Houston Commercial Real Estate

Everythings BIG in TEXAS!!! 1.22 Million SQ Ft Office Lease

2011-12-06T13:05:00.000-08:00

So I wonder where Shell SHELL got the $$$$$ , Oh YEA , From ME and YOU!!! Shell has renewed a 15-year lease for 804,491 square feet in One Shell Plaza and 471,934 square feet in Two Shell Plaza in Houston, a combined 1.22 million square feet of office space, the largest office lease transaction in the world in 2011. Tim Relyea and Joe Peddie of Cushman & Wakefield's Houston office represented Shell in the lease transaction. Hines, the buildings' owner, was self-represented by Charles Elder and Chrissy Wilson. As part of the lease agreement, Hines will make capital improvements to the property, including mechanical and electrical upgrades and redesigned outdoor plaza areas.

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 : http://www.houstonrealtyadvisors.com/ Thank you for your interest.

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin

1st New Office Building in Galleria in YEARS!!!!

2011-11-10T09:42:00.000-08:00

Skanska USA is moving ahead on construction of 302,000-square-foot office building in the Uptown/Galleria in Houston.

The 20-story development at 3009 Post Oak Blvd. will be 100% self-financed by Skanska. The podium designed, all-glass curtain office building will include 12 stories of office space atop an eight-story parking garage.

The 3009 Post Oak Boulevard project has been pre-certified as LEED Platinum, including such features as high-efficiency glass, energy recovery wheel and occupancy monitoring systems, lighting control and water savings features.

"Uptown Houston is one of the largest business districts in the United States and headquarters to top corporations around the world," said Michael Mair, executive vice president and regional manager of Skanska USA Commercial Development in Houston.

Skanska USA Building, which has offices in Houston, San Antonio and Dallas, will be the construction manager and Kirksey Architecture is the architect. Skanska tapped Cassidy Turley to provide on-site property management services.

Skanska USA has focused this year on development of office projects in major U.S. markets. The firm also has commercial development groups in Boston, Washington D.C. and Seattle.

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.

NEW NEWS HOUSTON CRE

2011-11-05T14:07:00.000-07:00

Houston CRE News:

· With 64K SF Nexeo Solutions lease, Woodlands Development Company moving forward on 3 Water Waterway Square. (Link)

· Wells Core Office Income REIT acquired 242 K SF Westway II (Link)

· Anadarko ponders office expansion (Link)

· Coventry/Dinerstein starting Millennium High Street multifamily/retail development (Link)

· Boxer Property acquired 59k SF, 61% occupied 1110 NASA Parkway office building from C-III Capital Partners (Link)

· Parmenter Realty Partners purchased Woodland Park Plaza, a 226k SF office, 68% leased building in Westchase (Link)

· Morgan Keegan moving 24K SF to San Felipe Plaza (Link)

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,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye Oyasin

What the Big Banks and Bankers are saying about our economy & CRE

2011-10-29T08:49:00.000-07:00

There was good news and bad news in the latest flurry of bank earnings reports when it comes to their willingness to fund commercial real estate. The good news: they are showing a renewed interest in CRE loans. The bad news: they are probably not interested in most of the deals for which borrowers need financing.

Banks are reporting continued acquisition of bulk performing and nonperforming loan portfolios from other banks, particularly if the FDIC is willing to share on some of the losses going forward.

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

Banks are also reporting an appetite for lending on New York City and Washington, DC, deals.

Banks are reporting renewed lending to their existing customers who have survived the last four years.

And like the rest of the investment markets, banks are willing to lend on single-tenant owner-occupied properties.

The most new risk banks seem willing to take on now is for multifamily property deals, but even there, the interest seems moderate as banks are still in the "sticking their toes in the water" mode.

Outside of those limited criteria, banks' appetite for commercial real estate lending is only slightly improved from where it was one or two years ago -- and maybe not as good as it was in the first half of 2011, according to Mark Fitzgerald, a debt strategist for CoStar Group.

"I think CRE lenders have pulled back from earlier this year," Fitzgerald said. "CMBS new issuance is pretty much dormant again, banks have pulled back, life insurers continue to lend but are nearing their annual allocations after significant activity in the first half of 2011."

Going forward, the picture doesn't look much better.

"The downward pressure on net interest margins from Operation Twist and low long-term rates will also hurt bank profitability in the near term, which means less room to dispose of legacy loans/make new loans," Fitzgerald said.

Steve Miller, director of U.S. debt and risk research for CoStar Group, said, "I would add that based on some anecdotal discussions, in selected products/markets for the "right" borrower, the largest banks and some of the re-capitalized mid-tier banks are putting out CRE loans. Apartment construction, for one, seems to be the flavor of the day."

"However," Miller added, "the data doesn't really show an upturn - it probably won't for a while, we're in a de-leveraging environment and banks would like nothing better than to have underwater loans go away. They just can't sell enough of their underwater loans at prices that make sense, given their capital condition and earnings capacity, to turnover their portfolios fast enough."

Low Demand May Be Driving Low Liquidity

According to the Federal Reserve Board's monthly survey of economic conditions (Beige Book), banking and finance financial activity was reported to have weakened some since the summer.

Dallas bankers noted that the improvement in financial conditions had stalled, and Chicago bankers indicated a further tightening of credit conditions, particularly for financial firms. In addition, New York bankers reported noticeably weaker activity in the securities industry. Loan volumes were either flat or down slightly in most Districts.

That said, several districts indicated that strong competition among banks for high quality borrowers was leading to lower rates and fees for these customers.

New York bankers' responses suggested increased demand for residential and commercial mortgages but mostly residential refinancing activity. Respondents reported a decrease in spreads of loan rates over costs of funds for all loan categories--especially commercial mortgages.

Philadelphia bankers reported that commercial real estate contacts continued to plan for slow growth due to increased economic uncertainty,

Several commercial bankers in Virginia and Maryland reported moderate increases in loan demand in recent weeks, although some of the increase was from refinancing. One banker attributed an increase in loan applications to businesses shopping around to establish new bank relationships. Also, a lending officer in Richmond reported a sharp increase in loans to existing customers, because new products were now available and the approval process was faster.

In Atlanta banking contacts indicated continued weak loan demand.

Chicago credit conditions tightened further as volatility in financial markets remained elevated and increased risks coming from Europe and the weakness in U.S. economic activity. Most lending activity was still in the form of refinancing, which picked up with lower long-term interest rates.

In Kansas City and Dallas, bankers reported demand for commercial and residential real estate loans was marginally weaker and banks showed more caution in supplying loans to anyone but the most creditworthy of borrowers.

What follows are the comments we heard from bank executives during bank earnings conference calls this past week.

Sticking To Those We Know

"There are lots of opportunities to help our existing customers to refinance their existing loans as they buy new property as we can provide capital to them and then also as the CMBS market continues to mature and refinancers opportunities there. So, overall the commercial real estate business and the risk adjusted returns there are pretty attractive."

Timothy J. Sloan, Senior Executive Vice President and CFO, Wells Fargo & Co.

"There are selective opportunities with clients that we know very, very well, who have market opportunities that arise from the volatility or the down tick or whatever you want to call it in the market place itself. Some of it comes from other lender distress."

Betsy Zubrow Cohen, CEO, The Bancorp

"What we're doing is spending a good amount of time looking at a commercial real estate portfolio and really looking at it in a risk-based basis. And I hate to paint all commercial real estate with a really broad brush and say we don't want it as part of our portfolio. That's far from the truth. And I think in all reality, you'll still see commercial real estate being a significant part of our portfolio for a long time. It's really -- it's pruning the high-risk assets off and trying to partner with those that have successful real estate projects and keeping those as part of a community banks portfolio."

Robert B. Kaminski, COO, Executive Vice President, Mercantile Bank

"Our commercial real estate loan portfolio increased $51.6 million or 13% on an annualized basis. The growth was spread fairly evenly across a number of different property types. We saw a few more attractive refinancing opportunities this quarter in our CRE portfolio that we made an effort to retain, which partially contributed to the lower level of natural runoff than we experienced."

Alvin D. Kang, CEO, Nara Bancorp Inc.

Payoffs, Foreclosures Offsetting Increased Lending

"Average total loans were essentially unchanged at $11.9 billion. Increases in commercial mortgages, residential mortgages and commercial loans were offset by continued decline in the construction portfolio."

Charles J. Nugent, CFO and Senior Executive Vice President, Fulton Financial

"On the CRE side, modest growth in commercial mortgage activity will continue to be masked by the net contraction in construction lending, particularly residential construction from our acquired portfolios."

René F. Jones, CFO, Executive Vice President, M&T Bank

CRE lending "will stay lumpy going forward, but it's on an overall downward trajectory. I mean, the overall construction book continues to decline. I think it's down 20% approximately year-over-year."

P. W. Parker, Chief Credit Officer and Executive Vice President, U.S. Bancorp

"We saw a continued run-off in the commercial mortgage and commercial construction books. Average CRE balances were down $510 million or 4% sequentially. We continue to expect run-off in these portfolios in the near to intermediate term, although at a steadily slowing pace. I would expect that the size of this portfolio will plateau with the stabilization improvement in commercial real estate markets perhaps in the next several quarters."

Daniel T. Poston, Executive Vice President and CFO, Fifth Third Bancorp

"We're still going to see some continued runoff in non-owner-occupied just for no other reason that we really aren't out looking for any of the non-owner-occupied during this downturn."

Michael H. Price, Chairman, CEO and President, Mercantile Bank

Multi Lenders for Multifamily

"We continue to operate in a challenging environment; economic growth remains weak, unemployment stubbornly remains elevated and home values continue to remain soft. In addition, the implementation of Operation Twist by the Federal Reserve has contributed to a flattening of the U.S. Treasury yield curve, putting further downward pressure on long term interest rates and current mortgage product offerings, as well as increasing mortgage loan prepayments. However, we are optimistic that the increase in our loan pipeline, coupled with the reduction in the expanded conforming loan limits that commenced Oct. 1, 2011, and the resumption of multifamily/commercial real estate lending, should facilitate modest loan and balance sheet growth in the fourth quarter and more robust growth in 2012."

Monte N. Redman, President and CEO of Astoria Financial Corp.

"We believe there is a long-term sea change in terms of home ownership. Therefore, there is going to be very attractive investments for folks in rental and properties for a long time. That's a very appropriate kind of CRE lending for us to do. So, we're not getting out of the real estate lending business. We'll be approaching it with an appropriate amount of energy given our long-term goals.

Kelly S. King, Chairman and CEO, BB&T Corp.

Capitalizing on Other Banks' Distress

"Period-end loans were up $8.2 billion from the second quarter reflecting our commitment to our commercial and retail customers through this period of economic uncertainty. Loan growth was once again driven by our commercial portfolio which grew $9.1 billion or 3% from the second quarter and was diverse across our commercial businesses. This growth also reflects our ability to capitalize on the opportunities generated in the business environment including the purchase of $1.1 billion in loans from the Bank of Ireland which were all U.S. based and largely all commercial real estate."

Timothy J. Sloan, Senior Executive Vice President and CFO, Wells Fargo & Co.

"We've originated a lot of loans for several years now that have come from competitors who had capital challenges or concentration of credit challenges or whatever and we have seen a lot of opportunities to originate loans for customers that have been able to buy assets from those weakened competitors or acquire loans that are discounted from those weakened competitors. So yes that has been a source of loan growth for us in the quarter just ended as it has been for quarters over the last three years."

George Gleason, Chairman and CEO, Bank of the Ozarks Inc.

Nearing an Inflection Point

"We believe commercial real estate may have reached an inflection point, as run-off is slowing and commercial mortgage originations grew linked-quarter. Our distressed loan portfolio continues to decline, but at a slower pace than in the past."

Richard J. Johnson, CFO, PNC Financial Services Group Inc.

MIDWAY DEVELOPMENT BREAKS GROUND ON CITYCENTRE THREE

2011-09-30T15:58:00.000-07:00

CITYCENTRE THREE

A rendering of the 120,000-square-foot CityCentre Three in Houston. HOUSTON — Midway Development has contracted with Hoar Construction who has commenced construction on the 120,000-square-foot CityCentre Three, a mixed-use property slated to be six stories, located in CityCentre in Houston. Midway Cos. has still more office towers they can develop on the property, which was designed by by Munoz & Albin with Kirksey Architects and all they hope all will achieve LEED Silver certification. The exterior will have a courtyard featuring fountains and landscaped seating areas. Construction for the property is expecting to last 12 months. 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

5 Building sale by GE Commercial, was that a GOOD price?

2011-08-11T06:04:00.000-07:00

General Electric Commercial Finance Real Estate, and entity of GE Capital Corp., sold its five-property office portfolio in Houston to Peloton Capital Partners. The properties traded for $19 million, or approximately $55 per square foot.

The assets consist of 347,587 square feet of office space in Harris County. The buildings are at 2950 and 3030 S. Gessner, 10200 Richmond Ave., 11931 Wickchester Lane and 1250 Woodbranch Park Drive

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.

Whats Howard Hughes been up to? Is He still is SO quiet and reclusive? NOT LIKELY!!!!!

2011-07-14T14:32:00.000-07:00

Check it out......The Howard Hughes Corp., (NYSE:HHC) bought an interest in The Woodlands, a master-planned community in Texas, from a unit of Morgan Stanley (MS) for $117.5 million.

Howard Hughes, spun off last year from General Growth Properties Inc. (NYSE: GGP), will control the Houston development by taking a 47.5% interest through a definitive agreement with Morgan Stanley Real Estate. The consideration includes $20 million in cash payable at closing and a $97.5 million non-interest-bearing note due Dec. 1, 2011.
Howard Hughes and its predecessors has been an investor in The Woodlands since 2004 and its partner, Morgan Stanley Real Estate Investing, has been an investor since 1997. Upon completion of the purchase, Howard Hughes will wholly own The Woodlands as a subsidiary, including all unsold property.

As of March 31, unsold property in included 1,372 acres of residential land representing 4,532 lots, and 936 acres of land earmarked for commercial use.

The Woodlands also has full or part ownership in 434,000 square feet of office space, 203,000 square feet of retail and service space, 865 rental apartment units. It also owns a 440-room conference center facility and 36-hole country club.

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.

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye Oyasin

I wonder where they got the 340 Million ?? Oh yea, from Me & You!!!

