THE TEXAS COMMERCIAL REAL ESTATE NEWS SOURCE | JULY AUGUST 2022
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Features
Ripe for Relocation: Major corporations target Texas Now home to 53 Fortune 500 corporate headquarters, Texas can boast more than any other state in the U.S.
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“Strong and Vibrant”: All property types in Texas appeal to investors After two fed rate hikes in as many months, it’s worth checking in on capital markets in Texas. What was predicted to create both short- and long-term headwinds for investors doesn’t seem to be slowing down deals here.
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Buyers should know EV charging capabilities before they buy! The adoption of electric vehicles is starting to gain traction, and it will change the way apartment buyers conduct due diligence and underwrite multi-family acquisitions.
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What to watch in the Texas multifamily sector Uncertainty be damned. The multifamily market in a number of Texas cities continues to be strong – even “white hot,” depending on whom you ask.
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REDnews The Woodlands/North Houston CRE Forecast A recap of the event. Scoop
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Ripe for Relocation: Major corporations target Texas BY BRANDI SMITH
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Now home to 53 Fortune 500 corporate headquarters, Texas can boast more than any other state in the U.S. (New York has 51 and California has 50.) The list, which includes giants such as Exxon Mobil, AT&T, Valero Energy, American Airlines and USAA, just got longer. The Lone Star State will soon add a 54th: Caterpillar, which announced in June that it too plans to move its headquarters to Irving, Texas from Deerfield, Illinois. “We believe it’s in the best strategic interest of the company to make this move, which supports Caterpillar’s strategy for profitable growth as we help our customers build a better, more sustainable world,” Chairman and CEO Jim Umpleby said in a statement announcing the move. Caterpillar, the world’s leading manufacturer of construction and mining equipment, boasted sales and revenues of $51 billion in 2021. "Caterpillar's global headquarters relocation is a major win for the people of North Texas and the entire state,” Governor Greg Abbott said in a statement. “I am proud to welcome Caterpillar's headquarters to Texas and am excited for the economic opportunities this will create for Texans.” The company says it will begin transitioning its headquarters this year. “Caterpillar's relocation to Irving is a testament to the boundless opportunity Texas has to offer, and I look forward to working alongside this global leader as we keep the American Dream a reality for every Texan,” said Abbott. Since the governor took office in 2015, Texas has attracted 250 new corporate headquarters and in 2021, a new company relocated to Texas an average of every six days.
“Businesses of all sizes and people from all backgrounds can grow and succeed in the Lone Star State because we champion a world-class economic environment fueled by the lowest business operating costs in the nation, a reasonable regulatory environment, and a lower cost of living coupled with an exceptional quality of life,” Abbott elaborated. Even companies that aren’t technically headquartered in Texas see the value of a move here, as evidenced by Chevron’s announcement that it will pay its employees to move to Houston. "The current real estate market provides the opportunity to right-size our office space to meet the requirements of our headquarters-based employee population," Chevron said in a statement. "The move is expected to occur during the third quarter of 2023. Chevron will remain headquartered in California, where the company has a 140-year history and operations and partnerships throughout the state." That effort is a testament to the region’s position as the premier hub for energy talent, said Susan Davenport, Chief Economic Development Officer of the Greater Houston Partnership.
“The announcement builds on the company’s on-going expansion in Houston, giving the company access to the region’s thriving innovation sector and an ecosystem focused on scaling low-carbon energy solutions to lead the global energy transition,” she added. Further evidence of that can be found in Exxon Mobil’s announcement of plans to move its corporate headquarters from North Texas to the Houston area. “We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” said Darren Woods, the company’s chairman and chief executive officer. “Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position ExxonMobil for success through the energy transition.” That’s proof that not only does Texas’ affordability and business-friendly approach lure new corporations to the state, it also helps retain them, creating and maintaining jobs in the Lone Star State.
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“Strong and Vibrant”: All property types in Texas appeal to investors BY BRANDI SMITH
“The number of 2021 sales for office, industrial, apartment, and hotel were almost 40 percent higher than in 2019, pre-pandemic.”
Walter Bialas
Dustin Gabriel
After two fed rate hikes in as many months, it’s worth checking in on capital markets in Texas. What was predicted to create both short- and long-term headwinds for investors doesn’t seem to be slowing down deals here.
of origination of Petros PACE Finance, which is based in Dallas. “Our cost of capital is significantly less than alternatives and our rate is fixed for long term.”
“We’ve been able to help keep deals moving along with the rising construction costs and interest rates,” says Dustin Gabriel, vice president
That’s important as demand for investment in all property types grows.
