and brand evolution to continue throughout the retail sector 2013 as competition intensifies, continuing to marginalize weak performers and reward those with the vision and confidence to innovate.
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UNITED STATES | RETAILER REPORT CARD
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2013 OUTLOOK | RETAIL
Colliers Retail offers up “Retailer Report Card” for 2013. The following are excerpts from their 2013 Outlook | Retail by Ann T. Natunewics, Manager, Retail Research |USA.
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CENTRAL / SOUTH TEXAS
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May 2013
Organizational Contacts Austin
Thursday 5/2 7:30 AM - 9:00 AM (Austin) CTCAR Property Info Exchange Monday 5/6 8:00 AM - 5:00 PM (Austin) IREM Austin: FIN402 - Investment Real Estate Financial Tools Monday 5/6 5:00 PM - 7:00 PM (Austin) CREW Austin Annual Spring Event: Cinco de Mayo Celebration Thursday 5/9 9:00 AM - 10:00 AM (San Antonio) IREM San Antonio: MCE Seminar How To Build a Better Budget Thursday 5/9 11:30 AM - 1:00 PM (San Antonio) IREM San Antonio: Monthly Luncheon Tuesday 5/14 11:30 AM - 1:00 PM (San Antonio) CREW San Antonio: Monthly Luncheon Wednesday 5/15 11:30 AM - 1:00 PM (Austin) NAHREP Luncheon Thursday 5/16 11:15 AM - 1:00 PM (Austin) CREW Austin: Power Luncheon Wednesday 5/29 11:30 AM - 1:00 PM (San Antonio) Boma San Antonio Membership Luncheon
AMBA. . . . . . . . . . . . . . . . . . . . . . . . . . www.austinmba.org BOMA. . . . . . . . . . . . . . . . . . . . . . . www.bomaaustin.org CCIM. . . . . . . . . . . . . . . . . . . . . . . . . . www.ccimtexas.com CLBA. . . . . . . . . . . . . . . . . . . . . . . . . . www.clbaonline.com CRE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cre.org CREW. . . . . . . . . . . . . . . . . . . . . . . . www.crewaustin.com CTCAR. . . . . . . . . . . . . . . . . . . . . . . www.ctcaronline.com IREM. . . . . . . . . . . . . . . . . . . . . . . . . . . . www.iremaustin.org NAHREP. . . . . . . . . . . . . . . . . . . www.nahrepaustin.org RECA. . . . . . . . . . . . . . . . . . . . . . . . . www.recaonline.com SIOR (South Texas Chapter). . . . . .www.sior.com ULI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.austin.uli.org WCR. . . . . . . . . . . . . . . . . . . . . . . . . . . . www.austinwcr.org
San Antonio CCIM. . . . . . . . . . . . . . chapters.ccim.com/ sanantoniosouthtexas CREW. . . . . . . . . . . . . . . . . www.crew-sanantonio.org IREM. . . . . . . . . . . . . . . . . . . . . www.iremsanantonio.org IREP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.irepsa.com RECSA. . . . . . . . . . . . . . . . . . . www.recsanantonio.com SABOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.sabor.com GSABA. . . . . . . . . . . . . . . . . . . . . . . www.sabuilders.com SIOR (South Texas Chapter).. . . . . www.sior.com WCR. . . . . . . . . . . . . . . . . . . . . www.wcrsanantonio.org For more information on CALENDAR OF EVENTS log on to
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/ May 2013
NETWORKING CREW Austin | Luncheon | March 19
(L to R) Jolie Schooler with NAI REOC Austin and Evonne Jones, CPA, Atchley & Associates
Susan Davenport, Senior VP of Global Technology Strategies for the Austin Chamber of Commerce, presented about Austin’s Technology Ecosystem.
CTCAR | Luncheon | March 28
(L to R) Charlie Singletary of Castlebridge, Rosalie Keszler, CCIM, with Rosalie Keszler Consultants & REDNews Contributing Writer and Neill McClung with KW Commercial
CENTRAL / SOUTH TEXAS
(L to R) Christy Moosey with Southern Datacom, Debby McCarty with Jose I. Guerra and Stephanie Dentinger with Grande Communications
(L to R) Rick Albers of Kuperman, Orr & Albers, Joe Linsalata of Linsalata Realty Services, Michael Buls of iCore Global, Eric Layne, CCIM, of LH Layne Co., Michael Doerr of Terra Advisors Realty, Ray Hallford of Hallford Companies and Jill Rowe of Chicago Title Austin
IREM Austin | March Luncheon | March 12
(L to R) Ann Aherns, Kerry Klenzendorf - Endeavor Real Estate Group, Julie Muir - Sr. VP IREM National, Daryl Chalberg - Thomas Properties
(L to R) Jennifer Aranda and Melissa Gill of TD Industries
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CENTRAL / SOUTH TEXAS
ANNOUNCEMENTS & DEALS DONE ANNOUNCEMENT - Austin - CBRE announces the addition of Josh Cameron to the Austin office as a senior vice president of the Land Services Group. Josh’s career gross sales production and transaction experience tops $650 million. Josh entered the real estate market selling rural ranches at First United Realty in Arizona. Most recently, Josh actively worked in both the Austin and Phoenix markets at Market Maker Realty and Investments (Austin) and Phoenix West Commercial. He is a Certified Commercial Investment Member (CCIM) candidate, currently serves on the membership committee for the CCIM Austin chapter and is a member of the Urban Land Institute.
MULTI-FAMILY San Antonio - The Kroenke Group has purchased the Manor at Castle Hills apartments in San Antonio, TX, from private investors. The 15-building complex is at 1835 Lockhill Selma Road in the north central submarket. Built in 2001, there are a total of 306 units on 13.87 acres. Will Balthrope, Drew Kile and Scott Lamontagne of Marcus & Millichap advised both parties. OFFICE
HOSPITALITY Austin - An affiliate of Hyatt Hotels Corp. has purchased the 189-room Driskill Hotel in Austin’s central business district for nearly $85 million or $449,735 per room. Hyatt will maintain the Driskill name under its hotels and resorts umbrella. Jones Lang LaSalle’s Hotels & Hospitality Group represented the seller, an investment fund managed by Lowe Enterprises Investors. The buyer’s representative was not disclosed. INDUSTRIAL
Austin - KBS Realty Advisors purchased eight office properties in Austin, TX, for $76 million or $145 per square foot. The Class B portfolio totals 522,720 SF of office space built from 1986 to 2000. Tenants include: ING Life Insurance & Annuity Co., Comerica, Tetra Tech and Carollo Engineers. Mike Brown and Brandon Lester of Transwestern represented the buyer in the transaction. Kelsey Roop, Patrick McCord, Andrew Levy, Todd Savage and Rhonda Toming of HFF represented the seller, an affiliate of Thomas Properties Group. RETAIL
San Antonio - Integrity Retail Distribution (IRD), a California-based retail distributor, has leased 44,000 SF of Class A industrial space located at the Eisenhauer Building at 4990 Eisenhauer Road in San Antonio. Aguilar and Rob Burlingame with CBRE San Antonio represented the tenant in the transaction. The representative for the landlord, BRE/TX Industrial Properties, LLC, was not disclosed.
Taylor - Rent A Center has signed a new 5 year lease for 5,464 SF at 100 Carlos G. Parker, Taylor, TX. Alison Barnwell with CBRE Austin represented the landlord, HEB Grocery Company, LP, in the transaction. John Ostrander with Birnbaum Property Company represented the tenant.
