Commercial Property, Management and Brokerage News to Know.

2018 saw the start of 16 MSF of industrial construction, nearly a third of that in Q4 2018, which ended with the vacancy rate hovering around 5%, continuing a downward vacancy trend (and an upward absorption trend). And in 2019, the trend holds strong with Houston being a hub for capital investment, a home for several massive new warehouse facilities and an increasingly popular port. The market is hot, space is scarce, and rents are only going to rise. The time has never been better to get warehouse space in Houston. It’s no wonder Houston is...

Most small business owners lease their office space or commercial property, not realizing the benefits of commercial property ownership. In fact, ownership might be the best choice for your business. Here’s why: Ownership Is a Revenue Stream The problem with considering only the costs of ownership is you miss out on the income opportunities it presents. For example, returns on commercial properties are often 6% to 12% of the purchase price. Not only that, but you’re locked into a fixed mortgage, allowing you to anticipate your monthly...

2018 was a big year for Houston commercial real estate, and 2019 may be its biggest yet. This year Houston became the inaugural partner for Microsoft’s Internet of Things initiative, and one of the first cities in America to be selected for the brand-new, high-speed 5G internet. And Texas Medical Center--the largest medical center in the world--unveiled plans for TMC3, a new $1.5B campus that’s set to break ground in 2019. Becoming the state’s center for technological innovation means growth, jobs and shifts in traditional office space. The...

Commercial real estate investors have yet another reason to look to the Houston market this year. 150 areas in Houston have been designated opportunity zones as part of the federal Tax Cuts and Jobs Act (TCJA) that was signed into law December 2017. Texas Governor Greg Abbott framed the opportunity zones as a boost for communities still recovering from the devastation wreaked by Hurricane Harvey in 2017. But for real estate investors, it’s a prime opportunity for tax breaks. What is an Opportunity Zone? An opportunity zone is an...

As Houston’s commercial real estate market heats up, CRE investment activity is on the rise. 10 years after the 2008 financial crisis, banks remain relatively conservative with their lending practices. Where previously they might loan 75% of a property to an investor, these days they’re lending closer to about 65%. That’s leading to alternative financing methods for CRE investment deals, such as debt funds, which typically leverage up to 75% of a property with one loan. The Wall Street Journal reported that last year, lending by...

Austin and Dallas get a lot of attention, but Houston’s commercial real estate market is not to be missed. It’s home to a strong, diversified economy and office and industrial space for every business. Houston’s famously resilient economy. Since 2015, Houston has weathered through the oil downturn, a devastating hurricane, catastrophic flooding (3 years in a row), but the economy chugs along. One of the secrets to Houston’s unflappable economy is its diversity. It’s the nation’s energy capital, boasts the 6th largest port in the world and is...

There are three things office building tenants complain about more than anything else. The bad news is: they’re environmental problems that are almost certainly plaguing your office right now. The good news? A building engineer can help your office work more comfortably than ever. Say goodbye to frozen fingers or stuffy workspaces. It’s time for a happy, productive workforce. Temperature It seems that no matter what time of year it is, no matter how extreme the weather is outside, the temperature inside is never quite right. Figuring out the...

August 27, 2017 marked one year since Hurricane Harvey moved into Houston, ultimately dropping 9 trillion gallons of water on the Houston metropolitan area (and 19 trillion across Southeast Texas). We expressed confidence then that we would get through it and, despite catastrophic flooding to the city, Houston’s commercial real estate has, indeed, proven resilient. By the end of the second quarter 2018, commercial real estate was looking bullish. As we noted earlier this summer, the vacancy rate in the office market was 16.5% at the end of...

As a commercial real estate leader in Houston, we’ve learned a thing or two about what great property management requires. It takes a special person, one who knows contracts, buildings and can work with anyone. Each building has slightly different requirements, but a successful property manager should have these three essential skill sets: People Skills. They’re the face of the building, but also the brain and the heart. They have to look at contracts, know details, work with building engineers, work with tenants—not all of whom are always...

Co-working is quickly growing, and the innovative trend stands to significantly impact the landscape of commercial real estate in the coming years. For those unfamiliar with the concept, co-working brings together independent workers into a common, rented workspace as an alternative to the corner coffee shop or home office. From its West Coast roots in the last decade, co-working parallels the rise of the independent workforce: entrepreneurs, freelancers and others in what’s been called the “gigging economy.” Companies such as WeWork have...