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“The four main Texas markets (Dallas - Fort Worth, Houston, Austin, and San Antonio) have been strong and vibrant, across all the main property types,” says Walter Bialas, senior insight analyst for research at Avison Young. He explains that after an investment pause in 2020, commercial real estate roared back to life in 2021. “To illustrate the volume of business, the number of 2021 sales for office, industrial, apartment, and hotel were almost 40 percent higher than in 2019, pre-pandemic,” Bialas points out. “This same momentum continues to influence 2022, with first quarter sales suggesting that it will be another record year at a pace fully 10 percent above the number of transactions in 2021.” The hottest sectors, based on the sheer increase in transactions, include hotels and apartments, according to Bialas. He says the ongoing return to office is important for the long-term viability of the product, especially as tenants work to find a balance with the very new hybrid work model. Bialas is also watching the high level of industrial construction driven by ecommerce initiatives.
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Gabriel calls multifamily and industrial “the darlings at the ball right now.” But he’s quick to add that there are markets in Texas where retail, office and hospitality are thriving as well. That provides a lot of options for investors interested in the Lone Star State. “We are a national lender headquartered here in Texas and are still seeing many out of state players lending, investing and sponsoring deals in our great State,” says Gabriel.
That would make sense to Bialas, who says that above all, investors are looking for a good growth story that is sustainable. “The Texas markets have seen an above-average rebound from the pandemic downturn in terms of jobs – better than most places in the U.S.,” he says. ”Additionally, investors are looking for pricing that is competitive when compared to other U.S. markets, and consistent growth in demographics, rising rents, and good product that is available for investment, be it trophy or Class A assets or lesser quality assets that can be repositioned.” Firms such as Petros hope to capitalize on that by helping to solve the gap financing problem for sponsors, while adding more juice to their returns, Gabriel says. “I’m mostly focused on the development side and seeing construction lenders pull their basis back some leaving a larger gap in the sponsor’s capital structure,” he explains. “The cost of our capital is essentially half the cost of mezz and pref equity.” Gabriel says he’s open to discussing deals with sponsors, brokers, consultants and bankers. Those interested can contact him by calling 817-602-1133 or emailing dustin@petrospartners.com.
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Buyers should know EV charging capabilities before they buy! BY DAVID AARONSON The adoption of electric vehicles is starting to gain traction, and it will change the way apartment buyers conduct due diligence and underwrite multi-family acquisitions. Over the past 10 years, annual sales of plug-in electric vehicles in California have gone from just 7,000 in 2011 to more than a quarter of a million sold in 2021, making up more than 12% of all light-duty vehicle sales last year. California leads the nation in all other zeroemission vehicle metrics — about 1 million of the 26 million cars currently on California roads are zero-emission. Furthermore, California wants electric vehicle sales to triple in the next four years to 35% of all new car purchases, an aggressive target set as part of the goal to phase out the sale of gaspowered cars by the middle of next decade. Bolstering a critical component of California’s climate action, the governor has advanced bold investments and policies to move forward on the state’s ZEV goals, including the California Blueprint’s proposed $6.1 billion in additional funding to create a $10 billion total ZEV package. The historic investment will help make ZEVs more affordable and convenient for all Californians.
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The hoped-for boost in electric vehicle sales will also require a major increase in charging stations. California has set a goal of 250,000 charging stations by 2025, and right now there are fewer than 80,000 stations in public spaces or in parking lots at office buildings, apartment buildings and other shared spaces.
the spare electrical capacity in their infrastructure to provide electricity to this number of charging stations. Third, charging stations generate revenue. Putting them on a multi-family property is no different that have a “gas station” on the property. Property owners can benefit by reselling electricity to users of the charging stations by charging them more than their cost of electricity. The average cost of electricity in California is $.20 per kilowatt hour. The market for EV drivers using EV charging stations is to pay $0.49–0.59 per kilowatt hour, so there is an excellent spread between the sales price and the cost.