2011-06-30T11:26:00.000-07:00

Chevron Corp. purchased Four Allen Center, the 1.23 million-square-foot office tower it fully occupies at 1400 Smith St. in downtown Houston, from Brookfield Office Properties for $340 million, or approximately $277 per square foot. The investment entity Towanda Development I Ltd. sold the building to Brookfield for $120 million in September 2006. “This sale is reflective of our ongoing strategy of recycling capital from mature assets into more accretive opportunities,” said Ric Clark, chief executive officer of Brookfield.
Built in 1983, Four Allen Center is a 50-story structure on 1.14 acres in the central business district. Chevron has leased the property for nearly five years. The U.S. oil and gas company also inked a 311,000-square-foot office renewal next door at Continental Center I, a 1.1 million-square-foot, 51-story skyscraper at 1600 Smith St. Chevron's previous lease for 475,000 square feet expires in May of next year. The new deal will leave 164,000 square feet available next spring. Brookfield has owned 1600 Smith St. for five years. It is 95.4 percent leased. Continental Airlines also anchors the property with 414,578 square feet. The average asking rent per year is approximately $23 per square foot, according to CoStar Group information.
“We have created significant value through the sale of this stabilized asset concurrent with Chevron’s sizeable lease extension at our adjacent property,” said Dennis Friedrich, president and global chief investment officer of Brookfield. “Chevron represents the type of top-flight corporate tenant we seek to partner with in our global energy-sector markets.” Paul Frazier and Margaret Gosda negotiated the lease in-house for Brookfield. Tim Relyea of Cushman & Wakefield represented Chevron.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

Houston Oil companies take more office space 1st quarter. I wonder if its because.....

2011-05-23T13:43:00.000-07:00

Houston absorbed 422k SF during Q1, but deliveries outpaced tenant demand, pushing vacancy 1 0bps to 16.1%. Class-A vacancy jumped 20 bps to 13.9%, largely due to Hines’ delivery of the 972k SF BG Group Place. Class-B properties ended the quarter with a 19% vacancy, a 10 bps increase. Oil drilling activity in South Texas increased recently, leading numerous service companies to take occupancy last quarter. This helped Class-A assets absorb 480k SF. A lot of energy firms also signed expansions last quarter, led by KBR with a 216k SF Class-A expansion in Eldridge Oaks. EnerVest, Koch Industries, Noble Denton, Willbros Group, and EDG also expanded in Q1. One last tidbit: Houston’s sublease inventory decreased by more than 500k SF in Q1, lowering total inventory to 3.6M.

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.

"Life is a Storm my friend. You will bask in the sunlight one moment and be battered on the rocks the next. What makes you a man is what you do when that storm comes. You must look into that storm and say You must do your worst for I will do mine and the fates will know you for the man you are."

The Count of Monte Cristo

Rising Occupancy Should Bring Growth In Retail Rents By Year-End

2011-05-12T07:39:00.000-07:00

Near-Term Outlook For Retail Real Estate Remains Positive Despite First-Quarter Pause In Net Absorption

Falling vacancy rates and rising demand for retail real estate should finally bring about meaningful rent growth for landlords in most U.S. retail markets by the end of 2011, according to CoStar Group economists, Randy Drummer reporting from COSTAR on May 11th, 2011

Growth in employment and moderately rising demand fueled by greater numbers of shoppers and little new supply of retail development on the horizon should set the stage for a significant drop in vacancy rates, which CoStar expects to fall as low as 5% by late 2014.

Bolstered occupancy will in turn lead to growth in rental rates, which have been in decline since the recession. By the end of this year, rents should turn positive across the U.S. and from there rise fairly rapidly, peaking at about 6% growth annually by 2014, CoStar Group forecast recently in its First Quarter 2011 Retail Review and Outlook. CoStar Real Estate Strategist Suzanne Mulvee co-presented the retail market report with Real Estate Strategist Kevin White and Real Estate Economist Ryan McCullough.

The near-term outlook is promising for retail properties, but longer term, starting in 2013, uncertainties such as employment growth, rising oil prices, delivery of new supply and mounting pressure to generate continued high levels of retail sales could challenge the strength of the recovery, CoStar analysts noted.

"While it is the negligible new supply that is allowing retail real estate to turn the corner, the future depends on job and wage growth levels," said Chris Macke, senior real estate strategist for CoStar Group.

Retail sales have already returned to 2007 levels, with year-over-year growth in the 6% range for the last couple quarters -- well above the historical range of 4.5% to 5%. Spending should remain strong if jobs and economic growth stays on track, Mulvee said.

Though appliances, electronics and other big-ticket purchases are still down, spending on health care and personal care is up over 13%, with increases also reported in online sales, food and beverage, general merchandise, clothing and sporting goods spending. The level of sales per square foot of retail space has also moved well above pre-recession levels -- evidence that retailers are doing better and may eventually need more space, providing a platform for rent growth, Mulvee said.

Leasing volume has also picked up robustly, with CoStar projecting more than 53 million square feet of retail space leased in the first quarter. While it’s not yet translating into large net absorption gains -- just 9 million square feet of absorption nationwide in the first quarter, the lowest since fourth-quarter 2009 -- the heightened activity and diminished supply kept the national vacancy steady in the first quarter at 7.2%.

Fast-recovering, high-barrier Northeast corridor markets are seeing the most demand, with Washington, D.C. posting an absorption increase of 1.5%, followed by Houston (1.2%), Boston, (1.1%), Philadelphia (1%) and Detroit and Minneapolis, (each 0.8%.) Markets hard hit by oversupply and housing issues like Tampa, Phoenix and Atlanta continued to show flat absorption in the first quarter.

Demand remains weak for power centers, where construction of new supply was quite heavy for several years starting in 2005. Construction in all retail sectors is at a standstill and debt market constraints will continue to limit building, though a few projects delayed by the recession are starting to come back.

With little new space available, vacancy rates are finally cresting. Underscoring the breadth of the occupancy recovery, as much as 60% of the 1,000 retail submarkets tracked by CoStar showed declining vacancy rates in the first quarter, with the strongest declines in Northeast and Texas markets like Houston, Detroit, Denver, Boston and Philadelphia.

Housing-bust markets like Phoenix and the Inland Empire still are seeing vacancies well above their historical average. Among product types, lifestyle centers and to a lesser degree malls are seeing vacancy rates tick down.

While the situation is expected to reverse quickly as existing supply gets leased up, overall rents are still edging downward year over year across the retail spectrum. Similarly to occupancy and absorption, rents are improving at different rates in different markets and product types, McCullough said. Rental rates for lifestyle centers and community shopping centers are still seeing downward pressure, while malls and power centers are seeing quoted rents stabilize and even move up slight over the last couple of quarters, McCullough said.

Markets that depend on strong population growth to drive retail sales such as the Inland Empire, CA are seeing largest year over year rent losses. Rents fell 8.4% in the Inland Empire, followed by Phoenix (-7%), Tampa (-7.5%) and Denver (-9%). Markets with sustained growth like Texas and perennially under-retailed markets like New York and Los Angeles saw the least erosion.

The nation’s overall growth rate of around 3% annually "isn’t spectacular" and not as strong as the early recoveries in previous recoveries, but it’s enough to generate jobs and gradually bring down the unemployment rate and create renewed positive absorption and a "pretty meaningful recovery" in commercial real estate, White said.

"We expect it will gather momentum over the course of this year and into 2012," White said.

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.

LOOPNET SOLD to COSTAR; How much more will our fees go up on the 88,000 subscribers ?

2011-04-29T07:48:00.000-07:00

COSTAR ACQUIRES LOOPNET

CoStar Group has signed a definitive agreement to acquire LoopNet for approximately $860 million. The transaction between the two companies is expected to close by the end of 2011. As part of the agreement, LoopNet shareholders will receive $16.50 in cash and approximately 0.04 shares of CoStar Group common stock for each share of LoopNet common stock. This equates to a total equity value of approximately $860 million and an enterprise value of $762 million. Upon closing, LoopNet shareholders will own approximately 8.5 percent of CoStar shares outstanding on a fully diluted basis. In addition, CoStar has received a commitment from J.P. Morgan for a $415 million loan and a $50 million revolving credit facility, which will be used to fund the acquisition and for general operating purposes.
"CoStar revolutionized how the industry researches commercial real estate and LoopNet revolutionized the way the industry markets commercial real estate," said Andrew Florence, president and CEO of CoStar, in a statement. "We expect the combination of our companies to give the $11 trillion commercial real estate market the full benefit of the Internet." With the merger, CoStar's subscriber base stands to grow from 88,000 subscribers to at least 160,000 subscribers, representing approximately 15 percent of the commercial real estate market's participants. LoopNet.com currently has 4.8 million registered users and more than 6 million unique visits quarterly.

University of Texas buys GOLD-- Why not Real Estate?

2011-04-21T15:29:00.000-07:00

Institutional investors are no doubt recoiling on news that one of their very own – the $20 billion Texas University Endowment Fund – has taken a $1 billion position in dumb ol' gold bars, stored on their behalf in New York vaults, collecting dust but earning no interest and paying no dividend. This report at Bloomberg has all the details: The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board. The fund, whose $19.9 billion in assets ranked it behind Harvard University’s endowment as of August, according to the National Association of College and University Business Officers, added about $500 million in gold investments to an existing stake last year, said Bruce Zimmerman, the endowment’s chief executive officer ....

The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.

“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

What has the world come to?
Just think how silly this would have sounded just a few years ago -- that is, before the financial market crash caused investors all around the world to start doubting all sorts of conventional wisdom, not the least of which is the idea that the U.S. currency is sound.

Houston leasing more and more space

2011-03-24T12:49:00.000-07:00

HOUSTON -- Willbros United States Holdings, Inc., an oil and gas equipment and services provider, has signed an 87,212-square-foot office lease at Five Post Oak Park in Houston's Galleria submarket. Willbros extended its original lease for 10 years, expanding its size by 44,178 square feet. Tim Relyea, Joe Peddie and David Guion of Cushman & Wakefield of Texas represented Willbros, while Clint Bawcom and Brian McMackin of Cassidy Turley represented the landlord, Shorenstein Properties LLC. Five Post Oak Park is a 567,319-square-foot Class A office building located at 4400 Post Oak Pkwy.

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

Google will no longer support real estate listing in 2011

2011-02-02T07:11:00.000-08:00

Search giant Google will no longer support real estate listings uploaded to its classifed listings site on Google Maps, the company announced today.Consumers will no longer be able to find for-sale, foreclosure, or rental properties through the search function on Google Maps, and real estate professionals will no longer be able to upload their listings to Google Base, the company's classifieds site, which is being replaced by Google Shopping APIs and will not support real estate listings."In part due to low usage, the proliferation of excellent property-search tools on real estate websites, and the infrastructure challenge posed by the impending retirement of the Google Base API, we've decided to discontinue the real estate feature within Google Maps on February 10, 2011," the company said in a blog post. Home seekers can still use "Google search results to find helpful real estate information and websites" as well as view local businesses, directions and transit times through Google Maps and explore neighborhoods through Google Street View, the company added.
"This does not come as a surprise to me. Even with Google's huge audience, it shows having listing data is clearly not enough to deliver a good real estate search experience and build audience," said Pete Flint, CEO and co-founder of property search site Trulia.
The company added that Google's removal of listings data will not affect its mobile application, which uses the Google Maps API.

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 : http://www.houstonrealtyadvisors.com/

HOUSTON 2010 We are No 1#, What is instore for 2011????

2011-02-01T11:07:00.000-08:00

2010 Houston ranks as No. 1 manufacturing city in U.S.

Houston is the No. 1 manufacturing employer in the country, with 228,226 employed in the industry, Manufacturers' News Inc. reported.

Houston's nearly 230,000 manufacturing jobs topped the nation, according to the Manufacturers' News Inc. report. The industrial directory publisher ranked cities according to number of factory jobs, using Standard Industrial Classifications and including oil and gas exploration categories.

Texas overall dominated the ranking. Dallas ranked No. 6 with 81,626 positions, while San Antonio was No. 17 with 52,039 people. Austin came in at No. 26 with 43,103 workers. Manufacturing accounts for about 9 percent of jobs in Houston.

New York was the second largest factory employer with 139,127 jobs followed by Chicago with 108,692 and Los Angeles with 83,719.

Cities that registered notable changes since 2008 included Detroit, falling to No. 45 from No. 29; Seattle, which has moved up to 34th from 46th; and St. Louis, which overtook Cincinnati as the nation's fifth-largest manufacturing employer.

Since August 2008, the nation's top 10 industrial cities have lost a total of 95,805 manufacturing jobs, or 8.4 percent, according to the report.

Things are moving up and now is rthe time to lock in reantl rates!!!! Good time to BUY!!!!! as well!!

For more information on Houston manufacturing or office space, Houston retail space, Houston warehouse space and Houston industrial space, please call Ed Ayres @ 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com

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2010-12-15T06:21:00.000-08:00

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Heritage Plaza sells for $325 Million or $282.70 PSF

2010-12-14T13:20:00.000-08:00

HOUSTON -- Atlanta-based Goddard Investment Group has finalized the sale of Heritage Plaza, a landmark office complex in downtown Houston, to New York-based Brookfield Properties Corp. for $325 million. Heritage Plaza, located at 1111 Bagby St., comprises an office tower, which is approximately 84 percent leased, constructed in 1986 and the Federal Land Bank building built in 1935. Tenants of the office tower include Deloitte, EOG Resources and Tudor Pickering Holt & Co. It is Houston's second highest price ever paid for an office building, behind only the Bank of America Center sale for $367 million in August 2007.

Neiman Marcus is getting ready for Christmas...for the next 10 YEARS!!!

2010-11-02T08:05:00.000-07:00

The Neiman Marcus Group has expanded and extended its distribution lease in Pinnacle Park from 292,000 to 470,250 square feet of industrial space at 4121 Pinnacle Point Dr. in Dallas. The space will be utilized for Neiman Marcus' Last Call division. Corbin Crews of CB Richard Ellis represented the landlord, TR Pinnacle Corp., in the 10-year lease. 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.

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MAINPLACE TOWER TO BE RENAMED BG GROUP PLACE

2010-10-28T08:31:00.000-07:00

A subsidiary of BG Group plc has signed a 164,000-square-foot lease at Houston's MainPlace office tower, which will be renamed BG Group Place after the natural gas company. Located at 811 Main in downtown Houston, the space will serve as BG Group's U.S. headquarters with the possibility of expanding in the 46-story, 1 million-square-foot office tower. The company plans to relocate from its current Galleria location in mid to late 2011. BG Group is based in the U.K. and is active in more than 25 countries on five continents. Its strategy is focused on connecting competitively priced resources to specific, high-value markets with a broad portfolio of exploration and production. Jim Bailey, Joe Peddie and Tim Relyea of Cushman & Wakefield and Glenn Pinkerton of Vinson & Elkins represented BG Group in the transaction. Chrissy Wilson and Stewart Robinson of Hines represented the landlord, HC Green Development Fund, a partnership of the California Public Employees' Retirement System (CalPERS) and Hines. 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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Houston downtown is one of the most active CBD's in Country

2010-10-19T07:44:00.000-07:00

EnerVest, a Houston-based oil and gas company, has expanded by 36,721 square feet and renewed its headquarters lease for a total of 117,316 square feet in First City Tower, located at 1001 Fannin in downtown Houston. Chip Colvill and Michael Anderson of Colvill Office Properties represented the landlord, FC Tower Property Partners, an affiliate of JMB Realty of Chicago. Meanwhile, Tim Relyea of Cushman & Wakefield of Houston represented EnerVest. First City Tower is a 1.3 million-square-foot, 49-story office building bounded by Fannin, McKinney, San Jacinto and Lamar streets in Houston's central business district. 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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Houston Realty Advisors, Inc.

