REDnews May 2022 Magazine by RE Journals

THE TEXAS COMMERCIAL REAL ESTATE NEWS SOURCE | MAY 2022

McALLEN

SHINES BRIGHT AS EPICENTER OF THE RIO GRANDE VALLEY

Scan to Begin: Visit McAllen and discover how this international trade, medical and retail epicenter can help you meet the moment. FOR MORE INFORMATION: SEE PAGE 20

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Features

Abel at The Allen: Abel Design Group tapped for Houston luxury mixed-use tower When it’s complete, The Allen promises to be one of the most prestigious developments in Houston.

Doing Retail Right: Dallas mall makeover focuses on community-requested amenities Across the state of Texas, a revolution is underway. The traditional malls that Gen X and older millennials spent their teenage years wandering are transforming

Dealin’ in Dallas: Near ‘white hot’ market fueled by capital, retail expansion In retail, few things are constant, but one thing Texas CRE professionals can always count on is that more rooftops generate more retail demand.

Texas Retail Enjoying Resurgent Demand in Recovery The "Texas Miracle" that defined the economic prosperity of the Lone Star State has cut a wide swath across all asset types.

The Spirit of the Modern West Is Central to Fort Worth’s National Historic Stockyards District’s $500 Million Redevelopment

One retail sector that’s thriving today? The ghost kitchen and the ghost franchise Ordering food from a delivery app? The odds are it might come from a ghost kitchen. Retail Envy: Houston leads country in retail absorption Houston’s retail market is the envy of the country as demand continues to rise.

30 37 38

REDNews Capital Markets Summary-2022

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Abel at The Allen: Abel Design Group tapped for Houston luxury mixed-use tower BY BRANDI SMITH

Left: RESIDENCES AT THE ALLEN Hospitality Living Dining. Right: RESIDENCES AT THE ALLEN Hospitality Master Bathroom.

“This is a world-class development that really captures everything that Houston has been yearning for.”

Jeffrey Abel

Taylor Alford

When it’s complete, The Allen promises to be one of the most prestigious developments in Houston. Nestled between Downtown and River Oaks, the 35-story, mixed-use project will house 172 premier rooms in the Thompson Hotel, 19 floors of luxury condominiums in The Residences at the Allen, two restaurants, ballrooms and meeting spaces, a spa and fitness club, a oneacre elevated pool deck, and more.

“Solving those logistical issues involves answering questions such as how do you offer The Residences at The Allen private space? How do you deal with simple things such as trash? How do you organize deliveries for homeowners? Working with the developer and the base-building architect, we’re able to anticipate a few of those issues and plan around them,” Abel explains.

“This is a world-class development that really captures everything that Houston has been yearning for,” says Taylor Alford, Director of Operations at Abel Design Group.

Along with logistical maneuvering, designing 35 floors and their various features demanded incredible creativity and flexibility.

DC Partners, which is leading the $500 million development, tasked the Houston-based firm with the challenge of designing the entire 900,000+ square feet of interior in the tower. “The design logistics of a vertical mixed-use development are challenging, to say the least,” laughs Jeffrey Abel, the design group’s Managing Principal. 6

MAY 2022

“Our truly phenomenal design team understands how to work through a hotel design that isn’t replicated over and over again, mandating that efficiency is the name of the game,” says Abel. “Furthermore, we must think differently when laying out the condo designs that do not vertically stack with hotel room configurations below. Those same condos will be built out Continued on Page 8>

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1.307 Acre Retail Pad Site for Lease or Build-to-Suit. Located at the hard corner of I-45 N frontage and E Cypresswood Dr., near to Topgolf.

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RESIDENCES AT THE ALLEN Hospitality Plunge Pool

Residences At The Allen < Continued from Page 6 prior to the completion of the overall building, thus we must anticipate the wants and needs of our future clients whom we have yet to meet.” Beyond just the more residential spaces, Abel Design Group is responsible for The Allen’s bespoke design in the condo and hotel lobbies, grand stairs, ballrooms, meeting rooms, pool deck and more. “We were afforded the opportunity to create spaces with different looks, feels, and experiences that you won’t find elsewhere in Houston,” Abel says. Much like choosing a favorite child, it’s difficult for members of the team to pick the feature they most connect with, but the penthouse suite gets top marks from Abel. “It has 30-foot-high, soaring ceilings and just a fantastic volume within which we get to work and play,” he says. As for Alford, he says The Allen’s hotel lobby will be exquisite.

MAY 2022

“This hotel will be unique in that we designed a check-in on level 7 of the building. The soaring 18-ft high windows capture an impressive view of the downtown Houston skyline,” he shares. “This sets up a truly remarkable opening sequence as you enter the hotel.” That view, as well as perspectives from the tower’s other vantage points, is one of the elements that excites Abel most. “The way the building is positioned on Allen Parkway afforded us as architects and designers the opportunity to capture views that are not possible anywhere else in the city,” he says. “The park and bayou are the front yard of the tower and the skyscrapers downtown are our 'mountainscape'. It really does celebrate the whole of Houston.” The on-site sales gallery for The Residences at The Allen is now open, allowing interested parties to take virtual tours and even view a potential home with customized features and finishes. Along with residential sales, The Allen is also leasing retail and office space. “This entire development will become the center of the Houston hospitality district that is rapidly evolving along Allen Parkway,” says Abel.

Allen has it All. All you’re looking for is in Allen. From class A office space to A rated schools, world-class entertainment parks and recreation – all in the heart of a thriving Metroplex. Here you can build a business where people are not just surviving but thriving. When it comes to living, working and playing, Allen is all in. Be part of it all. www.allenedc.com

The Place to Raise Your Business

Doing Retail Right: Dallas mall makeover focuses on communityrequested amenities BY BRANDI SMITH

“To see the level of excitement from the people who live in the area now is incredible.” Across the state of Texas, a revolution is underway. The traditional malls that Gen X and older millennials spent their teenage years wandering are transforming. In Sherman, an undisclosed buyer plans to redevelop Midway Mall into a mixed-use property. The Collin Creek Mall in Plano was demolished, soon to be replaced by the $1 billion, 100-acre, mixed-use Collin Creek development.

“We didn't realize that people wanted more access to more health care options. Now we have three major health systems that are coming in,” Maiden says, citing leases with Parkland Hospital, UT Southwestern Medical Center and Children’s Health. “Community members wanted to be able to work closer to where they live, so we’re bringing in roughly 300,000 square feet of office.”

At Dallas’s Shops at RedBird, construction has been underway for the past four years, converting what was the dying Red Bird Mall (renamed the Southwest Center Mall) into a thriving destination at the intersection of U.S. Highway 67 and Interstate 20.

That office space will be energy efficient and environmentally friendly with contemporary and flexible floor plans. Already, Chime Solutions, a customer service call center, has claimed 90,000 square feet for more than 2,000 employees.