So, the question is, how will this affect the multi-family industry? First off, all multi-family properties will need to host EV charging stations to stay competitive. The EV owner/driver will seek out residences where they can refuel their vehicles at home, where it is most convenient. Secondly, 99% of the existing multi-family properties never contemplated having to provide electricity to charge electric vehicles, and do not have enough spare electric capacity to host enough charging stations to meet the future demand. One 300-unit property may have 400 parking spaces. With a projected adoption of 15% of the multi-family residents driving electric vehicles, it will mean that there are 60 electric vehicles on site that will want and need to be refueled on a regular basis. It is not a matter of if this will happen, it is a matter of when. Whether its 2025, 2030, or later, it will happen. And that’s just at a 15% adoption rate. If only electric vehicles are going to be sold after 2030 or 2035, the adoption rate will be faster. Sixty vehicles will require 6–10 charging stations, and most existing multi-family properties do not have
As a buyer of an apartment complex, it will be just as important to know the property’s electrical capabilities to host EV charging stations as part of the due diligence process. Since most existing multi-family properties do not have enough electrical capacity to host enough charging stations to meet future demand, it is important knowledge to have. The due diligence report should provide information about what the property’s current electrical capabilities are to host EV charging stations, how many can be hosted with the current electrical infrastructure, and how much it will cost to provide the electricity to the charging stations. It should also address if there are any grants or incentives being offered to help defray the costs of the electrical upgrade and equipment. In some cases, the property will have no capacity to host a charging station and it can be quite costly to get additional electricity to host EV charging stations. This is information is critical to understand as a multi-family property is not only underwritten but moves through the due diligence process.
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“As a buyer of an apartment complex, it will be just as important to know the property’s electrical capabilities to host EV charging stations as part of the due diligence process.” As the EV charging industry is in its infancy, there are very few companies that offer due diligence reports. Most manufactures have relationships with electricians that will go to the property, review the electrical infrastructure’s capabilities, and report back. However, manufacturers are in the business of selling charging stations and more importantly, network fees, which provide a steady flow of revenue for their company. Real estate due diligence firms do not provide this service yet. The challenge is finding a firm that is knowledgeable in all facets of the EV charging business as well as the multi-family industry. The best time to allocate capital for improvements is at the time of acquisition. Fortunately, the charging stations will generate an excellent revenue stream and will provide an accretive return to the buyer.
About the Author David Aaronson is the Founder and CEO of ReFuel Electric Vehicle Solutions, LLC (REVS) a full-service electric vehicle charging services firm that specializes in working with Owners of commercial real estate who want and need to deploy EV charging stations. REVS is unique, inasmuch as the principals have over 80 years of commercial real estate experience in arranging David Aaronson capital, developing, acquiring, and managing multi-family projects across the U.S. REVS offers a complete solution from providing due diligence reports on a property’s existing electrical infrastructure, to filing for available grants and incentives, to installing, and managing and reporting as needed once the station is deployed. Providing EV charging stations for resident and tenant use will generate a new revenue stream for the owner of the property. For further information, please go to www.refuelevs.com.
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What to watch in the Texas multifamily sector BY BRANDI SMITH “Texas is a great market for merchant building due to the availability of cheap land and pro-development cities. This cuts down delays compared to other markets,” said Avasarala. “Labor is more easily available and costs less compared to several other markets outside Texas.”
Uncertainty be damned. The multifamily market in a number of Texas cities continues to be strong – even “white hot,” depending on whom you ask. “Dallas multifamily vacancies sit at roughly 5 percent with rents roughly 15 percent over pre-pandemic levels,” rental housing experts at Greystar told REDnews. “Dallas has also had considerable amounts of pipeline delivery, which have been absorbed at record levels during the past few quarters at over 25+ units per month despite rising rents.” Austin, too, boasts one of the strongest multifamily markets in the state. “It’s important to understand the supply/demand fundamentals,” said Marcy Phillips, vice president of real estate development for Ryan Companies. “Sometimes, there can be booms in other primary Texas markets. Austin has weathered this well and it appears there is a long runway as the MSA continues to grow.” There’s no shortage of incentive to build here, according to Venkat Avasarala, founder of Stryker Properties.
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Still, there are a number of related factors that multifamily experts are watching closely that may determine whether this demand continues: demand, affordability, interest rates, the rise of buildto-rent and importance of submarkets.
DEMAND It’s tough to bet against multifamily in a market such as Dallas, which added nearly 295,000 jobs in the past year. “That’s three times the typical annual gains we saw before the pandemic,” shared Carl Pankratz, president and managing director of Blackacre Commercial. “DFW alone saw a gain of 73,800 in professional and business service jobs.” “People want to live in Austin. They want to live in the CBD, close to work, close to areas of entertainment,” Phillips said. “The data shows that people want to live in newer, well located communities. Some of this is due to inmigration.” AFFORDABILITY A constant concern in the multifamily sector, worries about affordability are especially acute amid record inflation. “With the substantial increase in gas prices and virtually every consumer good, how much rent can a tenant afford?” questioned Pankratz. “At some point, you reach a cap and excessive rent growth will be curtailed.” “In periods of significant rent growth, we always like to keep an eye on how wages are keeping pace to make sure affordability metrics stay healthy,” the Greystar team said. “Resident wage growth in Dallas has been greater than 8% year over year with rent to income ratios completely flat relative to prepandemic levels. While rents have moved up significantly, resident wages have continued to keep pace.”