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The Recession Has Ended; Someone Should Send the Memo to Tenants

2010-09-23T07:03:00.001-07:00

Economists Say Recovery Started 15 Months Ago, But Brokers Say Tenants Are Still in

Cost cutting mode.

The National Bureau of Economic Research -- the official referee of the economy -- announced this week that it determined that the recession ended and economic recovery began 15 months ago in June 2009. However, according to commercial real estate service providers, economic conditions for most American tenants are still in the pre-June 2009 cycle and a long way from the pre-recession years.

Smith System in Arlington, TX, the nation's first professional fleet driver training company, is representative of the current tenant mindset. When the economy is expanding, the need for freight drivers increases. When it is not expanding, Al Caldwell, senior vice president of operations and international sales for Smith System, sees no need to expand either.

"Our business would have to increase 20% to return us to 2008 levels," Caldwell said. "We have the same staffing we had in 2008 and don't see any need to increase for probably two years or more."

And when it is time to expand, that still won't translate in the need for more space. During the prolonged recession, Smith System has mothballed space, as many businesses have.

"We have approximately 10 unused spaces that we could use if we were to expand," Caldwell said. "We think our return to 2008 levels will require two more years, so, that fact, combined with the extra space we have, probably means we are at least three years or perhaps even longer away from needing more space."

That is the message that many commercial real estate brokers are getting across the country, too.

"Many mid-size and smaller companies are afraid of the possibility of a double dip recession. They are unconvinced that the recession is really over, despite the statements by several so-called economic pundits that the it "technically" ended in June 2009," said Howard Applebaum, president of Corporate America Realty & Advisors, a tenant rep firm in Rutherford, NJ. "Until we see greater access to financial liquidity and greater financial leverage for business and real estate borrowings, companies will remain conservative and avoid adding staff. What must be feared here is that without the capability of loosening the credit restrictions that banks have placed, it can lead to further staff reductions as companies that do not have access to "Wall Street" capital will burn through their cash holdings."

Scott Abernethy, senior vice president of Cassidy Turley in Cincinnati, OH, said 90% of the companies they talk with are not hiring.

"Companies in the past two to three years have downsized and extended their leases; these companies do not have excess space," Abernethy said. "However, many firms with leases farther out in the future have excess space that they can't unload. If the economy improves, they feel they can backfill that excess."

The other problem, Abernethy said, is that the responses to the recession have made it harder for tenants to know what expansion might cost them.

"The good news is that they are no longer cutting staff, but most companies feel like they can't expand because they just don't know what new employees will cost," Abernethy said. "There is a large amount of confusion as to health care, employee benefits and taxes, and companies just can't project their future costs of doing business. Once government policies are understood by the businesses, they will then know what they are dealing with, and will start expanding."

While the brokerage community generally feels that the bulk of staff downsizing is past, that doesn't mean that firms are finished cutting costs.

Chris Fountain, business development manager / sales for relocation firm Suddath Office Solutions in Jacksonville, FL, says the businesses they deal with are now adjusting their space needs to accommodate their past staff reductions.

"Most businesses have adopted the practice of adjusting the size of their labor force and physical space to cope with current economic changes. So, it has become a way of life," Fountain said. "Many businesses are still in the mindset of reducing their operational overhead expenses by reducing their square footage. Many of the large corporations we deal with have more than enough space and could prolong new demand out at least a couple years depending on what happens."

Bradley D. Larson, vice president of Partners National Real Estate Group in Dallas specializes on the industrial side.

"Since distribution and logistics users tend to be more focused on square footage and the respective economics, we have seen an emphasis from our industrial clients on right sizing their branches," Larson said. "We are still seeing smaller and less productive branches close as the lease expirations loom closer. This is happening at a lower rate than before, but is still somewhat prevalent in tertiary markets where market demand for our client's products is not keeping pace with fixed costs. So, as opposed to downsizings, it is more common for our industrial clients to consolidate or close a branch than to lay off staff."

"Since leases have, by nature, expired during the downturn, those lease renewals have (whether knowingly or unknowingly) locked in lower rental rates and thus have prepared a lower fixed overhead position for our clients in the years to come," Larson said.

Mike Fransen, vice president and asset manager for Parkway Properties Inc. in Houston, is seeing the same thing on the office side.

"I think we're still working our way through. We still have a fair number of people that signed at the peak of 2006-2007 that are coming up on renewals and many will likely have their first opportunity to downsize," Fransen said. "So I still envision that continuing for a little while, certainly into 2011."

"There is lots of grey (sublease) space still diluting and complicating the leasing environment here in Houston. It is does impact leasing decisions by companies," Fransen added. "It has killed large deals we've worked on. When the CFO realizes he has unused space in his existing portfolio, he decides not to sign that new lease. Added to that are new and empty new assets, and that combines to make for a sloppy office environment for a while. With jobs very slow to come back nationally and locally, it's impossible to tell how long this continues."

It is a very pessimistic outlook, said Kenneth W. Colwell, senior leasing and sales associate of Paragon Real Estate Group in San Francisco.

"My feeling is true recovery will not occur until unemployment and sentiment/confidence returns," Colwell said. "Only users who are recession-proof will expand or relocate, that includes medical and government, with startups looking for rock bottom subleases deals." By Mark Heschmeyer COSTAR

September 22, 2010

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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Houston Realty Advisors, Inc.

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HRA, Inc. helps Artisan Furniture Store find new distribution location

2010-07-21T14:38:00.000-07:00

Houston Realty Advisors, Inc. just helped Artisan Home Furniture find a new home at 8786 Westpark. Furniture was the name of the game in the industrial sector during the second quarter.

Houston filled up 1.6 million square feet of industrial space during the three months ended June 30 thanks to the completion of a 1 million-square-foot Rooms To Go distribution center and Ashley Furniture’s new 303,000-square-foot distribution center.

A total of 7 percent of local industrial real estate is vacant, according to a quarterly report on the sector by CB Richard Ellis Inc. That’s down slightly from the 7.1 percent vacancy CBRE tabulated for the first quarter of 2010.

Overall rental rates remained the same at 48 cents per-square-foot. Rates have not changed for a full year, CBRE reports.

Tenants are receiving concessions such as free rent or more money to build out their spaces from landlords, according to the real estate firm’s research.
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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Another Smaller CRE Firm Absorbed

2010-05-25T07:50:00.000-07:00

May 25, 2010 REON-LINE Business News Letter:

CURTICE COMMERCIAL REAL ESTATE JOINS COLLIERS INTERNATIONAL
SUGARLAND, TEXAS — Sugarland-based Curtice Commercial Real Estate has joined Colliers International. Through the joint venture, the team plans to expand their services with an office in Fort Bend County, Texas. Kolbe Curtice, president of Curtice Commercial, will act as the managing director of the Fort Bend office. This expansion is part of Colliers International's global strategy to invest in and grow its platform. The firm has increased its global coverage from 290 offices to more than 480 offices worldwide. 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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CoStar Power Broker Awards Recognize Top CRE Dealmakers in Houston

2010-05-15T07:14:00.000-07:00

Power Brokers
Based on transactions completed and reported to CoStar.
Award Year:
Markets:
2009Houston

Top Leasing FirmsPresented Alphabetically
CAPSTAR Commercial Real Estate Svcs
CB Richard Ellis
Colliers International
Cushman & Wakefield
Grubb & Ellis
InSite Commercial Real Estate
Jones Lang LaSalle Americas, Inc.
Moody Rambin Interests
NAI Houston
NewQuest Properties
PM Realty Group
Stream Realty Partners, L.P.
Studley
The National Realty Group, Inc.
Transwestern Commercial Services
Top Sales FirmsPresented Alphabetically
Apartment Realty Advisors
CB Richard Ellis
Colliers International
Cushman & Wakefield
Grubb & Ellis
Hendricks & Partners
HFF, L.P.
Marcus & Millichap
NewQuest Properties
Studley

Top Office Leasing BrokersPresented Alphabetically
Brad Marnitz
NAI Houston
Brian McMackin
CAPSTAR Commercial Real Estate Svcs
Christopher G. Oliver
Cushman & Wakefield
Clint B. Bawcom
CAPSTAR Commercial Real Estate Svcs
Cody Armbrister
CB Richard Ellis
Derrell Curry
Studley
Eric Anderson
Transwestern Commercial Services
Greg Tilton
Transwestern Commercial Services
Jessica E.Ochoa
CB Richard Ellis
John Pruitt
CB Richard Ellis
Kristen P. Rabel
CB Richard Ellis
Louann Pereira
CB Richard Ellis
Mark W. O'Donnell
Studley
Tim D. Relyea
Cushman & Wakefield
Trey W. Strake
Cushman & Wakefield

Top Retail Leasing BrokersPresented Alphabetically
Alex Makris
CB Richard Ellis
Carson Wilson
Fidelis Realty Partners
Cullen Kappler
NewQuest Properties
David Ferguson
BPI Realty Services, Inc.
Debbie Adams
Gulf Coast Commercial Group
Eric Drymalla
Tarantino Properties
Eric Walker
NewQuest Properties
Ford Scott
NewQuest Properties
Jazz Hamilton
CB Richard Ellis
Jim Bayne
Investar Real Estate Services, Inc.
Matt Keener
CB Richard Ellis
Peggy Rougeou
Tarantino Properties
Robert Bailey
NewQuest Properties
Scott Shillings
SRS Real Estate Partners
Shawn Ackerman
Henry S. Miller Brokerage

Top Industrial Leasing BrokersPresented Alphabetically
Brad Marnitz
NAI Houston
Brian Gammill
Transwestern Commercial Services
Clay Reichenbach
InSite Commercial Real Estate
Darryl Noon
Transwestern Commercial Services
Edward R. Bane
Holt Lunsford Commercial, Inc.
Faron Wiley
CB Richard Ellis
John Ferruzzo
NAI Houston
Jon Michael
NAI Houston
Jude Filippone
Transwestern Commercial Services
Justin Robinson
Stream Realty Partners, L.P.
Kyle Valentine
Stream Realty Partners, L.P.
Rives Nolen
InSite Commercial Real Estate
Ryan Fuselier
Jones Lang LaSalle Americas, Inc.
Sam Brown
Sam H. Brown, Inc.
Walter Menuet
Vantex Commerical Property Group

Top Sales BrokersPresented Alphabetically
Bill Miller
HFF, L.P.
Craig LaFollette
HFF, L.P.
David Wylie
Apartment Realty Advisors
Ed Nwokedi
Cushman & Wakefield
J. Mark Russell
Studley
Jim Gibson
Stan Johnson Company
Steven D. Alvis
NewQuest Properties
Todd Marix
HFF ( Formerly at CB Richard Ellis)
Todd Stewart
HFF, L.P.
Tre T. Banks
HFF, L.P.

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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CONSTRUCTION STARTED ON 115,000-SQUARE-FOOT FACILITY

2010-05-13T08:25:00.000-07:00

HOUSTON — GRA-Gulf Coast Construction has broken ground on a 115,000-square-foot manufacturing facility for the wooden pallet manufacturer Neopal in Houston. The property will be located on 13 acres at the intersection of Vickery and Aldine Bender. Chris Caudill and Joel Michael of NAI Houston represented the tenant in negotiations. 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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Houston Realty Advisors, Inc.
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ONE PARK 10 PLAZA TRADED IN HOUSTON

2010-04-29T07:59:00.000-07:00

HOUSTON — Parkway Properties has sold the 162,909-square-foot One Park 10 Plaza to Beacon Investment Properties for an undisclosed amount. The Class A property is located at 16225 Park 10 Place in Houston. Tenants such as GGS Spectrum and J. Connor Consulting occupy 93.7 percent of the building. Dan Miller and Trent Agnew of Holliday Fenoglio Fowler represented the seller.

DEERBROOK MARKETPLACE PURCHASED

HOUSTON -- Investcorp Real Estate has purchased the 348,542-square-foot Deerbrook Marketplace shopping center from a private seller for an undisclosed price. The Houston property is 98.5 percent leased by tenants including Sports Authority, Best Buy, Bed Bath and Beyond, Marshalls, OfficeMax and PetsMart. Capital Trust provided financing for the acquisition. The asset will be managed by Global Fund Investments

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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Potential Commercial Real Estate Armageddon Fading

2010-04-28T19:26:00.000-07:00

First Quarter Bank Results: Potential for CRE Armageddon Fading
Weakness, Trouble Remain but Healthy Lenders Could Carry CRE Markets to Better Days

