Transwestern sells Northwest One

Houston-based Transwestern has arranged the sale of Northwest One, a 126,802-square-foot office building located on Highway 290 in Houston's Northwest submarket. Approximately $1 million has been spent on capital improvements to the building in the past 5 years. Occupancy was 44 percent at the time of the sale. Transwestern's Rudy Hubbard and Leah Gallagher negotiated the deal between the buyer, FN Northwest One, and the undisclosed seller. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin


Please follow me on Twitter at http://twitter.com/edayres, my blog at http://houstonrealtyadvisors.blogspot.com,



INFORMATION ABOUT BROKERAGE SERVICES the Texas law requires that all real estate licensees present this information about brokerage services to prospective sellers, landlords, buyers, and tenants. We ask you to help us comply with this law by reviewing this statement to show the Texas Real Estate Commission that we are trying to stay in compliance with their regulations. It is a voluntary act on your part.
Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by
accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does
not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:
(1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.
If you choose to have a broker represent you:
you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960 512-465-3960. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records. Buyer, Seller, Landlord or Tenant Date 01A TREC No. OP-K


Information About Brokerage Services


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Or go to the Texas Real Estate Commission web site below:
http://www.trec.state.tx.us/

West Oaks Mall $102 million in 2005 goes for $15M in 2009

Pacific Retail Capital Partners acquired the approximately 1.1 million-square-foot West Oaks Mall in Houston for $15 million through marketing conducted by HFF for special servicer LNR Partners. The principals of Pacific Retail Capital Partners - then with Somera Capital - previously purchased the mall in 2003, made substantial renovations and sold it in 2005 for $102 million to Investment Properties of America. Investment Properties of America was a firm controlled by Edward H. Okun, the former owner of The 1031 Tax Group LLP who this past summer was sentenced to a century in prison for his leading role in a scheme to defraud and obtain approximately $126 million in client funds held by The 1031 Tax Group. "West Oaks Mall is an incredible value, well-located in a thriving community but it also requires a significant investment of management and leasing expertise to reposition the mall. We will work to repair the center's image in the community as well as invest capital to refresh the property and potentially undertake some redevelopment," noted Steve Plenge, managing principal, Pacific Retail Capital Partners. "We have the advantage of previous experience with the property. We know the community and we completed a major renovation just four years ago. With this background we can quickly start marketing the property to a variety of potential tenants." West Oaks Mall currently has three major anchors, Dillards, Macys and Sears. Previous anchor tenants JCPenney and Mervyns exited the center leaving these spaces available for renovation and repositioning. The team has specifically identified the wing of the center formerly anchored by Mervyns to evaluate for redevelopment. The remainder of the center's retail space is approximately 60% occupied. Pacific Retail Capital Partners has created a joint venture with Collarmele Partners to handle the management, retail leasing, redevelopment and construction supervision of the mall. The West Oaks Mall acquisition is the first for Pacific Retail. The company is targeting additional regional mall acquisitions with attributes similar to West Oaks Mall, an unvalued, underperforming center in a strong community where it can apply its leasing, management and development expertise to improve performance and asset value. HFF senior managing directors Robert Williamson and Rusty Tamlyn represented special servicer LNR Partners Inc. in the sale, which they acquired in 2008 through foreclosure.


For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin


Please follow me on Twitter at http://twitter.com/edayres, my blog at http://houstonrealtyadvisors.blogspot.com,

or feel to add me to your


INFORMATION ABOUT BROKERAGE SERVICES the Texas law requires that all real estate licensees present this information about brokerage services to prospective sellers, landlords, buyers, and tenants. We ask you to help us comply with this law by reviewing this statement to show the Texas Real Estate Commission that we are trying to stay in compliance with their regulations. It is a voluntary act on your part.
Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by
accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does
not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:
(1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.
If you choose to have a broker represent you:
you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960 512-465-3960. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records. Buyer, Seller, Landlord or Tenant Date 01A TREC No. OP-K


Information About Brokerage Services


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New Woodlands, Tx lease execution

Vitruvian Exploration LLC, an independent oil and gas company, signed a deal for 15,333 square feet in the office building at 4 Waterway Square in The Woodlands, TX.

The nine-story newly constructed Class A building totals 232,364 square feet and is in the Houston area. The Woodlands Development Co. developed the property in this year.

Vice President Frank Onorato of Grubb & Ellis represented the tenant. Dennis Conine of Conine & Associates represented the landlord.For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.

FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin

Please follow me on Twitter at http://twitter.com/edayres, my blog at http://houstonrealtyadvisors.blogspot.com,

INFORMATION ABOUT BROKERAGE SERVICES the Texas law requires that all real estate licensees present this information about brokerage services to prospective sellers, landlords, buyers, and tenants. We ask you to help us comply with this law by reviewing this statement to show the Texas Real Estate Commission that we are trying to stay in compliance with their regulations. It is a voluntary act on your part.

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you: you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960 512-465-3960. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records. Buyer, Seller, Landlord or Tenant Date 01A TREC No. OP-K

Information About Brokerage Services

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Russell Industries signs with HARC

HOUSTON--(BUSINESS WIRE)--Russell Industries, Inc. (Pink Sheets: RIND - News) announced today that it has obtained a one year lease from Houston Advanced Research Center, located in the Woodlands, Texas. The lease will allow RIND to use laboratory, office and design space at the center for its Proof of Concept Pilot to Scale biofuels project.
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About Russell Industries
Russell Industries is a developing alternative and renewable energy company. The Company is the majority owner of 255 unpatented Uranium mining claims in San Juan County in Southern Utah. The Company is also pursuing development of a commercial scale algae production facility through its wholly owned subsidiary, Algae Farm, LLC. The Company’s websites arewww.algaefarm.org and www.ru308.com, the contents of which are not incorporated by reference herein.
Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations, are generally identifiable by the use of words such as "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, potential future performance, perceived opportunities in the market, and statements regarding the Company's mission and vision. The Company and all affiliated parties do not assume any duty to publicly update or revise the material contained herein.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin


INFORMATION ABOUT BROKERAGE SERVICES the Texas law requires that all real estate licensees present this information about brokerage services to prospective sellers, landlords, buyers, and tenants. We ask you to help us comply with this law by reviewing this statement to show the Texas Real Estate Commission that we are trying to stay in compliance with their regulations. It is a voluntary act on your part.
Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written listing agreement, or by agreeing to act as a subagent by
accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does
not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.
IF THE BROKER ACTS AS AN INTERMEDIARY:
A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:
(1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.
If you choose to have a broker represent you:
you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Texas Real Estate Brokers and Salespersons are licensed and regulated by the Texas Real Estate Commission (TREC). If you have a question or complaint regarding a real estate licensee, you should contact TREC at P.O. Box 12188, Austin, Texas 78711-2188 or 512-465-3960 512-465-3960. Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. Information About Brokerage Services Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records. Buyer, Seller, Landlord or Tenant Date 01A TREC No. OP-K



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Is your Landord keeping up on Insurance???