San Antonio - Lennox Industries Inc. leased 14,761 SF of industrial space at Interwest Business Park in San Antonio, TX. Jason Schnittger and Michael Flowers of Stream Realty Partners represented the landlord, DRA Advisors. Joe Carroll of Cavender & Hill Properties Inc. represented the tenant in the transaction. El Paso - Kuehne + Nagel Inc. has expanded their lease from 28,000 SF to 73,000 SF of industrial space at 1325 Pendale, El Paso, TX with a 3-year renewal. Chad McCleskey with CBRE El Paso represented the tenant in the transaction. Michael Livingston with Best/White represented the landlord, Bre/Elps Industrial, LP. El Paso - Penske Logistics LLC has renewed their lease of 353,611 SF of industrial space located at 48 Walter Jones, El Paso, TX. Anthony Mash with CBRE El Paso represented the landlord, Tr Butterfield Trail Corp -- Invesco, in the transaction. The tenant’s broker was not disclosed. Austin - ACS Communications, Inc. has leased 22,046 SF at Brockton Business Park, Building 2 at 2535 Brockton Drive. Will Nichols and Sam Owen of Stream Realty represented the landlord in the transaction. The tenant was represented by Nate Strickland and Brandon Megal with CB Richard Ellis.
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San Antonio - Club Grand has leased 27,356 SF at Westlakes Village (1305 SW Loop 410, San Antonio). Tim McBrearty of Retail Solutions and Jerry Marroquin of Eagle Commercial represented the landlord in the transaction. The tenant’s representative was not disclosed. Austin - Kidz Dental is leasing 13,544 SF at Southridge Plaza (500 W William Cannon, Austin). David Simmonds of Retail Solutions represented the landlord in the transaction. The tenant’s representative was not disclosed.
SPECIAL PURPOSE Round Rock - Church of the Harvest has leased 2701 Gattis School Rd., Suite B 103, Round Rock. The building occupies 5,000 SF. Stephanie Timmons of Don Quick & Associates, Inc. represented the tenant and Darren Quick of Don Quick & Associates, Inc. represented the landlord.
Want more deals? Visit www.REDNews.com/Deals And keep your eyes peeled for our new weekly newsletter!
...continued from page 10
Omnichannel is the new normal
Omnichannel retailing is no longer a buzzword for the industry. Savvy retailers are reorienting their entire sales strategy to ensure a unified, seamless brand experience across multiple channels that appeals to a variety of consumer needs. In a nod to the strategy’s growing importance, many retailers are even adding new executive positions dedicated to integrating platforms: Macy’s announced in January that it was adding a chief omnichannel officer to its C-suite, and Saks and Belk have made similar moves. Retailers who already straddle the online/offline divide, including Target, Nordstrom and Macy’s, are looking to experiment more across their existing platforms. Many have started offering in-store pickup for items purchased online, and for these retailers, mobile is the next frontier in developing an omnichannel strategy. We began to see these innovations this past holiday season when they rolled out various mobile apps geared toward making the shopping frenzy more manageable. Macy’s, for example, debuted an in-store GPS app designed to help consumers navigate their stores, and Target launched an app that allowed customers to instantaneously locate CNET reviews for any gadgets they were eyeing. Nordstrom, meanwhile, has been pioneering in-store mobile technology, replacing cumbersome cash registers with more nimble, customer-friendly iPod and iPad checkouts. It’s clear that these strategies are working, because online and mobile retailing is beginning to occupy a bigger piece of the sales pie. Our recent survey found that 74 percent of CFOs expect e-commerce sales to rise this year, projecting an average increase of 6.9 percent. Meanwhile, retailers are also refining their investment in mobile commerce. According to our survey, 38 percent are planning to increase their investment and 60 percent of CFOs plan to maintain their level of investment, suggesting that many have made inroads into the technology and are now working to determine what tactics win the most customers. Increasingly brick-and-mortar and e-commerce no longer stand in opposition to each other. Rather, retailers are beginning to understand them as complementary pieces and are seeking to balance their investments in each. For some retailers, this means taking their presence online for the first time; for some digital retailers, it means acquiring storefronts for the first time. Clicks become bricks, and bricks become clicks Despite lukewarm enthusiasm for private equity investment in the retail sector this year, there may nevertheless be an increase in strategic investments to satisfy growing omnichannel demands. When TJX acquired Sierra Trading Post in late 2012, it signaled that the company was looking to grow its e-commerce presence. Expanding online capabilities through acquisition has been a popular
In the same vein, a number of online-only retailers are beginning to explore establishing a physical presence in key markets. Some brands, like Net-a-Porter and Etsy, are testing the waters with temporary pop-up shops, while others are diving right in. Finding that many consumers sought the opportunity to touch and try on merchandise before buying, popular online retailers Bonobos and Warby Parker have begun opening brick-and-mortar stores. A number of online giants have also expressed interest in establishing storefronts. In addition to Microsoft’s experiments with stores, Amazon has long been rumored to be exploring a flagship in Seattle, and even Google may be getting in the game. As the lines between brick-and-mortar and e-commerce continue to blur, the retail industry is poised to see great innovation and, with it, many opportunities to win customer loyalty. While the outlook for consumer spending is a little less bright, retailers that adapt to consumers’ growing expectations of convenience, instant access and a personalized experience can ride out the waves of a shaky economy and make inroads in the year ahead.
CENTRAL / SOUTH TEXAS
strategy for a number of brands including Walgreens, Nordstrom and Wal-Mart, and we expect that trend will continue. In fact, following a busy year for deals in 2012, 94 percent of retail CFOs expect M&A activity will increase or remain stable this year. We’re also seeing a number of international brickand-mortar brands move to launch a U.S. online presence. Following Zara, Uniqlo launched its long-awaited e-commerce site in October, and H&M looks to be preparing its entry into U.S. e-commerce later this year.
PErspective in Retail & Consumer Products
Private equity investment in the consumer products and services (B2C) industry has waned over the past few years, as consumer spending has been unsteady. According to Pitchbook, aside from 2009, 2012 was one of the slowest years for B2C private equity deal flow in the last decade (2012: 364 deals; 2009: 331 deals), despite a flurry of activity in the fourth quarter spurred by the anticipation of higher tax rates in 2013. However, the retail sector has slowly been recovering its piece of the consumer pie. In 2012, retail accounted for 30 percent of total capital invested in B2C companies, up from just 18 percent in 2011. Even so, dealmakers do not expect a sudden boom in investment activity in the retail sector anytime soon. According to the fourth annual BDO PErspective Private Equity Study, only 3 percent of fund managers believe the retail and distribution industry will provide the greatest opportunities for new investments during 2013. That’s a slightly less optimistic outlook for the sector than was reported last year, when 6 percent of fund managers identified retail and distribution as the sector that would provide the greatest opportunities for new investments in 2012. When it comes to pricing considerations, 24 percent of fund managers indicated that the retail and distribution sector is the most likely to experience decreasing valuations in the next 24 months. That’s compared to only 3 percent of fund managers who think the sector is the most likely to experience increasing valuations during that time frame. With payroll tax increases hitting shoppers who were already battling tough economic conditions, retailers may have to continue to cut costs, which will increase pressure on margins and impact private equity investment activity. PErspective in Retail & Consumer Products is a feature examining the role of private equity in the retail and consumer products industry.