April 28, 2010
Although first quarter results of U.S. bank holding companies across the country are unmistakably downbeat about the short-term outlook for commercial real estate in general, and their portfolios in particular, they also hint at a growing sense that the problems are working themselves out. For starters, banks generally reported that troubled loan assets were systematically moving through their books. For example, older construction loans on commercial developments and owner-occupied properties were being shifted to term loans, giving borrowers a chance to work through slow cash flow periods. Banks were also widely reporting that the inflow of new nonperforming commercial real estate loans was beginning to slow down. At the same time, more of the loans already being labeled as nonperforming were being shifted to the real estate owned (REO) category. From there, it is likely only a matter of time before those assets would be sold back into the marketplace. In the performing section of their portfolios, banks reported that a substantial portion of those assets have also already been renewed or restructured. In its April 2010 Global Financial Stability Report, the International Monetary Fund contained a brighter outlook for bank losses in the near term, as expected write-downs on both the loan and securities books of U.S. banks decreased across the board compared to last fall, said Mark Fitzgerald, senior debt analyst for CoStar Group. "These improved short-term losses are due primarily to two factors. First, signs of an improving economic environment have decreased loss expectations," Fitzgerald said. "Second, some write-downs have simply been pushed forward, as external factors, including low interest rates, have enabled banks to push off distress into the future." In part because of that delay, the IMF report forecasts real estate loan charge-offs are still expected to increase in 2010 and may not peak until 2011. "What are the implications for commercial real estate investors?" Fitzgerald asked, then answered: "The banks supply approximately 50% of all debt capital to the sector, so lending capital could be constrained for some time. However, there is a bright side. If we continue to follow our current path, and distressed assets bleed slowly into the market over time, then healthy lenders may have enough capacity to meet low transaction volumes (especially with depressed pricing). The large banks that have recently reported healthy earnings (primarily due to their trading and fixed-income operations) are a potential source of capital, and these banks have historically been under allocated to commercial real estate compared to the overall banking sector." However, Fitzgerald added: "On the other hand, if an external factor pushed more distress into the marketplace (i.e. major interest rate increases, changes in regulator behavior), this could create significant opportunities for opportunistic investors." What follows are recent comments and reports from specific large and medium-sized bank and bankers regarding current commercial real estate portfolio and market conditions and market outlooks. The statements come from first quarter earnings reports, earnings conference calls and monthly banking condition filings with the U.S. Department of Treasury and are believed to be relatively indicative of what most banks reported. Better To Let a Project Work Out than Foreclose On the commercial side, CRE non-accrual loan inflows actually declined 27% in the first quarter, but it is typically in everyone's economic interest, including ours, to write the loan down to continue to have the developer work the project for us rather than foreclose. The process of structuring and executing these solutions can take several quarters to complete, and throughout this process, these loans are closely monitored, collaterals are re-evaluated and if necessary loss content is recognized. John Stumpf - Chairman, President and CEO of Wells Fargo & Company Heading in the Right Direction When you talk about the uptick in commercial real estate charge offs and nonperforming asset inflow, I think it's important to put it in proper context to remember our overall credit trends. We've seen improvement for three quarters now in charge offs, nonperforming asset inflows and past dues and we've seen improvement for two quarters now in overall nonperforming assets, provision and the watch list…. We saw that the commercial real estate watch list was down by $100 million in the first quarter and then we analyzed the commercial real estate migration for the last several quarters and all those items supported our belief that the negative migration is receding. That being said, there's still a lot of work to do on commercial real estate as you can see from the absolute numbers. While we think there may be variability as we certainly saw this quarter, and as we said in prior quarters, we think the overall trend is going in the right direction. John M. Killian, Chief Credit Officer, Comerica Inc. REITs Driving New Borrowing In February, new commercial real estate (CRE) loan commitments totaled $132.4 million, compared with $47.4 million in the previous month. The increase in new commitments was driven by substantial capital raising activities undertaken by some of Citi's REIT clients, which issued both new equity and longer-term debt to strengthen their balance sheets. Citigroup in the latest Monthly Treasury Intermediation Snapshot Short Hold Period for Foreclosed Assets Excluding $243 million of nonperforming assets (NPAs) in our held-for-sale portfolio, where the loans have already been fully marked, portfolio nonperforming assets totaled $3.1 billion. Portfolio non-performing loans were down over $200 million sequentially, a 7% decline, while other real estate owned (OREO) was up about $100 million largely commercial OREO. That was a really positive move for non-performing loans and as you would expect we are seeing some continued growth in OREO, which represents the combination of treatment strategies on problem loans, with those typically having moved into non-performing status in the year ago timeframe. I would note that only 10% of our OREO has been carried as OREO for more than 12 months. Mary Tuuk, Chief Risk Officer, Fifth Third Bancorp Fifth Third continues to monitor the CRE portfolios and continues to suspend lending on new non?owner occupied properties and on new homebuilder and developer projects in order to manage existing portfolio positions. We feel this is prudent given that we do not believe added exposure in those sectors is warranted given our expectation for continued elevated loss trends in the performance of those portfolios. Fifth Third in the latest Monthly Treasury Intermediation Snapshot Material Liquidity Coming Back into the Market I'm not sure that I would necessarily call it seasonality but clearly the quarter started more slowly in January and early February, and there was a real crescendo through March in terms of sales activity... We started seeing some material liquidity coming back into the market in the second half of the first quarter and that's not seasonal. That is real and it is I think reflective of a recognition that number one, there's a lot of money out there that's been looking for somewhat better trends in commercial real estate in particular and are beginning to see it. So we've seen a great improvement. Chuck Hyle, Chief Risk Officer, KeyCorp KeyCorp's lending strategies remain focused on serving the needs of existing and new relationship clients while being mindful of risk?reward and strategic capital allocation. There was no change in underwriting standards in February. There was no change in loan demand trends in the CRE segment during February. The CRE market outlook continues to be weak. All new commitments originated in February were attributable to the middle market portfolio. During February, KeyCorp continued to extend and modify existing credits given the lack of liquidity and refinancing options available in the CRE market. KeyCorp in the latest Monthly Treasury Intermediation Snapshot A Bifurcated Market Class A properties are doing well and probably are doing better than anybody might mark them, so actually we're not in the business of selling those even though we might have taken a mark on them when we took them in. Those properties tend to come back with the economy, and that's the right thing to do. The C properties, you just sell. C property rarely comes back so you take very strong marks on those right up front and you just sell them because they always have trouble recovering at all. So we've been actively doing that and we're comfortable with our marks. The B properties, obviously the majority of the portfolio, but those are the ones you mark down and you have to manage one by one… So that's a plus, and I think the commercial real estate business over time, if a property loses a tenant, clearly that property has less value as you know. But then they go resign somebody else at a lower lease rate, so the property is worth less, but it's not like it falls off the planet. There is some cash flow. So I think those B properties, I think will work their way through for the most part. James Rohr, Chairman & CEO, PNC Financial Services Group Inc. Ramping Up Owner-Occupied We continue to produce our concentration of nonowner-occupied commercial real estate. We currently have $1.4 billion in nonowner-occupied commercial real estate and $630 million in owner-occupied commercial real estate. At quarter end, nonowner-occupied commercial real estate is down to approximately 45% of our total loan portfolio. Based on where we ended the first quarter, we're now projecting loans to be down approximately 5% to 8% the full-year and are optimistic that we might see some additional lending opportunities in the second half of year that may help us offset some of these decrease. We have recently implemented an aggressive calling program for our bankers to actively pursue commercial industrial loans, owner-occupied commercial real estate consumer loans and residential mortgage loan opportunities. Despite low loan demands, we still manage the book over $209 million in new loan commitments during the first quarter. Anecdotally, we're hearing from some of our customers that business had begun to pick up. However, we have not yet seen evidence of that in increased line usage or loan demand. The sector within commercial real estate, which has experienced the most stress, has been hospitality… Over the last 15 months, the industry has experienced significant declines in occupancy of rates, average daily room rates and revenue per available room. As a result of this deterioration, we charged-off approximately $9 million against the allowance for credit losses associated with this loan portfolio during 2010… We're in the process of finishing up a thorough review of this entire portfolio. J. Downey Bridgwater, Chairman, President & CEO, Sterling Bancshares Inc. Growing Interest in Bank-Owned Properties While commercial real estate administration and problem loan disposition continue to be quite challenging… we are starting to see increased inquiries and activities in the movement of some troubled commercial real estate. We had a large OREO sale in the first quarter, it was good to see and really the focal point of my comments about being some movement and some activity in the OREO account. As you might imagine, there is a lot of multi-activity there. We have some properties coming in and some properties going out. We are continuing to value those properties each and every month to make sure that we have got an accurate balance based on the market value that we are carrying on our books. But during the first quarter I am very pleased, we saw a number of, besides that large sale, we saw a number of sales to small properties throughout the quarter both on some commercial properties, some residential properties, amounts that made us approach that comment there about the activity in the marketplace, and there continues to be some offers and some interest heading into the second quarter. Whereas six months ago, nine months ago, a year ago, there was not a whole lot of interest in bank owned properties, we are starting to see some activity and some movement there as I indicated. Bob Kaminski, Executive Vice President & Chief Operating Officer, Mercantile Bank Corp. Dealing with Construction Loans The increase in the term commercial real estate loans is only partially a result of the decrease in the construction loans. We do have some construction loans that are moving to term loan because the properties are leasing up and they are qualifying. We have fairly strict standards for moving a loan from construction to term. They basically need to qualify as though they were being originally underwritten as a term loan before we move them into that category.
By Mark Hamisher
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.

Maxxam Sells Cooper Cameron Bldg. for $29.7M

2010-03-04T09:22:00.000-08:00

Maxxam Property Co. sold the office building at 4646 W. Sam Houston Parkway in Houston to Potamkin Auto Group for $29.7 million, or about $142 per square foot. It is known as the Cooper Cameron building at Westway Park. The nine-story, 210,000-square-foot, Class A office building was constructed in 2001 in the Northwest Far submarket. Robert Williamson, Jeff Hollinden and Barbara Guffey of HFF represented the seller, while Carl Christensen of Net Lease Capital Advisors represented the buyer.
By : Lesile Kon COSTAR
February 25, 2010F

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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

Information About Brokerage Services Information About Brokerage Services read more...

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

FORBES MAG Says: Houston & Fort Bend County, Texas BEST PLACE!

2010-02-09T13:34:00.000-08:00

Premier Place To
Relocate, Open A Business
(Fort Bend County, TX) February 3, 2010 – Despite a national economic downturn, Fort Bend County, Texas
continues to provide a premier place to relocate or open a new business. Here are eight key reasons business
owners should consider Fort Bend County when moving their business.
• Favorable business climate. Qualified businesses and developments relocating to Fort Bend County can
take advantage of a number of incentives including: value-added tax abatement, Freeport tax exemption,
tax increment financing and industrial revenue bonds. Additionally, a Foreign Trade Zone designation is
currently pending on the area’s new intermodal facility and logistics park.
• Strong economy. Fort Bend County is the regional leader in household income.5 Ranked third in job growth
in the country by the U.S. Department of Labor in 2009, its unemployment rate remains consistently below
the national average.
• Low cost of living. Texas offers the fifth lowest cost of living in the U.S.1
• Low tax burden. Texas is seventh in the nation in lowest tax burden2 and consistently ranks well below the
national average. Plus, Texas is one of only seven states in the country that have no state income tax.
• Exceptional quality of life. Families make up 83 percent of the households in Fort Bend County3, most of
which reside in one of 70 master-planned communities, characterized by affordable upscale homes and
outstanding amenities. In addition, Fort Bend County maintains the lowest crime rate in Houston’s eightcounty
area.4 The Fort Bend County cities of Sugar Land and Missouri City both appeared on the safest
cities of America list published by CQ Press’ City Crime Rankings in November 2009.
• Educated workforce. Fort Bend County is the regional leader in high school graduation rate and educated
adult population. Nearly 40 percent of its workforce earned a college degree or higher.5
• Optimal distribution network. More than 100 Fortune 500 companies use the Sugar Land Regional Airport
annually. Plus, businesses in Fort Bend County are in close proximity to two major airports – George Bush
International Airport and Hobby Airport. The soon-to-be-completed Intermodal Rail Facility will offer
time-wise import/export shipping options via Mexico. And, the Port of Houston and Port Freeport are also
available to export/import shipments overseas.
• Right-to-work. Workers in Fort Bend County are not required to be members of a union. Therefore, business
owners have the right to hire whomever they choose.
Fort Bend County is located in the Houston metropolitan area of southeast Texas. For more information about
Fort Bend County, visit www.fortbendcounty.com.
1 The Council for Community and Economic Research, March 2009

2 Texas ranks seventh nationally in the Tax Foundation’s State Business Tax Climate Index. The index compares
the states in five areas of taxation that impacts business: corporate taxes, individual income taxes, sales taxes,
unemployment insurance taxes and taxes on property.
3 U.S. Census Bureau-American Community Survey
4 U.S. Census Bureau-American Community Survey
5 U.S. Census Bureau-American Community Survey
About Fort Bend County
Fort Bend County is located in the Houston metropolitan area of southeast Texas. Its population is among the fastest growing in the United
States and has been recognized among the most educated and diverse counties in the nation. According to the 2008 U.S. Census, Fort Bend
County has more than 530,000 residents and is projected to grow to one million by 2017. Fort Bend’s vibrant economy has also received
national recognition. Fort Bend County is among the top 10 counties in the nation in terms of economic strength, according to Woods & Poole
Economics, 2008. For more information about Fort Bend County, including a complete list of accolades, visit www.fortbendcounty.com or
follow us on Facebook and Twitter.

PRESENTED BY:

Media contact:
Natalie Rivera
Marion, Montgomery, Inc.
(713) 523-7900
nrivera@mmihouston.com

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,

Author Joel Kotkin Labels Houston as "City of Aspiration" in his new book The Next Hundred Million: America in 2050

2010-02-05T06:56:00.000-08:00

BOXER PROPERTIES had a Cocktails and Conversation Broker party with Author Joel Kotkin @ Ouisie’s Table Restaurant on Monday night. Kotkin, an urban development scholar, puts Houston in the “city of aspiration” category along with several other fast-growing metropolitan centers in the South, such as Dallas-Fort Worth, Atlanta and Phoenix. In his latest book, “The Next Hundred Million: America in 2050,” Kotkin discuss the effects of a population climbing to 400 million midway through the century and what that will have on the country’s urban landscape, culture and competitive edge in a global context.

Can we keep up with all these up with city labels, from “Bayou City” to “Space City” to “Energy Capital of the World.”???? I KNOW SO!!!!!!!!!!!!! Build it and they will come.....

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

Information About Brokerage Services Information About Brokerage Services read more...