Vacant or Partially Occupied GuidelinesOne of the core issues surrounding vacant or partially occupied commercial property insurance is a lack of available coverage options. There are not many companies that want to insure a partially occupied building. In many cases, a traditional ISO-backed policy will simply not cover buildings struggling with occupancy issues. It is also extremely important to make sure an owner’s existing policy is void before pursuing other options. There could be situations where an owner thinks his policy is still accurate, when it’s actually no longer providing risk protection. For those who violate the vacancy guidelines in their existing policy, options can become dramatically limited. Securing a policy through the excess and surplus lines market, where coverage is likely to be more expensive, is frequently the only way forward. Vacancy worries almost always coincide with the need for additional belt tightening. The emergence of a new and complex set of liabilities and exposures, combined with the need to trim budgets and reduce premiums, can be a non-starter for those who are unwilling to adapt to new circumstances. Even if a building is experiencing partial vacancy, providers may identify new risks, and renewing an existing policy becomes a problem. The reluctance to insure, or the need to institute higher premiums or simply insure for less, can place tremendous new pressures on owners and operators. Potentially costly exposures arise from a lack of consistent professional maintenance. Day-to-day funding for routine maintenance and upkeep is often one of the first casualties in the budget of a vacant or lightly occupied building. This attempt to save a few dollars can often have a detrimental long-term impact on the insurance and risk profile of a property. Alarm systems may be left off in a misguided attempt to save on electricity bills, increasing the risk of vandalism or theft. The increased risk of fire in vacant buildings is a tremendous concern for insurers, as sprinkler system maintenance and testing often falls by the wayside when occupancy drops. The fees associated with proper maintenance can be a significantly easier burden to handle than the policy limitations, increased rates and premiums that will follow an accident claim and possible lawsuit. Save Money Without Cutting CornersInsurers and owners can work together to save money by re-examining priorities and exposures. Some exposures are unavoidable, and the character and attributes of the building itself can play a large role in determining how much leeway is available to insurers. When determining an appropriate level of coverage, providers will consider the context of surrounding buildings (clusters of vacant properties may present more of a crime risk) and other key elements such as the age of a building, when the plumbing was updated, the structural integrity of the roof, the electric infrastructure and other basics. The most important thing owners can do is fully understand their existing policy. Some owners may consider cutting rental rates to help bolster occupancy levels, and in some cases it may be possible to negotiate with the underwriter to navigate a temporary lull in occupancy. Steps such as hiring additional security and taking other safety and maintenance precautions may be enough to satisfy the insurer that risks to the property have not become too great. In almost all cases, however, these are temporary measures; the only true long-term solution to change the policy or improve occupancy levels. Working together, both the property owner and the insurer can identify the best ways to handle changes in potential exposures. By taking a closer look at recent claims, it is often possible to identify a cost-saving solution by increasing the deductible on an element of coverage where the exposure is less pronounced. When it comes to insuring properties, the best way to save money is not just to understand where problems exist, but to also identify where they do not. Follow the Green When Going GreenGreen construction and design is an important factor to consider when developing insurance strategies. Some carriers are offering new insurance products to cover renovation and rebuilding expenses. While it’s slightly more expensive to insure a green building, owners are drawn to long-term savings through fewer health claims and health insurance benefits, higher employee and operational efficiencies and lower maintenance costs. For any vacancy or property with lower than expected occupancy, the importance of a thorough examination of the current terms of a policy and the past history of claims is paramount. Going forward, owners and insurers who are best able to handle new exposures that crop up in this changing economic landscape will be in a good position when financial circumstances improve. — Daniel Larmore and Patrick Grace are executive vice presidents of Meadowbrook Insurance Agency, a division of Meadowbrook Insurance Group.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin

Industrial sales dropped to $140 million during the recent period

Industrial sales dropped to $140 million during the recent period from $697 million in the prior period. The price for warehouses rose to $75 per-square-foot from $44 per-square-foot for the year ending Sept. 30, 2008, according to the report from LOOPNET, Inc.

Several Large Office properties traded hands while a total of $459 million in office properties exchanged owners in the recent yearlong period, compared to $2 billion during the period ending in September 2008. The average price per-square-foot dropped to $77 in 2009 from $155 in 2008, according to the report.

Sales of commercial properties in the Houston area during the one-year period ending Sept. 30, 2009 totaled $1.75 billion — an 84 percent decline from sales posted during the 12-month period ending Sept. 30, 2008.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin

CADENCE MCSHANE TO BUILD OUT NEW LSCS CAMPUS

Lone Star College System (LSCS) has selected the Houston office of Cadence McShane Construction Co. to complete the build-out of its new campus. LSCS recently acquired the former Hewlett Packard office campus, a five-building, 1.2 million-square-foot property that is located at 20515 State Highway 249 in Houston, and plans to use it as a new campus. The school plans to use it as its new consolidate Houston campus. Construction will include extensive renovations to the building interiors, envelopes, core and shell, parking deck and immediate grounds. Once the project is complete, which is expected in June 2010, LSCS will relocate several departments from its existing administrative offices in The Woodlands, Texas, as well as its Williow Chase Center operations in Houston. The project architects are Kirksey Architecture and VLK Architects. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.Mitaquye oyasin

53,232 Sq Ft Downtown Office Lease Houston, Tx.