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“Expenses are seeing robust gains in virtually every category.” Venkat Avasarala
Carl Pankratz
Marcy Phillips
INTEREST RATES
WHAT TO WATCH
The affordability of a rental unit is relative to that of a mortgage. Interest rates, Pankratz argued, are important for apartment tenants and homebuyers. With interest rates at 6 percent, he pointed out the monthly payment for the typical 30-year mortgage is much higher.
Looking ahead, Avasarala called rapidly growing property taxes the No. 1 risk to Texas multifamily development.
“A big piece of current apartment demand is fueled by how difficult it is to buy a home,” said Pankratz. “Prices are at record levels and the typical potential buyer doesn’t have the ability to save over $50,000 for a down payment.” That change could affect different classes of the product in different ways, explained Avasarala. He expects Class A demand to be strong in coming years, buoyed by those high mortgage rates causing more people to rent. “These tenants are not rent burdened and can somewhat easily absorb the growing rents,” Avasarala said. “Coming to Class B &C tenants, I am worried about their continued ability to pay rent dealing with high inflationary conditions and if the recession were to occur, these are the tenants who will be most affected.”
“There is no political will to curtail these debilitating tax hikes every year,” he said, adding that increasing property insurance premiums and deductibles also pose a threat. “Expenses are seeing robust gains in virtually every category,” echoed Pankratz. “Also, in order to purchase an apartment community over $20mm, you likely had to use bridge debt. The increase in SOFR/LIBOR has been 100bps in several cases, also squeezing potential gains.” “Still,” Pankratz said in summary, “there’s no other national market I’d rather be in.”
Phillips added it’s clear that interest rates are impacting multifamily investments. “Combined with continued high construction costs, deals are becoming thinner and underwriting is getting much tighter,” she said. “A rebalance is necessary, however, as it’s important to bring supply back to normal levels.” BUILD-TO-RENT BOOM
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Supply is coming, but not necessarily in the traditional multifamily product. Build-to-rent properties are delivering quickly and with considerable measure. Avasarala said he’s keeping an eye on its long-term viability. IMPORTANCE OF SUBMARKETS The evolution and growth of submarkets is of particular interest to Pankratz. He suggested that Fort Worth is seeing substantial increases in value, with an uptick of institutional investors who previously viewed it as too small of a market. Sherman, he said, is becoming the semiconductor capital of the U.S. with new projects announced daily. “This all adds to a market seeing healthy rent growth and high demand,” said Pankratz. San Antonio, though not a submarket, rarely gets the attention of markets like Dallas and Austin. Still, Greystar says it has also had “impressive occupancy levels, record move-ins and rent growth.”
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REDnews The Woodlands/North Houston CRE Forecast BY RAY HANKAMER Office-State of the Market Moderator: Gil Staley-Woodlands Area Economic Development Partnership Panelists: Rob Banzhaf-Newcor Commercial Real Estate; James E. Robertson, Jr.- JLL; Jim Carman-The Howard Hughes Corporation Takeaway: On paper our market shows a low vacancy rate, but a significant amount of leased space is unoccupied and on the market available for sublease. Returning to solid actual high occupancy may be a ‘long road’, since most tenants are downsizing when leases come up for renewal. Long-term the unique attractiveness of The Woodlands should work in favor of office leasing.