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

HOUSTON leads : Battered Industrial Property Sector But its Now Poised to Resume Growth

2010-02-04T07:08:00.001-08:00

Although Vacancies Remain Stubbornly High and Activity Is Hardly Stellar, Sales and Leasing of Warehouse and Flex Space Moving Into Positive Territory After Six Tough Quarters
The amount of empty warehouse, distribution and flex space hitting the market contracted again sharply in the fourth quarter, and CoStar analysts say industrial real estate appears poised to join office and some retail categories in returning to positive net absorption. While stubbornly high, industrial vacancies are flattening. Leasing activity is starting to pick up nationally and, unlike previous downturns, the market is not plagued by an overhang of new supply. Sale prices also appear to have hit bottom as buyers and sellers begin to come to terms with losses inflicted by the recession and the bursting of the real estate bubble, according to the Year-End 2009 Industrial Review, the third and final installment of CoStar Group, Inc.'s "State of the Commercial Real Estate Industry" webinar series.See related CoStar coverage: "In a Surprise, Office Market Posts Unexpectedly Good Results""Positive Outlook for Retail Real Estate Tempered by Ongoing Market Correction"Jay Spivey, Senior Director of Research and Analytics for Bethesda, MD-based CoStar, was joined on a panel by noted commercial real estate analysts and commentators Norm Miller, Vice President of Analytics for CoStar; and Hans Nordby, Global Strategist for Property & Portfolio Research, (PPR) Inc., CoStar's forecasting and analytics subsidiary. The market improvements are unfolding against a backdrop of an increase in general economic activity for the manufacturing and industrial sectors. Gross domestic product (GDP) grew a faster-than-expected 5.7% in the fourth quarter, eclipsing forecasts of 4%, in part due to the impact of government stimulus dollars and the need to replenish depleted inventories. Miller expects GDP growth of around 4% for the first two quarters of 2010. Boosts in industrial production and corporate profitability will eventually lead to jobs and renewed investment and expansion by companies, whetting the demand for space. The latest survey of manufacturing by the Institute for Supply Management released Tuesday offered some timely good news for the manufacturing and logistics industries. The Purchasing Managers Index (PMI) jumped 3.5 points to 58.4 in January. Such high PMI numbers typically point to sustained and solid GDP growth. "This kind of confidence is a really good signal for the economy," Miller said. One caveat, cautioned Nordby of PPR, is that inventories continue to fall. "If you're falling down a flight of stairs and your velocity decreases by the time you get to the bottom, you might not necessarily feel better," Nordby noted. "Inventories really haven't gotten better; they're just not falling as fast." Retail sales, which drive part of the demand for end-users of warehouse and distribution facilities, appear to be picking up after bottoming late last year. But consumer confidence won't fully return until housing prices fully reach bottom across the country, and foreclosures and REOs are expected to peak around midyear, Miller said. Despite signs of progress, the current recovery is clearly slow relative to those following past economic down cycles -- unsurprising given the depth of the most recent recession and financial crisis. "If you look at the year-one and year-two GDP levels, we're not nearly where we were at the same time in past recoveries," Spivey said. Jobs continue to lag and the U.S. could finally reach 2000's level of total employment later this year. However, industrial property, especially the automation-rich warehousing and distribution sector, isn't as exposed to job growth and loss, compared to, for example, more densely occupied office space. That said, temporary employment is rising across the board, and that should be followed by an increase in permanent jobs within a quarter or two. In reviewing a grid ranking the short- and long-term economic prospects of major U.S. markets based on employment growth, the three panelists noted the prevalence of strong long-term job markets crowded with cities in Texas, Florida and Georgia. Houston, in particular, is leading the charge, with its growing population and energy sector and low business costs, Nordby said. Cities such as Detroit and Cleveland will likely continue to struggle due to weakness in the domestic auto and manufacturing industries. Despite the visible signs of improving conditions in Texas and other sunbelt markets, the economy still faces a list of economic challenges. Distressed sales are increasing and will likely continue to tamp down rents, though industrial is faring better than other product types, Miller said. Credit remains tight even though banks are cautiously starting to lend again and many properties are saddled with very oppressive loan-to-value ratios. Fending off inflation and rising interest rates will be an increasingly difficult task for financial and monetary policy makers and regulators. However, year-end metrics show that industrial fundamentals may be ticking upward, or at least, in the words of CoStar's analysts, becoming "less bad."
Leasing and Absorption
Although leasing activity was soft in 2009, it's down less than 20% from the previous year -- not a dramatic drop -- and has risen for three consecutive quarters, Spivey said. "Leasing is starting to pick up and it's relatively stable compared to sales activity. Deals are happening and renewals are occurring." Industrial players will not so fondly remember last year and late 2008 mainly for the massive 200 million square feet of negative net absorption in warehouse, flex and other industrial space piled onto the market over the last five or six quarters. That compares to about 70 million square feet during the market downturn 10 years ago, which was accompanied by the collapse of tech and Internet commerce companies. Only one major market, Houston, posted positive absorption at an anemic 1.8 million for 2009. Markets that saw huge increases in negative absorption included Chicago (-19.2 million SF), the San Francisco Bay Area (-11.6 million SF), South Florida (-11.4 million) and Los Angeles (-9.4 million). But those numbers don't tell the whole story. The fourth quarter's 12 million of negative absorption is much lower than the minus-37 million square feet posted in the third quarter, negative-58 million square feet in the third quarter and -47 million in the second quarter. PPR forecasts that absorption will turn positive this quarter for the first time since third-quarter 2008 with a modest 13 million square feet. That should be followed by steady absorption growth, peaking at a projected 68 million square feet in mid-2012. A look at fourth-quarter absorption numbers for various individual markets shows the upward trend. Although quite modest, seven markets saw positive absorption, led by Philadelphia at 3.9 million square feet. The other six markets all posted essentially flat absorption of 600,000 square feet or less, including Cincinnati, Houston, Cleveland, the Inland Empire in inland Southern California, and Los Angeles. "But the tide does appear to be turning. The office and retail sectors saw positive absorption in fourth quarter and it appears industrial is headed in the same direction but with a little bit of a lag," Spivey said.
Construction/Development
Just 0.5% of new supply was added to the national industrial inventory in 2009, far lower than the 1.7% in new supply added to the market on average over the last 50 years. Extremely low deliveries and construction starts will persist through 2010, with only Houston, Dallas/Ft. Worth, Inland Empire, CA and Philadelphia delivering any appreciable new space. Detroit, Cleveland, Los Angeles, South Florida and Chicago will see very little new development. Bottom line is, "Supply won't be an issue in industrial until late 2011 or 2012 at the earliest," Nordby said. "This level of construction doesn't even come anywhere close to making up for routine functional obsolescence and demolitions. In fact, we're modeling negative supply in many markets."
Vacancy/Availability
Companies shedding space drove the national vacancy rate to 10.3% in the fourth quarter, up from 7.5% at the market peak two years ago. Availability, which includes space that may not yet be vacant but is on the market, rose to 14.6%, up from just over 10% two years ago. The widening gap between vacancy and availability rate bears some reason for caution, but "we believe we're at or near the peak on vacancy due to the lack of new supply and positive absorption" in supply constrained markets like Long Island and Los Angeles and past over-developed markets like Inland Empire and Dallas, Spivey said. The upside is that vacancies and reduced rents are driving stepped up leasing activity in markets like San Francisco.
Investment Sales
Although overall industrial investment sales volume is down 54% from the 2007 peak, prices are finally adjusting to the lower LTVs and tighter underwriting that have driven overall industrial cap rates up from 6.7% in 2007 to 8.9% in fourth-quarter 2009. Most of that cap rate expansion occurred during 2008 and was fairly flat in 2009. Industrial prices adjusted for inflation have plunged 33% since the market high of $90 per square foot in 2007, and have fallen past the historic average in 1995 of $63 per square foot. Fourteen of the top 20 industrial markets took double-digit losses in per-square-foot sales prices in 2009 compared with the previous year. CoStar's analysis of repeat industrial sales, meanwhile, found some price strengthening, with the trough reached late last year. "It looks like we're close to equilibrium now in terms of the prices investors are willing to pay relative to the rent," Miller said. "Sales prices are very likely near bottom for non-distressed industrial property, but we will likely see a scattering of distressed sales occur at a discount to the mortgage balance. It will be important to distinguish the type of sale when analyzing average prices for industrial, as well as all property types." Industrial owners appear to be somewhat more insulated from distress than holders of other property types, particularly apartments and office buildings. About 15% -16% of overall CRE sales are currently considered distressed, Nordby said. However, only about 8% of industrial sales are made under distress, the lowest among major property types. REITs such as industrial giants ProLogis and AMB, along with institutional investors were net sellers of property in 2009, while opportunity funds and other private equity trying to take advantage of distressed assets were buying. Falling prices and narrowing bid-ask spreads are also luring owner-users and other private parties to jump in, Miller added.
By Randyl Drummer
February 3, 2010 COSTAR

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,

New iPhone Application LoopNet Wins Apple Approval for Property Search

2010-01-20T06:30:00.000-08:00

The commercial real estate listing service LoopNet (NASDAQ: LOOP), based in San Francisco, has taken its online marketplace to a new technology level by making a deal with computer giant Apple to offer an iPhone application for property searches.
Apple, based in Cupertino, Calif., approved the iPhone application little more than a week ago, and the online marketplace wasted no time in making it available to users of its service, says LoopNet vice president Mike Manning.
“The new LoopNet iPhone application benefits both property searchers, including investors and tenants, and real estate professionals marketing property,” says Manning. “Business gets done in real time on the fly from wherever the broker and the prospective investor or tenant happens to be.”
For the commercial real estate industry, the innovation is potentially a game-changer because it ratchets up the speed and ease with which investors, brokers, sellers and other professionals can find information on property that is for sale or lease.
The application provides fast access to the 745,000 commercial listings on LoopNet’s Web site without requiring users to sit at a computer terminal, haul a laptop or use other time-consuming mobile technology.
For example, if a business owner is looking for a new company site and spots an attractive commercial neighborhood while on the go, he or she can use the application to find every available LoopNet listing within a radius of five or 10 blocks.
In another scenario, if an investor wants to buy an office building on Wilshire Boulevard in Los Angeles and decides to check available properties on Wilshire from downtown to Santa Monica, that’s not a problem, says Manning. “Using the LoopNet iPhone application, the investor can start downtown, and standing on a street corner, use the iPhone's GPS capabilities combined with the LoopNet application to identify available properties nearby.”
The investor could then drive up Wilshire to Beverly Hills and eye more properties using the application before continuing west, without needing to refer to a laptop.
If a broker is showing a client office properties for lease in the Buckhead submarket of Atlanta and the tenant suddenly decides to look at space in the Perimeter area of North Atlanta instead, the broker can respond immediately, Manning explains. “The broker is well prepared to hop in the car and take the tenant to the other submarket.”
The broker can immediately take her clients to the new location without having to go back to the office to check the computer or run a report, says Manning. Using iPhone applications, the broker can pull up properties in the new area, review them with her client, and use Google’s mapping feature to get directions to the listings.
Property search results can be filtered by price, building size, lot size and property type, such as office, industrial, retail or multifamily. Directions provided through a Google map search can be emailed to a client or business associate.
Although the basic application is free, for full access to all available properties on the LoopNet system a user needs to be a premium member of LoopNet, says Manning. LoopNet has 3 million members and approximately 1 million visitors per month.
Apple offers more than 100,000 applications for its iPhone and iPod, and its users perform 10,000 downloads daily, according to the company. On January 5, Apple announced that more than 3 billion applications have been downloaded from its App Store by product users worldwide.
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

Information About Brokerage Services Information About Brokerage Services read more...

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

Office Absorption Comparison (Red State v. Blue State)

2010-01-14T16:36:00.000-08:00

One of the common complaints to hear about California is that it is becoming so business-unfriendly, that it is driving new business creation out of the state. Office space absorptions should tell us whether or not California is holding ground relative to what the competition might be. Office space is a proxy for the kind of white collar jobs that everyone wants for their children.
John Reeder of Spree Van Ness in Cali. compared the net absorption as a percentage of total available office space for the Los Angeles and San Francisco office markets against the same statistics for the Dallas and Houston office markets.
The Dallas and Houston markets have cumulatively outperformed LA and San Francisco for 15 of the last 20 years. Consider that in 1990, Los Angeles and San Francisco had a combined 215 million square feet of occupied office space to 195 million feet in Houston in Dallas. However, Dallas and Houston (252 million feet) now lead Los Angeles and San Francisco (247 million feet).
Of course not all economic growth in California is going to take place in Los Angeles and San Francisco. Orange County and San Diego are also the locations of significant commerce. But I think it is telling that if you are looking at the performance of two of the major hubs of commerce in the Golden State, they are being passed in terms of economic growth by two cities in a red state. I could have made this analysis more exhaustive, but I don’t need to because the point I am proving is that California’s attitude is all wrong. The collective response of those responsible for California’s business climate, when confronted with pleas for mercy from business groups, is to say basically “We’re California, we’re the champ, we don’t need to accommodate business because people will always want to locate here.” But the data in the graph shows this not to be the case. The Texas cities are absorbing more of their office space, and are building more to accommodate future growth.
This is an oversimplified analysis of a point that I think everybody probably takes for granted anyway. You could find more people that agree with the accusation that California is business-unfriendly, than you could find people who think Lee Harvey Oswald acted alone.
California could do more to foster growth, though there is no indication that any such plans are on the table.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

Information About Brokerage Services Information About Brokerage Services read more...

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

Medical Space User

2010-01-11T06:38:00.000-08:00

Medical users and physician practices don’t typically relocate to new buildings as often as general office tenants. However, the competition for new patients is increasingly steering physician practices to non-hospital campus properties as they seek more conveniently accessible locations for their patient base.
This trend is evident in the increased development of smaller suburban medical office projects and urgent care clinics you see in any significant metropolitan community. Furthermore it is increasingly common to see healthcare providers take space in smaller community retail centers near hospital campuses.
Medical users also tend to sign leases with longer terms than your typical office tenant, which puts them in the marketplace for office space less often. While many of the same sound principles required to lease general office space apply to healthcare, there are many nuances and issues that are unique to medical users that should be considered.
One of the first decisions they should make is to retain a broker with medical leasing experience. Hiring a tenant representative is prudent for any tenant. However, brokers who have experience in medical office leasing can be particularly helpful because they may be aware of available buildings and space that have not come to the attention of the practice and they understand how to structure terms and covenants of the lease agreement to fit the unique needs of the healthcare provider. 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

Information About Brokerage Services Information About Brokerage Services read more...

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

Colliers International merges with FirstService R.E.

