REDNews February 2018 by RE Journals

FEBRUARY 2018

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Inside: Opening Up Office In 2O18 Shopping & Shipping Driving the distribution market Tackling Tax Reform How changes to the law impact CRE

RIVERBEND AT CLEAR CREEK Burgeoning Waterfront Development Multiple Opportunities Available

RE PRIC DU E CE D

4707 EIGEL ST. HOUSTON, TEXAS 77007

Located in the heart of the Washington Corridor, adjacent to Memorial Park, Rice Military, Montrose and the Heights. Building Details:

±7,280 SF building 2 Stories 29 Parking Spaces Interior and exterior security cameras

Land Details:

±15,000 SF of land Eigel frontage - 150’ with 2 curb cuts Parker frontage - 100’ with 1 curb cut

PRICE REDUCED: $2,400,000 $2,250,000 KRISTEN MCDADE Senior Director 713.469.4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator 346.444.8968 lauren.geary@berkadia.com

MATT DAVIS Analyst 346.444.8961 matt.davis@berkadia.com

© 2017 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx

±4 ACRES

SWC FRY RD. & HEMPSTEAD RD. CYPRESS, TEXAS

•

±490’ of frontage on Fry Rd.

•

Easy access from 290 and Hempstead Rd.

•

No zoning or restrictions

•

Potential uses include retail, restaurant, storage, medical, school hotel and more

•

Owner will consider dividing

•

Contact broker for pricing

LAND SERVICES TEAM KRISTEN MCDADE Senior Director 713.469.4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator 346.444.8968 lauren.geary@berkadia.com

MATT DAVIS Analyst 346.444.8961 matt.davis@berkadia.com

© 2018 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx

IN THIS ISSUE

Market

Sales & Leases 1 – 3, 5, 7, 11, 13, 15, 17, 19, 21, 25, 28, 41

Services

Environmental Services 30, 43 Photography 28 Real Estate Loans 11, 21, 44 Tax Advisors 27

Scoop Events 29, 32-37 Social 33, 35, 37 Bulletin 38 – 40

Features

Opening up office 8 – 10, 12 Shopping & Shipping 14, 16, 18, 20 Texas Economic update 22, 23 CIVIL FAIR PLAY Property Tax Reductions 24 - 26 4

February 2018

RIVERBEND AT CLEAR CREEK LEAGUE CITY, TEXAS

Riverbend at Clear Creek in League City, Texas is an exciting new waterfront development with direct access to I-45 and just minutes from Downtown Houston, the Texas Medical Center, Hobby Airport, Clear Lake and Galveston. Now open, Phase 1 of Marina Bend at Clear Lake hosts 201 units, with a Phase 2 and 3 planned. Underway is the Aloft Hotel, as well as the marina, which will be a focal point of the project.

SITE

Please contact broker for tract sizes and pricing. KRISTEN MCDADE Senior Director T: +1 713 469 4509 kristen.mcdade@berkadia.com

LAUREN GEARY Marketing Coordinator T: +1 346 444 8968 lauren.geary@berkadia.com

MATT DAVIS Analyst T: +1 346 444 8961 matt.davis@berkadia.com

2229 San Felipe Street; Suite 1600 Houston, TX 77019

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITERS

Janis Arnold janisarnold1@gmail.com Ray Hankamer rhankamer@gmail.com Brandi Smith info@REDNews.com

Dear Readers,

The Federal Reserve Bank of Dallas reports that Texas finished 2017 “firing on all cylinders” and according to everyone we spoke to this month, there is an abundance of optimism for more of the same in 2018. The Texas industrial and office markets are strong and even Houston reported positive office absorption. Kristen Rabel with CBRE noted that now oil prices are above $60 a barrel, tenants are being propelled to make long term decisions about their office space. (see Opening up Office in 2018 starting on page 8). With the e-commerce boom, retail and industrial are becoming somewhat interconnected and older shopping malls may see new life as distribution facilities. (see Shopping & Shipping starting on page 14). And what will tax reform mean to CRE? John Chang, along with some of of his colleagues at Marcus & Millichap, in a recent online seminar, speculated about the effect of tax reform on the commercial real estate industry. They anticipate positive benefits to the CRE industry with the caveat that the next tax code is subject to IRS interpretation. I hope you survived the recent cold snap with no frozen pipes or dented car fenders and we will all be enjoying warmer weather in February. Best Regards,

Ginger Wheless

CONTRIBUTING WRITERS

Cynthia Lescalleet info@REDNews.com Christopher Slijk and Keith Phillips

EMARKETING DIRECTOR

SITE AV

Melissa Tucker emarketing@REDNews.com

CREATIVE DIRECTOR

401 Laurel St

Steven Smith digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Ginger Wheless ginger@REDNews.com

PRINT & DIGITAL DISTRIBUTION

REDNews is directly mailed each month to commercial real estate brokers, investors and developers throughout Texas and the US. Texas Brokers: 8,150 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 26,387

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CONTACT

Aaron Farmer, Senior V The Retail Coach afarmer@theretailcoac 662.231.0608

AC E P S E L B A L I A AV Total Building Area: 4627 SF POTENTIAL FOR: Indoor Seating: 80 People

VAILABLE | LA MARQUE RENAISSANCE DISTRICT

treet | La Outdoor Marque, Texas 77568 Seating:

16 People | LA MARQUE RENAISSANCE DISTRICT SITE AVAILABLE 401 Laurel Street | La Marque, Texas 77568

LOCATION MAP

RETAIL TRADE AREA MAP

The City of La Marque is strategically situated in Galveston County, 15 miles south of Houston and four miles north of Galveston Island. Marque RENAISSANCE is the second-fastest-growing SITE AVAILABLE | LALaMARQUE DISTRICT 401city Laurel Street | La Marque, Texas 77568 in the County with an estimated population of 16,000, an area of 14.25 square miles and boasting 14.3 miles of I-45 frontage.

LOCATION MAP

RETAIL TRADE AREA MAP

EXISTING RETAIL MAP

SITE AVAILABLE | LA MARQUE RENAISSANCE DISTRICT 401 Laurel Street | La Marque, Texas 77568 SITE LOCATION MAP

EXISTING RETAIL MAP

SITE LOCAL LOCATION MAP

P.O. Box 7272 | Tupelo, MS 38802 | 800.851.0962 | www.theretailcoach.net

AVAILABLE SPACE

Site Details

Total Building Area 4627 SF Total Indoor Seating 80 People Total Outdoor Seating 16 People

TRAFFIC COUNTS

TRAFFIC COUNTS Texas Avenue - 11,820 AADP Texas Avenue Source: TXDOT 2016 - 11,820 AADP Source: TXDOT 2016

PROPERTY INFORMATION PROPERTY INFORMATION

Well trafficked trafficked downtown downtown space •• Well spaceadjacent adjacenttoto the Post Office and across the street the Post Office and across the streetfrom fromthe the La Marque Economic Development Corporation La Marque Economic Development Corporation •Office 31 Customer Parking Spots and additional • 31 Customer parking Parking spots Spots and additional 6 6 employee employee parking spots • Ideal Restaurant/Cafe/Deli Location • Ideal Restaurant/Cafe/Deli Location

The information contained herein was obtained from sources believed to be reliable; however, The Retail Coach, makes no guarantees, warranties, or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice.

DEMOGRAPHICS (based on data) 2017 data) DEMOGRAPHICS (based on 2017 Variable

SITE LOCATION AERIAL

RTA

1-Mile

3-Mile

5-Mile

2017 Population

97,186

8,365

38,344

73,130

2017 Workforce

40,969

3,237

15,184

29,939

Average HH Income

$67,184

P.O. Box 7272 | Tupelo, MS 38802 | 800.851.0962 | www.theretailcoach.net

Alex Getty, Executive Director La Marque Economic Development Corporation Vice President Alex Getty, Executive Director agetty@lmedc.com La Marque Economic Development Corporation 409-938-9258 ch.net agetty@lmedc.com The information contained herein was obtained from sources believed to be reliable; however, The Retail Coach, makes no guarantees, warranties, or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice.

409.938.9258

Median Age

39.2

$52,717 $54,483 $59,939 37.6

37.4

37.7

Area; the the geographic area from **RTA RTA––Retail RetailTrade Trade Area; geographic areawhich from which retailers derive approximately 80-85% of their business. retailers derive approximately 80-85% of their business.

Opening up office in 2018

Skanska’s Capitol Tower BY BRANDI SMITH

When it opens its doors in 2019, Skanska’s Capitol Tower will reach 35 stories into the downtown Houston skyline, offering up 775,000 square feet of Class-A office and retail space. Six and a half floors of the sustainable building, totalling 210,000 square feet, will be occupied by Bank of America. “That was by far the most unique deal I worked on in 2017,” says Kristen Rabel, senior vice president of CBRE Houston. “It was exciting to work with a large tenant and get them to understand the vision of Capitol Tower.” She, along with CBRE’s Warren Savery and Rima Soroka, worked on the deal that ultimately triggered Skanska to kick off construction and bring Capitol Tower out of the ground. Kristen Rabel CBRE

“Capitol Tower is a game-changer for downtown office space in Houston, so it is an honor to have such a prestigious, global firm like Bank of America as our lead tenant,” Matt Damborsky, executive vice president for Skanska USA Commercial Development in Houston, said in a statement. Billed as “Tomorrow’s workplace, today,” the building is focused on a “newer, younger and greener Houston.” It’s a prime example of what the larger tenants in Houston are looking for in 2018: new product with modern, flexible and collaborative office space. “More than ever, tenants are focused on recruiting and retaining talent and trying to stay in the forefront of the changes in technology and how they affect the use of office space,” says Rabel. 8

February 2018

Working the office market in the hub of the oil industry hasn’t exactly been easy after oil prices bottomed out, but 2018 looks promising. CBRE reports that Houston’s office market marked positive net absorption (325,000 square feet) in the final quarter of 2017 - for the first time in 18 months. “With oil prices staying above $60 a barrel, we are starting to see tenants make longterm decisions regarding their office space,” Rabel says. “In addition, we have had positive job growth so we are definitely trending in the right direction to get Houston back on track.” Overall office vacancy also dropped in Q4 as sublease listings decreased by about 1.3 million square feet. “We are slowly coming back and the market is on its way to positive growth,” says Rabel. “ I don’t think we will see the robust growth like we have had in the past few years; however, the positive absorption we saw in the fourth quarter indicates that modest occupancy gains may continue to materialize in the near-term.” Continued on Page 10 >

Now open! Cinemark Theatres is the first anchor to open within the 55-acre Entertainment District at Valley Ranch Town Center

The Pointe, a 336-unit garden style complex will break ground in February

336

WAY RK PA 99 ND

Valley Ranch Town Center

OU R R ETA IL H AS T H E EDG E

New Caney GRAN

The Woodlands

Porter Spring

WAY RK

69/59 Kingwood

Bush Intercontinental Airport

290

90 8

610 10

Downtown Houston

Join the line-up of leading national tenants in this 240-acre mixed-use project strategically designed and located to enhance the experience of shopping and dining. Regional entertainment and civic destination, including multiple sports complexes, a planned world-class amphitheater and 100 acres if public lakes add to the projects competitive advantage. Great retail is not just a power center. Great retail is location, it’s an experience—it’s Valley Ranch Town Center.