Left to right: Paul Layne Paul Layne & Associates David Aaronson ReFuel EV Solutions Kevin Kirton Buckhead Investment Partners Inc Crystal Bledsoe The Woodlands Development Company Ken Mendez Sommerlane
Bullets: • Current 17% vacancy rates disguise somewhat the truth: much leased space is on the market for sub-lease
Ray Hankamer
• The Woodlands is historically a small tenant market: 4-12,000 SF
• There are rumors that ExxonMobil may sell or lease part of their campus, due to large amounts of excess space • Existing landlords believe in The Woodlands and are largely holding firm on rental rates while adding amenities to their buildings and offering concessions to prospective tenants; with a little more occupancy, rental rates should firm up • There is a flight to quality in the North market and anything below Class A will be slower to fill up • Hines & Skansa built state of the art high rise office buildings in Houston’s CBD and they have shown incredibly strong leasing strength, even in this weak current market • Tenants will pay a premium for ‘the best’; most activity now in North markets is in the 5-15,000 SF range; there are no ‘big whale’ tenants out there at present, but efforts are being made to attract them • Companies seem to be ‘reaching agreement’ with the employee base for three days in the office and work from home for two; employees have the upper hand in these discussions • Many workers must commute from outside The Woodlands to work there, and their needs must be taken into consideration; employees in general are looking to ‘trade up’ in their jobs • As a result of being absent during the pandemic, many employees have chosen to become entrepreneurial and start their own businesses • Many landlords are building out move-in ready suites in the 2,500-3,500 SF range and they are attracting tenants who don’t have time to wait for a prolonged custom build-out; open concept ‘incubator space’ is attractive to start-ups • Some North Houston office buildings are available for purchase ‘off-market’; conditions will be painful for landlords for another couple of years • Healthcare/life science tenants are a rising source of occupancy Industrial News Moderator: Laura Lea Palmer-Conroe Economic Development Partnership Panelists: Charlie Meyer-Lovett Commercial; Tommy Erwin-Moody Rambin; Reed Vestal- Junction
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Takeaway: 2021 was a record year for development and leasing and 2022 is off to an equally strong start, albeit with more competitors and higher prices for land and construction materials, and the challenges which that creates. Bullets: • Distribution space demand remains strong, but manufacturing demand is increasing with the trend to on-shoring • Relationships are key to industrial developers in building and leasing • As interest rates increase, investor interest is slowing a bit, but lease rates are rising for tenants; investor groups are pushing to get deals done before interest rates rise any more • Houston area industrial rental rates are finally starting to catch up with the rest of the country, but tenant activity has not slowed down • Out of uncertainty for the future, developers are pre-ordering and storing scarce building materials, thus exacerbating the scarcity; this includes roofing materials, steel, and other items; offshore manufacturing interruptions and trans-ocean supply chain issues add to developers’ anxieties • The world’s “just in time” logistics practices have failed, and to improve the supply chain in the future more back-up inventories will need to be stored, thus adding to the demand for warehouse space for its storage • Labor shortages in the trucking industry affect warehouse tenants and developers as well • Amazon is slowing down and may have over-built warehouse space in some areas-their build to suit space is hard for others to take over • Not just Amazon but Home Depot, Costco, Macy’s, Walmart, and others have experienced big growth in home delivery, and they need distribution centers close to customers as well
• Importing companies need big storage capacity near the Port as goods come off the ship-not just consumer goods but basic materials as well
retailers adjust their offerings and levels of service, and these retailers are using brick and mortar locations as fulfillment centers in some cases.
• No one is building metal buildings now but demand is increasing for them as more manufacturing returns to US; small to medium size buildings are in high demand now
Bullets: • Hiring and retention of staff remains a challenge for tenants and landlords, since retail employees do not have the option of working from home and many must commute considerable distances to their jobs
• As Houston’s population balloons more distribution space is needed to serve new residents • Conroe is emerging as an attractive development hub for industrial-it is just over two hours drive to Dallas, Austin, San Antonio, and close to Houston and its port; the City is very growth-oriented • There is no industrial development allowed in The Woodlands proper • The Grand Parkway is emerging as a travel corridor serving the North market from the Port The New Multi-family and the Build to Rent Trend Moderator: Ken MendezSomerlanne Panelists: Crystal Bledsoe- The Howard Hughes Corporation; David Aronson-REFuel EV Services, LLC; Kevin Kirton-Buckhead Investment Partners, Inc.; Paul Layne, Paul Layne & Associates Takeaway: “M-F is the best sector in Houston right now with rising single family home prices and rising rents for landlords.” Landlords are forever adding new and exotic amenities to attract and hold tenants, and are starting in some cases to charge add-on fees for some of them. Bullets: • Master-planned communities are always a strong draw for homeowners and the genius of George Mitchell, founder of The Woodlands, is proving that • People can cut back on office space but they always need a place to live; the apartment owning community of Houston is in a ‘sweet spot’