2010-01-07T10:44:00.000-08:00

The big news this week that Colliers International and FirstService Real Estate Advisors will join their U.S. and global operations together under a single platform, doing business as Colliers International in 61 countries, was followed almost immediately by word that five local and regional Colliers affiliates would also end their relationship with Colliers and launch Cassidy Turley, a new national company to be based in St. Louis effective March 1. Three other companies -- NAI affiliate BT Commercial in San Francisco, and Grubb & Ellis BRE Commercial affiliates in San Diego and Phoenix -- also announced plans to shed their network affiliations to join Cassidy Turley. The combining of Colliers and FirstService under the Colliers brand culminates a gradual move away from the global network brokerage model that began when Toronto-based FirstService Corp. (NASDAQ: FSRV) entered commercial real estate in 2004, buying a 70% stake in the largest Colliers International affiliate. The real estate arm, FirstService REA, continued its aggressive expansion by acquiring controlling interests in various brokerages and CRE-related service firms such as FirstService PGP Property Valuation, PKF Hotel and Hospitality Consulting, MHPM Project Leaders and FirstService Williams, formerly known as GVA Williams, which is now the company's New York Tri-State area brokerage hub. FirstService REA has also expanded globally, acquiring significant stakes in Colliers International operations in the United Kingdom, Ireland, Spain, Russia and several other Western and Eastern Europe and Asian Pacific countries. Douglas P. Frye, global chairman and CEO of Seattle-based Colliers International, described the company's transition from a group of independent affiliates to a centrally owned and operated entity with local partners owning significant stakes in their own operations as part of a fundamental shift in the industry. "We don't think the independent network model is effective. Independently owned businesses operated across the board is not the best way to service a client," Frye said in an interview with CoStar Advisor. "And we haven't been in that [line of] work for a long time -- although many of our clients and competitors still think of us as a network. We look like a network because of where we came from, but 70% of our organization is now controlled by one entity." Colliers has been more successful than other networks largely because of growth fueled by FirstService's platform and hefty capital investment over the last five or six years, Frye said. "We're evolving that investment and infrastructure into this new model, with equity for the partners in the local offices," Frye said. Integrating the various businesses and brands under the Colliers and FirstService umbrella has "involved a lot of moving parts," Frye said. "We joked it was a little like playing three-dimensional chess. Even though they've been different brands, we've been working closely together for some time, integrating major pieces of the business. But now, it's something the client and the market will be able to see more clearly." Not included under that umbrella are four soon-to-be-former Colliers affiliates, including Washington, D.C.-based Cassidy & Pinkard Colliers, New York-based Colliers ABR, Colliers Turley Martin Tucker based in St. Louis, and Colliers Pinkard in Baltimore, which of which merged rather than join Colliers International under FirstService in August 2008. They will be joined by Colliers Houston & Co., one of the oldest CRE firms in greater New Jersey, and the Grubb & Ellis and NAI affiliates in California and Arizona to form Cassidy Turley. The rebranding of the eight local and regional companies under Cassidy Turley will be complete by March 1, Mark Burkhart, CEO of the new company, told CoStar. Local and regional CRE brokerage firms have been consolidating for several years as smaller companies join forces to compete with the industry's largest players, with their global platforms and one-stop service offerings. Burkhart, however, disagrees with the notion that affiliated local or regional real estate companies are in danger of extinction in an era of national and global full-service players. "In St. Louis, where I grew up, there are national competitors that are not doing well. And there are strong local competitors that are winning more than their fair share of the business. I know those CEOs and they're doing OK during this downturn. If you're a quality, class operation that provides high service to clients -- whether a single firm in one city or a national, international company -- everyone can survive. That's been proven over and over." Like previous restructurings in which businesses go their separate ways, the combining of FirstService and Colliers and the exodus of the Colliers, Grubb & Ellis and NAI affiliates has provoked competing claims about how the moves will boost the various players' size and share of the national and global CRE brokerage market. Of course, each firm uses somewhat different math in staking those claims. Burkhart cited the property management and national corporate services capabilities of the firms that are merging into Cassidy Turley, which he said will have 900 brokers and 420 million square feet under management at startup. "We're much more than a brokerage; in fact 60% of our business is non-brokerage." “By expanding the company’s service offerings, we broaden our business, increase our geographic footprint, and enhance the company’s infrastructure," Burkhart said. The combined FirstService and Colliers International says it has more than 15,000 employees in 480 offices worldwide and generates more than $1.9 billion annually, boasting that it now ranks as the third-largest real estate services firm in the world behind CB Richard Ellis and Jones Lang LaSalle. In its own announcement Wednesday, Cassidy Turley said it will rank among the nation's largest firms, with 57 locations and $15 billion in completed transactions for 2008, including 21 new locations and 449 new brokers coming from the new California and Arizona operations.. “Branding our companies as Cassidy Turley not only reinforces our unity as a singular company, and connects us together with a legacy we are proud of, but it also reflects our expanding capabilities,” said Wally Pinkard, chairman of Cassidy Turley, who served as global chairman for Colliers International several years ago and twice served as chairman of Colliers USA. Turley Martin Tucker has long been a regional force in the Midwest, while Cassidy and Pinkard have enjoyed strong brand recognition in East Coast markets. Adding BT Commercial and the two BRE Commercial companies in Arizona and California will immediately give Cassidy Turley a coast-to-coast presence, noted Joe Stettinius Jr., CEO of Washington, D.C.-based Cassidy & Pinkard, who will serve as president of Cassidy Turley. Both Colliers International and Cassidy Turley vowed to expand and compete vigorously for broker talent and business in each other's markets - though neither would discuss specifics due to multiple layers of confidentiality agreements signed between the parties. "We wish them the best luck in the world," said Frye. "Sometimes, businesses go different directions, and hopefully it will be good for everybody."
From COSTAR...

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

Information About Brokerage Services Information About Brokerage Services read more...

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

Transwestern sells Northwest One

2009-12-18T08:23:00.000-08:00

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

Information About Brokerage Services Information About Brokerage Services read more...

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

2009-12-17T08:12:00.000-08:00

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.
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Ed A. Ayres
Houston Realty Advisors, Inc.
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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

2009-12-10T09:13:00.000-08:00

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

Information About Brokerage Services
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Russell Industries signs with HARC

2009-12-08T18:09:00.000-08:00

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

Information About Brokerage Services Information About Brokerage Services read more...

Is your Landord keeping up on Insurance???

2009-11-19T08:10:00.000-08:00

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

2009-11-18T07:06:00.000-08:00

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

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Ed A. Ayres
Houston Realty Advisors, Inc.
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CADENCE MCSHANE TO BUILD OUT NEW LSCS CAMPUS

2009-11-06T13:07:00.000-08:00

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.

2009-10-27T07:18:00.000-07:00

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.
Mitaquye oyasin

Are things getting better in USA? COSTAR REPORTS

2009-10-15T04:54:00.000-07:00

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.
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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Biggest Office Space owners in USA

2009-10-12T12:11:00.000-07:00

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

2009-09-23T09:46:00.000-07:00

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

2009-09-04T12:01:00.000-07:00

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

2009-09-03T08:08:00.000-07:00

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

2009-08-28T07:15:00.000-07:00

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

2009-08-27T07:44:00.000-07:00

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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Houston Realty Advisors, Inc.
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New Hotel Sorella Opens in CityCentre @ Town & Counrty Blvd.

2009-08-19T09:30:00.000-07:00

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,

2009-08-17T08:59:00.000-07:00

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

2009-08-07T13:20:00.000-07:00

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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HPD finds new diggs

2009-08-06T13:52:00.000-07:00

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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Houston Realty Advisors, Inc.
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Houston fairs better than the rest of US cities

2009-08-04T05:39:00.000-07:00

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.
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Houston Realty Advisors, Inc.

HOLBA Events coming up

2009-08-02T12:52:00.000-07:00

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

2009-07-14T12:08:00.001-07:00

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.

Need Help on Leaseing Your Shopping Center?

2009-07-09T07:42:00.001-07:00

The job of retail leasing brokers has become more challenging than ever in today's commercial real estate market. That said, deals -- while much fewer and further between -- are still getting done. So what does it take to lease that vacant shopping center space that's been on the market for so long? John Bemis, director of retail leasing for Jones Lang LaSalle Retail, said the key is working creatively, harder, smarter and as a team. "There is no secret formula. Above everything else, it's simply hard work. People have to work harder and smarter than they ever have before to obtain new and retain existing tenants at shopping centers." CoStar interviewed a number of retail real estate agents to learn about what new, creative, or unusual methods agents or companies are using -- beyond the basics of hard work, efficiency and persistence -- to improve their chances of winning out over their competitors to sign tenants.
TEAMWORK

WORKING BEYOND YOUR ROLE Bemis said Jones Lang LaSalle is encouraging all of its staff, not just leasing agents, to get engaged in leasing efforts -- from general managers and marketing managers to specialty leasing managers and support staff. "We are getting all of our field people into leasing, getting them involved in prospecting." For example, one specialty leasing agent whose main job was leasing to temporary tenants went "beyond the call of duty" at the Westgate Mall in Texas, Bemis said. "She took a call from Earthbound Trading when the lead leasing agent was on vacation. Instead of leaving it until the leasing agent returned, she tracked the lead agent down and got the go ahead to pursue the deal and did not rest. She landed the deal in three weeks and the tenant is opening this year." "Don't get all tied up in roles," Bemis advised. "It's about getting the job done -- not about authorship or ownership, but completing and fulfilling the job." INTER-COMPANY INCENTIVES To encourage teamwork, JLL Retail may award a "VIP" gift card valued from $100 to $500 to staff that go above and beyond the call of duty, including bringing prospects that result in a lease, working beyond their job description to get deals done, or marketing deals in a particularly creative way, Bemis said.

AGGRESSIVE / CREATIVE TENANT SOURCING

All of the agents interviewed said that being persistent, aggressive and creative in tenant sourcing has become essential in today's market. Sitting on the phone fielding calls that come in is no longer effective. Long hours researching prospects and pounding the pavement is the name of the game. "We are definitely in aggressive canvassing mode," Bemis said. TARGETING COMPETING SHOPPING CENTERS While targeting tenants at competing shopping centers is a method that's been utilized by leasing agents traditionally, companies have become much more aggressive in their efforts to do so, agents said. On the flip side, this activity also makes it harder to retain existing tenants. Bemis encourages leasing agents to visit not only competing centers in their markets, but also outside their markets to encourage tenants to open second or third stores in one of JLL's centers. TARGETING EXISTING TENANTS TO OPEN SECOND LOCATIONS Existing tenants are an excellent source for leasing, whether it be expansions or new stores, agents and managers said. Bemis said that JLL Retail has had success in getting local tenants "to take on second concepts within mall food courts," for example. Karen LaFleur, marketing manager at Miami-based Terranova, said the company has had particular success in sourcing new tenants from its existing tenant base, "especially with local tenants. They know us and we know them, so maybe we're more lenient with them because of that relationship, whether it's with lease terms or with promoting grand openings, etc. Or maybe they're more likely to lease with us because they know the job we do." For example, a nail salon in one of Terranova's centers that just opened a second location is opening yet another in a center under construction. Also, a pizza restaurant is opening a second location and is in negotiation for a third -- all within Terranova's centers. TARGETING NON-TRADITIONAL TENANTS FROM OTHER PROPERTY TYPES Filling shopping center vacancies in today's market requires thinking outside the box, beyond traditional tenant types. Agents are now wooing tenants that may currently be located in office buildings or stand-alone buildings off the beaten path, with the pitch that such users could benefit from the additional exposure gleaned from shopper traffic, especially as rental rates have become more reasonable. For example, Bemis said that one of his teams recently went after University of Phoenix and landed the tenant at the Genesee Valley Mall in Flint, MI. Sourcing tenants who typically lease medical office space has also become more common. Bemis said pediatric doctors or dentists are "great candidates for mall entrances, as moms can shop while they wait for their kid to finish their appointment." Moreover, the doctor gets greater exposure where moms spend their time, he added. "One of our brokers used Costar to gather a list of office users with leases expiring that we have a space available in a shopping center that may fit their needs. This week, we are having members of our staff deliver cookie bouquets to these tenants personally, which is better than just a delivery person, with a card that says, 'We have a space if you're looking to move,'" said LaFleur. In the past, these tenants might have been sent a simple letter, or just received a cold call from a leasing broker, she added. INCENTIVES FOR EXISTING TENANTS Jones Lang LaSalle has even gotten existing tenants involved in sourcing new tenants. "At a couple of our malls, we have offered to tenants that give us a good lead that ends up panning out something like a $500 credit on their rent, etc," said Bemis. "All of our non-national tenants are aware that if they were to bring a tenant, they would get a benefit," said Tim Roe, president at Pine Tree Commercial.

SOCIAL NETWORKING

Social networking, or having a personal presence on Facebook.com; MySpace.com; Twitter; or a blog, has skyrocketed in popularity in the last couple years. Now, the method has gone beyond personal use, with commercial real estate brokers keeping in touch with each other and actively talking about their property listings to the brokerage community and the public. Additionally, CRE companies are creating blogs or utilizing social networking opportunities for their company, malls or shopping centers. With the ability to talk openly about properties -- whether it's details on space for lease or sale, events at properties, promotions by tenants or simply conversing on idle topics with friends or followers -- the medium is increasing exposure for not only other commercial real estate agents and their companies, but also their properties. At JLL Retail, Bemis said the company has launched an initiative to get all the malls they manage or lease to have Facebook and Twitter accounts. While additional exposure for a property is great in any situation, Bemis explained that being active on social networking sites is fostering leasing in an indirect way. "We think it’s a good way to get future leasing. It helps to increase retailers' sales at the centers, which always helps leasing and drives rents in centers." Additionally, Bemis said the malls use the accounts to promote events they hold at the malls and also advertise space that's available. "These formats target a younger generation and as these kids get out of college, they may be going into franchising or entrepreneurship, and this increases our chances of them thinking of our property when they want to open store." Bemis also said that JLL is finding former executives interested in opening a business following the properties on these social networking mediums. Blogging has been popular for much longer, as the medium is much more customizable to the look and feel of a company and typically has more options to add pictures and attachments and outside links -- which is particularly helpful when it comes to exposure for listings or the capabilities of your company. The key is that the quality of the blog's content should keep visitors coming back. The blog should also be 'keyword optimized,' which helps increase exposure on search engines. For commercial real estate agents and their property blogs, that may mean keeping listings up to date and sharing of pertinent news or market knowledge. Pine Tree Commercial recently took a bold step by launching a social networking site for the industry, called "The Real Corner", which is designed "for those in the commercial real estate world to network, share best practices, and collaborate." The site's features include commercial real estate events, job listings, an industry news feed, blog posts, videos of interviews pertinent to market trends or news, a member forum discussing industry topics and their listings, issues or ideas; a chatting function, and links to Twitter and Facebook. While the site serves the entire industry, Pine Tree is benefitting because many of the videos, blog posts, and forum discussions either feature or are led by a member of Pine Tree Commercial. At Pine Tree, Roe said, "We saw a need for it in the commercial real estate community. It’s a great way to exchange information. If a lease gets done, we'll post it and we are also posting listings. Further, as a developer, every broker that represents us is a member of Real Corner and is talking about their listings. It's not a site that's meant to accommodate leasing, but it's meant to bring people and ideas together. It's also the exposure factor," he said.