“We’ve actually been working on it for about six years now,” shares Terrence Maiden, CEO and Managing Partner for Russell Glen, a real estate development and investment company based in Dallas. “The first couple of years involved dozens of community meetings and working on our design strategy.”

Other priorities include grocery, hotel, restaurants, entertainment and spaces for people to gather.

Those community meetings allowed Russell Glen’s team to get to know what the neighbors of the $210 million, 95-acre project were looking for in order to incorporate that into the property’s future.

MAY 2022

“The community is predominantly African-American it had been starved of quality of amenities,” says Maiden. “To see the level of excitement from the people who live in the area now is incredible.” Retail has been on the backburner due to a number of factors, including the pandemic’s impact.

“We believe retail is going to be the last to really come back strong, so we've been focusing our marketing efforts on other amenities to energize the mixed-use campus,” Maiden explains. “We do have about 80,000 square feet of retail that's leased, that's in the primarily local tenants in the mall interior. We vision includes a major renovation of the shops spaces to better attract regional and national retailers. ” The retailers who lease that space are also moving on from the traditional idea of a brick-and-mortar location. Foot Locker, for example, opened a Kids Foot Locker “House of Play” at RedBird earlier this year. The full-family concept is aimed at the upcoming generation of sneakerheads. Beyond the traditional brand displays, customers receive a “kids-first experience,” including interactive playscapes and engaging activity areas. Foot Locker also has an adult store and a Champs Sports at RedBird. The trio of stores face the Lawn at RedBird, a greenspace on the north side of the property, which will be home to indoor-outdoor restaurants and a gathering place for the community. “The Lawn at RedBird is going to be a hub of activity to help support the retailers by bringing more traffic into the project,” says Maiden.

RedBird is an example of how retail is evolving. Maiden says he’s excited to see what’s next.

After working on The Shops at RedBird with co-developer and lead investor Peter Brodsky, Maiden says his team is looking to replicate their community approach to redevelopment model in other markets across the country, possibly Houston next.

“What’s even more interesting will be to see how retail will continue to evolve,” he says. “What will retail shopping be like in the next 20 years?”

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Dealin’ in Dallas: Near ‘white hot’ market fueled by capital, retail expansion BY BRANDI SMITH

“Retail here is on the heels of white hot with cautious optimism.” Jennifer Pierson

In retail, few things are constant, but one thing Texas CRE professionals can always count on is that more rooftops generate more retail demand. And those rooftops are going up as fast as they can in the Dallas-Fort Worth area. “Retail here is on the heels of white hot with cautious optimism,” says Jennifer Pierson, Managing Partner of STRIVE. “The reason I temper it a little bit is because we had such a robust Q2 and Q3 of last year and a robust Q1 of this year, but we’ve just had our first interest hike and it hasn’t slowed anything down yet, but we’re wondering if it will.” When she says robust, she means it. STRIVE sold 107 properties last year and already in 2022, Q1 numbers doubled. “That’s a lot of product,” Pierson says. That product is at a premium right now, according to Steve Zimmerman, The Retail Connection’s Managing Director in Brokerage. “The supply of quality available space is very low due to the extreme lack of new development,” he explains. While the supply remains a challenge, demand does not. “We’re watching properties get bid on by two, three, four, five people,” shares Pierson. She attributes that to all the capital flooding the market, adding that there seems to be a new buyer pool every 30 days or so. Pierson says she’s taken note of new partnerships, offering the example of a handful of Frisco programmers who decide to pool their capital in order to purchase commercial property. “If you're looking at it from the standpoint of a landlord, you have a lot of demand from expanding retailers,” says Bob Young, Executive Managing Director for Weitzman.

MAY 2022

Bob Young

Steve Zimmerman

Dollar stores, he says, are part of that group. They’re not just expanding, they’re evolving. Dollar General is introducing a new concept called Popshelf, which is aimed at wealthier, suburban shoppers who love finding a good deal. (Weitzman is representing Popshelf in the Dallas area.) “They are trying to put another spin on meeting the generous appetite of consumers to get discounted values,” Young says. “That’s a trend that's going to continue.” The e-commerce boom has certainly offered up some challenges to traditional retailers, but now even previously online-only brands (such as Warby Parker or Tecova boots) understand the value of brick-and-mortar locations. “The customer wants to be able to touch the merchandise, see it displayed and really get a feel for it,” Young points out. “Dallas is at the hub of that interchange.” The Metroplex is also a great testing ground for new enterprises. Pierson says it’s a sign that, despite the curveballs thrown their way, retailers are figuring out how to survive. “There’s so much creativity and there are so many interesting retailers hitting the ground,” says Pierson. “Necessity is the mother of invention. It’s true. There are a lot of exciting things happening in the retail world, specifically DFW. I’ve never seen Dallas or Houston get so much attention.” Neither has Zimmerman. He says retail users such as chef-driven restaurant concepts and new entertainment concepts that have typically gravitated toward Los Angeles or New York are now giving Dallas “a very strong look.” Coming off the heels of the largest retail lease of 2021 and now working on leasing Frisco’s so-called “Project X,” Zimmerman’s looking ahead to the rest of 2022. “We’re very pleased with the way things are going here,” he says.

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Texas Retail Enjoying Resurgent Demand in Recovery BY PAUL HENDERSHOT, BILL KITCHENS, ITZIAR AGUIRRE, DANNY KHALIL, CoStar Group The "Texas Miracle" that defined the economic prosperity of the Lone Star State has cut a wide swath across all asset types. Beyond the pandemic, no asset type has realized more seismic changes in recent years than retail. From disruption in technology to consumer preferences, the space devoted to purchasing goods and services continues to evolve. While Texans share a common bond, the retailers and real estate community in every region of the State have had a unique experience navigating the choppy waters left by the pandemic. Austin Austin's retail market remains on firm footing. Vacancies fell to about 3.5%, well below the national average of 4.5%, and are among the top-10 lowest in the country. The market has seen some of the strongest demand over the past year, with about 2 million square feet absorbed despite disruptions from COVID-19 variants. Substantial population and economic growth have kept the market strong over the past few years. Swift action by Congress to get money in the hands of individuals and PPP

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loans into the hands of businesses helped keep the market afloat during the early days of the pandemic. However, the market hasn't been kept strong just due to government stimulus. Significant expansions in the tech sector, wage growth, and household formation have buoyed retail prospects. Consumers have resumed normal spending patterns, driving leasing activity to within a short distance of pre-pandemic norms. The market has also been aided by very limited deliveries over much of the last decade, which looks to continue through the near term. About 1 million square feet is currently underway, well below the peaks before the Great Financial Crisis, despite Austin's population surging substantially in the 15 years since. With limited store closures and bankruptcies from national tenants, the market is poised to continue its momentum into our outlook. Austin is on most companies' radar for expansions, driving new leases for retailers like AutoZone, Five Below, and Floor & Décor. As a result of this stellar demand and limited supply rents never fell in Austin during the pandemic. Over the forecast, CoStar's expectation is for the market to remain strong. With limited construction and strong economic fundamentals, new demand will likely exceed new supply over the next few years, driving vacancies lower and rents higher. That should keep Austin on every investor's radar over the next decade as the market rebounds from the COVID-19 induced recession. Dallas-Fort Worth Dallas-Fort Worth's retail market is benefitting from resurgent demand over the past year. Vacancy rates are falling closer to pre-pandemic norms through early 2022. The Metroplex reported leasing activity of 9.2 million square feet last year. With most store closures in the rearview mirror, the market reported net absorption of 4.1 million square feet, the best performance since 2018. Thanks to the continuous demand for housing in the Metroplex, home furnishing, décor, and home improvement stores are major drivers for leasing activity. Among them, Plano-based At Home signed on to a 104,000-squarefoot lease at Timber Creek Crossing. The space was previously occupied by JCPenney, another Plano-based retailer and a casualty of bankruptcy resulting from the pandemic and resulting recession.