• Stores have shortened hours in many cases to accommodate the shortage of employees • There is a big and confusing wage discrepancy: for example shopping cart wranglers at grocery stores can make $18 and hour and sandwich assemblers at Potbelly make $8 • Lease space build-out for soft good retailers and for restaurants has become very problematic with supply chain issues for some materials, thus pushing way back the wait for landlords to be able to begin collecting rents • Higher tier restaurant operators are coming to The Woodlands now • Green space is important now to retail operators, as is providing end cap drive through availability to restaurant operators • Malls are adding experiential attractions to lure and to entertain shoppers • Some restaurant tenants are getting smaller and more specialized with limited but tasty menus • Retail tenants are ‘listening more’ to their customers and are not forcing a ‘one size fits all’ scheme on them • Flexibility in stock and attentive and service-oriented clerks are important factors in winning the trust of customers and retaining them • E-commerce is how helping the bottom line of brick and mortar retail locations
• Houston is growing and continues to be the leading drop off town for UHaul trailers; new arrivals generally rent first while house-hunting; some wind up staying in apartments
• Many brand-oriented shoppers order online, and then go to the store for in-person inspection and try-on; this drives traffic to the store and the mall; some products much be touched and felt by the customer
• Rising home construction costs and rising interest rates hurt home sales and help M-F occupancy
• Amazon ‘woke up’ retailers and forced them to adapt and improve their business models
• The tiny one BR home build to rent concept is gaining traction now helped by hedge fund money, but long-term we might just be creating slums with no sense of neighborhood, i.e. too many homes being built and too close together; current developers intend to lease up and flip projects
• People are going out to eat in North Houston now, unlike some parts of the country which are just now relaxing from the pandemic
• Tenants want walkable amenities, whether ageing baby boomers or young Millennials • Suppling charging stations for electric vehicles will be a big thing for future MF landlords, since every tenant will want to charge while they sleep; supplying these stations will be expensive for landlords but will represent a profit center for them • New amenities include dog grooming spas, dog walkers, on-site housekeepers for hire, and much more • There is an increasing demand for high-rise luxury living at The Woodlands • Economic conditions are helping grow the topline for landlords but now it may be time for them to focus on trimming operating costs to further help the bottom line Retail Past and Future Moderator: Tracey Prieto-Wells Fargo Panelists: Jenny Taylor-Market Square/Trademark Property Company; Ted Harris-The Woodlands Mall/ Brookfield Properties; Daniel Goodwin-Provident Wealth Advisors Takeaway: There has been brisk activity in retail these last two years as weak tenants were eliminated and remaining tenants refocused on offering more experiential satisfaction to customers visiting their stores. The restaurant mix in retail continues to increase, adding to the buzz of going shopping. Amazon has helped brick and mortar
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BACREN July 16th 2022 meeting attendees
2 BOMA Greater Dallas at Birdlewood Golf Club May 24 2022 Trophies
3 Best of luck to Parkway Houston and Post Oak Central team as they compete in Intl #TOBYAwards later this month in Nashville!
Dave Knobler was Promoted to Senior Vice President Investments, Marcus & Millichap’s National SelfStorage Group. Congratulations to Dave on this tremendous accomplishment. He is based out of Houston, TX and is Senior Vice President Investments and Director of Marcus & Millichap’s National Self-Storage Group. Dave has closed over $1 billion worth of real estate transactions primarily consisting of self-storage properties. Having a passion for brokerage, surrounding himself with a fantastic team at Marcus & Millichap, and implementing a creative marketing approach have been the foundation of Dave’s ability to help his clients achieve their goals. Dave is consistently among the firm’s industry leading NSSG agents nationwide and has received sales recognition awards 8 straight years including the Marcus & Millichap National Achievement Award in 2016, 2018, 2019, 2020 and 2021. He has been the top ranked agent in the Houston office for 4 straight years since 2018. Other awards earned for the Marcus & Millichap Houston Office have included securing the largest Marcus & Millichap Capital Corp loan referral in 2012, winning the Breakout Award in 2014. Dave has a Bachelor’s of Science in Speech from the University of Texas at Austin. “I feel the most important lesson I learned from my Speech degree was that communication is listener based so regardless of how articulate your delivery is, if the person/group you are attempting to communicate with doesn’t properly understand your message then you haven’t effectively communicated”. Before immersing himself into the world of commercial real estate brokerage Dave had a lengthy career as an award-winning television sportscaster.
4 Stephanie Majercik IREM Houston - Sr Mgr Brand Content Mktg presented tips & tricks to put best IREM foot forward at May 27th Chapter Leadership Retreat.