15 MINUTE DRIVE TIME $83,017

164,531

1.5+ M sf

120K

Aver age Household Income

Populat io n

Retail & M ix ed-Use

D a ily Tr a ﬀ i c Co u n t

S IGNORE L L I C O MPA N Y . CO M | l e a s i n g @ s i g n ore l l i c o m p an y . c o m | 7 1 3 . 4 5 2. 1 7 0 0

Opening up office in 2018

< Continued from Page 8

IN DALLAS

“Clients expect all of the amenities” “If you’re renewing a lease in the Dallas market this year, get ready to pay more", says Scott Bumpas, managing principal for Cresa’s Dallas-Ft. Worth office. “I would suggest starting the process as early as you can,” he says. Bumpas says a slate of corporate relocations to the market (including Fannie Mae, Goldman Sachs and Alston & Bird) are eating up space and driving up value in some parts of town. “We probably have a little less leverage right now, especially in the hotter markets like Uptown and Legacy. Submarkets outside of those areas afford us a little more leverage,” he says. “Overall, landlords in the Dallas/ Scott Bumpas Ft. Worth markets are fair Cresa and look at the long term when things may change back more to the tenants' advantage.” Vacancy in DFW is sitting at about 19 percent, after 5.7 million square feet of net absorption in 2017. Still, there’s another 5.3 million square feet under construction right now. A lot of that space is geared toward modern clients who have different needs and desires than tenants even a decade ago. “Clients expect all of the amenities of Class A buildings to attract and retain top talent. This includes tenant lounges, fitness centers, common training 10

February 2018

rooms, restaurants, and high-speed network connections, to name a few,” Bumpas says. Parking is also a significant issue for clients in a city where many buildings have parking ratios of three per 1,000 square feet. “We have many clients that need significantly more parking than the older buildings can provide,” says Bumpas. Those clients are varied, though he notes that more technology-related companies are coming on board. “When asked, we are told that these companies prefer the entrepreneurial culture of our company to the large publicly traded real estate firms,” Bumpas says. He can’t name names (Crensa has a policy against it), but Bumpas says he’s working on a sizable renewal in Frisco for a well-known international client. “As hot as the Frisco market is, we were able to work with the owner to structure a creative renewal that was great for our client and enabled the owner to structure a refinance that helped them with their long term ownership,” he says.

IN SAN ANTONIO “That area is exploding”

Looking ahead to 2018, Transwestern’s executive managing director of its San Antonio office, Larry Mendez, is optimistic about the year to come after what he calls a “strong” ‘17. “We ended with positive absorption and significant rate increase,” he says of the office market in San Antonio. “There’s a lot of new product and it’s doing well.”

According to Q3 data compiled by Transwestern, some big deals drove that absorption, including tenants filling up the Landmark One building, the Airport Center and Callaghan Tower, to name a few. “If someone had told me six years ago that people would be doing $27 to $35 Triple Net office deals, I would have found that very hard to believe,” Mendez says. “We've seen rates push high, higher than they've ever been. We've also seen a lot of new construction hit.” In the past two years alone, more than 1.62 million square feet of office product has come online in San Antonio. It’s already averaging an occupancy rate of 60 percent. Larry Mendez Transwestern The influx of new space is changing the landlord-tenant dynamics, especially when it comes to subleasing. “If you have a tenant in a downtown submarket, it's a landlord's submarket. You go deep northwest in San Antonio and it's more of a tenant's submarket,” Mendez says. “What I have seen for the first time is a big discrepancy between the submarkets.” As evidence that the downtown San Antonio submarket is tightening, he points to USAA buying Bank of America Plaza. The only other Class-A tower is IBC, which is full, according to Mendez. Even the Class-B tower owned by USAA is full. “What that does is it changes the market dynamics,” he says. “It certainly turns it into a landlord market, especially for quality Class-A space.” Continued on Page 12 >

The Waller Ranch

REAL ESTATE

BRIDGE LOANS

This country dream ranch is just the place for your family and horses. With amenities such as barns, stables, paddocks, breeding and training facilities, a barndominium and an office, this is the perfect place for your equine operation.

www.terpstra-associates.com A beautiful 360 Degree view that is ready for your new ranch home! Road frontage on 2 main roads and quick access to US 290 and Waller. Located in the desirable Waller ISD.

Equity Secured Capital

See it, own it. This ranch is one of a kind!

Texas Direct Private Lender Close in 7 Days - Only 1% Fee

CONTACT: Brittney Klein- (713)259-9449 Brittneyr.klein@gmail.com Terpstra and Associates (281)580-4855 www.terpstra-associates.com

www.equitysecured.com 512-732-8338 FOR SALE - 19 Acres/Corporate Office Campus 8787 Tallyho Road, Houston, Texas 77061

BUILDING 2 Built 1973/Renov. 2006 1 Story 17,995 SF 18 Private offices Can hold up to 85 Cubes

BUILDING 3 Built 2000 1 Story 35,035 SF 23 Private offices Can hold up to 270 Cubes

en Ro Hans

BUILDING 1 Built 1983/Renov. 2006 2 Stories 16,250 SF per ï¬&#x201A;oor (32,500 SF) 40 Private offices Can hold up to 14 Cubes Bl vd ro e M on

M on

ro e

Bl vd

SITE 3 2

d n Roa

Hanse

1 Tallyho Road Tallyho Road

DAC REALTY GROUP, INC. COMMERCIAL REAL ESTATE SERVICES

For Information Contact: Don A. Czarneski Natali Czarneski 713-419-5904 713-253-4964 don@dacrealty.com natali@dacrealty.com

DAC Realty Group, Inc.

600 N. Shepherd Dr., Suite 301, Houston, TX 77007 Phone: 713-973-2100 Fax: 713-973-2166 www.dacrealty.com

Opening up office in 2018

< Continued from Page 10

By comparison, Mendez points to office availability between I-10 and U.S. 281, as well as on Highway Loop 410, which has big blocks of space open in every single building. Prices there, he says, are $6 to $7 less per square foot. “When you go out to the suburbs, there's just more and more competition; there's new product that's continuing to deliver,” Mendez says. “In the northwest, we have probably 250,000 to 300,000 square feet that’s going to deliver in the next six months.” One of the projects he’s most excited to watch unfold in 2018 is going up across the street from The Pearl, which is about to deliver 400,000 square feet of space that is already 100 percent leased. “That area is exploding,” says Mendez. He and his partners represented the San Antonio Independent School District in the sale of 14 acres along Broadway St. to GrayStreet Partners. The developers plan to build apartments, a hotel, offices, retail space and parks on the property. “This project will be very symbiotic with what The Pearl’s doing,” says Mendez. “It's completely changing that midtown submarket." Coupled with what's happened in downtown, he says it’s a landlord’s submarket for the first time in 30 years.

IN AUSTIN “Rates are going up” The power of the landlord seems to be a theme in Central Texas for 2018. “If you are a landlord, the market is great,” says Ford Alexander, executive managing director of 12

February 2018

Cushman & Wakefield’s Austin office. “If you are a tenant, the market is brutal.” In 2017, companies like Facebook, Google, Indeed, and Expedia signed massive office leases in Texas’s capital city, helping the city reach 627,000 square feet of net absorption. “We are in the ninth year of the growth cycle in Austin and it looks like demand will continue through 2018,” Alexander says. “We need more space to handle expansion projections and supply in the short term will not keep up with demand. We all know what that means: rates are going up.” Because of the increase in price, Alexander says clients are looking for ways to be more efficient. He lists Facebook, Amazon, Apple, Google and Oracle, which all have a large presence in Austin, as companies that are building their own amenities in their spaces as a way to recruit and retain talent. “The largest of these is the kitchen and dining facilities where they serve three meals a day.,” he says. “Tenants are wanting to locate close to restaurants, bars and entertainmen, thus driving the demand for CBD and the Domain.” Ford Alexander Cushman & Wakefield

Those areas, says Alexander, are the hot spots that command the highest rates right now. A lack of amenities is hurting the Loop 360 area, however.

That evolution is just a result of Austin’s significant maturation in the past decade, he says. “Ten years ago, the majority of the market was made up of home-grown tech companies, along with local and regional professional firms and a smattering of branch offices for larger companies,” Alexander says. Today, tech giants call Austin home and, as they grow, so does the demand for office space. “Leverage for tenants is minimal and down from last year due to the lack of supply,” says Alexander. That pushes him and his clients to get creative when it comes to finding a location that will fit their needs. “We moved a client that had term on their lease remaining to a larger building that was previously a music venue,” Alexander says, reflecting on one of his most unique projects of 2017. “The goal is to utilize part of the building as office space for the company, utilize part for co-working and revitalize the music venue for events and shows at SxSW.” Overall, the men and women working in the Texas office market seem to be looking forward to a promising 2018. Whether it’s a return to normal in Houston, a rush of new space in Dallas or a landlord-tenant battle in Central Texas, the year holds many opportunities in a state where business is booming.

Northpark Katy, TX1310 at Drive Northpark 1310Shops Northpark Drive

reek

-10)

Woodcreek

outh of I-10)

Northpark Drive Intersection of Clay & Peek Roads, Katy, TX 77493

GLA: 10,000 SF GLA: 10,000 1310 GLA: 10,000 SF SF GLA: 10,000 SF For Lease: 8,200 SF For Lease: Lease: 8,200 GLA: 10,000 SF For 8,200 SF SF For Lease: 8,200 SF Delivery: Ready Delivery: Ready For Lease: Delivery: Ready8,200 SF Delivery: Ready Ave HH Income (5mi): $135,959 Ave HH Income (5mi): $135,959 Delivery: Ready Ave HH Income (5mi): $135,959 Ave HH Income (5mi): $135,959 Total Population (5mi): 137,208 Total Population (5mi): 137,208 Ave HH Income (5mi): $135,95910,000 SF Total PopulationGLA: (5mi): 137,208 Total Population (5mi): 137,208 Daytime Population (5mi): 102,183 Daytime Population (5mi): 102,183 Total Population (5mi): 137,208 For Lease: 8,200 SF Daytime Population (5mi): 102,183 Daytime Population (5mi): 102,183  Daytime Population Delivery: (5mi): 102,183 Ready

Kingwood, TX

GLA: 11,725 SF GLA: 11,725 GLA: 11,725 SF SF GLA: 11,725 SF For Lease: 8,200 SF For Lease: Lease: 8,200 GLA: 11,725 SF For 8,200 SF SF For Lease: 8,200 SF Delivery: Ready Delivery: Ready For Lease: Delivery: Ready8,200 SF Delivery: Ready Ave HH Income (5mi): $101,603 Ave HH Income (5mi): $101,603 Delivery: Ready Ave HH Income (5mi): $101,603 Ave HH Income (5mi): $101,603 Total Population (5mi): 104,741 Total Population (5mi): 104,741 Ave HH Income (5mi): $101,603 GLA: (5mi): 11,725 SF Total Population 104,741 Total Population (5mi): 104,741 Daytime Population (5mi): 93,166 Daytime Population (5mi): 93,166 Total Population (5mi): For Lease:(5mi): 93,166104,741 8,200 SF Daytime Population Daytime Population (5mi): 93,166