HOUSTON — Grubb & Ellis has arranged a sublease for 53,232 square feet at Wedge Tower, an office building located at 1415 Louisiana St. in downtown Houston. The subtenant, Eagle Rock Energy Partners, will be relocating from its Houston location at 16701 Greenspoint Dr. The sublessor is Dominion Exploration & Production. Jim Arket and Mona Williams of Grubb & Ellis represented Dominion in negotiations. Joe Peddie, David Guion and Hugh Hermann of Cushman & Wakefield represented Eagle Rock. Terms of the lease were not disclosedFor more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
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Are things getting better in USA? COSTAR REPORTS

While there has been a noteworthy decrease in the amount of cross-border real estate investment in the Americas since the beginning of the economic crisis, new activity is springing optimism that foreign investors are increasing their interest and preparing to re-enter the Americas next year, according to Jones Lang LaSalle's International Capital Group at a presentation this past at the Expo Real show in Munich, Germany. For the first half of 2009, global investment transaction volumes netted just $76 billion, according to JLL. The United States experienced the largest decline-falling by 77% year-over-year. Japan surpassed the United States and United Kingdom as the most active investor region with $15 billion in transactions in the first half of 2009. The United States was a close second at $14 billion, followed by the United Kingdom with $11 billion. But the U.S. situation may be improving based on recent news and deals. China Investment Corp., a $200 billion sovereign fund based in Beijing, last month agreed to invest up to $1 billion with Los Angeles-based private equity fund Oaktree Capital to buy distressed U.S. assets ranging from real estate to infrastructure. China Investment Corp. is also reportedly weighing putting equal amounts into two other U.S. funds for the same purpose. Action is coming from other countries as well. "In the last two months, we've seen German and Asian investors increase their interest in U.S. investment," said Steve Collins, managing director of Jones Lang LaSalle's International Capital Group. "Several stateside closings also are providing some early encouragement that foreign investors are slowing rising off the sidelines for the right opportunities in the best markets." "Right now, the coastal markets such as New York, [Washington, DC], and San Francisco are drawing interest from a select few foreign investors bidding and winning on off-market investments today," Collins added. "It seems the German open- and close-end funds and the Asian development companies are getting ready for an investment push in first quarter 2010." Also just this week one of Israel's largest holding company, The IDB Group, agreed to purchase the 452 Fifth Avenue Tower, HSBC's U.S. headquarters, for $330 million in an all-cash deal. IDB signed on a New York-based partner Joe Cayre, chairman of Midtown Equities, in the deal that is expected to close early next year. Under the terms of the agreement, HSBC will lease back floors one to 11 for a 10-year term, as well as other parts of the building over a one-year term. The 29-story 452 5th Ave Tower is comprised of approximately 865,000 square feet. Stateside investment activity started increasing in late summer, according to Jones Lang LaSalle. Notable transactions included the largest U.S. transaction to date in the sale of Worldwide Plaza at 825 Eighth Ave. in Manhattan. Local owner/operator George Comfort & Sons bought the former Macklowe property for $605 million in a joint venture with RCG Longview. Macklowe paid $1.7 for the previously fully leased building in 2007. The purchase reflects a net initial yield of 6.3% on what is now a 40% vacant building. If and when the building becomes fully stabilized in three or four years, the yield will likely be closer to 12%. It is widely believed in the market that the purchaser has new tenants lined up already. The other significant deal was also in Manhattan: SL Green's sale of its 49.5% interest in 485 Lexington to a joint venture between Gilmore USA and Optibase Ltd (an Israeli technology company). The joint venture paid a little less than $21 million and assumed the $450 million of existing debt on the building. This is Optibase's first real estate purchase in North America as it attempts to diversify its portfolio by investing in commercial real estate. Once the transaction closes, the joint venture reportedly plans to provide SL Green with a $20 million loan secured by an SL Green pledge to sell an additional 49.5% stake. A little farther down the East Coast in Washington, DC, the large public REIT Vornado sold 1999 K St. NW to Deka's Open Ended Fund for $208 million in the largest DC property transaction this year. The property, designed by Helmut Jahn, was completed just last month and is leased to the law firm Mayer Brown for 15 years. The purchase price equates to $830 per square foot. The last building to trade at such a high level was 2099 Pennsylvania Ave. NW, a Jones Lang LaSalle brokered and closed in April of 2008 that set a high watermark for DC office transactions at $867/square foot. Another trophy DC market transaction was Credit Suisse's purchase of 1099 New York Ave. NW from Tishman Speyer. It reportedly traded at a 7.4% for $90.5 million ($517/square foot). The building is 61% leased with a major law firm as the anchor tenant. Invesco was also active in D.C. and purchased the newly redeveloped headquarters for the Immigration and Customs Enforcement agency from Prudential Real Estate Investors for $153.6 million. The nearly 500,000-square-foot deal was all cash; however its non-core location yielded only $310/square foot. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Biggest Office Space owners in USA