BDO offers up “2013: Reading the Retail Tea Leaves.” Excerpts from their Spring 2013 Consumer Business Compass by David Berlinger, Doug Hart, Alan Sellitti and Stephen Wyss
21
ETHICS
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2 1 4.8 9 0.6 4 9 0 c r ew-d a l l a s.o r g
May 2013
Organizational Contacts Dallas | Fort Worth
Thursday 5/2 5:30 PM - 8:30 PM (Dallas) NTCAR: Hall of Fame Tuesday 5/7 11:30 AM - 1:00 PM (Forth Worth) BOMA Fort Worth: Monthly Luncheon Wednesday 5/8 11:00 AM - 1:00 PM (Fort Worth) CREW Forth Worth: All About Alliance and Awards Tuesday 5/14 7:00 AM - 9:00 AM (Dallas) North Texas NAIOP: Broker of the Year Awards and CEO Forum Thursday 5/16 10:00 AM - 5:30 PM (Fort Worth) BOMA Forth Worth: The 2013 BOMA FW Invitational Thursday 5/16 11:30 AM - 1:00 PM (Dallas) North Texas CCIM: Monthly Luncheon
BOMA Dallas. . . . . . . . . . . . . . www.bomadallas.org BOMA Ft. Worth. . . . . www.bomafortworth.org CCIM. . . . . . . . . . . . . . . . . . . . . . . . . . . www.NTCCIM.com CREW Dallas. . . . . . . . . . . . . . www.crew-dallas.org CREW Fort Worth. . . . . . . . . . . . . . www.fwcrew.org IREM Dallas. . . . . . . . . . . . . . . . . www.irem-dallas.org NAIOP. . . . . . . . . . . . . . . . www.northtexasnaiop.com NTCAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.ntcar.org REFEA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.refea.org SCR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.scr-fw.org SIOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.sior.com TREC. . . . . . . . . . . . . . . . . . . . . . . . . . . . www.recouncil.com ULI. . . . . . . . . . . . . . . . . . . . . . . . . . www.northtexas.uli.org For more information on CALENDAR OF EVENTS log on to
Email your events to: Mark@REDNews.com Event dates are based on each organization’s typical monthly schedule which is subject to change. Please verify each event with the related organization.
Friday 5/17 7:30 AM - 12:00 PM (Dallas) NTCAR: Las Colinas Office Tour Wednesday 5/29 7:30 AM - 9:00 AM (Fort Worth) Society of Commercial REALTORS® Breakfast Friday 5/31 11:30 AM - 7:00 PM (Fort Worth) CREW Fort Worth Golf Classic
Do you have an event you’d like to share? Tell us about it at: mark@REDNews.com
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/ May 2013
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NETWORKING CREW Dallas | March Luncheon | March 20
(L to R) Kim Butler CREW member with Hall Financial Group and her student, Rebecca Hanna, from SMU
(L to R) Cindy Cohn with Springboard Consulting LLP, Meghan Spencer with Nexbank and Kmeal Winters with Behringer Harvard.
NORTH TEXAS
(L to R) President of CREW Dallas, Elissa Plotsky with North American Title Group, Mike Miles, superintendent of the Dallas I.S.D. and Pam Stein, President elect of CREW Dallas for 2014.
The Society of Commercial REALTORS速 | Breakfast Meeting | March 27
(L to R) Sarah Everett with Transwestern, Jerry Alexander with Transwestern & Jay Hedges with Bob Moore Construction, Inc.
(L to R) Doug Jennings with William C. Jennings Company & Fort Worth Mayor Betsy Price
(L to R) Julie Langebartel with Alamo Title Company & Mel Harris with Elements Realty Group, LLC
IREM Dallas | Rare Air Reception | March 6
(L to R) Kristin Hiett, CAE, Executive Director of the IREM Dallas Chapter, Andrew Jones of Cassidy Turley and Joe Summers, CPM of CBRE
(L to R) Claudia Ferrara, CPM, LEED AP, of Transwestern President IREM Dallas Chapter and Joe Greenblatt, CPM, President Elect, IREM Dallas
(L to R) Susan Heath, CPM of Lincoln Harris, IREM Secretary Treasurer, Keith Steward, CPM of Fidelity Commercial Realty Mgmt. and Jessica Warrior, CPM, of Granite Properties
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NORTH TEXAS
ANNOUNCEMENTS & DEALS DONE ANNOUNCEMENT - Dallas - Colliers International North Texas announces industry commercial real estate veteran Jack Minter has joined their fast-growing Capital Markets Group. Minter’s experience in commercial real estate spans more than 30 years and he has been involved in sale and financing transactions totaling $25 billion. Prior to joining Colliers, Minter was Managing Director of the Capital Markets Group of Jones Lang LaSalle, where he led a national team of professionals performing dispositions, financings and advisory services.
Denton - J. Liu Property Co. has purchased nearly 33 acres of multifamily-zoned land in Denton County. The buyer was represented in the transaction by Wee-Ping Low of Providia Commercial Real Estate. Stephen A. Scott, senior vice president of Bradford Commercial Real Estate Services, represented the seller, C. D. Henderson Construction Group LLC, managing partner of a lenders’ group.
ANNOUNCEMENT - Dallas - SRS Real Estate Partners is pleased to announce that one of its brokers has been recognized by CoStar Group, Inc. as a Top Retail Leasing Broker in the Dallas/Fort Worth market for 2012. Congratulations to Rick Ikeler, senior vice president in the SRS Dallas office, for making the list. The CoStar Power Broker Awards are an annual recognition of the top brokerage firms and dealmakers for office, industrial and retail sale and lease transactions per market.
Lewisville - A private real estate fund out of Canada has purchased the Basswood Manor, a 212-unit multifamily property located at 1020 West Fox Avenue on a 15 acre lot in Lewisville. Al Silva, Vice President Investments in Marcus & Millichap’s Ft. Worth office, had the exclusive listing to market the property on behalf of the seller, a Dallas partnership. The buyer was also secured and represented by Al Silva. The property was on the market for less than 30 days and attracted half-adozen offers from local and out of state investors. It was an all-cash transaction.
INDUSTRIAL Saginaw - Fast Fabricators has secured an 18,683 SF industrial lease at 800 Burlington Road, Saginaw. Becky Thompson of Lee & Associates represented the Landlord, Burltex Partners, in the transaction. The tenant’s representative was not disclosed. Fort Worth - The Hillshire Brands Company has leased 31,875 SF of industrial space located at 4770 Mercantile, 120, Fort Worth, TX 76137. The landlord, Mercantile Partners, was represented in the transaction by Brian Randolph. Allen Gump, Allyson Gump and Bob Chodos with Colliers International represented the tenant. Carrollton - First Industrial has leased 53,880 SF of industrial space located at 1505 Luna in Carrollton. Randy Garret and Jo Thompson of Transwestern represented the landlord, Archer Western, in the transaction. Seth Koschak of Stream Realty Partners represented the tenant.
MULTIFAMILY
Plano - Banner Apartments LLC has purchased the 194-unit Wellington at Willow Bend at 3200 Parkwood Blvd. in Plano, TX. The purchase price was $17.95 million. Matthew Schoenfeldt and Adam Herrin of HFF represented the buyer. The seller, Aspen Square Management, did not use a broker. OFFICE Irving - Texas Prince Properties has purchased Crestwood Center, a 75,000 SF office building located at 1200 W. Walnut Hill Road in Irving. The building is positioned within the rapidly improving Las Colinas Office Center. Creighton Stark and Ben Lurie in Collier’s Capital Markets Group represented the seller, Austin-based Capital Commercial Investments. The buyer’s representative was not disclosed. Dallas - Beacon Investment Properties has purchased a 120,599 SF, Class A office building located at 2626 Cole in Dallas’ Uptown/Turtle Creek submarket for an undisclosed amount. Andrew Levy of HFF represented the seller, an institutional advisor, in the transaction. Susan Hill of HFF worked on behalf of the buyer.