5 BOMA San Antonio June 1, 2022. 6 CCIM Central Texas Chapter - Real Estate Summit May 12, 2022.
JULY AUGUST 2022
17
CRE MARKETPLACE ARCHITECTS/DESIGN-BUILD FIRMS
KDS de stijl interiors 2006 E Cesar Chavez St. Austin, TX 78702 P: 512.457.1332 Website: kdsaustin.com Key Contacts: Jill Laverentz, Principal, jill@kdsaustin.com; Clark Kampfe, Principal, clark@kdsaustin.com Services Provided: Programming & Client Process Analysis – Due Diligence & Building Analysis – Schematic Design – Test Fit & Pricing Notes – Project Scheduling Goals – Consultant Team Formation – Cost Analysis & Value Engineering – Design Development – Construction Documentation – Racking, Commodity, & Equipment Coordination – Permit Processing – Project Management – Construction Administration – Project Budgeting & Cost Tracking – As-Built Documents Company Profile: KDS is a full-service commercial design firm with 30+ years of experience including 25,000,000+ SF of Industrial/Flex and 3,000,000+ SF of Office Projects. We are committed to responsiveness and to providing well designed and implemented solutions. Our extensive knowledge base and adept management of critical milestones creates consistently successful projects. Notable/Recent Projects: American Canning – Austin, TX – 101,000 SF – Manufacturing & Distribution FlightSafety International – TX & OK – 186,000 SF Combined – Manufacturing GT Distributors – Pflugerville, TX – 58,000 SF – Retail, Office, Fabrication, Storage & Distribution
BROKERAGE FIRMS
CMI BROKERAGE 820 Gessner, Suite 1525 Houston, TX 77024 P: 713.961.4666 Website: cmirealestate.com Key Contacts: Trent Vacek, tvacek@cmirealestate.com; James Sinclair, jsinclair@cmirealestate.com Services Provided: Central Management, Inc. is a full-service commercial real estate firm providing Brokerage Services; Property, Facility, Construction and Asset Management Services; Landlord and Tenant Representation; Land Sales; Receivership and Real Estate Recovery. Services are available for Industrial, Land, Multifamily, MOB, Office and Retail. Licensed in Oklahoma and Texas. Company Profile: Central Management, Inc. (CMI) was founded by Houston real estate professional Vic Vacek in 1978. Our team understands the intricacies of the markets that offer investors an edge both from a leasing and an asset management perspective. Certified AMO® 1984, IREM, CPM, CCIM, NAR, HAR, NALP, ICSC, and TREC. Notable Transactions/Clients: Armada Big Springs Ptnrs, Barbour Invts., Baytown ISD, Core Real Estate, Hoffpauir Estate, JLC Properties, KBR, Prudential, Rawson Blum & Leon, Subway, Texas Hearing Institute, Triple Crown Invts., US Oncology, Vigavi Realty, Walgreens. FRANKEL DEVELOPMENT GROUP 5311 Kirby Drive, Suite 104 Houston, TX 77005 P: 713.661.0440 Website: Under Construction Key Contact: Bruce W. Frankel, President, BFrankel@frankeldev.com Services Provided: Frankel Development Group offers over 34 years of experience and expertise in the retail real estate business. Services include tenant representation, shopping center/project leasing, investment sales, land sales, and development services. Company Profile: Headquartered in Houston, Frankel Development Group provides comprehensive brokerage services for its clients throughout Texas with an emphasis on the Houston MSA. The company represents over 25 "best-in-class" retailers and restaurants, 15 property owners, and possesses a skillset and depth of experience unmatched in the marketplace. Notable Clients/Transactions: Notable retailers include Orangetheory Fitness, Burkes Outlet Stores, UBREAKIFIX, Escalante's Fine Tex-Mex & Tequila, Three Dog Bakery, BWW GO!, MyFitnessStore.com, The Joint, Modern Acupuncture, Fred Astaire Dance Studios, and WaveMax Laundry.