PRIME LOCATION Katy, TX

Shops at Northpark 1310 Northpark Drive

Intersection of Clay & Peek Roads,

Kingwood, TX

Katy, TX 77493 PRIME LOCATION DEVELOPMENT ▪▪ MANAGEMENT MANAGEMENT ▪▪ BROKERAGE BROKERAGE DEVELOPMENT DEVELOPMENT DEVELOPMENT ▪▪ MANAGEMENT MANAGEMENT ▪▪ BROKERAGE BROKERAGE Located in the heart of Katy’s new and developing residential sector (5mi): 93,166 Daytime Population Delivery: Ready DEVELOPMENT ▪ MANAGEMENT ▪ BROKERAGE Since 2002, Rubicon Rubicon Realty Realty Group has has created created Missouri City, TX Plaza Parkway at Sienna Sienna Ranch  Direct connection to Grand viaRanch both Clay and Peek roads 2002, Group Katy, TX $135,959 Ave HH Income (5mi): TX $101,603 Since Missouri City, Ave HHKaty, Income (5mi): Plaza at Since 2002, Group has Missouri City, TX TX Plaza at Sienna Ranch sss Since 2002, Rubicon RubiconinRealty Realty Groupvalue has created created Katy, TX Missouri City, TX Plaza at Sienna Ranch over $200,000,000 real estate PRIME LOCATION 6144 Sienna Ranch Road Katy, TX s))  Located on the AM137,208 “going to work” side of traffic $200,000,000 in real estate value 6144 Sienna Ranch Road over $200,000,000 in estate value 2002, Rubicon Realty 6144 Sienna Ranch Road Total Population (5mi): 104,741 Total Population (5mi): TX Missouri City, TX over Plaza at Sienna )) overSince $200,000,000 in real real estateGroup value has created 6144 Sienna Ranch Road Ranch Katy, rails GLA: Located in the heart Katy’s new and developing residential sector GLA: 14,040 SF  Positioned at fully-signalized intersection 17,000 SF a of GLA: 14,040 SF SF over $200,000,000 in real estate value GLA: 17,000 GLA: 14,040 Daytime Population (5mi): 93,166 Road) Daytime Population GLA: 17,000 SF SF (5mi): 102,183 6144 Sienna Ranch Road GLA: 14,040 SF 17,000 SFto Grand Parkway via both Clay and Peek roads GLA: Direct connection CURRENT DEVELOPMENT ▪AVAILABILITY MANAGEMENT ▪ BROKERAGE For Lease:2017): 2,737 SF  Two new Katy For Lease: 17,000 SF ISD Schools within 1 mile (opened in August CURRENT For 2,737 GLA: 14,040 SF For Lease: Lease: 17,00017,000 SF For Lease: Lease: 2,737 SF SF GLA: SF 17,000 SF CURRENT AVAILABILITY AVAILABILITY For Lease: 2,737 SF For Located on the AM “going to work” side of traffic For Lease: 17,000 SF Stockdick Junior High School (1,400 student capacity) Delivery: Ready Delivery: Fall 2018 Delivery: Ready CURRENT AVAILABILITY For Lease: Delivery: Fall 2018 Delivery: Ready2,737 SF For Lease: 17,000 SF Since 2002, Rubicon Realty Group has created Delivery: Ready City, TX Positioned atFall a 2018 fully-signalized intersection Missouri Plaza at Sienna Delivery: Fall 2018 PRIME LOCATION - Patricia E Paetow High School (3,000 studentRanch capacity) Katy, TX Katy TrailsDelivery: Ave HH Income: $118,473 Ave HH Income: $98,602 Ave HH Income: $118,473 Delivery: Ready Ave HH Income: $98,602 Ave HH Income: $118,473 Delivery: FallSchools 2018 over $200,000,000 in real estate value Ave HH Income: $98,602 6144 Sienna Ranch Road  Two new Katy ISD within 1 mile (opened in August 2017): Ave HH Income: $118,473 @ Peek Road)  Income: Located theheart heart of andand developing residential sector sector • HH Located in in the ofKaty’s Katy’snew new developing residential Ave $98,602 Total Population: 168,653 Total Population: 204,206 Total Ave HH Income: 168,653 $118,473 Total 204,206 Total Population: Population: 168,653 Ave HH-Income: $98,602High School (1,400 student capacity) Total Population: Population: 204,206 GLA: 14,040 SF Stockdick Junior Total Population: 168,653 GLA: 17,000 SF  Direct connection to Grand Parkway via both Clay and Peek roads Total Population: 204,206 Daytime Population: 117,066 Daytime Population: 151,838 Population: 117,066 • Direct connection to“going Grand Parkway viacapacity) both ClayDaytime andTotal Peek roads Population: 168,653 Daytime Population: 151,838 Daytime Population: 117,066 Population: 204,206 - Patricia E Paetow High School (3,000 student CURRENT AVAILABILITY Daytime Population: 151,838 For Lease: Total Located the AM17,000 Daytime Population: 117,066 2,737 SF For Lease:on SF to work” side of traffic Daytime Population: 151,838 Daytime Population: 117,066 Daytime Population: 151,838  Positioned at aAM fully-signalized Delivery: Ready • Located on the “going tointersection work” side of traffic Delivery: Fall 2018  Two new Katy ISD withinat1 Pebble mile (opened in August 2017): Ave HH Income: $118,473 Missouri City, TX TX Shops Creek Richmond, TXSchools Bellfort Ave HH Income: TX $98,602 Shops Missouri City, at Pebble Creek Richmond, Bellfort Missouri City, Shops at Pebble Creek Richmond, TX Bellfort • Positioned at a fully-signalized intersection Missouri City, TX TX Shops at Pebble Creek Richmond, TX Bellfort Stockdick Junior High School (1,400 student capacity) 7022 State Highway 6 y South Total Population: 168,653 y South Total Population: 204,206 7022 State Highway 6

Intersection of Clay & Peek Roads, Katy,TX 77493

281.313.0000 Rent@RubiconRealty.com

THE CROSSING AT KATY TRAILS

7022 State Highway 6 y Missouri City, TX Shops at Pebble Creek TXHigh W BellfortGLA: 7022 State(3,000 Highway 6 capacity) y South South -Richmond, Patricia EISD Paetow School student 7,125 SF Schools GLA: 16,000 SF117,066 • Two new Katy within 1 mile (opened inGLA: August 2017): Daytime Population: 7,125 SF 16,000 Demographics 1-mi 3-mi 5mi 7022 State Highway 6 Daytime Population: rkway South GLA: GLA: 7,125 SF 151,838 GLA: 16,000 SF SF GLA: 7,125 SF GLA: 16,000 SF For Lease: 2,294 SF For Lease: 14,800 SF For Lease: 2,294 For SF GLA: 7,125 SF GLA: 204,20614,800 SF For Lease: 2,294 SF SF For Lease: Lease: 14,80016,000 SF Total Population 10,207 62,386 For Lease: 2,294 SF For Lease: 14,800 SF Delivery: Ready Delivery: Sprint 2018 Delivery: Ready Delivery: Sprint 2018 For Lease: For Lease: Delivery: Ready2,294 SF Delivery: Sprint 14,800 2018 SF Delivery: Ready Delivery: 2018 HH Income $98,602Sprint Demographics 1-mi $91,017 3-mi $86,997 5mi Ave HHAverage Income (5mi): $113,767 Ave HH Income: $114,885 Ave Income $113,767 Ave Income: $114,885 Delivery: Ready Delivery: Sprint 2018 Ave HH HH Income (5mi): (5mi): $113,767 Ave HH HH Income: $114,885 HH Income (5mi): $113,767 Ave HH Income: $114,885 7022 State Highway 6 ParkwayAve South Total Population (5mi): 141,339 Total Population: $185,335 Population Change 2000 - 2015 10,207160.52% 62,386 114.26% 98.73% Total Population 204,206 Total (5mi): Total Ave HH Income $113,767 Ave HH Income: $185,335 $114,885 Total Population Population (5mi):(5mi):141,339 141,339 Total Population: Population: $185,335 Total PopulationGLA: (5mi): 141,339 Total Population: $185,335 16,000 SF 7,125 SF GLA: Daytime Population (5mi): 85,443 Daytime Population: 142,612 Daytime Population (5mi): 85,443 Daytime Population: 142,612 Total Population (5mi): Population change 2010 - 2015 $91,017 67.69% 24.20% 16.28% Total Population: $185,335 Average HH Income $86,997 $98,602 Daytime Population (5mi): 85,443141,339 Daytime Population: 142,612 Daytime Population (5mi): 85,443 Daytime Population: 142,612 14,800 SF For Lease: 2,294 SF For Lease: Daytime Population (5mi):Info 85,443 Daytime Population: 142,612 Obtained from Map Pro through Loopnet.com, last updated January 2017 Population Change 2000 - 2015 160.52% 114.26% 98.73% Demographics 1-mi 3-mi 5mi Delivery: Delivery: Ready Sprint 2018

- Stockdick Junior High School (1,400 student capacity)

Shops(3,000 at Pebble Creekcapacity) Missouri City, TX TX School kwy & W Bellfort- Patricia ERichmond, Paetow High student

$155,130

Daytime Population:

$106,397

$118,572

Total Population:

192,366

Daytime Population:

Land for Sale (owned by Rubicon Realty Group)

189,150

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Sugar Land, TX

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Missouri City, TX

yster Creek

GLA: 7,500 SF GLA:$98,602 7,500 GLA: 7,500 SF SF GLA: 7,500 SF 142,612 For Lease: Daytime Population: 1,965 SF For Lease: Lease: 1,965 SF SF GLA: 7,500 SF 98.73% For 1,965 For Lease: 1,965 SF Delivery: Ready Delivery: Ready For Lease: Delivery: Ready1,965 SF 16.28% Delivery: Ready Ave HH Income: $118,572 Ave Income: $118,572 Delivery: Ready Ave HH HH Income: $118,572 Ave HH Income: $118,572 Total Population: 192,366 Total Population: 192,366 Ave HH Income: $118,572 Total Population: 192,366 Total Population: 192,366 GLA: Daytime Population: 189,150 7,500 SF Daytime Population: 189,150 Total Population: 192,366 Daytime Population: 189,150 Daytime Population: 189,150 For Lease: 1,965 SF Daytime Population: 189,150 Delivery: Ready

GLA: 17,000 SF Daytime Population GLA: 17,000 SF (5mi): 85,443 GLA: 17,000 SF Change 160.52% 114.26% For Lease:Population 3,156 SF 2000 - 2015 For Lease: Lease: 3,156 GLA: 17,000 SF For 3,156 SF SF For Lease: 3,156 SF Delivery: Population Ready change - 2015 67.69% 24.20% Delivery: Ready For Lease: 3,1562010 SF Delivery: Ready Delivery: Ready Ave HH Income: $112,236 Ave HH HH Income: $112,236 Delivery: Obtained from$112,236 MapReady Info Pro through Loopnet.com, lastHighway updated January 2017 Ave Income: 6506 90 A Ave HH Income: $112,236 Total Population: $155,130 Total Ave HH Income: $155,130 $112,236 Total Population: Population: $155,130 Total Population: $155,130 GLA: 17,000 SF Daytime Population: $106,397 Daytime Population: Total Population: $106,397 $155,130 Daytime Population: $106,397 Daytime Population: $106,397 For Lease: 3,156 SF Daytime Population: $106,397 Delivery: Ready

Sugar Land, TX TX TX $114,885 TX TX TotalSugar Population: Land, $185,335

Sugar Land, Sugar Land, Ave HH Income: 16.28% 204,206 Sugar Land,

Shops at Easton

Shops at Easton Shops at Easton Missouri City, TX Ave HH Income (5mi): $113,767 Population change 2010 - 2015 67.69% 24.20% Total Population 62,386 Missouri City, TX Shops at10,207 Easton 6506 Highway Highway 90 A A Missouri City, TX 6506 Missouri City, TX 6506 Highway 90 A Shops at90 Easton 6506 Highway 90 A January 2017 Total Population (5mi): 141,339 Obtained from Map Info Pro through Loopnet.com, last updated Missouri City, TX Average HH17,000 Income $91,017 90 A $86,997 6506 Highway GLA: SF

k k k k Creek

Land For / BTS  Up Sale to 6.6 Acres (Divisible)

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• Up to 6.6Acres (Divisible) Appr. 508 feet along Peek Road  Up to 6.6 Acres • Appr. 508feetAppr. along6(Divisible) Peek RoadClay Road feet along • Appr. 600 feet ClayPeek Road  Appr. 508 along feet along Road  Located outside the city limits. Permitting is through Harris • Located outside the city limits. Permitting is through Harris County.  Appr. 6 feet alongCity ClayofRoad County. Houston ETJ. City of Houston ETJ.  Up to 6.6 Acres (Divisible)  Located the city limits. Permitting through Harris  outside Utilities: available through MUDis432 • Wet Utilities: available through MUD 432  County. Appr. 508 feet along Peek Road City of Houston ETJ.  not Detention: • Detention: required not required  Appr. 6 feet along through Clay RoadMUD 432  Utilities: available • Use: general Use: general commercial  commercial Located outside the city limits.  Detention: not • Prohibited Uses: carrequired repair, hotel,Permitting residentialis through Harris

Land For Sale / BTS

 

 City Prohibited Uses: County. of Houston ETJ.car repair, hotel, residential Use: general commercial Utilities: available through MUD 432

ON HOUSTON

Shopping and Shipping Every Click of E-Commerce Drives Distribution Market

John Talhelm: JLL Senior Vice President and National Director

“Houston is now a regional distribution center.”

BY CYNTHIA LESCALLEET

Industrial market expectations for distribution-style space as 2018 kicks off are a lot like what 2017 delivered: Escalating e-commerce volume and supply chain management practices that seek “last mile” proximity are driving demand and development, reports a sampling of Texas industrial experts.

is defining the logistics of quickly moving and efficiently storing goods. Infill locations --with adequate truck parking --is also seeing some activity.

Here’s why: Online shopping. E-commerce accounted for 25 percent of leasing in 2017, up from 14.7 percent a year ago, according to JLL’s “US Industrial Outlook 2017, 3Q.”