LAND McKinney - James Johnston, real estate developer, has purchased 3.01 acres of land on Hudson Crossing just south of Eldorado Parkway in McKinney. The two parcels are adjacent to Eldorado Crossing Office Park and Johnston has plans to develop medical and professional office condominiums. The seller, Irving-based Realty Capital Management, LLC, was represented by Mark Boone, Director of Commercial Sales and Leasing for Realty Capital Management. The buyer’s representative in the transaction was not available. Dallas - Houston based InTown Homes has purchased 4 acres of multi-family land at 2127 Canton Street and Pearl in Downtown Dallas that is now under construction as the largest fee simple residential development in Downtown Dallas in over 60 years called the Farmers Market Square. Dallas broker Randall Turner with Harvard Companies, Inc. represented both Wells Fargo Bank seller and the buyer in the transaction.
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RETAIL Fort Worth - An auto dealership has purchased 11.52 acres off the I-35 South Freeway. The auto dealer plans to construct a new dealership on the site. With over 500 feet of frontage to the highway, the location will provide excellent visibility for the dealership. Gary Walker and Renee Efimoff with SCM Real Estate Services represented the seller, the Golfworld Ultimate Practice facility, in this transaction. Spencer Perry with Williams Trew represented the buyer. Want more deals? Visit www.REDNews.com/Deals And keep your eyes peeled for our new weekly newsletter!
For daily recaps of CRE News from 40+ different sources go to
REDNews.com
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SOUTHEAST TEXAS
May 2013
Organizational Contacts Metro Houston | Galveston
Thursday 5/2 7:30 AM - 5:00 PM BOMA Gulf Coast Green Symposium
Tuesday 5/14 7:00 AM - 9:30 AM CoreNet Breakfast
Friday 5/3 9:00 AM 1:00 PM CREN Sporting Clays Tournament
Tuesday 5/14 11:30 AM - 1:00 PM SIOR Houston: Monthly Luncheon
Friday 5/3 11:00 AM - 1:00 PM CREN Luncheon
Wednesday 5/15 ULI Spring Meeting (San Diego)
Friday 5/3 11:30 AM - 1:30 PM ULI Luncheon Tuesday 5/7 11:30 AM - 1:30 PM CREW Luncheon (members only) Thursday 5/9 7:00 AM - 8:30 AM HRBC Breakfast Thursday 5/9 7:00 AM - 9:00 AM IFMA: May Seminar Thursday 5/9 10:00 AM - 12:00 PM BOMA Houston: 2013 BOMA EXPO Thursday 5/9 11:30 AM - 1:00 PM CCIM Houston: May Luncheon Thursday 5/9 2:00 PM - 7:00 PM BOMA Houston: 2013 BOMA EXPO Thursday 5/9 6:00 PM - 9:00 PM SIOR Bowl-a-Rama Monday 5/13 11:00 AM - 1:00 PM CREAM Luncheon
Wednesday 5/15 8:00 AM - 5:00 PM 2013 NABE Industry Conference Thursday 5/16 8:00 AM - 5:00 PM 2013 NABE Industry Conference Thursday 5/16 10:30 AM - 1:00 PM BACREN Luncheon Thursday 5/16 5:30 PM - 9:00 PM NAIOP Dinner with the Icon Friday 5/17 7:15 AM - 9:00 AM CREN Breakfast Tuesday 5/21 8:00 AM - 9:00 AM FBSCR Meeting Thursday 5/23 7:00 AM 8:30 AM ACRP: Breakfast Meeting Thursday 5/30 11:00 AM - 1:00 PM NAIOP Luncheon Thursday 5/30 4:30 PM - 7:00 PM CREN Happy Hour
ACRP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.acrp.org Appraisal Institute*. . . . . . . . . . .www.aihouston.com AAREA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.aarea.us BACREN. . . . . . . . . . . . . . . . . . . . . . . . . . . www.bacren.com BOMA. . . . . . . . . . . . . . . . . . . . . . www.houstonboma.org CCIM . . . . . . . . . . . . . . . . . . . . . . . . www.ccimhouston.org CoreNet. . . . . . . . . . . . . . . . . . . . www.corenetglobal.org CREAM. . . . . . . . . . . . . . . . . . . . . . . . . . . www.creamtx.com CRE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.cre.org CREN. . . . . . . . . . . . . . . . . . . . . . . . www.houstoncren.com CREW. . . . . . . . . . . . . . . . . . . . . . . . www.crewhouston.org FBSCR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.fortbend.org Greater Houston Partnership.. . www.houston.org HOLBA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.holba.org HRBC. . . . . . . . . . . . . . . . . . . . . . . . www.houstonrealty.org IREM. . . . . . . . . . . . . . . . . . . . . . . . . . . www.iremhouston.org NAIOP. . . . . . . . . . . . . . . . . . . . . . www.naiophouston.org O’Connor & Associates. . . . . www.poconnor.com HREC.. . . . . . . . . . www.houstonrealestatecouncil.org RICH. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.richclub.org SIOR. . . . . . . . . . . . . . . . . . . . . . . . . . . www.siorhouston.com ULI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . www.uli-houston.org For more information on CALENDAR OF EVENTS log on to
Email your events to: Mark@REDNews.com Event dates are based on each organization’s typical monthly schedule which is subject to change. Please verify each event with the related organization.
Premier Commercial Real Estate Networking IREM Houston Upcoming Luncheon Wednesday, May 8 Houston Aquarium
www.iremhouston.org
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/ May 2013
NETWORKING ACRP | Networking Reception | March 26
(L to R) Charity Mayo of Burton Construction, Kimberly Phipps-Nichol of Abel Design Group and Beccy Whyte of O’Donnell Snider Construction
CREW Houston | March Luncheon | March 6
(L to R) Michele Ellis-Felder, CREW Houston President; Guest Speaker John Breeding, President of the Uptown Houston District; CREW member Cassie Stinson, Boyar Miller
Linda Crumley of J Beard and Jim Wilkie, CCIM of Seacoast Commerce Bank
SOUTHEAST TEXAS
(L to R) Steve Ecklund of Bury Partners, Jason Atkinson of Bury Partners, Adrienne Schwartz of PLC Capital and Michael Lane of MB Lane & Associates
(L to R) Jace Houston of the San Jacinto River Authority (speaker) and Cody Christoph of Colliers International (also President of CREAM)
IREM Houston | April Luncheon | April 6
(L to R) Kristen Sellentin and Erika Beggerly with CBRE learn about Team Excellence from the IREM speaker and author, Randy Hopkins
(L toR) Shana Sonnier with PCD Management, Leon Miura with Rosemont Realty and Renee Dickens with PM Realty Group pose at IREM’s April Luncheon at Maggiano’s Little Italy
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SOUTHEAST TEXAS
ANNOUNCEMENTS & DEALS DONE ANNOUNCEMENT - Houston - JLM Commercial Advisors announced that Mary Jo Giammalva has joined the firm as Senior Vice President. Giammalva joins JLM Commercial Advisors after 14 years with Weingarten Realty Investors where she oversaw the marketing and leasing of its entire Houston Industrial portfolio of over 6.5 million square feet. Her work included structured lease transactions, building and land sales as well as build-to-suit transactions. In her new role, Giammalva will partner with President Lane Guinn to focus on corporate and tenant services, representing end-users, buyers and sellers of industrial and office properties in Houston and throughout Texas. INDUSTRIAL Houston - Barry Smith, Trustee, has purchased an 18,850 SF industrial building located at 5411 Renwick, Houston, Texas 77081. Barry Smith represented the buyer. Mike Spears & Jon Sellers of The National Realty Group represented the seller, Prisma Properties, LP. Houston - Quasar Land, Ltd. has purchased a 16 acre heavy industrial stabilized yard site with over 94,000 SF of office and warehouse buildings at 6800 Helmers Street in Houston, Texas. The seller, Hanson Pipe & Products, LLC, was represented by Blake Gibson of Colliers International. Clay Pritchett of NAI Houston represented the purchaser, Quasar Land, Ltd., in the transaction. Houston - Harris County Fresh Water Supply District #6 has purchased approximately 2.42 acres of commercial land located at 15904 Market Street & DeZavalla, Channelview, TX. B. Kelley Parker, III; John F. Littman; Coe Parker and Tim M. Thomas of Cushman Wakefield represented the seller, Richter Family Partnership, in the negotiations. Billy Combs of Combs Commercial represented the buyer.