MAY 2022

“While Texans share a common bond, the retailers and real estate community in every region of the State have had a unique experience.” The construction pipeline is trending lower. Developers kicked off 3.6 million square feet last year, the lowest level since 2011. Construction activity is concentrated to the north in Denton and Collin counties, where developers are chasing robust demographic growth. The outlook for Dallas-Fort Worth's retail market remains bright, thanks to the structural economic and demographic tailwinds found in the market. The latest population growth shows the Metroplex leads the country with about 95,000 new residents from 2020 to 2021. Meanwhile, the local economy has now transitioned to expansion mode. Last year, the labor market added 275,800 jobs, growing 7.4%, and has fully recovered from the recession, up 147,900 jobs since February 2020. Houston Last year's strong performance in Houston's retail sector has continued this year. Key indicators such as leasing activity, net absorption, and rent growth continue to head in the right direction. In addition, pent-up demand from the pandemic continues to bolster retail leasing activity, which, during 2021, totaled nearly 9 million SF, clocking the best year since 2016.

rebound in leasing activity was fueled by strong demand for smaller spaces. As a result, the average footprint leased fell to a record low during 2021 to just under 3,000 square feet. The largest leases during 2021 were driven by tenants in fast-growing suburban locations, chasing demographic and economic strengths found in these areas. These tenants were often grocers or large fitness centers. Over the past 12 months, Houston ranked number one out of all U.S. metros for most retail space absorbed. Furthermore, net absorption in the Bayou City is forecast to reach its highest level in six years in 2022. However, strong demand has compressed vacancies to 5.4%, marking a four-year low. Encouraged by a solid demand-side outlook, developers continue to bet on Houston's appetite for new retail. Houston has seen around 3.6 million SF of new space deliver over the past 12 months, the most of any metro in the country and more than double the next one, which is DFW. Of this, approximately 80% has been leased. Houston is also home to the largest supply pipeline in the country. The good news is that the market's total space underway represents only about 0.9% of its total inventory.

Following suburban rooftop growth, areas outside the 610 Loop accounted for nearly 90% of leasing activity in 2021. Mirroring the national trend, the

Continued on Page 16>

MAY 2022

Retail < Continued from Page 15 Retail fundamentals are expected to remain balanced in Houston through the near term. Strong demographic trends are assuredly a tailwind. According to the recently revised Census numbers, between July 2020 and July 2021, Houston ranked third in the nation in terms of most population added by metro, bested only by DFW and Phoenix, adding nearly 70,000 new residents during this time. San Antonio San Antonio continues to be a steady performer among the major Texas metropolitan areas, delivering 1.3 million square feet over the past year, only slightly below its historical 10-year average. However, this is not necessarily a cause for concern, as retail square footage per resident has actually declined in San Antonio over the past decade, making for tight vacancies and room to raise rents. Annual rent growth in South Central Texas stayed firmly in the black during the COVID-19 pandemic—a remarkable feat when many brickand-mortar businesses were suffering. This remarkably resilient level of rent growth is primarily due to strong yearover-year increases in less expensive suburban and exurban segments of the eight-county metropolitan area. Over the past year, the greater downtown area and the northwest side—two of the most expensive parts of the city for retail—either matched or lagged the metropolitan average.

Still, some of the most expensive retail nodes in San Antonio continue to attract solid tenants and, thus, solid investment activity. The largest sales over the course of the pandemic have been on the far northwest and far west sides, particularly the $220 million The Rim and $104 million Alamo Ranch shopping centers. These two properties are heavyweights in the local retail market, and they offer insight into the direction of retail activity and rent growth in San Antonio. In fact, the far north and far west sides, along with downtown, command the highest rents in the metropolitan area: more than $22 per square foot. The city-wide average is currently approaching $20 per square foot. Construction has largely focused on these areas as well, to include Comal County, which lies approximately 20 miles northeast of central San Antonio. Comal is regularly listed among the fastest-growing counties in the nation, which is notable for a region and State that continues to grow so rapidly. Because of this, retail has followed rooftop growth in Comal County, far north and west San Antonio, and the metropolitan area more broadly. The solid economic underpinnings of the Texas economy have enabled the retail sector to recover quicker here than in other parts of the country. While many retailers felt significant pain in the short term and some never recovered, overall, the sector is in a much stronger position than before the pandemic. The State’s perpetual population growth and job growth serve as a backdrop for a positive outlook for retail.

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MAY 2022

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drover97 West Exterior Entrance Photo Credit: Hotel Drover

The Spirit of the Modern West Is Central to Fort Worth’s National Historic Stockyards District’s $500 Million Redevelopment Once the largest livestock market in the country during the Cattle Drive Era, over the last 30 years Fort Worth’s National Historic Stockyards District has evolved into a tourist destination founded upon Western authenticity. Today, the storied neighborhood is undergoing a multi-million-dollar redevelopment that is bringing the neighborhood into a new era. The Stockyards Heritage Development Company, a partnership between The Hickman Properties and Majestic Realty Company, announced plans to redevelop the neighborhood in 2014 with new retail, dining, hotel and residential offerings designed to preserve the district’s rich history with an elevated aesthetic. The redevelopment kicked off in 2018 in Mule Alley, which originally housed the horse and mule barns in the neighborhood’s heyday. Developed by Fort Worth-based M2G Ventures, the first $500 million dollar phase encompasses 18

MAY 2022

carefully curated hotels, dining and retail space that embody a modern Western identity. The revitalized space preserves the architecture of the historic barns, with haylofts and catwalks intact. Since the first phase launched, the redevelopment has been a success. According to the Stockyards Heritage Development Company, the Stockyards welcomed 5 million visitors in 2021, more than double the average traffic from years past. The ongoing revitalization sets an example for historic destinations to meet the needs of the modern visitor, local and businessowner. History The Fort Worth Stockyards were established in 1849 as a livestock market along Continued on Page 22>

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SPECIAL ADVERTISING SECTION - ECONOMIC DEVELOPMENT SPOTLIGHT CITY OF MCALLEN

Rare Development Gem in South Texas: McAllen Shines Bright as Epicenter of the Rio Grande Valley

It’s got a booming economy. Business development is at an all-time high, people are hustling and bustling. Welcome to McAllen, a mid-sized Texas border town with a big-city attitude.