HOUSTON

With leasing activity and absorption up, construction has followed. In both speculative and build-to-suit projects, the wide open spaces of Texas are now inside new properties; they’re super-sized and locating a bit farther out of established markets to optimize investment, bypass congestion as urban density rises, and participate in the “last mile” delivery concept that

While in Texas these trends echo national ones, here is how major markets shaped up in 2017 and where they might be heading in 2018:

Earns Hub Status “The biggest change to Houston in the past 24-36 months (and even longer though less pronounced) has been dealing with supply chain and logistics,” says JLL’s John Talhelm, senior vice president and national director. Every company’s logistics formula differs, however, which affects where they perceive the best location

to optimize the last mile, meaning getting product to consumer once it has already landed. Houston’s southeast and northwest submarkets are particularly in demand by those preferring to be near their goods’ point of entry or closer to their end-users. Meanwhile, those who operate in supply chain management appear to have changed their approach, Talhelm observes: “Houston is now a regional distribution center.” With the opening of the new Panama Canal, the Port of Houston is helping drive that new role, Talhelm says. Shipping direct from China to Houston lands goods in a high population center with access to others (totaling an estimated 50 percent of the state population) within a 4- to 4 ½-hour drive. With federal regulations limiting drive-times for truckers, an optimal distance traveled within shift is about four hours, long enough to reach and return from San Antonio and Austin, Corpus Christi and Beaumont. In review of 2017, the vacancy rate has remained at or below 5 percent. It’s currently 4.9 percent, JLL’s “US Industrial Outlook” reports, with availability following suit at 8.9 percent. Developers are responding to continued demand for distribution-style space with new construction: 4.5 million SF is currently under construction, of which 37.9 percent is pre-leased. “To the credit of lenders and developers, there has been an even rate of space delivered to match demand, quarter by quarter," Talhelm says. “In my

February 2018

Continued on Page 16 >

FOR LEASE

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• Utilities Available

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ON SAN ANTONIO

Jason Schnittger: Stream Realty Managing Director

Michael T. Kent: Stream Realty Vice President, tenant Rep and Acquisitions

“Tenants will pay top-ofmarket rent for top amenities, top functional properties.”

“Growing companies that might have leased in the past now want to own their building.”

Shopping and Shipping < Continued from Page 14

opinion, this (even pairing) is a win for developers and for tenants. Developers get predictability on their investment and tenants get stability of lease rates, which helps in their long-term planning. Interest is increasing from institutional and foreign investors, with deal volume up for the year, the JLL Outlook also indicates. Examples include Pure Industrial REIT’s two-warehouse acquisition in Cedar Port Industrial Park from Clay Development; Prologis’ warehouse acquisition in the West by Northwest Industrial Park from TIAA-CREF; and Hines’ acquisition in La Porte of the five-building Underwood Distribution Center from Black Rock, which it rebranded as Independence Logistics Park..

In usage, four categories, particularly in the past two quarters, account for 56 percent of the overall industrial use, Talhelm notes: • Food & beverage • Durable goods • Building materials • Paper & packaging "Some of this activity is a reflection of recovery from Hurricane Harvey," he says, "Since industrial space was not damaged by the storm in late August 2017. In the aftermath, several new leases have been in direct 16

February 2018

response to supporting recovery in the region. Home Depot, for example, inked a 300,000 SF lease in 3Q. While recovery-support leasing activity is likely to continue into 2018, It’s hard to predict the length of the challenge Houston faces." Other players expanding their presence and footprints include Best Buy, Amazon, Walmart, Daikin and Ikea. Looking to 2018, Talhelm expects these trends to continue, including construction of projects exceeding 500,000 SF that cater to e-commerce.

SAN ANTONIO

Steady and Adding Yards Compared to the larger and diverse industrial markets of Houston and Dallas/Fort Worth, San Antonio activity is “pretty basic, with steady growth. It’s solid,” say Jason Schnittger, managing director at Stream Realty and Michael T. Kent, vice president, tenant rep and acquisitions. The completion and delivery of 1 million SF in 2017 has affected the market’s vacancy rate, now at 10 percent for third-party properties, Schnittger says, which is about double that of a year ago for the estimated 40 million SF. The vacancy dynamic, however, means a more balanced market, he says. Previously, it was “landlord friendly.” Among the 2017 deliveries: Stream Realty’s 400,000 SF I-35 Logistics Center near New Braunfels; Robinson

Weeks Partners’ Enterprise III 360,000 SF in Shertz and EastGroup Properties’ completion of two buildings totaling 160,000 SF in Eisenhauer Point. Existing and new tenants are seeking the most functional space, Schnittger says. That means high ceiling clear heights, plenty of truck parking, an abundance of high docks, optimal column spacing and ESFR sprinklers. “Tenants will pay top-of-market rent for top amenities, top functional properties,” he says. The average rate for new Class A bulk space is approaching $5 psf, “something new for this market,” notes Kent. Older properties, with their narrow truck courts, limited truck ports and advanced ages -- 30 to 50 years -- are not leasing as well, even though they’re offered at a lower price point. For Class B industrial space stuck between the Super A fully loaded properties and the older, obsolete properties now attracting redevelopment -- if they are located well -- “Landlords must decide how to differentiate, whether it is by price, adding ESFR sprinklers or improving aesthetics," he says. Also affecting inventory, though slightly, is the repurposing of well-located older and obsolete properties around the central business district into office, retail and flex space with live-work-play amenities. Mid-town and east of Broadway (near the Pearl or Houston Street) is doing quite well, he says. Continued on Page 18 >

Lockwood Business Park

NE Houston’s Premier Flex-Industrial Park 13300 Lockwood Road, Houston, TX 77044

Now Leasing

Property Information

±57,600 SF • • • • • • • • • • • •

±57,600 SF

Divisible to 8,000 SF Perfect for flex office/industrial Timeless architectural design ESFR sprinklers T-5 lighting TPO roofing 1.9:1,000 SF parking ratio Clear Height: 24’ Dock Height: 48” Column Spacing: 52’w x 50’d Building Depth: 160’ Pre-Leasing

Strategic Advantages

Regional Access and Proximity to Houston Staples With five access points to Beltway 8, and only minutes to I-69, I-45, and I-10, people and goods move throughout houston with ease. Generation Park is also only 10-minutes to IAH Airport, 15-minutes to the Port of Houston, and 20-minutes to downtown Houston. Brand New Homes Minutes Away Employees will have an opportunity to live close to where they work. There are 3,200-acres under development for an estimated 11,000 new homes within 5 minutes of Generation Park.

• • • • • • • • • •

±44,800 SF

Beltway

Divisible to 6,400 SF TEXAS Perfect for office use Timeless architectural design ESFR sprinklers TPO roofing 1.9:1,000 SF parking ratio Clear Height: 24’ Column Spacing: 50’w x 50’d Building Depth: 160’ Pre-Leasing

Generation m i Park 5

• • • • • • • • • • • •

Intercontinental Airport

Downtown Houston

Port of Houston

Huge Tax Savings Generation Park is part of Harris County’s most aggressive Foreign Trade Zone (FTZ) allowing businesses to save up to 100% on duty and 65% on Beltway inventory tax for qualified goods. Workforce Training Generation Park provides employers with two local higher education school systems, Lone Star College and San Jacinto College, eager to work with industry on tailored curriculum to train your employees and create a qualified base of new hires.

For leasing, contact: John Flournoy | jflournoy@mccord.com | 713.860.3100 www.GenerationPark.com

Shopping and Shipping < Continued from Page 16

And what of the less desirable obsolete industrial space? Given the consumer, there’s always a need to store things. Somewhere. “Even an old, dirty warehouse location can have use, though it might take longer to lease it,” Kent says. Development is pushing out farther for available, accessible land that’s priced well to accomplish the same investment goals, Schnittger says. Whereas in

ON DFW

Steve Trese: CBRE Senior Vice President

Craig Jones: JLL Managing Director

“Smaller users and the mom-and-pops who might have been in 10,000 SF are looking at growing into 30,000 SF, and the 50,000 SF user is looking at 100,000 SF.”

“If there’s a new frontier, it’s McKinney…It’s not a matter of ‘if’ but ‘when.’ ”

Examples in 2017 include TJ Maxx, 1.5 million on the south side (to be near labor, Kent explains) Carrier, 800,000 SF, also on the south side and Amazon, 1.2 million SF in Shertz. While spec industrial attempts to anticipate the most common functions, it can’t go too far out on a limb in new developments, Kent says. Still, these properties are boosting trailer storage and parking that can be

That’s something of note for building materials' providers and the oil and gas equipment suppliers that the Eagle Ford shale development has prompted. Another trend of 2017: users-as-buyers. “Growing companies that might have leased in the past now want to own their building,” Kent says. The supply is now low. Looking to 2018, Schnittger says, “We think the effect of e-commerce isn’t going to change any time soon… The ‘Last Mile’ concept of supply chain/logistics is behind a lot of this.”

DALLAS FORT WORTH

D is Dallas for Distribution "E-commerce remains the “needle-mover” in the D/ FW market’s absorption numbers (as with all other major U.S. markets)," says CBRE’s Steve Trese, senior vice president. The region’s growing population, company relocations, strong economy and developable sites continue to feed the market’s increasing aggregation role in bulk distribution.

the past the I-410/I-10 interchange was the edge of the market and the I-35 corridor particularly attractive for trucking goods, more recent projects are also seeking less congested locations that enable serving corridor growth, with facilities in San Marcos and New Braunfels, or on San Antonio’s east side to claim status as the first stop from Houston. 18

February 2018

used by trucks or for employee parking since e-commerce distribution is more labor intensive than other forms of industrial use. In San Antonio’s market, the yard concept is catching on, meaning storage that’s fenced but not contained, so it’s good for storing goods without height issues.

Put simply by Trese: “More jobs mean more people, means more stuff needed.” The top five deals (tracked through early December 2017) totaled nearly 5 million SF and were either consumer goods, direct to consumer e-commerce, or 3PL companies, he says. Direct e-commerce user Wayfair. com, for example, completed a lease for an 875,000 SF build-to-suit with Duke. Ancillary service providers are Continued on Page 20 >

Shopping and Shipping < Continued from Page 18

also active because of e-commerce activity: UPS, for instance, leased 1 million SF.

In the past five to 10 years, Dallas has boosted its role as an aggregation market for bulk distribution, company research indicates. Another market factor: Let’s call it “the effect of the sophisticated e-commerce user”—and the impact that is having on distribution activity by other users in the market -- or coming to the market -- in how they locate, operate, and handle their logistics and employment. What’s changing? Including amenities inside the industrial box. Air conditioning, for example. With heated competition for labor to work within these large facilities, Trese says, “We are seeing other large warehouses having to add amenities.” CBRE Dallas market research indicates that 72.8 percent of the 56.2 million SF in deliveries tracked since 2015 were scaled 250,000 SF or larger. (And looking back a decade, to when e-commerce was not a factor, Trese notes, warehouse footprints have more than doubled, with the largest expansions coming to metro areas with big populations.) Not all the distribution play is at the mega-scale end of the market, however. “There’s a lot of middle level e-commerce. Some are niche industries, but it’s pretty much across the board.” Also, smaller users and the

mom-and-pops who might have been in 10,000 SF are looking at growing into 30,000 SF, and the 50,000 SF user is looking at 100,000 SF, he says. And users are more interested in leasing than owning, Trese says, particularly as they become more sophisticated in their operations. While most D/FW warehouses are sticking to pure distribution, omni-channel retail users (such as home furnishings and car part suppliers) are also using warehouse space for traditional retail store support and e-commerce fulfillment, according to Miller Hamrick, CBRE industrial research coordinator. Meanwhile, proximity to the major population base is bringing second life to some infill locations, Trese adds, particularly in providing last mile distribution for quick delivery. Shopping malls, for example, might see some new life if repurposed or replaced with industrial use given their logistics-friendly locations of good access, Hamrick says. An example is the former Six Flags Mall site, slated for a two-building 1.4 million SF industrial complex by Northpoint development. JLL’s Craig Jones, managing director, says the D/FW market in 2017 shaped up pretty much as forecasted a year ago, meaning 2017 was like 2016, though slightly lower in absorption due to significant deliveries this year (nearly 20 million SF), and more in the pipeline in terms of space and users. The average vacancy rate slipped slightly to 7.3 percent through Q3. “There’s no reason to be concerned,” he says. “The healthy market will accommodate it… and with landing two or three significant deals we

should get sub 7 percent again.” Plus, deliveries are slowing down a little. Any lag time will have no long-term effect on vacancy in the most historically active submarkets, according to JLL’s outlook report. And while the South Dallas submarket’s vacancy rate is highest, that also means it has the highest opportunities, so “tenants are circling,” he says. “There is still opportunity within traditional submarkets,” he says. However, quality sites are dwindling. “If there’s a new frontier, it’s McKinney,” where some speculative and build-to-suit users are now scoping out sites. They’re following the rooftops, he says, as regional population has migrated beyond Plano, Frisco and Allen. “We’ve been discussing McKinney (opportunities) for several years,” he says. “It’s not a matter of ‘if’ but ‘when.’” In 2017, which Jones described as “just normal activity,” there were no curve balls, either pleasant or unpleasant. “No submarket lost its luster.” Looking to 2018, he expects distribution activity will continue to be generated by the region’s hub infrastructure, economic engines that are attracting both new and relocated operations, business-friendly jurisdictions and labor force. The latter is not just a D/FW factor, it’s a challenge nationally, he says. If a year ago the 2017 forecast expected a repeat of 2016’s “healthy with good activity,” 2018 is looking like a repeat of the repeat, Jones says. Like many in the industrial market, he calls that continuation “momentum.”