Houston - A private investor has purchased the Villa Monterrey, a 268 unit Apartments property located at 9445 Concourse Drive in Houston. The asset commanded a list price of $4,000,000. The buyer plans to perform an extensive rehab on the property to include both exterior and interior improvements. Jeffrey Fript, Marcus & Millichap’s Houston office and Evan P. Kristol and Still Hunter III, in Marcus & Millichap’s Ft. Lauderdale office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer, a private investor, was also secured and represented by Fript. OFFICE Houston - A joint venture between Songy HighRoads LLC and The Carlyle Group has purchased the Galleria Plaza, a 428,285 SF mixeduse complex in Houston, Texas. HFF investment sales team representing the seller, Chase Merritt and PCCP, was led by senior managing director Dan Miller and director Martin Hogan. The purchase price was confidential. HFF’s debt placement team representing the buyer was led by senior managing director Wally Reid. In addition, HFF secured a three-year, 75 percent loanto-value acquisition financing on behalf of the buyer through Bank of America Merrill Lynch – CMBS. RETAIL Humble - Vestar, in a joint venture with a fund advised by UBS Global Asset Management, has acquired Deerbrook Marketplace, a 350,000 SF retail center located on 36 acres in Humble, Texas in an all cash transaction. The acquisition marks Vestar’s first acquisition in Texas. Located at a pivotal northeast Houston regional retail intersection, Deerbrook Marketplace is leased to several national tenants including Sports Authority, Best Buy, Bed Bath & Beyond, Marshalls, OfficeMax, PetSmart and Old Navy. The Jones Lang LaSalle team of George Cushing and Wendy Vandeventer represented the seller, Investcorp, in the transaction. Vestar represented itself in the transaction.
LAND Houston - Ferguson Enterprises, Inc. has purchased an 8.015 acre land tract located at Bender Road in Houston, Texas. John Nicholson of Cassidy Turley represented the buyer in the transaction. Steve Adkisson of The National Realty Group represented the seller, JBD Equipment, LLC. MULTIFAMILY Houston - Portofino Landing LLC has purchased the 464-unit Portofino Landing multifamily complex in Houston, TX. The price was undisclosed. The 358,156 SF apartment community consists of one- and two-bedroom apartments in 21 buildings. Ed Cummins and Clint Duncan of Transwestern represented the seller, Blue Valley Apartments, in the transaction. The buyer was represented internally. Houston - Chelsea Lane LLC has acquired the Chelsea Lane Apartments, a 228,532 SF multifamily community consisting of one-, two- and three-bedroom units in Houston. Matt Saunders, Russell Jones, Zack Springer and David Wylie of Apartment Realty Advisors represented the seller, Katy Oaks Properties LLC., in the transaction.
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Spring - A private investor has purchased The Antique Gallery of Houston building, an 82,952 SF property located at 21127 Spring Towne Drive in Spring. The asset commanded a list price of $2,875,000. Jerry Goldstein, a First Vice President Investments in Marcus & Millichap’s Houston office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer was also secured and represented by Goldstein. Houston - Fidelis Capital Partners has purchased the Willowchase shopping center located at 12792 Willow Chase Drive in Houston, TX. The sale price was not disclosed. The one-story, 273,274 SF retail building is anchored by a 92,818 SF Fiesta Mart and includes other major tenants such as Jo-Ann Fabrics, Family Dollar and Dots. Helen Putterman and Vera Thomas of Cohen Real Estate represented the seller, Wheeler Real Estate Investment Trust, in the transaction. The buyer was self-represented. Want more deals? Visit www.REDNews.com/Deals And keep your eyes peeled for our new weekly newsletter!
SOUTHEAST TEXAS
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Developing Houston 2013 Commercial Expo by Ray Hankamer
The annual SIOR Commercial Expo held April 2nd at the Westin Galleria began with a panel moderated by Jim Kollaer, of Construction Citizen.com. Panel members were David HightowerWolff Companies, Paul H. Layne-The Howard Hughes Corporation, Michael Mair-Skanska and Keith Simon-CDC Houston, Inc. The moderator and panelists, some of whom are not native Houstonians, extolled the virtues of Houston as an easy and friendly city in which to do business, praising the lack of zoning, the “philanthropic spirit” of Houstonians, the low tax climate, low housing costs, and availability of a highly trained workforce. The senior banking executive sitting next to me and I had a chuckle at the “lack of zoning” comment, since three of the four panelists are developers of planned communities where development requirements are often far more stringent than many cities’ zoning regulations. The point here is that if strict controls on aesthetics, landscaping, architecture, signage, utility placement, and all the other elements of a successful community work well for a private “planned community,” why couldn’t they work for our “public community,” and enhance values for our city as a whole in the same way that they do for the privately controlled developments? Participation in LEED (Leadership in Energy and Environmental Design) was one of the central themes of the panelists, who said that LEED ranking is essential now to attract first class tenants and first class buyers later on. This attention to LEED classification even extends to industrial / warehouse, since many owners who are national in scope want to be able to claim LEED status in their annual reports for their portfolio of buildings. Sustainability of a building in its environment and low energy consumption are key parts of the LEED program. This requires a higher front end investment but it is justifiable in the long run, according to some of the panelists. Others took issue with this claim, especially in the case of merchant builders who
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/ May 2013
build-to-sell. The response to this push-back was that the developer has to imagine what standards buyers will require several years from now, after the building going up has had time to lease up and reach stabilization. The panelists said that Houston is in the national and international spotlight for investment, based on the strengthening energy industry, but also on the many other sectors of our local economy. The two largest challenges we have, according to one panelist, are education, i.e. training and being able to re-train in a changing economy, and mobility. It was mentioned that with the 80,000+ jobs created in Houston last year alone there has been a perceptible slowing down of mobility on the area freeways. It was also noted that if we can’t keep our commuting times reasonable the city will evolve into numerous “pods,” each with its own worker/resident base. [We are there now, to some extent, aren’t we? The Woodlands, Clear Lake, Sugar Land, etc.] Our “clean political environment” our openness to newcomers, as well as racial and international diversity were all praised. The panelists said they are developing for a drier future with regard to landscaping, and are using hardy local landscaping options featuring plants which require less water. One panelist said the vast green lawns we are used to seeing in Houston are “a thing of the past,” due to the rising cost and dwindling availability of water. It was noted that due to the drought last year, The Woodlands had to spend $800,000 just to keep its three lakes at the proper level. In closing, the moderator, who said he was tracking 75 office building announcements for his blog [!], asked each panelist for a quick guess as to how long this current boom in development would last. “2016”, “2017”, “7 years”, “22-25 years”, were some of the predictions, in no necessary order. For those of us who have been through many real estate cycles here, some moderate, and some catastrophic, the following comment comes to mind: “Someone is drinking his own Kool Aid!”