1. RREEFTotal Office Portfolio: 93.6 million sq. ft.280 Park Ave., Ste. 22WNew York, NY 10017Phone: (212) 454-3900Web site: http://www.rreef.com/Officers: Charles B. Leitner, Global Head; Michael Luciano, Global COO2. Brookfield Properties Corp.Total Office Portfolio: 59.5 million sq. ft.Three World Financial Center200 Vesey St., Ste. 1100New York, NY 10281Phone: (212) 417-7000Web site: http://www.brookfieldproperties.com/Officers: Ric Clark, President/CEO; Dennis Friedrich, President/COO, U.S. Commercial Operations; Tom Farley, President/COO3. The Blackstone GroupTotal Office Portfolio: 57.9 million sq. ft.345 Park Ave.New York, NY 10154Phone: (212) 583-5000Web site: http://www.blackstone.com/Officers: Peter Peterson, senior chairman; Stephen Schwarzman, chairman/CEO; Hamilton James, president/COO4. HinesTotal Office Portfolio: 55.4 million sq. ft.2800 Post Oak Blvd.Houston, TX 77056Phone: (713) 621-8000Web site: http://www.hines.com/Officers: Gerald D. Hines, Chairman; Jeffrey C. Hines, President; C. Hastings Johnson, EVP/CFO5. CB Richard Ellis InvestorsTotal Office Portfolio: 49.8 million sq. ft.515 S. Flower St., 31st FloorLos Angeles, CA 90071Phone: (213) 683-4300Web site: http://www.cbreinvestors.com/Officers: Vance Maddocks, CEO; William Harris, President/COO; Robert Zerbst, Chairman6. TIAA-CREFTotal Office Portfolio: 47 million sq. ft.730 Third Ave.New York, NY 11762-3206Phone: (800) 842-2733Web site: http://www.tiaa-cref.org/Officers: Scott Evans, EVP, Asset Management; Edward Grzybowski, CIO; Thomas Garbutt, head, global real estate7. ING Clarion PartnersTotal Office Portfolio: 46.8 million sq. ft.230 Park AveNew York, NY 10169Phone: (212) 883-2500Web site: http://www.ingclarion.com/Officers: Stephen Furnary, CEO/Managing Director; Bill Kracuh, Global Marketing Head; Frank Sullivan, Managing Director8. Vornado Realty TrustTotal Office Portfolio: 44.2 million sq. ft.888 Seventh Ave.New York, NY 10019Phone: (212)894-7000Web site: http://www.vno.com/Officers: Steven Roth, Chairman/CEO; Michael D. Fascitelli, President; Joseph Macnow, EVP/CFO9. Boston PropertiesTotal Office Portfolio: 43.8 million sq. ft.800 Boylston St., Ste. 1900Boston, MA 02199Phone: (617) 236-3300Web site: http://www.bostonproperties.com/Officers: Mortimer B. Zuckerman, Chairman; Edward H. Linde, CEO; Douglas T. Linde, President10. LaSalle Investment ManagementTotal Office Portfolio: 39 million sq. ft.200 East Randolph Dr.Chicago, IL 60601Phone: (312) 782-5800Web site: http://www.lasalle.com/Officers: Jeff Jacobson, CEO; Jaques Gordon, International Director, Research & Strategy; Matthew Reed, International Co-Head, Acquisitions11. Duke Realty Corp.Total Office Portfolio: 36.3 million sq. ft.600 E. 96th St., Ste. 100Indianapolis, IN 46240Phone: (317) 808-6000Web site: http://www.dukerealty.com/Officers: Dennis D. Oklak, Chairman/CEO; Robert M. Chapman, COO12. HRPT Properties TrustTotal Office Portfolio: 35.3 million sq. ft.400 Centre St.Newton, MA 02458Phone: (617) 332-3990Web site: http://www.hrpreit.com/Officers: John A. Mannix, President/COO; John C. Popeo, Treasurer/CFO; Jennifer B. Clark, SVP13. Mack-Cali Realty Corp.Total Office Portfolio: 33.3 million sq. ft.343 Thornall St.Edison, NJ 08837Phone: (732) 590-1000Web site: http://www.mack-cali.com/Officers: Mitchell E. Hersh, President/CEO; Barry Lefkowitz, EVP/CFO; Michael Grossman, EVP14. SL Green Realty Corp.Total Office Portfolio: 32.2 million sq. ft.420 Lexington Ave.New York, NY 10170Phone: 212-356-4109Officers: Marc Holliday, CEO; Andrew Mathias, President/CIO; Greg Hughes, CFO & COO15. Brandywine Realty TrustTotal Office Portfolio: 31.9 million sq. ft.555 E. Lancaster Ave., Ste. 100Radnor, PA 19087Phone: (610) 325-5600Web site: http://www.brandywinerealty.com/Officers: Gerard H. Sweeney, President/CEO; Howard Sipzner, EVP/CFO; George Johnstone, SVP, Operations16. Behringer HarvardTotal Office Portfolio: 30.4 million sq. ft.15601 Dallas Pkwy., Ste. 600Addison, TX 75001Phone: (214) 655-1600Officers: Robert Behringer, CEO; Bob Aisner, President/COO; Bob Chapman, EVP/Co-COO17. J.E. Robert Cos.Total Office Portfolio: 27.7 million sq. ft.1650 Tysons Blvd, Ste. 1600McLean, VA 22102Phone: (703) 714-8000Web site: http://www.jer.com/Officers: Joseph E. Robert Jr., Founder/CEO; Michael E. Pralle, President/COO; Malcolm LeMay, President, Europe18. Highwoods PropertiesTotal Office Portfolio: 25.7 million sq. ft.3100 Smoketree Court, Ste. 600Raleigh, NC 27604Phone: (919) 431-1521Web site: http://www.highwoods.com/Officers: Ed Fritsch, President/CEO; Mike Harris, EVP/COO; Terry Stevens, SVP/CFO18. Liberty Property TrustTotal Office Portfolio: 25.7 million sq. ft.500 Chesterfield Pkwy.Malvern, PA 19355Phone: (610) 648-1700Web site: http://www.libertyproperty.com/Officers: William P. Hankowsky, Chairman/CEO; Robert E. Fenza, EVP/COO; George J. Alburger Jr., EVP/CFO19. Shorenstein PropertiesTotal Office Portfolio: 21.3 million sq. ft.235 Montgomery St., 16th FloorSan Francisco, CA 94104Phone: (415) 772-7000Web site: http://www.shorenstein.com/Officers: Douglas W. Shorenstein, Chairman/CEO; Glenn A. Shannon, President; Richard A. Chicotel, Managing Director/CFO20. Wells Real Estate FundsTotal Office Portfolio: 20.5 million sq. ft.6200 The Corners Pkwy.Norcross, GA 30092Phone: (770) 449-7800Web site: http://www.wellsref.com/Officers: Leo Wells, President; Don Henry, Chief Real Estate Officer; Kevin Race, CFO21. KBS Realty AdvisorsTotal Office Portfolio: 18.7 million sq. ft. 620 Newport Center Dr., Ste 1300Newport Beach, CA 92660Phone: (949) 417-6500Web site: http://www.kbsrealty.com/Officers: Charles J. Schreiber Jr., CEO; Peter M. Bren, Chairman/President; James C. Chiboucas, Vice Chairman22. The Inland Real Estate Group of Cos.Total Office Portfolio: 18 million sq. ft.2901 ButterfieldOak Brook, IL 60523Phone: (630) 218-8000Web site: http://www.inlandgroup.com/Officers: Daniel L. Goodwin, Chairman23. AEW Capital ManagementTotal Office Portfolio: 15.3 million sq. ft.World Trade Center East, Two Seaport LaneBoston, MA 02210Phone: (617) 261-9000Web site: http://www.aew.com/Officers: Jeffrey D. Furber, CEO; Steven D. Corkin, Managing Director, Marketing and Client Service; Pamela J. Herbst, Managing Director, AEW Direct Investments24. Lincoln Property Co.Total Office Portfolio: 14.6 million sq. ft.500 N. Akard, Ste. 3300Dallas, Texas 75201Phone: (214) 740-3300Web site: http://www.lincolnproperty.com/Officers: Mack Pogue, Chairman; Tim Byrne, President/CEO, Residential Divison; Bill Duvall, President/CEO, Commercial Division25. Forest City EnterprisesTotal Office Portfolio: 13.4 million sq. ft.Terminal Tower, 50 Public Square, Ste. 1100Cleveland, Ohio 44113Phone: (216) 621-6060Web site: http://www.forestcity.net/Officers: Samuel H. Miller, Co-Chairman; Albert B. Ratner, Co-Chairman; Charles A. Ratner, President/CEOFor more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net