With McAllen’s two international bridges now open as of November 8th, 2021, retail sales are expected to soar even higher with fully vaccinated foreign travelers now able to drive across the U.S. border with Mexico into McAllen.

“The growth in McAllen is phenomenal,” comments Rebecca Olaguibel, the city’s Director of Retail and Business Development. “It’s an exciting time to be in McAllen.”

“International commerce and connectivity are key to McAllen’s success. We are delighted to offer travelers the option to fly in as well as drive into McAllen,” Olaguibel says, adding that the city has added more international flight opportunities for consumers to choose from.

While McAllen’s population hovers at just more than 142,000, according to the 2020 U.S. Census, the number of people in town swells each day as an estimated 39,000 commuters drop into town to conduct business, shop, dine, and enjoy the cities amenities. “McAllen has consistently ranked in the Top 20 retail sales tax generators in the state of Texas for the past few decades,” Olaguibel shares, “as a matter of fact, McAllen recently ranked 2nd in the State of Texas for Retail Sales per Capita” With the McAllen MSA is now the fifth largest metropolitan statistical area in Texas, surpassing El Paso, developers are intrigued by this mid-sized city performing so well. Even the pandemic shutdowns couldn’t dampen the city’s economic successes. “Closing out our fiscal year, we have earned epic retail sales tax revenues,” says Olaguibel. “We’ve seen our numbers go way up in retail sales tax, hotel occupancy tax and construction.”

MAY 2022

Our consumers are spending at big-box retailers and smaller locally owned businesses alike, both of which McAllen has plenty to offer. “We have seen some fantastic growth from our small locally owned businesses. We’ve created an environment in McAllen so that they can grow and thrive,” says Olaguibel. The city has also gone above and beyond, creating the Refresh 50/50 Revitalization Grant for storefront improvements, for example. “From city hall all to our development services departments, which includes engineering, planning, zoning, and permits, we're all aligned in the same goal,” Olaguibel stresses. “We want to help small businesses be successful.” Knowing the economy’s all about balance, city leaders also welcome larger retailers.

“I like to call McAllen a developer's dream in south Texas because we have the formula that they need to be successful here,” says Olaguibel. Exhibit A: Tres Lagos, a 2,800-acre master-planned community. It broke ground in 2016 and is now home to more than 1,800 people. The project is already expanding to include a 70,000-square-foot retail space called The Shoppes at Tres Lagos. “We're excited about Tres Lagos because it's not only going to generate more interest for that community, it’s generating jobs, increasing our property tax base and generating retail sales tax revenue, which are key to McAllen,” Olaguibel says. “On top of all that, Tres Lagos adds quality of life not only to their residents but to the entire city.” That last bit is key in McAllen. Along with a booming economy and plentiful educational opportunities, the city can offer its residents security. SmartAsset. com recently ranked McAllen the No. 9 Safest City in the United States. That’s backed up by the FBI Uniform Crime Report, which documented McAllen’s 11th consecutive year with a declining crime rate. In fact, it hit a 36-year low in 2020! McAllen is one of those rare development gems, flying under the radar in deep south Texas and nestled in the Rio Grande Valley.

“McAllen has built in consumers, excellent leaders, and a great economy,” says Olaguibel. “We can prove that investors and developers would be successful and sustained here in McAllen.” For more information about development opportunities within the City of McAllen, email Rebecca Olaguibel at rmolaguibel@mcallen.net.

MAY 2022

Photo Credit: Visit Ft. Worth

Stockyards < Continued from Page 18 the Chisolm Trail, the main route for cowboys driving cattle across the country, and were critical in the development of the city. From the late 19th century to the 1950s, the Stockyards came to be the largest livestock trading center in the Southwest, giving Fort Worth the moniker of “Cowtown.” In the middle of the 20th century, the traffic through the Stockyards decreased due to the growing reliance on railroad and trucking transportation. As a result, the area gradually developed into a distinct tourist destination that preserved its rich cowboy history. Retailers and attractions that carry the Western legacy popped up for tourists looking to relive the Wild West. In 1999, the city created the Fort Worth Herd, which reenacts a twice-daily cattle drive in the historic neighborhood. Still today, cattle drivers dressed in historically accurate garb guide 17 Texas Longhorns down the historic East Exchange Avenue every day at 11:30 am and 4 pm. The Stockyards’ redevelopment not only retains the pivotal Western history through elevated hospitality attractions, but with new office space, residential projects and entertainment venues, the district is evolving into its next chapter as a modern destination for travel, living and work. Here are some key openings included in the Stockyards redevelopment:

MAY 2022

Hotels Since its opening in March 2021, Hotel Drover introduces luxury hospitality in the Stockyards and has become the hallmark of Mule Alley. The Autograph Collection hotel boasts 200 guest rooms, a signature restaurant and a lush outdoor space with a heated pool, fire pits and an indoor/outdoor bar. The hotel also brings 40,000 square feet of event and meeting space to the Stockyards, with four event rooms and a rustic-luxe 4,000 square foot barn that features vaulted ceilings and reclaimed timber. Retail Mule Alley’s new retailers include a luxury artisan bootmaker Lucchese boutique, clothing store Flea Style, and MB Mercantile & Supply, which is reminiscent of a general store selling Texas-made goods. The curated retail experience in Mule Alley builds on the established shops along East Exchange Avenue that sell hand-crafted leather goods and Western memorabilia. Nightlife + Entertainment Nightlife in the Stockyards has expanded with more offerings that complement the legendary Billy Bob’s Texas, the 100,000 square foot honky tonk housed in a century-old barn that was previously used to house prize cattle for the Fort Worth Stock Show. Sidesaddle Saloon, a craft cocktail bar that pays homage to legendary cowgirls, and Second Rodeo Brewing, a laidback bar with live music, an in-house brewery and lawn games, provide eclectic options with a contemporary Western flair. Celebrity chef and Fort Worth local Tim Love recently announced a 26,000 square foot live music, restaurant and private event space called Tannahill's

Tavern & Music Hall, which is slated to open later in 2022 in Mule Alley. The venue will host of a variety of well-known and aspiring performing artists curated in partnership with Live Nation. A multi-arena development project is also in the works that will bring three additional 2,500 square foot rodeo venues to the neighborhood, on top of the preexisting Cowtown Coliseum that hosts about 150 weekly rodeos a year. Slated to complete in 2023, the new arena complex will enable the Stockyards to accommodate Western sporting events 200 days a year as Fort Worth becomes the national hub for Western sports. Food and Beverage Food and beverage openings represent the future of Texas cuisine with Hotel Drover’s signature restaurant 97 West Kitchen & Bar and local chef Marcus Paslay’s Provender Hall. Chef Tim Love opened his Tex-Mex restaurant Paloma Suerte in January 2021, adding to his collection of restaurants in the Stockyards, which includes his first restaurant Lonesome Dove Bistro that opened in 2001. Shake Shack notably established a location in Mule Alley in 2020, while locally-owned Melt Ice Creams and Texas-founded Biscuit Bar provide casual, Southern-inspired fare. Multifamily A luxury multifamily residential project is set to break ground in Q1 2022 on