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Annual Landmark Awards for 2013 Honoring the Houston Area’s Most Influential Real Estate Projects By: Ray Hankamer, Hankamer & Associates, Broker, Houston Contributing Writer
The Houstonian was the venue for the 200 plus attendees at the award ceremony presented by Stewart Title and Houston Business Journal. Winners were:
Larry Johnson CEO, Johnson Development Corp. Lifetime Achievement Award Sugar Land Minor League Ballpark Community Impact Award Nexen Tower Headquarters Move Award 500 Fannin and Alabama Shepherd Shopping Center Tie-Historic Renovation Award Top Golf Houston and Sugar Land Minor League Ballpark Tie-Hospitality/Entertainment Award Shell Plaza Project Sale Award
Recap By: Fred Baca, Baca & Associates, Houston Contributing Writer Sandwiched between an eye-popping tour of the eastside and the coming-out party for Midway‘s new GreenStreet development (formerly Houston Pavilions) ULI presented a day-long program appropriately focused on transforming urban neighborhoods. Diane Schenke, who heads up the Greater East End District, guided (metro) bus loads of attendees on an upclose look at the surprising amount of high quality residential development occuring east of the Greater Houston Convention Center. Diane pointed to new infrastructure redevelopment by the City of Houston
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The Village at the Woodlands Waterway Multi-family Project Award
Menninger Epicenter Clinic Medical Project Award
James Berry Elementary School Green Project Award
Annunciation Catholic Church Façade and Steeple Restoration Special Project Award
Cookiebaker, LLC Industrial Project Award UT-MD Anderson Mid-Campus Building One Office Lease Award Wood Group and Subsea Lease at Westgate Project Lease Award 500 Fannin Rehabilitation/Renovation Award BBVA Compass Stadium Public Assembly Award
and the Metropolitan Transit Authority, progress along the east end light rail line, social and entertainment venues centered around the Dynamo’s stadium, new development plus opportunties for the old KBR site and new Cockrell property as evidence of a rapidly developing section of Neartown. Pedestrian friendly boulevards with shaded sidewalks, trails along the bayou with green space and ample parks, bike trails and charming older residential neighborhoods give a vision of an emerging high quality residential community with both high density and single family living units. Good and improving transportation and easy access to downtown, large tracts controlled by a few big landowners – think masterplanned – makes it easy to see why Diane expressed such excitement for the east end. While Diane was touring the East End District, there was a series of workshops , one dealing with the obvi-
Ruggles Green Sugar Land Retail Award St. John’s School Purchase of Taub Property Land Deal Award Weatherford International at St. James Place Workplace Interior Award Cross Creek Ranch Residential Development Award BBVA Dynamo Stadium Public-Private Partnership Award
ous deficiency for the east side, urban retail development. At lunch, program chairs Cassie Stinson (Boyar Miller) and Jamie Bryant (Midway) paid tribute to Ric Campo, CEO of Camden Properties and honorary chair of the ULI urban marketplace conference.. Bobby Turner, CEO of Canyon Capital Realty Advisors was the keynote speaker presenting a humorous and inspiring philosphy of investing for profit while creating a positive social impact and “embracing “ environmental responsibility. The afternoon sessions dealt with Houston’s Neartown high growth potential, generation Y high income earners flocking to urban neighborhoods and the challenges for diversity, affordability, school quality and mobility inherent to regentrification.
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Houston Industrial Market Monitor Avison Young offers up “Houston Industrial Market Monitor” for Q1 2013. The following are excerpts from their Market Takeway article.
Economic Overview The Houston economy performed better in 2012 than previously thought. Revised data released by the Bureau of Labor Statistics reports that the metropolitan area added 118,700 jobs for the 12 months ending February 2013, a 4.5% increase in employment. Houston recorded the fastest job gains of all other major metropolitan areas during this time. The construction sector, hard-hit by the recession, recorded a 7.6% increase in employment growth, second only to the oil and gas sector that increased by 8.1% The unemployment rate fell from 6.7% in January to 6.3% in February. Population is growing at a rapid pace in Houston. The US Census Bureau reports that Houston’s population grew by 2.1% in 2012, the fastest pace among the top 20 major metro areas. The Houston metro population grew by 125,185 residents in the 12 months ending in July 2012. The Perryman Group forecasts Houston’s population to surpass 6.8 million by 2017. Many economic drivers are spurring Houston’s growth, including the energy industry and the Port of Houston. Oil field services and midstream companies remain active as the E&P industry continues to expand. The Port of Houston ranks first in the nation in terms of export tonnage, a position that will be strengthened with the expansion of the Panama Canal. Low natural gas prices have led to a manufacturing renaissance in the US, and petrochemical industry is investing $15 billion in Texas. A lack of workers to build these plants is cited as a difficulty, indicating that the construction industry is benefitting as well.
Industrial Market Overview Houston’s industrial market continues its strong performance, recording 1.2 million square feet (msf ) of positive net absorption in the first quarter. The 5-year quarterly absorption average stands at 1.5 msf, emphasizing the longevity of Houston’s healthy industrial market. Warehouse and distribution space, which makes up the bulk of Houston’s industrial inventory, unsurprisingly made up the bulk of the positive space gains as well, recording 907,890 sf of positive net absorption. Flex and general industrial space also recorded sizable gains, posting 211,544 sf and 83,907 sf of positive net absorption, respectively. The major tenants contributing to the quarterly space gains include Crane Worldwide (150,000 sf ), International Distribution Corporation (100,000 sf ), and Wayne Enterprises (85,000 sf ). The overall vacancy rate remained steady at 4.9% from the previous quarter because nearly 1.1 msf of new product was delivered to the market. Developers are struggling to keep up with the demand, and a lack of stabilized land is becoming a central issue. Because Houston does not have zoning laws, industrial developers are also competing with multifamily, retail, and office developers for prime land parcels. Available stabilized land in the desirable Northwest area
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“..2013 will likely be characterized by rising asking rates and further expansion to the north and west.”
/ May 2013
is becoming almost non-existent, causing developers to push further north and west. Overall asking rates have remained stable from the previous quarter at $5.32 per square foot, but are projected to increase throughout 2013 as demand continues to outpace supply. Currently, there is over 3 msf under construction, primarily in North and Northwest Houston. Northwest Houston has long been the warehouse and distribution hub, but industrial users are gaining interest in the area surrounding Katy. Igloo, headquartered in Katy, broke ground on its third warehouse in the area during the first quarter. The 420,000-sf building will deliver in November. Medline Industries wanted to expand into the Houston market due to the strong health care industry. After considering many Houston locations, Medline Industries chose to build its 500,000-sf distribution building in the Katy area at the West Ten Business Park. The building will deliver in July. Additionally, Weatherford International is building a 524,000-sf manufacturing facility that is expected to bring 425 jobs to the area, and DynaDrill Technologies, a subsidiary of Schlumberger, is relocating its headquarters from north Houston to the Katy area.
Industrial Outlook Leasing activity remained robust in 2012 and into the first quarter of 2013, indicating that strong absorption gains will continue throughout the year. The Houston Purchasing Managers Index (PMI) registered 64.2% for February, a sharp increase of 15% from January. Readings above 50 indicate likely increases in production volume 3 or 4 months in advance. This provides another indication that the industrial market’s demand is not likely to subside in 2013, but rather increase. The perceived notion that Houston is a city with abundant available land is fast disappearing. With vacancy tightening and demand continuing to outpace new supply, 2013 will likely be characterized by rising asking rates and further expansion to the north and west.
Largest Houston Transactions Tenant Building Square Feet Exel 8833 City Park Loop 254,765 Computer Technology Alamo Crossing Commerce 197,136 CADECO Industries Lockwood Distribution Center 154,114
Trends to Watch • Positive PMI: The PMI registered 64.2% for February, indicating likely increases in production volume 3 or 4 months in advance. • Active Markets: Northwest, West (particularly Katy), Southeast around the Port of Houston • Market Drivers: Mining and Logging, Construction, Education and Health Services
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SOUTHEAST TEXAS
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SELECTED RETAILERS OPENING 40+ U.S. LOCATIONS IN 2013
Colliers Retail offers up “Mobile Devices Grab Higher Online Market Share.” The following are excerpts from their 2013 Outlook | Retail by Ann T. Natunewics, Manager, Retail Research |USA.