GOOD NEW YORK POST ARTICLE

THE next wave of the credit crisis is about to hit -- a collapse in com mercial real estate and potential explosion of bank failures. With its resources tapped out by the first wave, what should Washington do?
Over the last year, the Federal Reserve doubled the size of its balance sheet, and took unprecedented action in monetizing government debt and extending credit to financial institutions. Now it must head off inflation and extricate itself from $5 trillion-plus in credit exposure from various bailouts. The Treasury, meanwhile, is issuing debt at the fastest pace in peacetime history.
Now comes the next crisis. The same factors that caused the residential bubble -- easy credit, lax lending standards and booming mortgage-backed-securities underwriting -- also drove commercial real-estate overvaluation. But the commercial market lags the residential one by about a year, so this bubble is still popping.
Already, commercial-real-estate prices nationwide are 39 percent off their peak of two years ago, reports the MIT Center for Real Estate. The 18 percent price decline in this year's second quarter was the largest quarterly drop in 25 years.
Prices fell just 27 percent during the late-'80s/early-'90s savings-and-loan crisis -- a collapse that prompted the then-largest federal intervention ever -- $125 billion in the form of Resolution Trust Corp. seizures and auctions. Last year's crisis saw Congress providing nearly six times more to bail out the US financial sector. And that was only the start.
Most commercial properties bought or refinanced in the last five years are now upside-down on their loans -- that is, the property can't be sold for its finance value or purchase price. Real Capital Analytics reports that owners have lost their entire down payments on about $1.3 trillion worth of property.
Nearly half of all US commercial-real-estate-mortgage loans come due within the next five years. Deutsche Bank believes that 65 percent or more will fail to qualify for refinancing.
Absent new job creation -- and whatever nascent recovery is underway seems unlikely to produce net new jobs for several years -- vacancy rates will remain high. The action in commercial real estate will be largely subleasing -- at rents of 50 percent to 85 percent of scheduled lease rates. These lower sublease rates will eventually become the real market rates, putting further downward pressure on property values.
As things stand, this next wave of the crisis will sabotage the recovery -- driving up bank failures, FDIC bailouts and problems for some large insurance companies. Indeed, Congress will surely wind up having to bail out the FDIC itself.
What to do? For once, act before the bottom falls out.
1) Stop forcing banks to reclassify loans that have had minor modifications to assist borrowers. Such rules contribute to failure rather than averting it.
In some cases, it would be appropriate for regulators to permit the renewal of current loans at higher loan-to-value ratios, thus reducing unnecessary foreclosures. So long as loans are performing, and no actual losses have been incurred, banks shouldn't have to take charges against earnings and capital. We need to stop forcing the seizure of banks that aren't in genuine danger of failing.
2) Reject any new taxes on real estate -- such as capital-gains-tax hikes; changes to IRS Section 1031, which allows tax deferral; and efforts to change the tax status of "carried interest." Plus, modernize the Foreign Investment in Real Property Tax Act of 1980 to encourage foreign investment in US real estate.
3) Amend the IRS Tax Reform Act of 1986 to allow modification of loans within Real Estate Mortgage Investment Conduits (REMICSs). Some 25 percent of US commercial real estate is financed with these securities.
The tax code permits REMICs to pool commercial-mortgage loans into trust-like instruments commonly known as CMBS, which issue interest-bearing securities based on their value. Tens of thousands of commercial mortgages are now locked into structured CMBS, just as with residential mortgages.
The Treasury recently announced an easing of rules on restructuring CMBS loans -- but it's only a start on what's needed. The changes have to go beyond protecting Wall Street interests, and defend the property owner's right to make improvements and changes in building space without triggering a default or foreclosure on the loan backing the corresponding property.
Amending REMIC laws to allow property modification and expansion would preserve jobs for businesses that need to make better use of space -- and create construction jobs to make those modifications. It also supports states with much needed sales and business tax revenue.
Make no mistake -- the bust of commercial real estate will bring dozens more bank failures and a huge loss of wealth. More bailouts of financial institutions are inevitable -- but immediate government leadership in key areas can greatly reduce the cost to taxpayers, and help dodge a killer bullet to our economy.
BY: Scott S. Powell is the founder of AlphaQuest, a hedge-fund consulting firm and a Hoover Institution visiting fellow. David Lowry is an owner/developer of Southern California commercial real estate.
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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CBRE ARRANGES LEASE RENEWAL FOR MARSHALLS

HOUSTON — CB Richard Ellis (CBRE) has arranged a lease renewal on behalf of apparel retailer Marshalls in Houston. The company renewed its lease for 27,000 square feet at The Commons at Willowbrook, a shopping center located at 7700 FM 1960 West in Houston. Matt Keener and Alex Makris of CBRE represented the landlord, The Commons at Willowbrook, Inc. Terms of the lease were not disclosed.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Wells Fargo Top Servicer of Commercial Mortgages