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Federal Reserve Bank of Texas Texas Economic Update

Texas Economy Finishes the Year Firing on All Cylinders December 2017

BY CHRISTOPHER SLIJK AND KEITH PHILLIPS

The Texas economy continues to expand at a steady pace as payroll employment rebounds strongly in the wake of Hurricane Harvey. The Texas Business Outlook Surveys suggest continued growth in the state’s manufacturing and service sectors. Early benchmark data for job growth in the first half of the year was revised down slightly from an annualized pace of 3.0 percent to 2.6 per-cent. When incorporating this data and adjusting for the hurricane effects, the Texas Employment Forecast projects 2.4 percent growth this year, slightly below the previous estimate of 2.6 percent. Job growth in 2018 is expected to stay on a similar pace and above the state’s long-term trend of 2.1 percent.

Job Growth Rebounds After Hurricane Harvey Texas jobs have grown at a solid 2.5 percent annualized rate since August (Chart 1). The job recovery following Hurricane Harvey appears to be well underway, with October’s data showing a 6.4 percent annualized increase following a slight decline in September. This puts job growth back on its projected path had the hurricane not occurred. Among the major metro areas, the Interstate 35 corridor markets of Dallas–Fort Worth, Austin and San Antonio continued to lead state job growth (Chart 2). San Antonio in particular saw a significant stimulus from hiring in hospitality and accommodation in October, likely due to a temporary influx of Gulf Coast residents following the hurricane. Houston saw a significant rebound in October employment, bringing the total number of jobs back to pre-hurricane levels. As reconstruction in the area continues, growth in Houston and along the Gulf Coast is expected to remain elevated through year-end.

State Labor Market Tightens Further While the Texas outlook remains optimistic, tightening labor markets may be a significant headwind to growth in 2018. The state unemployment rate reached a 40-year low of 3.9 percent in October, well below the long-term average of 6.0 percent (Chart 3). With the concurrent tightness of the U.S. labor market, finding workers to propel further job growth will present a greater challenge to businesses. Recent rates of population growth and labor force participation in Texas suggest that the rate of job growth needed to maintain the unemployment rate is around 1.7 percent, significantly below the expected pace for 2018. This implies that, given current trends, the jobless rate will continue to fall next year. 22

February 2018

Given ongoing labor market tightness, wages have begun to rise in Texas this year (Chart 4). Inflation-adjusted hourly wages for private sector workers has

Economic Update

Texas Economy Finishes the Year Firing on All Cylinders

picked up 1.8 percent year-to-date—the first time wage growth has exceeded the national rate since the peak of the shale boom in 2014. This is in part due to the resurgence in high-paying oil and gas jobs. However, data from the Dallas Fed’s Texas Business Outlook Surveys suggest broad upward wage pressure across both the manufacturing and service sectors. The wage response appears to have been strongest after the state unemployment rate fell below its long-term average. Above this rate, excess slack in labor markets dampened broad wage increases. However, as markets tightened beyond historical norms and businesses found it more difficult to attract workers, wages began to rise. This can be seen in the wage growth from August 2013, when the unemployment rate fell to its long-term average, to January 2015, when the rate flattened out at 4.4 percent. Over this time, average real wages in Texas grew 3.0 percent, compared with 1.2 percent for the nation. With labor markets tightening further recently, it is likely that wages will continue to grow faster than they did during the past several years of oil-bust-induced weakness.

Regional Price Pressures Picking Up Regional price pressures have followed the uptick in wage pressures. The Texas consumer price index (CPI), a combination of the Bureau of Labor Statistics’ data for Dallas–Fort Worth and Houston, is a proxy measure of price changes at the state level. Growth in the Texas core CPI, which excludes volatile energy and food prices, fell from its recent peak of 3.2 percent in mid-2016 to a six-year low of 1.3 percent in March. This pattern of decline was later mirrored in the national core CPI data, which fell from 2.3 percent at the beginning of the year to a low of 1.7 percent in August. However, Texas CPI inflation has steadily increased since March and was at 2.1 percent as of September, in line with the rise in wages over the same time. As wages pick up further in Texas and the U.S., a continued rise in price inflation is likely. This is further supported by data from the Federal Reserve Bank of Dallas’ Texas Manufacturing Outlook Survey (TMOS) and Texas Service Sector Outlook Survey (TSSOS), which both show a marked increase in the share of respondents expecting to raise their selling prices six months from now. The 12-month moving averages of both the TMOS and TSSOS future price indexes reached multiyear highs in November, with services prices reaching their highest levels since 2007. About the Authors Slijk is a senior research analyst and Phillips an assistant vice president and senior economist at the San Antonio Branch of the Federal Reserve Bank of Dallas.

February 2018

civil fair play

Tackling Tax Reform

How Changes to the Law Impact CRE

BY BRANDI SMITH

Just before Christmas, Congress offered up to President Trump what is arguably the best gift lawmakers could have presented: a major legislative victory in the form of the Tax Cuts and Jobs Act. The sweeping reform of the U.S. federal tax system will mean significant changes for individuals and businesses, including those in commercial real estate.

Some particulars of the bill are being worked out at the IRS and are expected to be clarified this month. Ahead of that, Marcus & Millichap, a national CRE brokerage firm, broke down how investors will be impacted by the changes with a forum of experts. To dig into its impact, you must first understand the reasoning for the bill, which is building economic growth, according to John Chang, Marcus & Millichap’s first vice president/national director of research services. He says the U.S. has averaged close to 200,000 jobs a month continuously for 87 months, the longest growth cycle on record. Roughly 17 million jobs have been added in that cycle with 1.8 million more expected in 2018. In summary, the economy is booming and tax reform could add even more fuel to the fire. “This could start to spark some wage growth and a little bit of inflationary pressure, especially with the stimulative effect of the new tax laws,” says Chang. Change can be daunting for any industry, especially something as widespread as national tax reform. As a result, many folks in CRE worried the overhaul could be disruptive. However, Matthew Berger, vice president of tax at the National Multifamily Housing Council, suggests there’s no real reason to worry. “I think most people will be very pleased to learn that the tax reform bill turned out very favorably to the commercial real estate industry,” Berger says.

February 2018

What follows is a summary of highlights from the Tax Cuts and Jobs Act pertaining to CRE.

LIKE KIND EXCHANGE For real property, the bill keeps like kind exchanges, also known as 1031 exchanges, which allow for the disposal of an asset and the acquisition of a replacement asset without generating a tax liability. “Under prior tax law, like kind exchanges were available for real property and what's known as tangible personal property,” says Berger. “What's really nice is that the tax law retains like kind exchanges for structures, which is going to really help make sure that money keeps being invested in the real estate sector.” Continued on Page 26 >

“What’s really nice is that the tax law retains like kind exchanges for structures, which is going to really help make sure that money keeps being invested in the real estate sector” - Matthew Berger

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civil fair play

Tackling Tax Reform

How Changes to the Law Impact CRE

John Chang

John S. Sebree

Matthew Berger

Michael D'Onofrio

< Continued from Page 24

DEDUCTIBILITY OF BUSINESS INTEREST Real estate isn’t often paid for fully in cash; property and developments are typically financed. For that reason, old tax law allowed business interest to be fully deductible. The reform bill curtails interest deductibility based on earnings before interest, taxes, depreciation and amortization, according to Berger. “What's really great is that we were able to secure a carve out for real estate because real estate is so capital intensive and generates so much interest,” he says. “The tax law will now allow real estate companies to fully deduct all their business interest.”

and non-residential structures at 39 years. If a firm abides by limits on interest deductibility, those limits still hold. If electing out of the limits on interest deductibility, firms are looking at 30 years for residential and 40 for non-residential structures. In either instance, cost seg could carve out and accelerate 5-year and 15-year property. Because the law is written broadly, real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing or brokerage all qualify as a real property trader business.

BONUS DEPRECIATION

He adds there will be a slight consequence for that, however, because it will require a slightly longer depreciation period for buildings.

The new law includes provisions for bonus depreciation of capital expenditures to potentially fully expense items, says D’Onofrio. Per Section 179 of the new law, renovations or improvements to a property (value add) can be fully expensed up to $1 million.

To cope with that, Michael D’Onofrio, the managing director of Engineered Tax Services, suggests savvy property owners and CPAs do a cost segregation study for personal property inside a building.

“Take note, though, the IRS has currently identified HVAC, roofing and security systems in non-residential properties, but we do expect further guidance on that, because it's strange that lighting was left out of that topic,” he says.

“[You can] carve out of that 30 years for residential or that 40 years for non-residential investment property and get your accelerated identified five year and 15-year class size,” says D’Onofrio. “There's still a great cost seg strategy, even if they elect that business interest deduction strategy.”

D’Onofrio calls Section 179 “amazing,” adding that bonus depreciation applies not only to improvements and new assets that are constructed into a building, but also purchases of existing buildings as well.

To break it down, the old tax law regulated depreciation of residential structures at 27.5 years

“A huge amount of the investment property trades that happen are purchases of existing buildings,” he adds.

It should be noted that this bonus depreciation applies retroactively to September 2017. “That seems like a tremendous benefit to people who own investment real estate,” says John S. Sebree, Marcus & Millichap’s first vice president/ national director of the national multi-housing group. “Not only is that going to improve the real estate, that's something that's going to stimulate construction. It is going to create jobs. It's going to stimulate the economy.”

PERSONAL TAX CHANGES & THEIR POTENTIAL IMPACT ON CRE As individuals start to feel the effects of the reform bill, Sebree notes that could signal a change in housing behavior. Itemizing home ownership is more difficult under the new law, perhaps reducing the number of first-time home buyers since they will not be able to write off the interest on the house, as they have in the past. As a result, they may choose to stay in a rental a bit longer. That means upper-tier rentals that historically face competition from home ownership could see an advantage instead. Sebree adds that the removal of the personal mandate of the Affordable Care Act will result in an estimated 13 million fewer people with insurance in the next decade. That, he says, could trigger a dip in demand for healthcare and medical-related real estate demands.

civil fair play

“We don't anticipate these to have a huge effect on the supply and demand of commercial real estate,” says Sebree. “I'm simply noting them as areas where you may see small behavior shifts that could affect performance of these assets over the longer term.”

PASS-THROUGH TAX A brand new provision in the law is what Chang calls “extraordinarily beneficial” to the passthroughs that dominate real estate, specifically LLCs, S Corps, partnerships and sole proprietors. The issue stems from the delta between the individual tax rate of 37 percent and the corporate income tax of 21 percent. “The advocacy community encouraged Congress to provide pass-throughs with a real tax cut on their business income,” says Chang. He says the provision is very complicated, which means it will take several months for the IRS to write regulations so it works as intended. In the end, though, Chang believes it will reduce the tax

rates on taxable income for pass-throughs. Here’s how it will work, according to Chang. For taxpayers earning more than $157,500 (single filers) and $315,000 (couples), the deduction is limited to the greater of either 50 percent of the taxpayer’s share of aggregate W-2 wages paid by the business or 25 percent of that share PLUS 2.5 percent of the unadjusted basis, immediately after acquisition, of all qualified property.

“This person is going to get the $250,000 deduction straight up. What's really nice about this is that we were able to get that provision in there at the end of the process, which allows for very capital-intensive industries, including real estate, to qualify,” he says.