Mobile devices’ impact on retail sales, which barely registered two years ago, spiked dramatically in 2012. Of the $42+ billion in online sales reported by comScore, between 20% and 25% (depending on the source) were transacted over a mobile device. Several factors are converging to aid the rapid ascent of mobile as a tool for both product research and retail transaction activity. First, increasing penetration of mobile devices has created a significantly larger market of would-be shoppers: Wireless Intelligence, the GSM Association’s research arm, estimates there are 354 million mobile devices currently in use by a U.S. subscriber base of 225 million. Second, the surge in applications software development has transformed usage patterns: Citi Research recently reported that 65% of mobile technology activity is non-communications usage. Traditional smartphones’ small screens hinder users’ ability to navigate complex websites and view products easily. Enter the “phablet”: a smartphone with a larger 5–6” screen that blends phone and tablet (and it’s a word that makes us smile every time we say it). Our periodic monitoring of retailers’ mobile interfaces and dedicated apps over the past year revealed more user-friendly platforms. Although we don’t have complete detail on how companies invested their development spend, it’s obvious that executives prioritized mobile initiatives which, for some firms, meant addressing internal confidence issues regarding actual or perceived lack of mobile technology knowledge that may have paralyzed previous decisionmaking. As a result of this collective investment, mobile remains extremely well positioned to grow both in absolute volume and as a percentage of total retail sales. By 2016, eMarketer predicts that mobile revenues could come close to quadrupling from their 2012 volumes (see chart above). Also from the same excerpt are charts regarding Selected Retailers Opening 40+ U.S. Locations in 2013 (right) and Summary Statistics and Marketing Indicators on p37.
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/ May 2013
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Over 100 attendees heard a very positive forecast for 2013, including the following “bullet” points By: Ray Hankamer, Hankamer & Associates, Broker, Houston Contributing Writer • These are boom times, hyperactive times in every segment of commercial real estate in Houston-“I have never seen it like this before in all segments at the same time.” • Low cost of living and job growth due largely to active energy sector have resulted in our city being a magnet, resulting in 125,000 population growth in last year, setting the stage for growth housing and retail industries
• Some older malls such as Sharpstown, Texas City, Pasadena, Greenspoint, and Northwest are undergoing problems and loss of anchor tenants, but other malls are doing quite well • Banks are actively seeking loans for quality projects and low interest rates are a reason to develop; equity requirements still in 25% range and loosening some, but pre-leasing at 50% is still a standard requirement
• Many national business publications have lauded Houston’s business and cultural climate in recent months
• Due to higher sales per SF, tenants are able to pay higher rents in high traffic locations
• Cost of living here 17% below national average and cost of housing 34% below
• Internet involvement by bricks and mortar retailers is essential, and retail sales via internet are about 15% of all retail, and slowly rising
• Houston has 2,672 retail centers with 164,000,000 SF of space-90% occupancy at average of $1.50 per SF rents
• Five mixed use developments are strongly under way: BLVD Place, West Ave, City Centre, The Pavilion, and Regency
• Listed retail stocks have zoomed up in the last year: Home Depot up 38%; GAP up 32%; Dillards up 28%, etc., presaging more consumer spending nationwide
• Houston is densifying and solidifying its urban core, creating need for more parks and better mobility-250 linear miles of bayou parks on five bayous are under development now, a $500 million project
• As income levels increase in Houston, more and more luxury retailers want to have representation here
• “We have got to find ways in spite of certain Congressmen [representing Houston] to make mobility work.”
• All retailers realize need to expand to grow or even maintain market share in Houston
• We need to find ways to continue to improve our education system
• 2013-2014 will be VERY active years in retail center development, and most will be pre-leased, almost none speculative, thereby maintaining current levels of occupancy and sustaining “landlord market” • Supermarket chains continue their heated competition here • Medical services such as dialysis centers, emergency room services, and MRI centers are going to where the people are, which is in retail centers
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• 2013 will see expansion of food markets, theatres, big-box retailers, and other very diverse retail projects
/ May 2013
• We are fortunate in Houston to have an environment which fosters real estate growth
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Houston Makes Top 5 as Boom Lures Foreigners: Real Estate Submitted By: Ray Hankamer, Hankamer & Associates, Broker, Houston Contributing Writer Source: Bloomberg, March 25, 2013
909-foot (277-meter) Williams Tower. The property, which is 95 percent leased and Houston’s third tallest building, is located in the Galleria district of landscaped boulevards, high-end hotels and its namesake mall, the biggest in Texas.
International real estate investors are falling in love with Houston, a fast-expanding energy hub that’s luring buyers from Toronto to Tel Aviv seeking properties with lower costs and higher returns than buildings in the priciest U.S. cities.
The 2.4 million-square-foot (223,000-square-meter) shopping center was conceived in the 1970s as the anchor of a mixed-use area, said Mark Cover, regional chief executive officer of Hines, the global developer with headquarters in Williams Tower. Barrel-vaulted glass arcades were inspired by Milan’s 19thcentury Galleria Vittorio Emanuele II, according to owner Simon Property Group Inc. (SPG)
Firms from outside the U.S. acquired $2.83 billion of Houston (OFCRAHOU) office buildings in the past three years, according to Real Capital Analytics Inc. They were the largest net buyers of any investor class, spending four times more than U.S. real estate investment trusts, which ranked second. Last year, Houston for the first time was among the top five global cities in an annual survey by the Association of Foreign Investors in Real Estate that dates back to 1994. “Houston has gained broad acceptance as a top-tier market,” said Greg Kraus, managing director at Atlanta-based Invesco Ltd. (IVZ), a global adviser for pension clients including QSuper Ltd., an Australian fund for public-service workers. “It’s reflected in job growth, more gas refineries, more oil out of the Houston port and a true international feeling.” The boom in and around the fourth-largest U.S. city stretches from downtown high-rises and boutique offices in the Galleria district to the Energy Corridor along the Katy Freeway, where Texas Lone Star symbol adorns overpasses and construction cranes swivel beside a rush of commuter traffic. Sales of offices in Houston rose 32 percent to $3.89 billion in 2012, the highest in five years. That compares with the 21 percent increase nationally, according to Real Capital, a New York-based research firm. Offices Favored Office buildings made up 45 percent of investment by non- U.S. buyers since 2007, data from Real Capital show. Foreign investors include Toronto-based H&R REIT (HR-U), which paid $442.5 million in 2011 for Hess Tower downtown, a Houston record at $524 per square foot, according to commercial broker CBRE Group Inc. (CBG) Munich-based Allianz SE last year spent almost $227 million for a 49 percent stake in four Galleria towers, and Menorah Mivtachim Holdings Ltd. and Psagot, both based in Tel Aviv, bought One City Center with Hallandale Beach, Florida- based Beacon Investment Properties LLC for $131 million, according to Real Capital. In recent deals, Invesco this month completed a $412 million purchase of the
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/ May 2013
Average rents for the most desirable offices in the Galleria district last year jumped 11 percent to a record $32.02 a square foot, CBRE said. Downtown rents for Class A space rose 3.7 percent to $39.60 a square foot, 31 cents shy of a record, as occupancy citywide advanced by 4.3 million square feet, the biggest gain since 2006. “Energy-related job growth is the main draw for overseas capital,” said Jim Fetgatter, CEO of the Washington-based foreign real estate investors association, which represents about 200 firms with headquarters outside the U.S., including sovereign funds. Houston had the nation’s fastest-growing large metropolitan economy for two straight years, with a 3.8 percent jump in gross domestic product in 2011, the latest annual period for which Labor Department data is available. Unemployment last year fell to 6 percent from 7.2 percent in 2011. Smart Money “Houston’s energy story is so compelling, and the really big, smart money knows that industries are all in this town,” Dan Fasulo, managing director at Real Capital, said in a telephone interview. “It’s cheaper than New York or San Francisco and you can get better immediate returns.“ Houston deals last year had a 7.4 percent average capitalization rate, a measure of return that falls as prices rise. That exceeded the 7.1 percent rate for all of the U.S. and 5.1 percent for transactions in New York, the most expensive domestic market, Real Capital data show. The cap rate is a property’s net operating income divided by its purchase price. Houston ranked fifth in the foreign investors association survey, after New York, London, San Francisco and Washington. Reasonable Appreciation “Houston has risen to the top of the pile as investors look for good current returns with reasonable appreciation,” said Donald Wise, CEO of Seattle-based Metzler Realty Advisors Inc., a self-described former skeptic about the city, who is now seeking property on behalf of a South Korean client. “It’s a good place for knowledge workers to live, and energy production is much broader than it
U.S. tax rules that motivated recklessness and helped create the 1980s savingsand-loan crisis no longer exist, he added. Planners and developers in the city, about 600 square miles (1,550 square kilometers) in size, are now more careful and lenders are stricter in their underwriting, said Cover of Hines.