Wells Fargo Bank is by far the most active servicer of commercial mortgages, according to a survey by the Mortgage Bankers Association. The bank serviced, as primary and master servicer, a total of 42,829 loans with a balance of $476.2 billion at mid-year. Its portfolio is some 54 percent greater than that of PNC Real Estate, which has the second largest servicing portfolio, at $308.5 billion of mortgages. Capmark Finance Inc., meanwhile, has the third-largest servicing portfolio, with $248.7 billion. At the end of last year, Wells' portfolio placed it in a distant fourth place in a similar MBA ranking. But its acquisition of Wachovia Bank catapulted it to the top of the ranks. A direct comparison to previous periods cannot be made because of reporting nuances by servicers. But the MBA servicer ranking, which is based on a survey, is the best available gauge of servicer activity. The bulk of Wells' servicing portfolio is comprised of loans it handles on behalf of securitized trusts. In fact, nearly 84 percent of the loans it services are owned by CMBS, collateralized debt obligations or other asset-backed issues. That's a far greater proportion than most of its competitors, such as Midland (46.4 percent) and Capmark (52.7 percent), which also are very active servicers of agency loans, by virtue of their affiliation with agency lenders, banks or insurance companies. Midland, meanwhile, led all servicers of loans provided on behalf of Fannie Mae and Freddie Mac. That's no surprise, given that it is affiliated with Red Mortgage Capital, the most active lender under Fannie's Delegated Underwriting and Servicing program, as well as PNC ARCS, which had perennially ranked among the most active DUS lenders. Indeed, last year, PNC Real Estate was the top Fannie lender, with $5.6 billion of volume, up from $1.7 billion a year earlier. Gemsa Loan Services led a ranking of servicers for life insurance company-held loans. It services 2,458 loans totaling $40.3 billion. Behind it was Prudential Asset Resources, with 2,302 loans totaling $26.85 billion, and PNC Real Estate, with 1,621 loans totaling $26.28 billion. LNR Partners Inc. remained atop a ranking of named special servicers of securitized mortgages. But what previously had been a virtually insurmountable lead has been whittled away. It is named special servicer for 15,223 loans with a balance of $195.1 billion. CWCapital, meanwhile, was second with 13,387 loans totaling $170.1 billion and Centerline Servicing Inc. was third with 12,270 loans totaling $112.9 billion. CRE NEWS
For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Hartman back on a buying spree

Houston-based Hartman Income REIT has purchased two office buildings located in Houston. They include Northchase Center, a 128,891-square-foot property located at 14550 Torrey Chase Blvd., and Cornerstone Plaza, a 71,008-square-foot property located at 3707 FM 1960 West. The two properties are situated within a mile of each other and have an average occupancy of 92.5 percent. Mark Lucescu of Newport Beach, Calif.-based Lucescu Realty represented the seller, KBS Realty Advisors. Dave Wheeler represented Hartman in-house. The acquisition price was not disclosed.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Mixed Signals: Nonresidential Construction Forecasts See Little Improvement Near-Term

COSTAR SAYS: While signs of a tentative recovery in the economy continued to appear, including reports issued this week on the fourth-consecutive month of improving new-home sales in July and a sizable increase in durable goods orders by manufacturers' orders also for July reported by the Commerce Dept., it is also clear that investors will be grappling with the fallout from the near-collapse of the U.S. economy for some time to come. This past week, three separate news items reflect the degree that investors and corporations are struggling with commercial real estate valuations and how the rules for assigning that value already are changing.
· A new survey from Jones Lang LaSalle and CoreNet Global survey finds virtually all corporate real estate executives are unprepared for proposed FASB/IASB lease accounting changes that could occur in less than two years.
· The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America has approved a modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009.
· The California Public Employees' Retirement System has submitted for investment board approval a new accounting policy that imposes fair value on all aspects of its real estate portfolio.
The items are all unrelated except for the fact that each has come about as a direct result of events leading up to the recession and subsequent collapse of CRE property values. Lease Accounting Changes - a Stealth Issue Let's start with the Jones Lang LaSalle/CoreNet survey because the lease accounting changes it addresses will affect every size and type of business in the U.S. The recent survey of U.S. corporate real estate (CRE) executives found that a large majority is substantially unprepared for a proposed major change in national and international accounting treatment of real estate lease obligations. The proposed changes are designed to standardize the treatment of leases as financial obligations (much like a mortgage payment) as opposed to an operating expense. The changes are intended to improve the transparency, credibility and usefulness of lease accounting. Under new standards presented on a preliminary basis by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) slated to be issued in 2011, all leases of real estate and equipment will have to be capitalized on a reporting entity's balance sheet. The changes will affect both the entity renting the property and the owner collecting rent payments. "Whether a firm is public or private, this change would impact literally every item a corporation leases -- not just real estate," said Mindy Berman, managing director of Jones Lang LaSalle's Corporate Capital Markets practice. "Everything from computers to trucks, an ATM kiosk to a floor in an office tower, would have to be capitalized on a balance sheet." Berman said lease accounting has been a stealth issue in light of more immediately pressing business matters in the current economic environment and other major accounting changes made recently. The Securities and Exchange Commission estimated in 2005 that U.S. public companies will be forced to capitalize approximately $1.3 trillion in operating leases under the new rules. Industry experts estimate that approximately 70 percent of all operating leases are for real estate, impacting balance sheets by $1 trillion or more. According to the World Leasing Yearbook 2009, total annual leasing volume in 2007 amounted to $760 billion; yet many of those lease contracts do not appear in an entity's balance sheet. According the Jones Lang LaSalle/CoreNet survey:
· 90% of respondents noted that 95% or more of their company's real estate leases are currently structured as operating leases-responses which cut across all business sectors and everything from small to large lease portfolios.
· 83% of respondents indicated the proposed changes would cause a significant (19%) or major burden (64%) on their company's administrative requirements.
· More than a third of those surveyed (39%) agree or strongly agree that the increase in lease-related expenses on their income statements will result in a meaningful detriment to earnings.
The proposed accounting changes are still in the public comment stage and are subject to change before being adopted. Stymied by Limits, TIAA To Increase Debt Ratios; Refinance Portfolio The Investment Committee of the Board of Trustees of Teachers Insurance and Annuity Association of America recently approved a proposed modification to the investment guidelines of the TIAA Real Estate Account effective Nov. 1, 2009. The modification stems is intended to address the rapidly declining value of real estate property values in the pension fund investment firm's portfolio and the unchanging amount of debt on those properties. TIAA Real Estate's current investment guidelines prevent it from incurring debt beyond a 30% debt to equity ratio. As of Aug. 18, 2009, the aggregate principal amount of the account's outstanding debt was approximately $4 billion and the account's debt to equity ratio was approximately 42.5%. The account's loan to value ratio was approximately 31.3%. As of June 30, TIAA Real Estate Account owned $10.6 billion in real estate properties and interests in joint ventures. As a result, the account has not been able to incur or refinance any debt on its properties since the fourth quarter of 2008, due to the recent decline in the value of the account's real property investments. Under the new investment guidelines the account will maintain outstanding debt in a total amount not to exceed the current $4 billion level. The change will give the account the ability to refinance its debt and/or extend maturity dates. Over the course of the next two years, though, TIAA wants to whittle down its debt-to-equity and loan-to-value ratios to less than 30% -- a process that could likely involve the sale of some assets. Fair Market Value Accounting The third news item concerns The California Public Employees' Retirement System (CalPERS), which is expected to approve a new accounting policy that imposes fair market value accounting policies on all aspects of its $20 billion real estate portfolio. Fair market value accounting's central principle is that an asset must be valued at its current price if sold today into an orderly market. The policy would be effective immediately upon adoption and would supersede all previous CalPERS real estate appraisal policies. The objective of the policy change would be to provide an opinion of market value for the real estate assets and CalPERS ownership interests on an annual basis or in conjunction with the consolidation, termination or transfer of real estate interests. And, to calculate and report time-weighted returns accurately for the CalPERS real estate portfolio at the portfolio, sector and individual partnership level. Some key revisions for the appraisal and valuation policies include an allowance for:
· More frequent appraisals, if deemed to be in the best interest of CalPERS
· Fair market value dispute resolution procedures to be coordinated by the Investment Office
· Emphasis on the importance of providing transparency for investors, the CalPERS Board, and other stakeholders.
At the same time, the revisions give CalPERS the right to exempt some real estate assets, if deemed to be in the best interest of CalPERS. CalPERS did not detail what impact the changes will have on its current portfolio. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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New Hotel Sorella Opens in CityCentre @ Town & Counrty Blvd.