As an example, Chang offers up a scenario in which a multifamily firm buys an apartment building for $20 million, $14 million of which is attributable to the structure and $6 million to the land. Annual rental income generated is $1.25 million.

Throughout the forum, the experts repeatedly pointed out that “the devil is in the details.” Though Congress clearly laid out its goals and intentions in the bill, it’s up to the IRS to translate that into tax code. That could result in some edits in the law as we move forward into 2018.

The maximum deduction on income is 20 percent, adding up to $250,000. Adding in the deduction limitation (2.5 percent of the structure’s $14 million value), that works out to $350,000. In this example, Change says, the firm’s deduction is not limited at all.

SUMMARY

“This tax code is unfortunately quite complicated and very dynamic, so it certainly pays to look at all facets of it and not get caught up in one particular provision,” says Berger. “It really does all work together.”

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tech advances enable firms to do more with fewer employees • 46,000 jobs will be added to our economy, creating demand for residential construction, retail, and professional services • Job growth will be in public sector and consumer oriented businesses • In the next five years we will have a population increase of 500,000, coming from organic growth and domestic and international in-migration-this will create demand across the board for residential and commercial real estate, and many other services • Real wages in our city will resume their growth after several years of being flat

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2018

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SCOOP The following pages contain a calendar of Texas CRE events, networking photos, and deals/announcements. For more updates, log on to REDNews.com

FEBRUARY FEATURE: REDNews IS ON THE MOVE OUR NEW ADDRESS: 2537 S. GESSNER, STE. 126, HOUSTON, TX 77063

Central South Texas

North Texas

Southeast Texas

CENTRAL SOUTH TEXAS

February MONDAY

TUESDAY

BOMA AUSTIN: bomaaustin.org/ BOMA SAN ANTONIO: bomasanantonio.org CBA: cbaaustin.org/ CCIM CENTRAL TEXAS: ccimtexas.com CREW AUSTIN: crewaustin.org CREW SAN ANTONIO: crew-sanantonio.org CTCAR: ctcaronline.com IREM AUSTIN: iremaustin.org IREM SAN ANTONIO: iremsanantonio.org

WEDNESDAY

RECA reca.org RECSA: recsanantonio.com/ RETAIL LIVE: retaillive.com TABB AUSTIN: tabb.org/austin_chapter.php TABB SAN ANTONIO: tabb.org/san_ antonio_chapter.php ULI AUSTIN: austin.uli.org ULI SAN ANTONIO: sanantonio.uli.org

THURSDAY

FRIDAY 2

REDNews Newsletter [4:00pm]

CREW/CCIM Central Texas - 3rd Annual Joint Summit [7:30am - 11:30am]

TABB Austin - State Convention and Trade Show [8:00am - 5:00pm]

REDNews Newsletter [4:00pm]

REDNews March Issue Deadline [5:00pm]

REDNews Newsletter [4:00pm]

* IREM Austin - Board Meeting [11:30am -1:00pm]

CCIM Central Texas CI 102 Course [8:30am - 5:30pm]

ULI Austin - Coffee Chat [8:00am - 9:00am]

BOMA San Antonio - Monthly Luncheon [11:00am - 1:00pm] CCIM Central Texas Networking Social and Happy Hour [5:30am 7:30pm]

REDNews Newsletter [4:00pm]

February 2018

CTCAR - Property Information Exchange [7:30am - 9:00am]

TABB Austin - State Convention and Trade Show [8:00am - 5:00pm]

BOMA Austin Networking & Lunch [11:30am - 1:00pm]

R ECA Austin KnockOut Night [6:30pm - 10:30pm]

IREM Austin - CAM Reconciliation Seminar [8:30am -11:30am]

TABB Austin - State Convention and Trade Show [8:00am - 5:00pm]

*B OMA Austin - Board Meeting

*Members Only

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

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BOMA DALLAS: bomadallas.org BOMA FORT WORTH: bomafortworth.org CCIM NORTH TEXAS: ccimconnect.com/ccimnorthtexas CORENET NORTH TEXAS: northtexas.corenetglobal.org CREW DALLAS: crew-dallas.org CREW FORT WORTH: crewfw.org GFW AR: gfwar.org IREM DALLAS: irem-dallas.org IREM FORT WORTH: fortworthirem.org

NORTH TEXAS

February MONDAY

TUESDAY

WEDNESDAY

LADIES IN CRE: ladiesincre.com NAIOP: northtexasnaiop.com NTCAR: ntcar.org SCR GFW: gfwar.org/home-top-commercial.html TABB DALLAS/FORT WORTH: tabb.org/dallas_ ft_worth_chapter.php TREC DALLAS: recouncil.com REC GFW: recouncilgfw.com ULI NORTH TEXAS: northtexas.uli.org

THURSDAY

FRIDAY

REDNews Newsletter [4:00pm]

BOMA Fort Worth - Monthly Luncheon [11:00am - 1:00pm]

IREM Dallas - Executive Committee Meeting [12:00pm - 2:00pm]

BOMA Fort Worth - SAC Meeting [3:00pm - 4:30pm]

REDNews Newsletter [4:00pm]

BOMA Fort Worth Education Committee Meeting [10:00am - 11:00am]

BOMA Dallas - Networking Event: Dart Tournament [3:00pm - 10:00pm]

REC of GFW - YLC Breakfast [7:30am - 8:30am]

IREM Fort Worth Reata and Rodeo [12:00pm - 3:00pm]

BOMA Fort Worth GAC Meeting [1:30pm - 2:30pm]

REDNews March Issue Deadline [5:00pm]

CCIM North Texas Commercial Lease vs. Own Course [8:30am - 5:30pm]

CCIM North Texas Luncheon [11:30am - 1:00pm] REC of GFW - The Panther Den Urban Design Competition [11:30am - 7:30pm]

REDNews Newsletter [4:00pm]

IREM Dallas - RES201 Course for Residential Managers [8:00am - 5:00pm]

BOMA Dallas Principal Member Breakfast [7:30am - 9:00am]

* BOMA Fort Worth Board Meeting [10:00am - 1:30pm]

CCIM North Texas Happy Hour [5:30pm - 7:00pm]

NTCAR - Continuing Education: Broker Responsibility + Legal I & Legal II [8:00am - 5:30pm]

IREM Dallas - ETH800 [8:00am - 5:00pm]

CCIM North Texas - CI101 Financial Analysis [8:30am 5:30pm] REDNews Newsletter [4:00pm]

February 2018

* Members Only

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

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DECEMBER 2018 MEMBER SERVICE PROJECT AT FAMILY GATEWAY IN DALLAS.

CI 101:

Financial Analysis for Commercial Investment Real Estate February 26 - March 1, 2018 | Addison, TX CI 101 is a bedrock class for real estate practitioners at a time when risk mitigation, pricing, and cycle assurance have become critical to investors. CI 101 introduces the CCIM Cash Flow Model, a tool for ensuring your investment decisions are based on wise finance fundamentals. During the course, you will learn how to use key financial concepts such as Internal Rate of Return (IRR), Net Present Value (NPV), Cap Rate, Capital Accumulation, and the Annual Growth Rate of Capital to compare different types of commercial real estate investments. This course will teach you how to: > make informed investment decisions using the CCIM Cash Flow Model; > measure the impact of federal taxation and financial leverage on the cash flow from the acquisition, ownership, and disposition phases of real estate investment; and > use real estate analysis tools to quantify investment return.

Session Dates, Time, and Location: LOCATION: Addison Conference Center 15650 Addison Rd Addison, TX 75001 DATES: February 26 - March 1, 2018 TIME: 8:30 a.m. - 5:30 p.m.

Instructor: Charles (Mac) McClure, CCIM Susan McClure, CCIM

Tuition: Member: $1,145 REALTORÂ®: $1,390 Non-member: $1,650

ACRP: acrp.org BACREN: bacren.us BOMA HOUSTON: houstonboma.org CCIM HOUSTON: ccimhouston.org CETA: cetalliance.com CORENET HOUSTON: houston.corenetglobal.org C.R.E.A.M.: creamtx.com CREN: crengulfcoast.com CREW HOUSTON: crewhouston.org FBSCR: fbscr.com

SOUTHEAST TEXAS

February MONDAY

TUESDAY

WEDNESDAY

GREATER HOUSTON PARTNERSHIP: houston.org HAA HOUSTON: haaonline.org HRBC: houstonrealty.org HREC: houstonrealestatecouncil.org IREM HOUSTON: iremhouston.org NAIOP: naiophouston.org O'CONNOR & ASSOCIATES: poconnor.com SIOR: sior.com TABB HOUSTON: tabb.org/houston_chapter.php ULI HOUSTON: houston.uli.org

THURSDAY 1

FRIDAY 2

CREN Houston - Luncheon [11:00am - 1:00pm]

ACRP - Texas Med Run

SATURDAY

REDNews Newsletter [4:00pm]

BOMA Houston Design, Operations, and Maintenance of Building Systems, Part II [8:00am 5:00pm] REDNews Newsletter [4:00pm] REDNews March Issue Deadline [5:00pm]

REDNews Newsletter [4:00pm]

ULI Houston - Young Leaders and Rice University: Capital Markets Discussion [6:00pm - 8:00pm]

February 2018

BOMA Houston - Building Operator Certification: Level I [8:00am - 5:00pm]

CORENET Houston - Rebuliding A More Resilient Houston [11:00am -1:00pm]

IREM Houston - IREM Luncheon [11:30am -1:30pm]

FBSCR - Monthly Meeting [8:00am 9:00am] IREM Houston - Budgeting, Cash Flow and Reporting for RE Investments [8:00am -12:00pm]

CCIM Houston CI 103 Course [8:30am - 5:00pm]

ACRP - Kick-Off to Cook-Off Happy Hour [5:00pm - 7:00pm]

* Members Only

IREM Houston - Conflict Management Panel Discussion [8:00am -10:30am] BACREN - Luncheon [10:30am -1:00pm] BOMA Houston- Foundation Night Casino Benefit [6:00pm - 9:00pm]

IREM Houston Managing Maintenace Operations and Pproperty Risks (MNT402) [8:00am -5:00pm] ULI - Houston - Leadership Luncheon, Medical Real Estate Trends [11:30am -1:30pm]

CORENET Houston - Rebuliding A More Resilient Houston [11:00am -1:00pm]

IREM Houston - IREM Luncheon [11:30am -1:30pm]

CCIM Houston - CRE Forecast Competition [8:00am - 12:00pm]

HRBC Houston - Breakfast with Congressman Kevin Brady [7:00am - 8:30am]

The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

SOUTHEAST TEXAS SOCIAL

IREM Houston

2017 AWARD AND 2018 NEW CERTIFIED PROPERTY MANAGERS

L to R: 2018 Chapter President Stephanie Swanson, CPM with Transwestern installs 3 new Certified Property Managers.

L to R: IREM Houston 2017 President Chase Crawford, CPM with Stream Realty awarding Laura Krupowicz, CPM with Brookfield IREM Award of Excellence

HRBC

DECEMBER 2017 BREAKFAST

IREM HOUSTON HOUSTON IREM 02/08/18 02/08/18

02/15/18 02/15/18

FEBRUARY In light of recent LUNCHEON mass shooting activity

CONFLICT SEMINAR Our panel discussion will guide mid-

across the U.S., IREM Houston will host In light of recent mass shooting activity an expanded program in February to across the U.S., IREM Houston will host focus on this unfortunate topic. with an expanded program in February to guest speaker, Stephen Daniel. To focus on this unfortunate topic. with date, Mr. Daniel has trained over guest speaker, Stephen Daniel. To 40,000 citizens how to survive an date, Mr. Daniel has trained over Active Shooter. 40,000 citizens how to survive an Active Shooter. Houston Racquet Club $50 Members, $55 Non-Members Houston Racquet Club http://bit.ly/2DDpPzy $50 Members, $55 Non-Members http://bit.ly/2DDpPzy

level managers and first-line Our panel discussion will guide midadministrative professionals through level managers and first-line several true-life scenarios and show administrative professionals through how proven experts handle issues several true-life scenarios and show quickly and effectively. They'll learn how proven experts handle issues proven methods for resolving difficult quickly and effectively. They'll learn situations in property management. proven methods for resolving difficult situations in property management. Post Oak Central $50 Members, $55 Non-Members Post Oak Central http://bit.ly/2B5hHoj $50 Members, $55 Non-Members http://bit.ly/2B5hHoj

02/20/18 02/20/18 BUDGETING COURSE

02/22/18 02/22/18

BUDGETING COURSE It’s time to maximize the financial

MAINTENANCE This course will prepareCOURSE you to create

potential of your properties and finally It’s time to maximize the financial take control of your property’s potential of your properties and finally financial future. take control of your property’s financial future. http://bit.ly/2DBJWhk

and oversee quality, proactive This course will prepare you to create maintenance operations that will and oversee quality, proactive minimize expenses and reduce risk. maintenance operations that will minimize expenses and reduce risk. http://bit.ly/2FGIGKv

http://bit.ly/2DBJWhk

http://bit.ly/2FGIGKv

FEBRUARY LUNCHEON

L to R: HRBC December 2017 Breakfast. L to R: Charles Johnson, William Dampier.