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FRIEDMAN REAL ESTATE 10500 Northwest Fwy Suite 220 Houston, Texas 77092 P: 888.848.1671 Website: friedmanrealestate.com Key Contacts: David B. Friedman, President/CEO; Gary Goodman, Sr. Managing Director-Brokerage Services Services Provided: Friedman offers a full range of real estate services including commercial and multifamily property and asset management, tenant and landlord representation, investment and loan sale advisory, space planning, design and construction and a unique platform of lender focused bankruptcy, receivership and distressed asset services. All services are provided in-house, though a single point of contact, guaranteeing that clients receive the most timely and efficient service available in the marketplace. Company Profile: Founded in 1987, Friedman Real Estate is one of the largest privately held commercial real estate organizations in the nation; currently managing over 15M SF of commercial space and more than 13,000 apartment homes throughout the U.S. The brokerage team has over 800 current listings with $20 billion in closed transactions. As owners and managers of commercial property for over 30 years, Friedman understands what it takes to achieve results that maximize objectives. Notable Transactions/Clients: Alorica, Houston TX One Cornerstone Plaza, Houston, TX Midway Mall, Sherman, TX Community National Bank HQ, Midland, TX Reflection Bay Office Center, Pearland, TX Walgreens, Beverly Hills, TX Dave’s Hot Chicken, Houston TX Stone Canyon Medical Plaza, Temple, TX STRONGTOWER COMMERCIAL GROUP 11015 Northpointe Blvd Ste. B Tomball, TX 77375 P1: 281.733.4077 | P2: 281.229.2148 Website: strongtowercommercial.com Key Contacts: Dawn Brewer, CCIM, Principal, dawn@strongtowercommercial.com; Terrionee Garrett-Solomon, Broker Associate, terrionee@strongtowercommercial.com Services Provided: Strongtower Commercial is a Full-Service Commercial Brokerage that provides multi-disciplinary expertise and the highest level of service that todays educated and sophisticated client’s demand. Whether representing Owners, Buyers, Tenants, Landlords, or Sellers, our services span to all facets of the Real Estate Industry – this includes Office, Industrial, Retail, Investment, Medical, Multi-Family and Land. Company Profile: Strongtower Commercial is an ever-evolving Real Estate Brokerage operating in the Greater Houston & Dallas Area. Our goal is to maximize value for each of our clients by utilizing our expertise to guide them through any situation that may arise during a transaction. Our Professional Advisors come from all facets of the Real Estate Industry bringing with them the knowledge and experience required in today’s fast-moving market. Our decades of experience and proven dedication to success afford our clients the luxury of always knowing where to turn. Notable Clients: Notable Clients include: State Farm, Amegy Bank, Cina Pharmaceuticals, Urban Social, Market Street, Trendy Looks, B's Girls Foundation, Gill Aviation, Mr. Shine Powerwash, R4 Specialties, 7 Bridges Capital LLC.
CONSTRUCTION COMPANES/GENERAL CONTRACTORS
ALSTON CONSTRUCTION COMPANY 1300 W Sam Houston Pkwy S, Suite 225 Houston, TX 77042 P: 713.904.2899 10440 North Central Expressway, Suite 720 Dallas, TX 75231 P: 214.363.0551 Website: alstonco.com Key Contact: (Houston) Nick Dwyer, Director of Business Development, ndwyer@alstonco.com (Dallas) Brittany Schneider, Director of Business Development, bschneider@alstonco.com Services Provided: Alston offers a diverse background of design-build experience, general contracting and construction management of industrial, commercial, healthcare, retail, and municipal projects. Company Profile: Alston Construction is celebrating 35 years of excellence in 2021, and we believe our success comes from being a true partner. With 21 offices nationwide, we have market knowledge throughout the country, which provides clients with the best building methods and materials available. Our goal is to provide quality, cost efficient projects that leave a positive experience for our clients and their communities. Notable/Recent Projects: Park 249 - 817,920 square feet LEED tilt-wall warehouse facility park including interior finishes for Amazon in Houston, TX; McKinney National Business Park – 150,000 square feet warehouse/distribution tilt-wall facilities in McKinney, TX; Restaurant Depot – 59,565 square feet pre-engineered metal retail building with cold storage in Pasadena, TX; Valley View Lane Warehouse – 160,000 square feet warehouse/distribution facility in Farmers Branch, TX
NATIONAL ENVIRONMENTAL ENV ENVI RON RONM SERVICES Houston, TTexas • RRedlands, Hou dland California
A 360° APPROACH TO E N V I R O N M E N TA L SERVICES National Environmental Services, with offices in Houston, Texas and Redlands, California, is an environmental consulting company, established in 1995, that conducts a full range of reliable and cost-effective environmental assessment and corrective services, with competitive pricing and convenient turnaround.
• Phase I Environmental Site Assessments (AAIs-ASTM E 1527-13)
• RSRAs (Records Search with Risk Assessments)
•Transaction Screens (ASTM E 1528-06) • Phase II Subsurface Investigations* •Asbestos & Lead-Based Paint Inspections (Licensed Texas Asbestos Consulting Agency)
• Remediation and Corrective Activities* • Soil,Water, and Air Testing Services
• Indoor Air Quality/Mold Surveys (Licensed Mold Consulting Agency) • Underground Ground Storage Tank Testing Services* * Performed in Texas in partnership with Terrain Solutions, Inc., Texas Geoscience Firm Registration # 50018
National Environmental Services 5773 Woodway Dr, Suite 96, Houston, TX 77057: Phone (281) 888-5266 700 East Redlands Blvd, Suite U618, Redlands, CA 92373: Phone (951) 545-0250 Toll Free: (833) 4-Phase1 www.nationalenv.com • www.gabrielenv.com
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Houston, Texas
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REAL ESTATE summit
november 1, 2022 Maggiano’s Little Italy
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