Miners Tower Royal Dutch Shell Plc (RDSA), based in the Hague and Europe’s biggest oil company, is adding two buildings to its Energy Corridor campus, and Melbournebased BHP Billiton Ltd. (BHP), the world’s largest mining company, has plans for a 30-story Galleria tower. Signed leases in projects under development include agreements for 126,000 square feet by Modec Inc., a Tokyo-based oil-platform builder; 108,000 square feet by Chertsey, England-based Forum Energy Plc; and 150,000 square feet by Calgary, Alberta-based Talisman Energy Inc., CBRE said.
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Still, the ease of putting up new buildings, compared with cities such as Boston or San Francisco, where permits are harder to obtain, is an outsized risk, according to Cover. About 9.6 million square feet are being developed in the metropolitan area, the biggest pipeline in 30 years, with Irving, Texas-based Exxon Mobil Corp. (XOM)’s 3 million-square-foot campus, 30 miles north of downtown in the Woodlands, the largest project, CBRE said.
Houston is firmly in the low-barrier camp, Green Street Advisors Inc. said in a Feb. 7 report. With improving local fundamentals, supply is creeping back into the picture. was 30 years ago,” said Wise, whose firm is a unit of German private bank B. Metzler Seel. Sohn & Co. KGaA. Houston boomed a century ago after the 1901 Spindletop oil discovery, 70 miles (112 kilometers) east, which shifted the infant American petroleum industry westward to Texas. Today, new methods for extracting oil from rock and advances in gas production, such as hydraulic fracturing, have exploited reserves in North Dakota’s Bakken shale and elsewhere, and deepened Houston’s status as the U.S. energy capital, said Barton Smith, a retired economics professor who taught at the University of Houston for 40 years.
Green Street, a research firm based in Newport Beach, California, still counts Houston (MODCMMAP) as one of its top U.S. markets, with a labor outlook expected to be robust for at least the next few years. Marriott Hotel With commercial real estate booming, residential projects with 2,500 apartment and condominium units are planned for downtown, along with a 1,000-room hotel to be run by Marriott International Inc., said Ric Campo, CEO of Houstonbased Camden Property Trust (CPT) and chairman of Houston First Corp., which runs convention, parking and theater facilities for the city.
Output Soars U.S. oil output last year soared to 6.41 million barrels a day on average, the highest level in 15 years, as the $94-a- barrel price encouraged exports, according to Energy Department data. The 14 percent advance was the biggest annual gain since the industry began in Pennsylvania in 1859.
“We build in Houston because we need what is built,” Campo said in an interview at the George R. Brown Convention Center, which sits between the Toyota Center arena and Minute Maid Park stadium, both built since 2000 and home to professional sports teams. “Investors understand that you can get exceptional rates of return.”
The U.S. expansion is boosting traffic along the Houston Ship Channel to rising markets in Latin America, adding to freight hauled by railroads such as the Burlington Northern Santa Fe LLC unit of Warren Buffetts Berkshire Hathaway Inc. and prompting the world’s biggest oil companies to expand in Houston, Smith said.
Not far away, the boom is symbolized in a renewed stretch of Main Street, which had more police calls than any other block downtown when Hines in 2007 began the 46-story BG Group Place, the city’s biggest tower in a decade, according to Cover. The 973,000-square-foot high-rise was built on the site of a derelict hotel notorious for prostitution, he said.
“There’s so much oil and natural gas, and a good part of it will come to Houston,” Smith said in a phone interview from his Houston home.
Sovereign funds are among probable bidders for the tower, which is 97 percent leased two years after opening, Hines said. BG Group Plc (BG/), a Reading, England-based natural gas exploration company, is the largest tenant. Bloomberg News parent Bloomberg LP also rents space in the building.
The promising outlook has helped Houston overcome a history of excessive building, according to Wise. From 1980 to 1984, almost 81 million square feet of offices were added in the city, including five of the tallest towers, CBRE data show. The boom left 47 million square feet empty and a 28 percent vacancy rate by 1987. Long Memories “Institutions have long memories of volatility, and Houston was a poster child for preconceived notions established in the ‘80s,” Invescos Kraus said. “You had this boom-bust perception.”
“Occupancy is getting tighter,” Cover said from his office on the 41st floor, looking down at a formerly decrepit structure being renovated for an upscale hotel. “It’s having the desired effect. This is going to be a very good outcome.”
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11 Acres - Ideal Multi-Family Land FM 1960
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• SW Corner Walters Rd. and S. Brentchase Cr.
11 Acres KeyMap 371C
Walters
Vickston
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Road
• $2.95 PSF • High Density Utilities • 3 Frontage Streets TAO Interests, Inc. - Broker Tim Opatrny (713) 621-9841 www.taointerests.com email: tim@taointerests.com
advertiser index
A. A. Realty Company............................................8
IREM Austin.........................................................18
ACRP..................................................................27
IREM Dallas.........................................................22
ARVO Realty Advisors...........................................39
IREM Houston......................................................26
Asset Plus Corp....................................................31
IREM San Antonio................................................18
Caldwell Companies.............................................33
M Kidd Properties, Inc..........................................35
CCIM Central Texas..............................................18
Maple Development..............................................42
CCIM Dallas........................................................22
MIMCO, Inc..................................................43, 44
Cedar Hill EDC......................................................5
NAI Houston...................................................8, 35
Chasestone..........................................................15
Phase Engineering, Inc.........................................26
CHC Investments, LLC...........................................11
Roshan Towers, LLC............................................2, 3
CREAM...............................................................27
Shaw Interests......................................................33
CREN.................................................................27
TAO Interests, Inc.................................................42
CREW Dallas.......................................................22
Tarantino Properties, Inc..................................12, 13
CREW San Antonio..............................................18
Texas Funding Corporation....................................42
CTCAR................................................................18
The J. Beard Real Estate Co., L.P..............................9
First Warranty Realty.............................................29
The Vista Companies....................................1, 7, 43
Greenberg & Co..................................................15
WiredZone Property, LP.........................................29
Hankamer Commercial Brokers, LLC.......................37
Zarsky Industries...................................................35
International Church Realty....................................37 42 /
/ May 2013
Booth S300N
Booth C2016
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