NEW / CREATIVE LISTING MEDIUMS

While advertising to the brokerage community has been the most common practice in commercial real estate to date, many mediums are increasing the exposure of listings to the general public. "My view on this medium has changed dramatically over the years. Several years ago, it was about proprietary information -- what could be released to general public was highly controlled. Today, its become less and less proprietary. Listing of space to a broader range of people makes sense today," said Bemis. COSTAR SHOWCASE CoStar Group recently launched CoStar Showcase, an online listing product that is easily searchable by the public for free, giving increased exposure to those companies listing properties for sale or lease. Through CoStar's efforts with Google, Yahoo! and Search Engine Optimization, those listing space on Showcase enjoy their properties coming up among the top search results when people search for space for lease or commercial property for sale in specific geographic regions. The resulting links provide "one-click" access to the listings. John Moss, vice president of Parker Commercial Brokerage Co. in Lake Forest, CA, said of his company's subscription to the service: "It broadens whom you're reaching. People are using Google more now. They used to call off the signs -- now they just Google. Plus, it’s one more thing where we can show our landlords that we go that extra mile." As of July 8, CoStar had more than 63,000 for sale and for lease retail listings available on Showcase, plus tens of thousands more available listings for other property types; and the number grows every day. CRAIGS LIST Craigslist.com is another Internet listing medium that has become increasingly popular. Anyone can list commercial property for sale or lease, first by clicking the specific page pertaining to the property's geography, then by clicking under the "office / commercial" sub-category, which falls under the broader "housing" category. The listings appear in search results in date order, with one-line headings that can be clicked for further information. In general, most listings provide text details on the property for lease or sale, contact information and pictures. However, HTML listings are also possible, so when a user clicks on the link, it appears like a web page, which gives more options for pictures and maps and links to download or view information from another site. While Craigslist is a fairly new trend in commercial real estate, the popularity in metro markets has soared. While Moss' firm usually posts listings on the Craiglist Orange County site, he said that so many competitors are also posting their listings that the top postings on the list results don't stay on top for long (Craigslist's first page of listings is limited to 100 results). In New York City, for example, there were more than 3,000 listings posted on July 8 alone, and only the first 100 postings are viewable on the first page of search results. The good news, however, is that the service does have a key word and square footage range search, which helps to narrow down the results. Despite this, Moss said Craigslist has "been a pretty good source for leads" to date. TWEETLISTER Dave Lewand, marketing director at Metro Commercial Real Estate, describes a new product called "Tweetlister" that is connected to Twitter. While limited in its ability to host information, the service does increase listing exposure for properties online and provides contact information so the inquiring person can learn more about the property from the agent. INTERNET AUCTIONS Prior to the current recession, this was almost unheard of, but commercial real estate agents are now actively listing property on the world's largest Internet auction medium, Ebay.com. Ebay now has a dedicated category for commercial real estate listings by state and property type. A search on July 8 produced 154 listings in the commercial real estate category, across most states in the country. However, Ebay is not a popular outlet by any means. This same search revealed only 17 retail properties being auctioned. The listing length is typically 30 to 90 days and minimal information, but ample pictures, are typically provided with phone numbers available to contact the person listing the property. Retail property types listed included a vacant car dealership, convenience stores and restaurants, freestanding retail buildings in smaller towns, net-leased freestanding retail buildings, and land development opportunities on the day our search was conducted. At the time I was on Ebay, there was a 1,400-square-foot convenience / gas station in Ackerman, MS, that had nine active bidders on it and with 18 minutes left, bidding was up to a price of $26,000. NAI Capital in Apple Valley, CA posted one very interesting listing. The seller was seeking either a 50% joint venture partner for $500K+, or an outright buyer at $7.25 million, for the Fountains at Quail Ridge, a community center under development in Apple Valley. To entice bids, the listing said the property guarantees a 15% annual return.

HOLDING EVENTS

BROKER EVENTS Bemis said that JLL also continues to hold broker open houses at its properties. "We supply information about the center and feed them. It may pay off immediately or it may not. Its an ongoing effort to keep out product in front of them." Roe said that Pine Tree is encouraging its local brokers to have lunches and meetings with the local brokerage houses and the company is also funding incentives of larger commissions to encourage outside brokers to bring deals to the table. LaFleur said Terranova continues to conduct broker events, while most of its competitors, constrained by budgets, have stopped holding them. "We've been full force on this. Once or twice a month we'll hold broker luncheons with great giveaways at our centers." She confirmed leads continue to be sourced from these events. Bemis said JLL takes caution in broker promotions. "While it may be acceptable in most states, you have to be careful that you're not violating local brokerage laws." OPEN HOUSES While open houses for the public are common practice in the residential real estate market, it has been considered unorthodox in the commercial real estate community. However, John Moss, VP of Parker Commercial Brokerage Company in Lake Forest, CA, thought his company should give it a try. The company held an open house for Seal Beach Village in Seal Beach, CA on July 8; and is holding an open house at San Clemente Plaza at Camino De Estrella on July 9. Both events are scheduled to last four hours. To publicize the event, Moss said the company didn't bother with traditional print advertising, and instead sent press releases to all the commercial real estate news outlets and local newspaper editors, posted the events on Craigslist, and contacted the local chambers of commerce so they would know about the events in time for their weekly member meetings. "We were brainstorming for what we could do a little different when we came up with the idea. There have been a few occasions where we were at a showing appointment, the doors were open, and someone walked in off the street wanting to see the space and get more information on it. Both of these centers we're holding the open houses at have really good foot traffic, so we said, if we're getting that kind of traffic, lets throw the doors open and see who comes in," said Moss. Specifically, Moss hopes that shoppers and local residents who may be considering opening a new business or moving from an existing retail location will come to the open house. SHOPPING CENTER EVENTS At Terranova, LaFleur said the company has "toyed" with holding an even for local retailers, in the hopes of attracting tenants interested in moving or opening second locations. But to date, she said the importance of holding fun events at shopping centers for the general community couldn’t be discounted. "We continue to hold property level events designed to be fun for the shopping community. It shows tenants that we go the extra mile in bringing shoppers to the center. Of course, we make sure our leasing agents are in attendance," to promote the center if the opportunity should present itself, she said.

GOING THE EXTRA MILE

TENANT MARKETING ASSISTANCE PROGRAMS LaFleur told CoStar about a unique program Terranova has developed that is attracting tenants to vacancies in its centers. The company is offering prospective tenants a marketing support program designed to "help new retail tenants stand out - and remain standing." The company uses its own marketing personnel and financial resources to aid the tenant in marketing initiatives including: logo development, promotional materials, building a website, designing business cards and banners, conducting mailing campaigns, marketing plans, and executing a grand opening event. LaFleur said Terranova launched the program because it recognized a need among many of its smaller, independent tenants. "What we've learned is that many tenants leave no money for advertising or promoting their store once they finally reach the point of opening," said LaFleur. She said leasing agents are using the program as a selling point with potential tenants and point of negotiation with leases. "It gives us a leg up, and shows that we're truly full service. If the tenants are able to open strong, with our support, they'll be able to survive longer," she said. Since September of last year, Terranova has helped four new tenants with this marketing program. In a few examples, LaFleur said they did a six-month marketing plan with one tenant, paid for grand opening events with a couple tenants, and have done email marketing campaigns and postcard mailings in most situations. PUTTING THE "WOW" FACTOR INTO PITCHES OR SHOWINGS Bemis said that JLL has gotten particularly aggressive in their presentations to specific tenant prospects. "We've gotten aggressive with targeted packaging of centers. For example, when we wanted Forever XXI specifically in a mall, we put together a very high-end advertising piece and got it in the hands of the Forever XXI real estate people and brokers. Five to 10 yeas, ago, we would have had to involve an agency in putting together such a piece and it would have cost us $5K - $10K. Today, we have in house associates with these marketing and graphic design skills and put it together for only $300." To make it easier for a potential tenant to envision their store in a shopping center, Bemis said Jones Lang LaSalle sometimes creates a Photoshop mockup of what the tenant's storefront could look like in the lineup of the shopping center they're considering. Bemis said JLL has found that letting a tenant know that they're important to the landlord in a creative way, beyond just leasing a space, goes a long way. "In one instance, we had a children's store coming to see a space in one of our malls on a Saturday. The mall manager met the CEO and their real estate people and when they opened the door to the space, they were greeted by a giant banner inside with their logo that said, 'We can't wait for you to get here!' Plus, it was covered children's handprints they had gathered from kids at the mall. It was really impactful; it really made the difference to help us stand out," said Bemis. INTERACTIVE VIDEO Roe said that Pine Tree recently hired a private firm to create video and so far, four of its properties have an advertising video. Aside from making the property look professional and exciting, it helps the prospective tenant visualize their possibilities at a center, which is important when the real estate representative is presenting to the national retailer's board, said Roe. In this example Pine Tree provided, which was created for the company's Hazel Dell Towne Center, just outside of Portland, the video covers a wealth of information in a great visual format. In just 1 minute and 18 seconds, the property's look and feel, location, demographics, traffic counts, site plan, existing tenants, and leasing agent's contact information, are provided. Lewand said that Metro, as well as some other companies he's worked with recently, are creating interactive videos that include strongly-graphical maps, 3-D imaging, etc for their property listings. Lewand typically uploads the videos on YouTube.com and provides a link in marketing emails to the brokerage community. "In this age of handheld devices, the video can be viewed right there. It's a great way to make the center stand out," he said. "Commercial brokers and their retailer clients are much more demanding in the quality that they demand and so our presentations have been much stronger, including strong aerials and maps, which gives a leg up in presentations," said Lewand.
Jason Schoonover, a retail sales associate at Kansas City-based Block & Company wrote: "I am always looking to find new ways to creatively market my properties. Sometimes brokers find themselves getting into the same old rut of marketing to the same groups of folks in the brokerage community, but the real challenge in today’s market is connecting directly with any potential end users. I’ve used Craigslist, small business based forums and chat rooms to directly and efficiently market to end users without the time and expenses involved with traditional marketing mediums. In retail, your next lease is more likely to be unrepresented and driving the neighborhood or utilizing the web to educate themselves on what is available in the market. For example, Craigslist in particular helped source a lead for a barbershop in a small space in midtown Kansas City." John D. Jennings, a Senior Director with Cushman & Wakefield Retail Advisors of San Diego wrote: "In today's real estate environment, brokers must leverage off any and all networking platforms, use creative marketing tools and simply think outside of the box. We believe it is critical to get out of the office to personally meet with tenants/landlords and buyers/sellers." Additionally, Jennings stressed that knowing your market and understanding the fundamentals of your property are paramount these days. "It is important to be a student of the business; to live and breathe the responsible role you're playing and take aggressive and proactive steps; to understand the ins and outs of profitability for both the tenant and landlord." This, said Jennings will set you apart from the competition. Michael Wiener, president and CEO of Excess Space Retail Services said that sourcing temporary tenants has become necessary to fill space in today's market -- specifically, he gave the example of but above all, said Wiener, utilizing your large broker network and "old fashioned foot canvassing" is key. "Make sure you throw everything at it," he said, including: foot canvassing, cold calling, ICSC attendance, email and fax broadcasts, talking to chamber of commerce, internet presence, advertising campaign, direct mail, etc. Scott Tiano, a SVP in the Investment Sales Group of Los Angeles-based Wilson Commercial Real Estate wrote: "Geoff Tranchina and I (it was Geoff’s idea) did something a little different in marketing our single-tenant, triple-net lease Advance Auto investment sale listing recently. Once a broker gets a listing, common practice is to send it to his clients first. If they can’t find a buyer, then they resort to sending it out to the brokerage community. Well, we did it the other way around. We sent the listing ONLY to brokers BEFORE we sent it to our clients. This way, brokers would be extra incentivized because they could send it to their clients knowing that there was a better chance that they hadn’t seen it before. For us, we figure that most of our clients don’t want to look at “on-market” deals from us. They want the off-market, under the radar product, so we had nothing to lose, really. The result was that we received responses from numerous brokers applauding the creative marketing strategy. Ultimately, whether this results in selling this particular asset or not is not the most important thing. It is the equity we have built among what remains of the investment sale brokerage community, that will bear fruit on future deals."

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.

We do we go from here??

2009-07-08T09:02:00.001-07:00

With the national office vacancy rate threatening to breach 17% by year’s end and a wave of maturing loans coming due, landlords are working feverishly to clean up their balance sheets and retain tenants.
At this juncture a year ago, owners believed that they would be able to weather the downturn by granting higher tenant improvement allowances and free rent, rather than lowering rents. That scenario never played out.
In the first quarter, the U.S. office vacancy rate climbed to 15.3%, up from a low of 12.5% in the third quarter of 2007. Over the same period, effective rents fell by 3.6%. And by year’s end, Reis projects effective rents will shrink by 8.1%.
“I think when most of us look back on ’08, people were feeling like we were headed into a recession in the first part of the year. But I think everybody felt like it was going to be relatively manageable,” says Charlie Baughn, CEO of the capital markets group at Hines.
The optimism appeared well founded. In June 2008, the unemployment rate was 5.6%, and the office market was showing only modest signs of weakness with negative net absorption of 3.8 million sq. ft. in the second quarter. By June 2009, the jobless rate had climbed to 9.5%. Meanwhile, negative net absorption had ballooned to 20 million sq. ft. in the second quarter.
“No one really anticipated the depth and magnitude of how this downturn would affect specific firms,” says Victor Calanog, chief economist for research firm Reis. “It wasn’t like tenants were just downsizing in space, it was like they were going out of business altogether.”
Today’s office owners and developers must also navigate an extremely illiquid marketplace. Maturing debt and a severe drop in property valuations will further compound the problem.
According to Real Capital Analytics, the price per square foot for office buildings in the U.S. fell 62% from November 2007 through May of this year. Many owners now have mortgages that are underwater because of rising loan-to-values.
“The one thing that has saved everybody is the fact that LIBOR (London Interbank Offering Rate) is so low,” says Baughn. “Everybody has these floating-rate loans that are priced off LIBOR, so a lot of property owners today are paying 1%, 2% or 3% on their mortgages.”
As long as owners are able to cover their debt-service payments, even if they’re upside down on their mortgages, lenders are granting short-term loan extensions, says Baughn. Though a temporary relief, the practice is concerning.
“There’s a mountain of debt maturing in 2011 and 2012, and all we’re doing is making the mountain bigger by pushing more loan maturities out to that same period,” says Baughn. Commercial real estate mortgage maturities for 2011 and 2012 combined total $602.4 billion.
With little capital available, transaction volume for office deals $2 million and above slowed to a crawl, down 63% year-over-year at the end of the first quarter, reports Reis. And while distress opportunities in the office sector have been hyped in the news, like the sale of the Hancock Tower in March at a 50% discount, few Cinderella deals have actually materialized, notes Baughn.
In addition the lack of demand has resulted in a shrinking development pipeline. “We did have several projects around the country that were pretty far down the road that we’ve mothballed in one fashion or another,” says Baughn.
The volume of new office completions has tapered off from 61.8 million sq. ft. in 2008 to a projected 53 million sq. ft. this year. In 2010, completions are expected to drop by 44% to 29.7 million sq. ft.
Despite so much disheartening news, the office sector is not without its bright spots. For instance, energy markets such as Houston and Fort Worth are still experiencing positive rent growth, while the growth of government has helped to keep rents stable in the nation’s capital.
“But I don’t think 2009 is a year that’s going to have a lot of bright spots,” warns Baughn. “I think maybe we’ll start to see some positive news next year.”
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.