Houston-based Midway Cos. has announced the grand opening of the new Hotel Sorella at CITYCENTRE, a $500 million mixed-use project located in Houston. The luxury hotel will feature 244 rooms, including 30 junior suites and a penthouse suite. Hotel amenities include a Moroccan-style bar with a central fireplace and active seating, a fitness center and spa, an outdoor pool with daybeds and draped cabanas, and two restaurants, Cafe Rosé and Bistro Alex. CITYCENTRE comprises 1.8 million square feet of mixed-use space on 37 acres between Interstate 10 West and the Sam Houston Tollway. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Equipchef expand to Houston, Tx,

http://www.rebusinessonline.com/main.cfm?id=17&date=20090811&region=Texas

HOUSTON REALTY ADVISORS BROKERS INDUSTRIAL LEASE EXPANSION
HOUSTON — Houston Realty Advisors has brokered a 15,575-square-foot industrial lease expansion on behalf of Equipchefs. The Dallas-based company will be expanding into Houston with its new space at 129922 Hempstead Hwy. Ed Ayres of Houston Realty Advisors represented the tenants. The landlord, MPI Properties, was represented by Gregg Barra and David Boyd of Boyd Commercial. Terms of the lease were not disclosed. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Lucky Strikes Comes to Houston, TX. in the Pavilions

www.bowlluckystrike.com


This September will mark the grand opening of the new Lucky Strike Lanes & Lounge at Houston Pavilions, a 700,000-square-foot mixed-use project located in downtown Houston. Lucky Strike is a boutique bowling alley that features bowling lanes with luxury amenities, a bar and lounge area and luxury food service. The 24,886-square-foot Houston location is the company’s 23rd Lucky Strike and its first in Texas. It will feature 14 lanes with premium leather couches, as well as a Luxe premium suite with four private lanes and a separate bar. It will be located at 1001 Fannin St. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin

HPD finds new diggs

The Houston Police Department signed a 50,800-square-foot lease at 7125 Ardmore St. in Houston. The single-tenant, 50,800-square-foot office building was constructed in 1978 and was renovated last year. The building is in the South Main/Medical Center submarket. HPD is a 5,000-officer strong law enforcement agency with jurisdiction of more than 2 million citizens. The agency was formed in 1841. Principal and Senior Vice President Jay Kyle and Chairman Charlie Herder of Colliers International represented the landlord, Ardmore Professional Center. Director Chip Horne of Cushman & Wakefield represented HPD.For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
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Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.
Mitaquye oyasin