Photo Credit: Hotel Drover

a five-acre section of the Stockyards, which includes the historic Armour meatpacking plant built in 1902. Led by San Antonio-based Kairoi Residential, the development includes 825 apartment units and heralds the next wave of the Stockyards’ transformation. Business Fort Worth-based advertising agency Simpli.fi has set up its headquarters in the Stockyards alongside RFD-TV, whose programming is centered on the cowboy and cowgirl lifestyle. A new RFD-TV broadcast studio that will be open to the public is also in creation, adding an interactive element to the headquarters.

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MAY 2022

One retail sector that’s thriving today? The ghost kitchen and the ghost franchise BY DAN RAFTER Ordering food from a delivery app? The odds are it might come from a ghost kitchen. And if you don’t know what these are, you will soon. Industry analysts say that these kitchens – which prepare foods either from onlineonly restaurants or from several traditional restaurants in an area – are becoming a big part of the U.S. restaurant business.

Ghost kitchens, at their most basic, are commercial kitchens that don't come with storefronts. They also don't come with any physical dine-in or drivethrough restaurant attached. Instead, they are spaces that restaurant owners might rent to prepare food off-site so that they can deliver it more quickly to their customers. A single ghost kitchen space, then, might prepare the food from several different restaurants in an area. Then there are those restaurants that don't have any actual dining or carryout spaces at all. They instead rely on an Internet presence and several ghost kitchens across the country. These so-called ghost chains run no physical restaurants. Customers instead order food online where it is then prepared in a ghost kitchen near them. This allows entrepreneurs to open online restaurants without worrying about operating actual dine-in or drive-through facilities. Most of the ghost kitchens that prepare the food offered at these ghost franchises are located in less expensive parts of town, often on the edge of industrial areas, where rents are cheaper. Matt Giffune, co-founder of Occupier, a provider of transaction and portfolio management software, told Midwest Real Estate News that ghost kitchens are a smart business model in a world in which online ordering and food delivery has become so popular. "These were already an existing concept before the COVID-19 pandemic," Giffune said. "The pandemic, though, just accelerated the demand for these operations. A lot of people were working from home. They had nothing in the fridge. If you ordered your salad on DoorDash, it was most likely made in a ghost kitchen than in the actual retail outlet you were ordering it from." Consider MrBeast Burger. MrBeast, real name Jimmy Donaldson, is a YouTube star with more than 54 million subscribers to his channel. Late last Continued on Page 26>

MAY 2022

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“The pandemic not only accelerated the demand for online food ordering, it created a new normal of expecting on-time delivery for pretty much anything.” Ghost Kitchens < Continued from Page 24 year, Donaldson opened MrBeast Burger with locations across the country. The trick, though, is that diners can't drive to any physical locations. The food from this ghost chain is created in other kitchens across the country and delivered to customers. Those hungry for a MrBeast Burger can only order the food through delivery apps. Another YouTube star, Larray, a musician, launched his own ghost franchise in October of this year, Larray's Loaded Mac. On its website, Larray's Loaded Mac advertises itself as a delivery only restaurant. Again, the food here is created in the kitchens of restaurants across the United States, depending on from where customers order it. These aren't isolated examples. Ghost kitchens are growing, thanks in part

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to the COVID-19 pandemic. Throughout the pandemic, many customers have been hesitant to dine in-person at restaurants. That fueled an increase in online ordering. As more diners ordered their food for delivery, restaurants that offered delivery only didn't seem unusual. CBRE, in a May report, said that it expects ghost kitchens to account for 21 percent of the U.S. restaurant industry by 2025. Before the pandemic, CBRE said, ghost kitchens were only expected to account for 10 to 15 percent of the restaurant industry market share. It's not surprising that ghost kitchens have gained traction. CBRE in its report said that online food ordering rose 17 percent in 2020, largely because of the pandemic. And those habits -- even people who might not have ordered much food delivery in the past have now learned how convenient it is -- are expected to stick, something that will keep demand high for ghost kitchens. "These ghost kitchens are 100 percent here to stay," Giffune said. "The pandemic not only accelerated the demand for online food ordering, it created a new normal of expecting on-time delivery for pretty much anything. Ghost kitchens are just one example of this trend. If you need a gallon of milk or some toothpaste, you can order it online and someone on a scooter will deliver it to your house within 10 minutes. That is such a level of convenience that demand for it will only continue to increase." Giffune, who works in the Boston area, said that street-level retail is just starting to come back around the office building in which he works. This can make it difficult to know which nearby restaurants are actually open for lunch. But Giffune can go online and have lunch delivered to the office, without having to worry about which restaurants are open and which are still closed. "That solves a real need," Giffune said. "It's more convenient. I don't see that trend going in the other direction." And while ghost kitchens are mostly thought of as an urban trend, Giffune said that they are actually opening everywhere, including suburban areas. This trend will only gain strength as more companies move to a hybrid work schedule in which their employees work some days in the office and others at home.

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MAY 2022

"People in the suburbs desire the same level of convenience that people living in the city do," Giffune said. "The ability of people to work from anywhere will drive that expectation of convenience to more areas. Ghost kitchens will spread out from the urban areas and into the suburbs."

Retail Envy: Houston leads country in retail absorption BY BRANDI SMITH

Houston’s retail market is the envy of the country as demand continues to rise. In 2021, Texas’ largest city ranked No. 1 on CoStar’s ranking for retail space absorption and vacancy is hovering around 6 percent. “There is more demand for space than supply and the cost of construction will keep that imbalance in place for the foreseeable future,” says Lilly Golden, President and Founder of Evergreen Commercial Realty. She adds that she’s aware of several large box vacancies that have 3 or 4 users competing for the same space. “Big box retailers, both high-end and low-end, are focused on expanding in Texas right now,” Golden says. “We are seeing restaurants and entertainment tenants from other states and countries flocking to Texas, and specifically Houston,” says Eric Lestin, Managing Director-Retail Lead at Cushman & Wakefield. “Currently we are finalizing leases on behalf of an entertainment concept from Norway, an