L to R: Michelle French, Gerard Torres.

CONFLICT SEMINAR

MAINTENANCE COURSE

CENTRAL SOUTH TEXAS bulletin

AUSTIN, TX CORPORATE HEADQUARTERS EXPANSION Kendra Scott LLC is planning to almost double its corporate employees at the Lamar Central office building at Lamar Blvd & 38th Street. In addition to leasing the fourth floor, the company has leased an additional 32,000 sf on the third floor. HOTEL OPENING Austin’s largest hotel, the Fairmont Austin located at 101 Red River Street, is expected to open early this year. It will have 1048 rooms and approximately 140,000 sf of meeting space.

Courtesy Austin Monitor

AUSTIN, TX COLONY PARK REDEVELOPMENT Stratus Properties Inc & Catellus Development Corporation have applied to the City of Austin for the redevelopment of the 208 acres, Colony Park project near Decker & Loyola lanes. Colony Park’s master plan was approved in 2014 allowing for as much as 960,000 sf of commercial space & 3,031 residential units. A request for proposals is expected in February & Austin City Council should pick a winner by this summer.

Corey Martin has been appointed Managing Director of Avison Young’s Austin office.

Will Douglas has joined JLL Austin as Executive Vice President of their Representation team.

INDUSTRIAL LEASE LKQ Corp., an international auto accessory company, increased their space by 95,672 sf at Heritage Crossing, 2500 Scarbrough Drive to 222,343 sf. Sam Owen of Stream Realty represented the landlord & John Baird & Jeff Bodenman of Avison Young represented the tenant. INDUSTRIAL SALE ABC Vacuum sold an 18,200 sf building at 10606 Bluff Bend Drive to an unidentified buyer. David Stojanik of NAI Partners represented the seller & John Baird, Jeff Bodenman & Mike Kennedy of Avison Young represented the buyer. OFFICE LEASE CreditShop leased 15,556 sf at Lavaca Plaza at 504 Lavaca Street. Jason Steinberg & Matt Levin with ECR represented the landlord. OFFICE LEASE Parsley Energy leased 302,000 sf which is all of the office space in the proposed 31-story, 300 Colorado building in downtown Austin. Construction is expected to start December 2018 with completion by December 2020. The building is being developed by Cousins Properties in a joint venture with Riverside Resources. Del Frisco’s Restaurant is leasing 7,000 sf. OFFICE LEASE Online job search firm Indeed leased all of the 310,000 sf in the new Domain Tower off MoPac Blvd in North Austin. The tower is being developed by HPI Real Estate Services & Investments & Stonelake Capital Partners. It is scheduled for

February 2018

completion summer 2018. OFFICE SALE An affiliate of Austin-based F&B Capital purchased the 40,798 SF building at 5508 Parkcrest from a family trust. RETAIL CLOSING & REDEVELOPMENT The Sears Grand store located at 12625 N. I-35 is being closed as will 102 other Sears stores nationwide. The owner of the Austin property, Seritage Growth Property & AMC Entertainment Inc announced last year they would be converting 45,000 sf of the property into a 10-scree theater which should open in 2019. The entire property is approximately 172000 sf & the owner indicated they hope to turn all of the property into a leading entertainment, dining destination. RETAIL LEASE Asian grocer H-Mart is expecting to open its 68,670 sf grocery store at 11301 Lakeline Blvd in northwest Austin January 2018. The grocery store will include a food hall known as Market Eatery. This is H-Mart's 60+ location nationwide. SELF-STORAGE DEVELOPMENT Greenville, SC-based TD Storage purchased 1.3 acres at the corner of I35 & Teri Road for the development of a self-storage facility. The seller was Oregonbased Liberty Storage Austin South LLC. The transaction was handled by Bill Bellomy, Michael Johnson & John Arnold of Bellomy & Company.

development adjacent to US281 & FM 1863 which is being developed by the developer of Cordillera Ranch. In addition to approximately 1000 homes upon completion, the development will also have about 100 acres of mixeduse retail & office property.

BURNET, TX MANUFACTURING FACILITY DEVELOPMENT Jewell, an Oldcastle company, has opened a new state-of-the-art 23,000 sf manufacturing facility. The facility will be dedicated to the company’s concrete & mortar brands. Jewell also operate seven other distribution facilities throughout Texas.

GEORGETOWN, TX MIXED-USE DEVELOPMENT Wolf Lake Village, a 164-acre, mixed-use development located near I35 & SH 29 is expected to break ground in spring 2018. The development will feature office, residential, restaurants, hotels & other amenities.

LIVE OAK, TX RETAIL DEVELOPMENT IKEA has completed the purchase of 30 acres in Live Oak for a 300,000 sf store scheduled to begin in March. Weitzman has announced plans to develop an 830,000 sf IKEA anchored retail center which will include about 530,000 sf of retail, restaurant, entertainment & hospitality space. The first phase will deliver in late 2019.

SPORTS/ENTERTAINMENT COMPLEX DEVELOPMENT Sports & Entertainment will develop a 1.2 million sq sports & entertainment complex at the current location of the Travis County Exposition Center & Austin Rodeo. A 40,000 sf, open-air stadium & an adjacent 15,000 seat arena is planned. The facility will also feature eight courtyards separating enclosed pavilions.

ROUND ROCK, TX

STATE HOSPITAL REDEVELOPMENT About $15.5 million has been allocated to create a master-plan to replace Austin State Hospital which is located near West 41st & Guadalupe streets. Construction could begin as early as late next year with the cost estimated around $235 million.

RETAIL CLOSURES Sam’s Club has closed four Texas location including 12919 San Pedro in San Antonio & 1615 S. Loop West, 13331 Westheimer in Houston & 22296 Market Place Drive in New Caney.

BULVERDE, TX MASTER-PLANNED DEVELOPMENT Johnson Ranch is a 767-acre

VACANT LAND SALE Rick & Jane Anderson sold 4.866 acres at 2301 & 2351 Double Creek Drive to an Austin-based investment group who plans to develop the site, which is zoned LI. The sellers were represented by Greg Gaynor of Fokus Commercial.

SAN ANTONIO, TX

STORAGE FACILITY SALE Copart Inc purchased a 36-acre tire disposal site at 11150 Applewhite Road. The purchaser operates an auction next to this site and plans to expand its vehicle storage & auction operations on the new property.

ALLEN, TX INDUSTRIAL LEASE Brean Bros. LLC, dba The Seat Shop leased 16,000 sf in Twin Creeks Business Center at 1305 North Watters Road from Breit Industrial HS TX Property Owner LP. Susan Singer & Michael Grant with Bradford Commercial Real Estate represented the landlord & David Peterson with NAI Robert Lynn represented the tenant.

MIXED-USE DEVELOPMENT The Allen City Council approved plans for The Strand, a 135-acre mixed use development at the northeast corner of Alma Drive & SH 121. The project will be developed by Hines & will include residential, retail, restaurants & office space.

CARROLLTON, TX INDUSTRIAL LEASE EXPANSION Illes Foods renewed & expanded their 74,000 sf lease to 156,000 sf at Prologis Valwood One at 2020 McKenzie Drive. Tom McCarthy & Elizabeth Jones with JLL represented the tenant & Mitch Pruitt with Prologis represented the landlord.

DALLAS, TX

HIGH-RISE RESIDENTIAL

DEVELOPMENT Developer Southern Land Company is building a 310-unit, 20-story residential tower on North Central Expressway at Oliver Street. It is scheduled to open in early 2020. INDUSTRIAL SALE Cjm2 Properties LLC purchased a 57,144 sf industrial property located at 2217 – 2229 Santa Anna Avenue from F FAM Holdings LP. The buyer was represented by David Wilganowski with Mercer Company and the seller was represented by Scott Voelkel with Foster & Company. MEDICAL OFFICE SALE Oak Brrok, Ill-based Inland Real Estate Acquisitions purchased the 16,050 sf Dallas Eye Care Center which includes the Walnut Hill Surgery Center on Glen Lakes Drive. OFFICE SALE Goldman Sachs Asset Management Private Real Estate & Crescent Real Estate, LLC purchased the 200,000 sf office building located at 2401 Cedar Springs Road. The building was formerly occupied by GuideStone Financial Resources & will be renovated for prospective new tenants. OFFICE LEASE Winston & Shrawn LLP leased +/- 56,000 sf at PwC Tower in Park District, a 916,000 sf mixed-use project on Pearl Street close to Klyde

Warren Park. Dennis Barnes, Clay Gilbert & Shannon Brown with CBRE represented Trammell Crow Company & jv partner MetLife & Phil Puckett, Harlan Davis, Neal Puckett & Nancy Pacher with CBRE represented the tenant OFFICE SALE Mockingbird Interests, LLC purchased the 8,118 sf Compass Bank building at 6501 Hillcrest Avenue from Compass Bank. Clay Evans & Stroud Arthur with EDGE Realty Capital Markets represented the purchaser & Michael Meaden with JLL & Rich Flaten with CBRE represented the seller.

FRISCO, TX MIXED-USE DEVELOPMENT SALE Kansas City, MO-based Maxus Realty Trust Inc purchased a portion of Frisco Square which includes more than 213,000 sf including three office buildings, two apartments with ground floor retail & 144 high-end apartments. Evan Stone, Gary Carr, John Alvarado, Eric Mackey, Robert Hill, Jared Chua, Ryan Reid, Jeremy Faltys & Nita Stewart of CBRE represented the seller, an opportunity fund sponsored by Behringer. OFFICE LEASE EXPANSION T-Mobile expanded its 131,000 sf lease at Duke Bridges II, 7668 Warren Parkway to 158,000 sf. Jeff Ellerman & Scott Hobbs with CBRE represented the tenant & Shea Byers & Kurt Cherry presented the landlord. RESIDENTIAL DEVELOPMENT India-based Total Environment Homes purchased 56 acres north of Rolater Road & east of Independence Parkway for the development of 121 high-end eco-friendly homes with green roofs showcasing more than 60 species of native Texas grasses and flowers. Homes will be priced beginning at $1 million for +/-4200 sf upwards to $1.4 million. SPORTSFIELD/PARK DEVELOPMENT The city of Frisco is buying about 300 acres at the northwest corner of Eldorado Parkway & Preston Road with plans to build a city park with sports fields. VACANT LAND SALE Newland Communities LP sold 65.2 acres to Frisco ISD in Hollyhock master planned community at Dakotah Road & Rockhill Parkway.

FT. WORTH, TX HOTEL DEVELOPMENT Bryan-based Oldham Goodwin Group LLC is building a 133,000 sf SpringHill Suites by Marriott hotel in the Stockyards at 2315 N. Main. The hotel will be six stories with 170 rooms & will open summer 2019 .

INDUSTRIAL LEASE Wise Food Inc leased 34,000 sf in Railhead Business Station at 800 Railhead Road from Sun Life Assurance Company of Canada. Nick Talley with Bradford Commercial represented the landlord & Holt Lunsford Commercial represented the tenant. OFFICE LEASE San Francisco-based Charles Schwab Corporation leased 60,000 sf at Heritage Commons II at 13500 Heritage Parkway in advance of the completion of their new regional campus in Westlake according to Kyle Jacobs with Rubicon Representation LLC.

NORTH TEXAS

bulletin

Rendering Courtesy http://3plcentral.com

RETAIL SALE Alto Real Estate Funds & Trademark Property Company joint ventured to purchase the 86,943 sf center at 5000 South Hulen.