Houston fairs better than the rest of US cities

The ongoing recession and an uncertain business environment continue to negatively impact the U.S. office market, pushing vacancy rates up and rental rates down. But even in this tough market, new office leases have been signed.
“All the things that are important in a good market are five times more important in a down market,” says John Brownlee, senior vice president of KDC, a Dallas-based owner and developer. “The simple things like relationship-building, a high level of customer service, listening well and good follow-up really make a difference.”
Across the United States, office vacancy rates have returned to levels not seen since 2005, increasing 95 basis points to register at 14.74 percent at the end of the first quarter, according to Colliers International.
Meanwhile, lease rates dropped substantially during the first quarter 2009, with asking rents for CBD space dipping by 5.5 percent to $43.36 per square foot. Suburban asking rents also fell during the quarter, declining by 1.4 percent to $27.69 per square foot. On an annual basis, CBD rents are down 13 percent and suburban rents are down 3.8 percent, according to Colliers International.
Weak demand is at the root of the declining market. First quarter absorption was again negative with occupied space contracting by 27.8 million square feet, the fifth consecutive quarterly contraction and significantly worse than a year ago when absorption was –a negative 1.3 million square feet. Companies are now shedding space at the quickest pace since the third quarter 2001 when occupied space shrank by 28 million square feet, according to Colliers International.
However, many owners are keeping up the fight. GE Capital Real Estate, for example, has completed tenant renewals and new leases totaling about 6.6 million square feet of office space in North America during the first half of 2009. Roughly 5.2 million square feet of that total were lease renewals, while the remaining leases were new.
“In these tough market conditions, we’re realizing success by sticking to the basics,” says GE Capital Real Estate President and CEO Ron Pressman. “We’re taking time to understand what tenants need, including use of surveys, focus groups and one-on-one discussions.”
The Global Real Estate Monitor talked with office owners across the United States to determine the most successful office leasing strategies for a down market. Read on for details.
Position your assets properly
Dallas-based KDC has inked more than 340,000 square feet of new office deals at the Campus at Legacy, a 1.2-million-square-foot, three-building project in Plano, Texas. KDC purchased the buildings from EDS in 2005, and after months of market research, it redeveloped the buildings into Class A office space.
“We looked at doing a more radical redevelopment that would take us to a price point similar to most of the other buildings in the market,” Brownlee notes. “Instead, we positioned the project as a great value for the Legacy submarket, and that strategy is paying off for us now.”
In the past 12 months, KDC has signed leases with Pepsi Co. for just under 100,000 square feet, as well as a 40,000-square-foot lease with Dr Pepper/Snapple Group Inc. and another 40,000-square-foot lease with St. Jude Medical Center, according to Brownlee.
“You have to find your position in the market by learning the market and asking potential tenants their opinions on your property,” Brownlee says. “You have to be realistic about your position in the market.”
Offer concessions and other perks
The leasing environment today strongly favors tenants, and that means owners must be willing to offer concessions and other perks such as increased tenant allowances, building signage and free parking, according to Simon Adams, a partner with Reed Smith.
“Owners with tenants and cash flow in place with little or no mortgage debt are willing to do almost anything to capture tenants,” says Kurt Rosene, senior vice president of The Alter Group, a Chicago-based company that develops and owns office properties. “The folks who have a lot of leverage find that lenders are much less willing to work with them in offering huge concessions.”
The most common concession that owners are offering today is free rent. It’s not uncommon for owners to offer as much as 12 months of free rent to a new tenant, Rosene says, adding that he’s recently seen owners offer two years of free rent as an enticement.
Along with free rent, many owners have increased their tenant improvement allowances by 10 percent to 15 percent, Adams says. And most owners are more willing to provide monument or eyebrow signage as part of the overall lease when they previously would have required additional payment.
Parking rates and after-hours utilities charges are other areas where owners are being more flexible, says Craig Ersek, principal and executive vice president of Essex Asset Management, an Irvine, Calif.-based firm that manages more than 16 million square feet of commercial property throughout California and Arizona. “All those soft costs tend to be put on the negotiating table in a down market,” he notes.
Some owners are taking concessions to the next level by agreeing to cap expenses, says David Weisman, a partner in Greenspoon Marder’s real estate group. “Although it’s difficult for owners to cap expenses because they don’t what they’ll be from year to year, they’re agreeing not to pass on those expenses,” he notes.
And finally, larger credit tenants are even wrangling standard non-disturbance (SND) clauses from owners, says Jonathan Larsen, an executive managing director with Transwestern Commercial Services. Without an SND, a lender can come in and change the lease rate if the owner is forced to relinquish the property because of default. The SND protects tenants, but it is not commonly offered in hot markets.
Engage the brokerage community
In a down market, concessions and other types of perks aren’t just for tenants – they’re for brokers too. In an effort to drive traffic to their buildings, many owners have become very creative with their broker incentives, Ersek says.
Many owners have increased broker commissions from the standard three percent to four percent and are offering bonuses of $1 to $2 per square foot. They’re even giving away gift certificates for expensive dinners, golf trips, exotic vacations and designer clothing to encourage property tours.
Moreover, owners are changing the payment schedule for broker commissions. “Because of concerns about the financial health of building owners today, the brokerage community is very concerned about getting paid,” Rosene says. “That’s why a lot of owners are offering to pay 100 percent of commissions up front.”
Serve as a community liaison
Many owners have found that they can differentiate their properties simply by serving as a liaison between tenants and the community. “We’ve found that we can reduce the competition by developing a strong relationship with municipalities,” says Grady Johnson, senior real estate director for Opus North Corp.
The company recently signed a 144,500-square-foot lease with DeVry Inc. at Highland Landmark V, a 251,000-square-foot Class A office building in Downers Grove, Ill. DeVry Inc. will occupy approximately 60 percent of the eight-story building, which was completed in September 2008. It is the fifth and final building in the 42-acre Highland Landmark office park, developed by Opus.
Strong relationships with local neighborhood groups and city officials can benefit tenants in a variety of ways, Johnson says. From job training programs to tax abatements, an owner can work with local economic development personnel to create tenant incentives that go beyond free rent or building signage.
“Owners are realizing that this tough market is here to stay for some time,” Rosene says. “They know they must do more to capture tenants and keep their buildings full.”

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.

HOLBA Events coming up

Houston Office Leasing Brokers Association

Professionalism and integrity in all we do that is related to the office leasing brokerage industry.
Community service, by providing time, effort and money to worthy causes.
Improving our knowledge of our business and the real estate industry through continuing education.
Promoting our profession and our image in the business community.
Providing opportunities for interaction between HOLBA members and the real estate community through special events sponsored by HOLBA.
Thursday, September 10 (Rescheduled from September 3) 2009 Annual Luncheon Location: Houston Country Club, One Potomac 11:30am-1:00pm
View Full Calendar of Events


For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space. Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.

CONSTRUCTION CONTINUES AT PARK 10

Several projects are complete or under way at Park 10, Wolff Companies’ 550-acre master-planned community located in the West Houston Energy Corridor. Along Park Row Boulevard, construction is advancing for four office projects. Woodcreek Development is working on The Reserve at Park 10, a 150,000-square-foot, Class A office building. Yancy Hausman recently completed a two-story, 32,000-square-foot headquarters building for Epic Energy. The National Association of Corrosion Engineers has also completed a two-story, 18,000-square-foot building on its existing campus. Finally, construction is under way for a new 66,000-square-foot building on Sercel’s 27-acre campus. Another project currently in the construction stage is a new $5.3 million fire station for the city of Houston. It is scheduled for completion in February 2010. Dallas-based Western International is also finalizing plans for the development of a 120-room Residence Inn by Marriott, which will be located at the corner of Barker-Cypress Road and Park Row. It will be situated near the new Medical Center – West, a 170-acre campus that will be the home to the west campuses of Texas Children’s Hospital and The Methodist Hospital. The $500 million first phase of the medical center is scheduled for completion in 2010. Finally, Moody National is in the planning stages or a 12.5-acre mixed-use project to be located at the corner of Memorial Brook Drive and Interstate 10. For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com Offer opportunities for Houston office space.

Thank you for your interest.
FACEBOOK at http://www.facebook.com/home.php#/profile.php?id=1223783810&ref=nf

Thanks,
Ed A. Ayres
Houston Realty Advisors, Inc.