upscale international cuisine restaurant from Mexico, and a high-end home appliance company from Germany.” Cushman & Wakefield, he says, is building deep and meaningful relationships with brands on a global scale. By prioritizing entry and expansion with data, analytics, and research to mitigate risk and maximize value, his firm is able to offer a research-driven approach that is then combined with his team’s deep knowledge of the market. Who better to answer the question: what’s inspiring that expansion? Lestin points out Houston is the fourth largest city in the country and it is only growing. “Houston is diverse in all the aspects of an international city with great restaurants, theatre, shopping, and the largest medical center in the world,” he says. International visitors, Lestin elaborates, used to come to Houston solely for treatment at The Texas Medical Center. “While that is still the case, visitors are staying longer to partake of all we have to offer,” he says. “In turn, more international retailers and restaurants are coming because of our diverse population and visitors from around the globe.” That international interest is helping Houston retail thrive after what has been a challenging couple of years. “This business is cyclical in most commercial real estate sectors, and retail has been no different. The past two years have certainly put a strain on retail and restaurant operators of all sizes,” says Lestin. “That said, I have been impressed by the resourcefulness of my clients and others in managing curbside pickup, delivery, and other creative solutions to keep operations thriving.” Adapting for survival is a requirement for any successful retailer, something Golden is assisting her clients with. “Evergreen now helps our clients not only find their retail sites, but also their industrial distribution locations to support their ecommerce efforts,” she shares. Guitar Center Stores, Inc. is an example of that. With Evergreen’s help, the company expanded its Guitar Center and Music & Arts concepts in the Houston area, requiring a larger distribution center. Evergreen facilitated the lease at Beltway 8 and I-45, which successfully opened at the end of 2021. KM Realty is overseeing a different kind of adaptation at one of its properties: Township Square, a 67,000-square-foot landmark open-air shopping center in Missouri City.

MAY 2022

Lilly Golden

Eric Lestin

“Houston is diverse in all the aspects of an international city.”

Steven Stone

“The approximately $4 million renovation is intended to balance the original charm of the Colonial Revival architecture at the four-building development with necessary façade and landscaping upgrades, ensuring Township Square will remain more of a gathering place than your standard strip center,” says Steven Stone, the firm’s director of leasing, adding that part of the redevelopment will include wrapping the property’s 54-foot clocktower in a mural, likely an homage to the community. Another trend Stone is keeping an eye on is of particular interest to the admitted coffee connoisseur. “I’m excited by the flood of new coffee concepts into the market. From large chains to third-wave coffee shops, I hope to see these concepts find their foothold in the market,” says Stone, who’s responsible for project leasing of several dozen unanchored shopping centers in suburban Houston, as well as developing new shopping centers.

As coffee brands expand, Stone notes he’s seen several different chain fitness uses fold within the past year and that, when properties have the opportunity to be selective, there is more hesitancy toward leasing to fitness uses. That’s not the only change he’s noticed in the past couple of years. “The typical strip center has recently seen a shift in rent structure, wherein base rents now commonly increase annually,” says Stone. “This can be seen as either, or perhaps both, a sign of a strong rental market or a sign of an uncertain inflationary environment.” Which it is will undoubtedly be answered as retail continues its rebound in Houston and throughout Texas.

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Southport Plaza Kenosha, WI | 485,327 SF

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Arborland Center Ann Arbor, MI | 403,536 SF

Bay Valley Shopping Center Saginaw, MI | 332,161 SF

High Ridge Center Racine, WI | 264,560 SF

Forum at Gateways Madison Heights, MI | 258,105 SF

Dresner Walgreens Portfolio Various Locations | 248,427 SF

Hickory Grove Shopping Center Cleveland, TN | 236,709 SF

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Genesee Crossing Flint Township, MI | 220,781 SF

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Airport Square Toledo, OH | 187,282 SF

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Citi Centre Winter Haven, FL | 185,705 SF

FRIEDMANREALESTATE.COM MAY 2022

REDNews Capital Markets Summary-2022 BY RAY HANKAMER

Kristen Carl, Real Equity Investment Partners, Robin Binkley – Real Equity Investments Partners

Keynote Speaker: Patrick Duffy-Colliers Takeaway: Commercial real estate is in uncharted waters, with rising interest rates, sudden inflation, tight labor supply, logistics bottlenecks, Covid in China, skyrocketing construction labor and material costs, lots of capital still seeking yields, war in Europe, and oil over $100/bbl and expected to go higher…possibly a lot higher. Bullets: • With the ongoing spike in oil prices, drilling will resume

Ray Hankamer

• The availability of vital food and industrial commodities will shrink and prices will rise due to war in Ukraine

Keynote Speaker, Patrick Duffy, Colliers

buildings delays payment of rent from new tenants; rents will inevitably rise to cover rising construction costs • Historically 100% of oil price spikes have been followed by recessions; oil will stay above $100 for some time to come and it may go way higher • High gasoline prices and inflation in general will diminish consumer disposable income, which will lead to recession; one restaurant has had to raise the price of a brisket sandwich from $12 to $18 • Texas is in best place to ride out all these problems, and commercial real estate (CRE) is deemed a safe harbor in times of economic stress; the benefits to Houston’s economy from high oil prices may mitigate pain other economic pressures; there will be no better place to be than Houston for the near future • Our economy cannot grow with a restricted labor supply; some people who retired early and then saw their retirement portfolio shrink may re-enter the labor force

• It may be two years before supply and demand for computer chips returns to equilibrium

• Many institutional investors are buying into REITs for diversification, reliable dividends, and professional management

• We are in the ‘definition of inflation’, i.e. too much money chasing too few goods • Cheap money is over; the supply chain is still under stress, making delivery of many classes of goods unpredictable

• Cap rates for CRE in general are the lowest since 2006, and they should remain somewhat depressed going forward

• Construction costs are soaring AND delivery schedules and costs of building materials cannot be guaranteed; construction costs are rising monthly and are impossible to predict; there is a four month wait for carpet; delay of completion of

MAY 2022

• Rental rates for multi-family (MF) are going up as much as 30% per year due to ballooning construction costs, but at some point people cannot pay high rents; tenants are being pushed to suburbs but that increases commute time for them

• In times like these, capital needs a safe harbor, and CRE provides this harbor; CRE may be the best ‘bunker’ in which to take shelter now; CRE is a good defensive play if you can buy right • There will not be a bubble from runaway development of CRE since construction costs are too high • There could be 6 or 7 more incremental rate hikes this year by the Fed Banking & Construction Lending Update Speakers: Gary Greenberg-Levey Group; Warren Hitchcock-NorthMarq Capital; Amy Farrell-Bank of Texas Bullets: • Although very low by historical standards, interest rates have bumped up recently; as bond yields slowly rise, they will pull some money from mortgages and the stock market • The industrial sector is a great one to be in now as onshoring of manufacturing grows and as distribution facilities are still desperately needed • Lenders are always evaluating the risk profile of every deal, and are now having to work with developer/borrowers who are having price increases in mid-construction; lenders prefer strong and experienced developers who can roll with the lender on these external punches • Lenders are a little more cautious, but there is still ‘a ton’ of debt and equity chasing deals; geographically stable markets hold the most interest from lenders and investors; 65% leverage is a general norm in this market

Amy Farrell, Bank of Texas, Gary Greenberg, Levey Group, Warren Hitchcock, NorthMarq Capital • More institutional equity is coming to Texas, nationally internationally investors • These are very difficult days for general and sub-contractors, with labor shortages and shortages and soaring costs for materials; steel and roofing are particularly troubled categories re price and availability; Hardiplank and rebar are also in severe short supply Continued on Page 32>

W W W. L A N D PA R K C O . C O M | 7 1 3 . 7 8 9 . 2 2 0 0 BROKERAGE SERVICES

2 5 5 0 G R AY FA L L S D R I V E S U I T E 4 0 0 • H O U S TO N , T X 7 7 0 7 7

Tim M Thomas

Will McGrath

Tim specializes in industrial and land assets and has over 25 years of experience in Commercial Real Estate. In that period of time, he has completed over 300 transactions totaling several thousand acres and more than 15 MSF of space, representing several Fortune 500 companies.