GARLAND, TX INDUSTRIAL SALE Olmstead Marketing purchased a 14,460 sf building located at 3602 Cavalier Drive from Paul Krynicki. David Wilganowski & Jeff Mercer with Mercer Company represented the seller.

GRAND PRAIRIE, TX VACANT LAND SALE Phoenix-based NexMetro Communities purchased 13 acres at the corner of Sara Jane Parkway & Forum Drive for the purpose of the development of an Avilla luxury leased home neighborhood.

IRVING, TX INDUSTRIAL LEASE CORRECTION A facility services, NYSE traded/ Fortune 500 tenant leased 27,574 sf at Westridge Center at 2020 Westridge. The tenant was represented by Mike Quinn with Fritsche Anderson & Lee Wagner with Site Selection Group. The landlord was represented by Carter Crow & Todd Jones with Younger Partners. MEDICAL OFFICE DEVELOPMENT Baylor Scott & White Medical Center is building a 58,000 sf medical office adjacent to their 296-bed hospital on the Baylor Scott & White Medical Center – Irving Campus. The new medical building is 80% pre-leased.

DALLAS, TX INDUSTRIAL SALE Dallas-based ATCAP Partners purchased a 16-building industrial portfolio totaling 1 million square feet in Dallas & Oklahoma City. These properties were combined with previous acquisitions in Houston, culminating a total portfolio in excess of two million square feet. HFF arranged the financing.

KDC NEW HIRES Michael Kaufman, chief financial office.

Ryan McManigal, senior vice president of development.

Greg Trimarchi, development associate

MCKINNEY, TX OFFICE HEADQUARTERS DEVELOPMENT Developer KDC is building a 150,000 sf, $52 million office complex for

Independent Bank near State Highway 121 & Grand Ranch Parkway in the Craig Ranch community.

Pete Van Amburgh, development associate

February 2018

SOUTHEAST TEXAS bulletin

BEAUMONT, TX RETAIL SALE Albanese Cormier Holdings sold the 76,082 sf retail center located at 3210 Avenue A.

HOUSTON, TX FOOD HALL DEVELOPMENT A 31,000 sf food hall is being developed in Lyric Center located at 411 Smith Street. Houston-based restaurant group Clark Cooper Concepts is partnering with real estate developer Jonathan Enav, president & CEO of U.S. Property Management for the project. HIGH-RISE DEVELOPMENT Construction has started on Hanover River Oaks, a 39-story residential high-rise which will have 370 units and 10,000 sf of first floor retail space. The project is located at Kirby & Steel Street & should open in first quarter 2020. INDUSTRIAL LEASE JRB Engineering, LLC leased 7,526 sf at 1116 West Little York, Building 1 from SST Providence LLC. David Boyd of Boyd Commercial represented the tenant. INDUSTRIAL/FLEX SALE The Richland Companies purchased the 74,462 sf industrial flex building at 8100 Westpark. The building is 100% leased to three tenants including Hoffer Furniture, Pak Man Supply & DragoArt Tatoo Supply. The seller and price were undisclosed. OFFICE LEASE CONSOLIDATION Connecticut-based Cigna is consolidating their 600 Houston employees into 70,000 sf at Brookhollow Central 1 at 2800 North Loop West. The relocation will take place April 2018.

Melissa Showers has joined The J. Beard Real Estate Company as Marketing & Graphic Design Specialist

Todd Stewart has joined JLL as managing director of their Houston office

Edna Meyer-Nelson, founder, President & CEO of The Richland Companies, has been awarded CREW Houston’s Circle of Excellence Award.

OFFICE LEASE RELOCATION PCL Industrial Construction relocated their office to 36,596 sf in the Grandway West development at 2322 West Grand parkway. Eugene Terry & David Bale with JLL represented the tenant & Parker Burkett with Transwestern represented the landlord, Insite Realty. OFFICE LEASE RELOCATION Calgary-based upstream company Eagle Energy Inc is relocating from Three Allen Center to a 6,200 sf space in Energy Tower IV at 11750 Katy Freeway. OFFICE LEASE RELOCATION Dallas-based Comerica Bank is relocating its Houston headquarters from 219,000 sf at Brookhollow II at 2900 North Loop West to 33,500 sf at Two Riverway. Doug Elliot of CBRE represented the tenant & Ryan Bishop & Craig McKenna with Stream Realty

Partners represented the landlord, Siddra Real Estate. OFFICE LEASE RELOCATION Houston-based Crossmark Global Investments is relocating to 16,000 sf in West Memorial Place I at 15375 Memorial Drive. Russell Hodges & Bubba Harkins with JLL represented Skanska, the landlord & Kevin Saxe with CBRE represented the tenant. OFFICE SALE A partnership led by Braun Enterprises purchased the 162,188 sf building at 5757 Woodway from Woodway Office Partners, a joint venture sponsored by Full Realty Partners & Harbert Management Corporation. Dan Miller & Marty Hogan of HFF handled the sale. OFFICE SALE Holly Coburn sold the 5,370 sf building located at 177 West Gray to 177 West Gray LLT. The seller was represented by Barrett Von Blon with Davis Commercial & the buyer was represented by Mike Weston with San Antonio-based Mission Real Estate Group. OFFICE SALE A limited liability company purchased the 80,653 sf building at 3033 Chimney Rock from an undisclosed seller. Keith Lloyd & Chris Jones with Marcus & Millichap handled the transaction. MIXED-USE DEVELOPMENT DC Partners has partnered with Tianqing Group Real Este Company LTD to build the $500 million mixeduse development near Buffalo Bayou Park called The Allen which is located at the southeast corner of Allen Parkway & Gillette St. The project will include a luxury hotel & 200,000 – 250,000 sf of Class A office space, high-end retail & a residential development. RESTAURANT SALE Oficina de Vino LLC purchased the 5,350 sf former restaurant at 2502 Algerian Way from BGM LLC. It was originally developed as the home of Haven Restaurant. David Littwitz of Littwitz Investments Inc represented the seller & Chris Dray of NewQuest represented the buyer. The property will be repurposed into law offices & mediation space. RETAIL SALE 1st Emporium, Inc purchased the 243,337 sf Macy’s at West Oaks Mall at Westheimer & SH 6 from Macy’s Holdings. The buyer plans to redevelop the Macy’s store into The Outlet at West Oaks. They previously purchased the remainder of the mall last year. The Outlet will house outlet price clothing & goods.

RETAIL SALE LaSalle Investment Management’s LaSalle Property Fund purchased The Greenway Commons retail center which includes Costco from Ohio-based DDR Corporation. The property is located at 3830 Richmond Avenue & also includes LA Fitness, Memorial Hermann, Iberiabank, Buffalo Wild Wings & Panda Express. The price was $84 million or $326/sf for the 257,625 sf center. STORAGE FACILITY Callbox Storage has opened an 80,000 sf storage facility at 10729 W. Little York. The facility will be climate controlled & will include concierge services to its clients including delivery as well as photo inventory for its clients.

HUMBLE, TX MIXED-USE DEVELOPMENT Houston-based Archway Properties has started development on Park Air 59, a 111 acre mixed-use development to include retail, restaurant, industrial and services at the northeast corner of US 59 & Will Clayton Parkway. Vital Heart purchased 4.1 acres in the park for development of a 65,000 sf medical office building. Austin Alvis of NewQuest Properties & Preston Cunningham of Cunningham Ventures represented the seller.

LA MARQUE, TX RETAIL DEVELOPMENT Capital Retail Properties has broken ground on a 15,000 sf retail center at the northwest corner of I45 & FM 1764 near the Lago Mar community.

PASADENA, TX INDUSTRIAL SALE Duke Realty purchased the 772,500 sf Bayport Distribution Center II, a two-building project located near Port of Houston on Underwood Road from Mountain West Industrial Properties & its institutional partner. The two buildings are 100% leased to three tenants. Rusty Tamlyn, Trent Agnew & Dane Pettersen with HFF represented the seller.

PASADENA/ LA PORTE, TX INDUSTRIAL SALE Robert Mytelka, a private investor from upstate New York purchased 81,936 sf on nearly 22 acres at 1605 Genoa Red Bluff in Pasadena and an approximately 40,000 sf office/ warehouse on 2 acres in the 400 block of N. 10th Street in La Porte. The sellers were Bart Industries & Bayou Properties Company. Clay Pritchett with NAI Partners represented the buyer and John Ferruzzo & Chris Kugle with NAI Partners represented Bart Industries. Bayou Properties Company represented itself.

ADVERTISER INDEX

classifieds & index

A. A. Realty Company 25

Hankamer Commercial Brokers, LLC 28

Berkadia - Houston 1-3, 5

IREM Houston 37

Berkshire Hathaway 21

Keller Williams Realty 41

Bettencourt Tax Associates 27

La Marque Economic Development Corp. 7

BOMA Austin 44

Mabry's Charter Oak Realty 41

Caldwell Companies 19

McCord Development , Inc. 17

CCIM Central Texas 33

National Environmental Services, LLC 43

CCIM Houston 29

Phase Engineering 30

CCIM North Texas 35

Plus Corp Photography 28

City Bank Texas 44

Prospect Commercial 40

DAC Realty Group, Inc. 11

Rubicon Realty 13

Equity Secured Capital, LP 11

Stream Realty Partners 15

Fast Commercial Capital 21

Terpstra & Associates Real Estate 11

Garver Real Estate 15

The Signorelli Company 9

Greenberg & Co. 15

6.74 Acres - Commercial

• South of • All utilities Almeda Mall • Right for • $3.25 PSF strip center Reduced or restaurant Keller Williams Realty Clyde Hays | P. 832.443.4868

CRE ORGANIZATION PARTNERS

North Texas CCIM Chapter

Mabry’s Charter Oak Realty Philip P. Mabry | P.713.253.0639

MEDIA KIT

CALENDAR

2018 Editorial Calendar 60,000+ Print/Digital Distribution + Over 200 Newsstands Throughout Texas. *REDNews will have additional magazines at these events

Month

Market Focus & Sub Focus

Ad Deadine *Bonus Distribution

January

Vacant Land / Texas Growth Areas Industrial & Retail Recaps

Dec 11, 2017

February

Office / Industrial / Retail Trends & Hot Spots

Jan 12, 2018

- CCIM Forecast Competition - BOMA Southwest Region Conference

Retail / Vacant Land / Texas Growth Cities Texas Economic Development

Feb 12, 2018

April

Vacant Land / Industrial Industrial Hot Spots

Mar 13, 2018

May

Retail / EDCs / Vacant Land Texas Economic Development

March

- RECA KnockOut Night

Apr 13, 2018

- CCIM & CREW Austin Real Estate Summit - Texas A&M Land Markets Conference - BOMA Dallas Trade Show - RECon Las Vegas

June

Land / Industrial & Office Trends Texas Economic Development

May 14, 2018

July

Land, Mixed-Development / Texas Development Opportunities Texas Economic Development

Jun 13, 2018

Retail Recap Texas Economic Development

August

Land / Texas Development Opportunities September Texas Economic Development

October

Industrial / Office Service / Land Industrial Hot Spots

November

Retail / EDCs Texas Economic Development

December

Vacant Land / Retail ICSC Recap Texas Economic Development

January 2017

Jul 13, 2018

Aug 13, 2018

Sep 12, 2018

Oct 12, 2018

Nov 12, 2018

- Retail Live! Austin - NTCAR Expo - TABB State Conference -"Texas A&M MCE

- Land Advisor"Symposium - ICSC Texas - Texas A&M MCE

Happy Valentine’s Day! NATIONAL ENVIRONMENTAL SERVICES

GABRIEL ENVIRONMENTAL GROUP

Houston, Texas

San Bernardino, California

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Licensed, certified and qualified to perform a wide range of services, including: • Phase I Environmental Site Assessments (AAIs-ASTM E 1527-13) • Transaction Screens (ASTM E 1528-06) • Asbestos & Lead-Based Paint Inspections (Licensed Texas Asbestos Consulting Agency) • RSRAs (Records Search with Risk Assessments) • Phase II Subsurface Investigations* • 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

Gabriel Environmental Group San Bernardino, California Tel: 951.545.0250 hgabriel@gabrielenv.com www.gabrielenv.com

POSTMASTER: PLEASE EXPEDITE TIME SENSITIVE MATERIAL PRSRT STD U.S. POSTAGE PAID PERMIT NO. 2436 DALLAS, TX

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