BakerHostetler Signs a 75,000-SF Lease

BG Group Place is downtown Houston’s newest office tower. Completed in 2011, the iconic, one million-square-foot, 46-story building is certified LEED Platinum.Their new space on floors 11 through 13 includes a unique 10,000-square-foot, green rooftop deck for client events and firm functions. The law firm will relocate from another downtown building when the lease commences in the third quarter of this year. With the signing of this lease, BG Group Place is 92 percent committed.

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  Thank you for your interest.

 

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

North Houston Industrial Space Heating UP!!!

North Houston has 5% overall industrial vacancy, and Northwest is a stunning 3.8%. Even flex space (a hard property type to lease) has 10% vacancy across the city. Rents are increasing; Some Brokers have seen recently saw $0.40 net for a distribution lease, a new benchmark high for Houston, and we think it’ll go higher. Brokers see construction costs increased $3/SF in the last six months to about $28/SF. They’re still rising dramatically, but probably won’t take the overwhelming leap that many predict (We've heard as high as 25%). Labor is the biggest issue; most quality contractors are too busy, and some subs are hopping around projects. HRA, Inc. recommends putting incentives into your contract to make subs focus on your deal to meet an aggressive timeline. Other factors contributing to the rise in construction costs include major competition driving up land prices. And don’t be excited if you get a great deal—Brokers say most sites left in the uber desirable North and Northwest submarkets have hair on them, which can cost big to resolve. We recommends doing your due diligence but building now before prices get any higher.

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

 

Thank you for your interest.

Ed A. Ayres

Houston Realty Advisors, Inc.

J.C Penny has cheap occupancy costs, can they step up?

 J.C. Penney's strength is its low cost of retail space. The company owns 49% of the 111.1 million square feet and leases the remaining against an average of $4 a square foot. This is a competitive advantage with the average specialty retail space being around $40 per square foot. In essence, Ron Johnson and team are making a bet they can expand their existing model with the Sephora store-within-a-store concept to other national brands. How that plays out remains to be seen.

K-Mart moved in and out of bankruptcy years ago, based on low real estate values on their books, making them an attractive take over target and now a come-back kid. Is J.C.Pennys next?

 

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  Thank you for your interest.

 

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

 

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