As Co-Managing Partner of Brokerage Services for LandPark Commercial, Will is currently responsible for leading the office and retail division. Will has over 12 years of experience in the Houston market, and has worked in virtually every submarket in the area. Will was a 2019 HBJ Heavy Hitters award winner.

Co-Managing Partner

OUR ACCOMPLISHMENTS:

SERVICES :

• • • • •

• • • •

2021 Local Gross Sales and Leases Over $49 Million Host of What’s My Land Worth Seminar CCIM Board Member Hundreds of Hours in Community Service HLSR - WCBBQ Sponsor

Acquisitions Investment Sales Industrial Retail

• Office • Landlord Represenation • Tenant Representation

MAY 2022

• Lenders are selective on retail loans, and generally prefer large projects over smaller ones; lenders obviously do not want to lock in low rates now long-term, in this market of rising rates • Cap rates remain historically low • Overworked and understaffed city permitting offices are slowing down development; development in general has become a nerve-wracking exercise for all concerned, but this should prevent a bubble from overbuilding • Debts funds were the largest source of capital last year, and there remain today many sources of capital

Ryan Holliday, Edge Realty; Tenel Tayar, Fifth Corner; Robin Binkley, Real Equity Investment Partners; Kevin Holland, Cushman & Wakefield; Kevin Kirton, Buckhead Investments and Darrell Betts, Avison Young < Capital Markets Continued from Page 31 • Industrial and self-storage are two of the preferred categories for lenders, along with MF • Industrial developers are getting bids from buyers for projects even in early stages of construction, and some developers are shopping their deals just after they start building them

Investor Requirements & Investment Deal Flows Moderator: Robin BinkleyReal Equity Investments; Darrell Betts-Avison Young; Kevin Kirton-Buckhead Investment Partners; Kevin Holland-Cushman & Wakefield; Ryan Holliday-Edge Realty Partners; Tenel Tayar-Fifth Corner Bullets: • Lenders have slightly lower return expectations on retail than on other sector loans, although retail has good projected rent growth • Office investments have risk but also possibility of good returns, with construction of new office hindered by current construction challenges/costs; downtown hotels are also good investments; along with CBD office, this part of the hospitality market was hard-hit by Covid • Lots of investor money is going into publicly traded REITs • Grocery-anchored centers are sought out by lenders over other retail

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• Service-providing tenants and restaurants are expanding in retail centers, which once were the nearly exclusive purview of soft goods retailers; Houston has more retail SF under development than any other US city • European investment is coming to Houston; cap rates in Houston CRE seem to have bottomed out, albeit at low rates at the moment, and they are going to start drifting up; low cap rates have been the result of cheap capital, and as interest rates rise so will cap rates • The current game plan of real estate developers is to build, stabilize, and flip in 3-5 years, but the risk here is that CRE is illiquid and there is not always a market at an acceptable profit level 3-5 years down the road • Construction costs are rising faster than the rents needed to cover them can rise • Garden apartments are costing the same as interior corridor MF, although there is a good demand for both product types • The Houston market now offers the best circumstances that an investor can get for his money: rising rents, geographic stability, organic and in-migration population growth, local economy benefitting from oil price spikes, highly trained and diverse labor pool, etc. • Retail foot traffic to retail has rebounded and now exceeds the level before the pandemic, and in most cases people like the ‘experience’ of leaving their homes to shop; restaurant visits have roared back • MF management teams are struggling to organize the flood of deliveries to tenants in their buildings, and this need dictates design in new projects as well: where to put the small deliveries and the BIG ones while tenants are away at work?

SEE YOU SOON IN

Andrew Segal, Boxer Properties; JC Clemens, Flagship Capital Partners; Jim Kirkpatrick, CBRE and Edward Nwokedi, RED Swan CRE Marketplace

LEANDER, TEXAS

• Affordable and ‘workforce’ housing is still a challenge without grants; BTR and SFR (build to rent and single family rentals) are new trends in housing, as many apartment dwellers yearn for a free-standing home •Join Single family home prices continue to skyrocket, as does inventory of used homes; Our Community the affordable homes, new and used, are farther and farther resulting longer Leander offers business owners the opportunity to out, thrive in thein fastest

growing city in America. We can’t wait for you to join our community Continued on Page 34> and find out what makes Leander a place that people love to call home.

PARDON OUR DUST! Leander, Texas was named the fastest growing City in America in 2020 and continues to develop at a record pace – permitting more than 2,000 single family homes per year and being named the 2nd most popular zip code in America by Opendoor in 2022. The rapidly growing community of 87,000 has grown more than 148% since 2015 and continues to attract high quality commercial and residential development including the 116-acre Northline mixed-use development, the 78-acre Leander Springs mixed-use project, and 45 acre Bar-W Marketplace. Leander residents command a large amount

Questions? of purchasing power with a median household We have answers! income over $102,000 and median age of years old. The opportunity for retail, Contact us today or34.4 scan below. restaurant, We look forward to hearing and mixed-use development in Leander has never been better! Visit www. from you soon! Questions? We have answers! Contact us today or scan the code to get in touch with

LeanderBusiness.com to find out why so many projects are choosing Leander today.

the Leander Economic Development team.

Cameron Goodman

Director of Economic Development

cgoodman@leandertx.gov (512) 528-2855

Ashley Lu

Economic D

alunde@ (512) 528-

“Suburban office investments are drawing attention, as workers want to be closer to where they can afford to live; work from home seems to be here to stay.” < Capital Markets Continued from Page 33 commutes and pressure on employers to let their workers work from home; it now costs from $3-10 million dollars to live in River Oaks or West University • Suburban office is doing well since price-conscious homeowners want to be near their homes • Inflation will change all of our lives, and high interest rates will follow • There have been sales in Austin (the ‘rock star of CRE in Texas’) at cap rates in the high 2s • If investors are willing to give personal guaranties on loans to refurbish older and low-occupancy smaller office buildings, there can be a good upside State of Affairs in Credit Markets/Permanent Debt and Its Impact On CRE Financing Moderator: Andrew Segal-Boxer Property Speakers: Edward Nwokedi-RedSwan; J.C. Clemens-Flagship Capital Partners; Jim

MAY 2022

Kirkpatrick-CBRE Capital Markets Bullets: • Inflation is the elephant in the room; how can we have 10% inflation and 3% interest rates? This can’t last, obviously. Every time you have high inflation you WILL have a recession. We could have 10% interest rates by yearend • We have never had so much money in circulation, looking for a return • CRE is where you want to be in an inflationary market-real estate is a great inflation hedge; however, CRE is illiquid and an investor cannot easily pull money out of a deal when he wants to • Lots of money is chasing class B & C MF, but if you buy at 3 cap you have a low chance to sell for a profit • There are lots of high net worth individuals looking for deals • There are some developers who are keeping 10% GP ownership and then converting

the balance of the equity piece into individual shares to allow low net worth investors in, and then the investors can trade their shares, thus diversifying their risk; these are somewhat uncharted waters, however, such as how to fund capital calls if needed? • Some lenders are wary of open ‘we-work’ space, since it can be hard to know who is the landlord and who is the tenant; co-working space seems to be drifting now toward fewer open bays and more smaller suites • Office owners find it easier to backfill tenant move-outs when the tenants are smaller • Suburban office investments are drawing attention, as workers want to be closer to where they can afford to live; work from home seems to be here to stay, at least on some level and for some businesses who keep all their records in the Cloud and accessible from anywhere; at the end of the day, productivity is what counts, in the office or from home • Some companies are 100% back in the office, but with the worker shortage and competition of employees, employers have no leverage to require an employee to do what he/she does not want to do • MF has been able to get higher rents without pushback due to so many tenants now using their apartment as their office • Companies are more and more offshoring call centers and other personnel-heavy functions to save money on salaries and on office space and provision of other amenities here in the US

advertiser index Abel Design Group........................................................................................ 24 Alamo EDC...................................................................................................... 15 Allen Economic Development Corporation.............................................

Builders United..............................................................................................

City of Edinburg.............................................................................................

City of Lancaster........................................................................................... 17 City of Leander.............................................................................................. 33 City of McAllen...............................................................................................1,20 City of Seabrook............................................................................................ 13 Colliers.................................................................................................................25 CRG Texas Environmental Services, Inc.................................................... 19 DN Commercial.............................................................................................. 40

TEXAS

UPCOMING

First Warranty Realty...................................................................................

Friedman Real Estate Group - Michigan.................................................. 29 Holliday Commercial Real Estate............................................................... 14 Homeland Properties, Inc............................................................................

LandPark Commercial................................................................................... 31 May 3

REDNews Collin County CRE Summit: The Growth of 121 & 75

May 12

2022 REDNews North Texas Real Estate Capital Markets Summit

May 17

2022 REDNews Woodlands/North Houston CRE Forecast

June 17

2022 Texas CRE Summit: Big Deals and Emerging Markets

June 23

2022 Austin Commercial Real Estate Forecast Summit

July 13

2022 REDNews North Texas Multifamily Summit

Lane Property Tax Advisors........................................................................ 28 Levcor, Inc....................................................................................................... 23 National Environmental Services, LLC...................................................... 39 Phase Engineering......................................................................................... 36 Prime Capital Corp........................................................................................ 32 Rob Adams Properties, Inc.......................................................................... 16 SVN - J. Beard Greater Houston.................................................................

The Real Estate Council - Greater Ft. Worth........................................... 26 XAG Properties............................................................................................... 27 MAY 2022

Stop Spinning Your Wheels! Let Your TEXAS Environmental Consulting Firm Help You Navigate Through Your Environmental Risks.

Full range of nationwide professional environmental services including: Phase I and Phase II ESAs • USTs • Asbestos • Mold • Lead • NEPAReports Vapor Assessments • Wetlands • Property Condition Assessments

MAY 2022

Phase Engineering, LLC Environmental Consultants 832-485-2225 www.PhaseEngineering.com

ARCO/Murray's Lauren Ladowski Promoted to Vice President

SCOOP

ARCO/Murray is pleased to announce the promotion of Lauren Ladowski to Vice President. She will lead ARCO/ Murray’s tenant improvement business. “I am thrilled for this opportunity and can’t wait to play a role in advancing the booming Dallas market,” said Ladowski. Ladowski joined ARCO/Murray in 2013 as a Project Manager. Throughout her career at ARCO, Lauren has served as a leader and a central point of contact for key national and local client accounts. Lauren received her Bachelor of Science in Civil Engineering from the University of Notre Dame. “Lauren is a great asset to our team, and we are looking forward to all that she is going to do in her new role,” said Jason McLaughlin, Principal.

Russell Cosby Joins Citadel Partners 3

Russell Cosby, SIOR joined Citadel Partners as a Market Leader within its office division. He brings a 43-year career of advising corporate clients including numerous public and privately held corporations, local entrepreneurial ventures, and professional practitioners within the legal field regarding their commercial real estate needs. Cosby comes to Citadel Partners after an illustrious 13-year career at the Dallas office of JLL.

“Russell and I have known each other since our days of playing football together at Richardson High School. It’s awesome that we now can compete on the same team again,” says Citadel Partners Managing Partner Scott Morse, SIOR, CCIM

Citadel Partners Managing Partner Scott Jessen, SIOR, CCIM adds that “Russell is one of the finest human beings I know, and we are ecstatic about the opportunity to have him as part of our growing team.” Cosby concurs, adding that “it is a privilege to work with such a highly regarded group of professionals at Citadel Partners.”

REDnews Houston Capital Markets keynote speaker, Patrick Duffy, Colliers

CCIM monthly luncheon, Boston Whitlow, WMF Restoration and Ryan Kee, Voss Law Firm

REDnews Houston Capital Markets Summit, Amy Farrell, Bank of Texas; Gary Greenberg, Levey Group and Warren Hitchcock, NorthMarq Capital

CCIM monthly luncheon, Anthony Young, Altus Group; Courtney and Norman McDonald, ThisIsLivin.

CCIM monthly luncheon speaker, Dr. Luis Torres, Texas Real Estate Research Center

About Citadel Partners Citadel Partners is a commercial and industrial real estate advisory firm delivering unexpected value across your entire real estate experience. With offices in Dallas and Fort Worth, Citadel Partners’ strategy is based on an integrated approach to commercial real estate – one that supports our clients’ business growth and brand development. Free from the limitations of traditional real estate models, we are agile, informed, and creative. We focus on actively collaborating with clients to create commercial real estate solutions that support their business goals.

MAY 2022

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.

For advertising opportunities in this section, please contact Susan Mickey at smickey@REDnews.com or 773.575.9030

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)

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•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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Celebrating 25 years of bringing results for our clients & Making a positive impact in our Industry and City!

Former City Council Member & Houston Assoc. of Realtors - Commercial Chair

Danny Nguyen, CCIM