Great Big deal for downtown Houston Pavilions Towers

2009-07-02T15:03:00.000-07:00

NRG Texas, a wholesale power generation company, and Reliant Energy, its retail energy affiliate, leased 234,000 square feet at Pavilions Tower in Houston’s central business district. The long-term deal includes office space on floors one through 10. Move in is scheduled for March 2011. Reliant will relocate from approximately 407,000 square feet at RRI Energy Plaza (formerly known as Reliant Energy Plaza), HRO Asset Management’s 36-story building at 1000 Main St. NRG will vacate 50,200 square feet at Crescent Real Estate’s 1.25 million-square-foot tower at 1301 McKinney. Pavilions Tower is the 11-story office portion of Houston Pavilions, a 560,000-square-foot mixed-use development at 1201 Fannin St. William Denton, president and CEO of Los Angeles-based Entertainment Development Group Inc., and Geoffrey Jones, CEO of Texas Real Estate Fund Inc. in Houston, formed Houston Pavilions LP in 2004 to develop Houston Pavilions, which delivered last October. The tower is now fully occupied. The office building includes second floor swing space that NRG will occupy after its conversion to office, plus swing space on the third floor currently occupied by building management as office space. Sheehy, Ware & Pappas’ (formerly Sheehy, Serpe & Ware) inked a 22,700-square-foot deal for the 11th floor in January. The average asking rent per year is approximately $24 per square foot, according to CoStar Group information. Eric Anderson and Greg Tilton of Transwestern represented the owner. George “Trey” Strake III and Christopher of Cushman & Wakefield of Texas Inc. represented NRG and Reliant.

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.

Thank you,

Ed A. Ayres
Houston Realty Advisors, Inc.
713-782-0260

I had to Share this Tennessee boys do good!!

2009-06-26T18:04:00.000-07:00

The Nuance Group North America has opened the world’s first Jack Daniel’s airport store near Gate 6 in Terminal D at George Bush Intercontinental Airport.
The store sports the Jack Daniel's signature black and white colors and will specialize in merchandise including hats, jackets and other items carrying the whiskey brand's logos and designs.

Swiss-based The Nuance Group is an airport retailer operating in a range of sales channels including, inflight, duty-free and duty-paid.
Jack Daniel’s is produced at North America’s oldest registered distillery, the Jack Daniel Distillery in Lynchburg, Tenn.The Nuance Group North America has opened the world’s first Jack Daniel’s airport store near Gate 6 in Terminal D at George Bush Intercontinental Airport.
The store sports the Jack Daniel's signature black and white colors and will specialize in merchandise including hats, jackets and other items carrying the whiskey brand's logos and designs.

Swiss-based The Nuance Group is an airport retailer operating in a range of sales channels including, inflight, duty-free and duty-paid.
Jack Daniel’s is produced at North America’s oldest registered distillery, the Jack Daniel Distillery in Lynchburg, Tenn.

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.

New Chuy's coming to town!!

2009-06-23T09:28:00.000-07:00

HOUSTON — Texas/Southwest Group has arranged a 10,391-square-foot restaurant lease in Houston. The tenant, Chuy’s Mexican Restaurant, will occupy space at 9350 Westheimer Dr. James Doyle and Mac Ruggles of Texas/Southwest Group represented the tenant. The landlord was Baker Krehel Investments, R&K Ltd. Terms of the lease were not released. 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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Houston Commercial Real Estate: 4 Hotels Planned for Houston

2009-06-18T08:16:00.000-07:00

Houston Commercial Real Estate: 4 Hotels Planned for Houston
http://www.loopnet.com/xnet/mainsite/news/news.aspx?DocID=8174&sourcecode=1lntd009

4 Hotels Planned for Houston

2009-06-18T08:14:00.000-07:00

CenterPointe Hotels has bought a nine-acre tract in Houston for the development of four hotel properties with a combined 352 rooms. Construction on the $38 million project is expected to begin next year with the development of a Hampton Inn & Suites and a TownPlace Suites. A Courtyard by Marriott and a Home2Suites are also being planned for the project, two miles east of the East Loop in the city's Ship Channel industrial corridor. 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.

STREAM REALTY PARTNERS ANNOUNCES 85,000-SQUARE-FOOT LEASE WITH FEDEX SMARTP

2009-06-15T11:58:00.000-07:00

Stream Realty Partners has announced that FedEx SmartPost has signed a lease for approximately 85,000 square feet at The Hardy Distribution Center, located in Houston. FedEx SmartPost plans to move into the center in a few months.

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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American Realty Plans $30M Houston Industrial Buy

2009-06-09T14:45:00.000-07:00

ProLogis announced today full occupancy at ProLogis NorthPark, a recently developed, four-building, 531,000- square-foot distribution park located in Houston. The park becomes fully leased with the recent signing of a new 101,000-square-foot lease agreement with Snider Tire, Inc. ProLogis NorthPark is located along Interstate 45, north of Beltway 8. ProLogis acquired one building at the park, developed three more, and has 40-acres of land available for future endeavors. Additional customers recently leasing space in the park include Ozborne-Hessey Logistics, Anna’s Linens, Proinlosa Energy, Coleman American Moving, Advanced Restoration Solutions and Labrada Bodybuilding Nutrition. 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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Investor Sentiment in the Dumps for 2009: Houston Commercial Real Estate

2009-06-02T07:31:00.000-07:00

Even as the commercial real estate industry faces one of its worst years in recent times, industry executives are hopeful that the Obama administration’s stimulus efforts could improve the situation later in the year by putting the economy on the path of recovery, according to a January 2009 survey of industry sentiment.

The survey, conducted by the Real Estate Roundtable, a commercial real estate industry forum made up of various industry constituents, found that the commercial real estate industry is still reacting to last year’s economic crisis and could see worse ahead this year as job losses siphon off demand for commercial real estate space.

In fact, some survey respondents believe 2009 could be a year that is even more negative for the industry than last year.

“While some of our members are more ‘optimistic’ that the right combination of policy actions can begin to unlock markets and get money flowing again — possibly as early as the second half of this year — right now even sound businesses are in survival mode,” says Jeffrey DeBoer, Real Estate Roundtable president. “For many, just staying alive in 2009 will be a great accomplishment.”

Respondents to the survey were pessimistic about prices. More than half expect that a year from now commercial real estate prices will be lower than they are today, with 13% expecting them to be much lower. However, this is an improvement from October 2008, when as many as 27% of respondents expected prices to be much lower by October 2009.

Availability of capital also continues to be a major concern for survey participants. One survey respondent notes, “Right now, there’s Armageddon risk priced into everything. We need liquidity to improve to get that out of the pricing.”

On the positive side, more than half of the respondents believe that availability of debt and equity financing will be somewhat better a year from now. In fact, some of the respondents actually believe that debt markets are showing some very minor improvements from the lows touched in late 2008.

A few respondents, however, suggest that there will only be pockets of liquidity, considering that most borrowers will not be able to get loans. Property owners seeking to refinance core assets are likely to have an easier time accessing capital.

Equity financing is less likely to be available than debt financing as investors allocating capital have to rebalance their portfolios to reflect current market conditions and risk levels.
Looking at risk from the perspective of equity investors, one real estate investment trust CEO says, “It is not acceptable not to make money in 2009. People are aware of the risks and it’s better not to invest than to make a loss. Any losses will not be forgiven.”

For the first time, the Real Estate Roundtable also has launched three indices to gauge industry sentiment based on survey responses from the current period, and also incorporating responses from its three previous surveys conducted in April, July and October of last year.

A current index reflects how survey respondents see the present environment as compared with the environment in the year-ago period. For the January 2009 survey, the index reading of 18 is a very minor improvement from the reading of 17 for the October 2008 survey, which means that industry executives are just a little bit more positive about industry conditions.

Survey respondents were also a bit more optimistic about the health of the industry in the coming year. From a low of 49 in October 2008, the Real Estate Roundtable future index has risen to 58 for January 2009.

If a turnaround is in the cards, it will likely happen in the second half of the year. As one REIT chairman who responded to the survey put it, “Real estate will take most of the year to start a recovery, but I’m fairly positive about the second half of the year. There’s not as much new supply coming on board in my markets as in past downturns.”

And looking at an overall sentiment index, which incorporates respondent’s perceptions about both current and future conditions in the industry, it too shows an improvement from a low of 33 hit in October, to a reading of 38 for January.

Even then, those who are optimistic don’t have high expectations for the second half of 2009 and only expect a rebound in 2010. The survey is based on responses from more than 130 commercial real estate industry respondents.

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

FAO Schwartz gone in Houston?

2009-05-30T07:46:00.000-07:00

Macy's Inc. will lose its FAO Schwarz outlets after Toys "R" Us acquires the toy retailer.
Toys “R” Us said it agreed to acquired the upscale merchant in a deal that combines two of the nation’s most high-profile toy chains, but will end Schwarz’s presence at 260 Macy’s locations.
Last May, New York retailer FAO Schwarz and Macy's signed an agreement calling for Macy's to roll out FAO Schwarz toy stores in about 675 locations over the next two years, including 16 in the Houston area.
“Under the terms of the sale, the FAO Schwarz agreement to sell toys in select Macy’s stores nationwide will end in November of this year,” Toys "R" Us spokeswoman Jennifer Albano said in an e-mail.
Macy's spokesman Jim Sluzewski said the retailer was just notified by Wayne, N.J.-based Toys "R" Us about the change on May 28.
“Our understanding is that the FAO Schwarz product will phase out in our stores and be gone by the end of November," he said.
Asked if Macy's will replace the boutiques with another branded toy chain, or its own, he said Macy's is "reviewing those opportunities."
The deal combined one of the most privileged toy chains merchants with one of the most accessible. Toys “R” Us operates stores in 33 countries worldwide. FAO Schwarz, meanwhile, is the oldest toy retailer in the country, founded in 1862.
Financial terms of the deal between Wayne, N.J.-based Toys "R" Us and FAO Schwarz have not been disclosed, but the deal includes the two FAO stores in New York City and at Caesars Palace in Las Vegas, plus the e-commerce and catalog operations.
In a press release, Toys "R" Us CEO Jerry Storch said he takes the responsibility of building on FAO Schwarz’s storied tradition very seriously. ”We will work tirelessly to preserve the distinctiveness and integrity of the FAO Schwarz stores and brand as we grow the business and, indeed, take the brand to even greater heights.”
All merchandising, management, distribution and marketing operations will immediately begin to transition to Toys “R” Us Inc., according to the release.

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

Nordstrom RACK STORE coming to Houston

2009-05-28T13:59:00.000-07:00

Nordstrom Inc. is planning to open its first Nordstrom Rack in Houston next year.
“We’ve wanted to bring our Houston customers a Nordstrom Rack for some time and we’re thrilled about this opportunity,” Scott Meden, president of Nordstrom Rack, said in a statement.
The store will be located in The Centre at Post Oak near Post Oak and Westheimer.
Nordstrom Rack is Nordstrom’s off-price retail division offering savings of 30 percent to 70 percent on apparel and accessories for women, men and children. Nordstrom Rack merchandise is made up of products from Seattle-based Nordstrom’s (NYSE: JWN) full-line stores and the company’s online store at Nordstrom.com, as well as special purchase items.
The Centre at Post Oak, owned by Houston-based Weingarten Realty Investors, is located directly across the street from the Houston Galleria and includes tenants such as Marshall’s, Barnes & Noble, Old Navy, Grand Lux Cafe and Morton’s Steakhouse.
Vonn Tran of Weingarten represented The Centre at Post Oak in the lease, and Jan Odom served as associate counsel for Weingarten on the deal.
The newest Nordstrom Rack will be the retailer’s sixth in Texas.
About Nordstrom, Inc.
Nordstrom's got fashion sense. Founded in 1901 and based in Seattle, WA, Nordstom, Inc. (NYSE: JWN) is one of the largest upscale retailers in the US, carrying apparel, shoes and accessories for women, men and children. The company generates revenue of $7.7 billion and employs 53,000 people. In addition to its traditional full-line stores, the company operates outlet store, Nordstrom Rack, a freestanding shore store, a clearance store, an e-commerce site and catalogs. Fanonnable boutiques design high-quality men's and women's apparel and accessories. The Product Group coordinates the design and production of private label merchandise and the Credit division operates the company's private-label and co-branded Visa credit cards. In August 2005 the company purchased a majority interest in Jeffrey, the operator of luxury specialty stores, Jeffrey New York and Jeffrey Atlanta.
Houston Business Journal - by Greg Barr Senior Reporter
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

Katy office building sold into joint venture

2009-05-24T07:36:00.000-07:00

The Det Norske Veritas office building in Katy has been sold by landlord Duke Realty Corp. into a joint venture the company formed last year with CB Richard Ellis Realty Trust.
The 90,000-square-foot building, developed by Indianapolis-based Duke, is 100 percent leased to Norway-based Det Norske Veritas.

Located at 22535 Colonial Parkway, near the intersection of Interstate 10 and the Grand Parkway, the building is the first installment in the Westside Office Park. The business park is controlled by Giorgio Borlenghi, president of Houston-based Interfin Cos.; John McCormack, chief executive officer of Houston-based Visible Changes Inc.; and hair product guru John Paul DeJoria, co-founder and CEO of John Paul Mitchell Systems.
The recent transaction is part of the joint venture’s purchase of three buildings with a total of 327,000 square feet in Texas and Florida valued at nearly $41.1 million. All three fully-leased properties — including an office building in Orlando and a warehouse in Tampa — were previously owned by Duke before being transferred into the joint venture.
The joint venture between CB Richard Ellis Realty Trust and Duke plans to acquire up to $800 million of newly developed, build-to-suit projects over the next three years.
CB Richard Ellis Realty Trust is sponsored by Los Angeles-based CB Richard Ellis Investors LLC.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 Houston Business Journal - by Jeniffer Dawson Reporter

BIG LAND TRACT IN CYPRESS AREA TO CHANGE HANDS

2009-05-22T06:28:00.000-07:00

A partnership led by Caldwell Cos. is in the process of buying the Bridgeland master-planned community northwest of Houston.
Japanese conglomerate Sumitomo Corp. is in line to be Caldwell’s financial partner in acquiring the 11,400-acre property consisting mostly of vacant land.
The buyer has been awarded a preliminary contract to purchase the land for $90 million to $95 million, according to a source inside the deal. Bridgeland is designed to include more than 20,000 homes and 65,000 residents when the project site in Cypress is built out in 20 years.
Bridgeland is being sold by General Growth Properties Inc. The Chicago-based owner of primarily retail properties filed for bankruptcy protection from creditors in mid-April. Bridgeland is not included in the bankruptcy proceeding.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

Restaurant smoking ban is extinguished

2009-05-20T14:25:00.000-07:00

A Texas State senator’s initiative to pass a statewide smoking ban in restaurants has been extinguished for now, but a spokesman for Sen. Rodney Ellis, D-Houston, says it’s likely legislators will relight the bill in future legislative sessions.
Senate Bill 544 made it through the Health and Human Services Committee but fell one vote short of getting a full hearing in the Texas Senate, said Jeremy Warren, communications director for Ellis, the bill’s sponsor.

With only 12 days left in the legislative session, Warren says the bill is done for this season. To try again, lawmakers will have to revive it at the next session in two years, he added.
Citing the journalists’ shield law that passed the Texas Legislature on its third try, Warren said smoking-ban supporters are likely to try again. “Sometimes a third time is a charm, but for this session it is no more,” Warren said.
The Texas Restaurant Association supported the ban, considering it the only means to equalize competition among local jurisdictions, where some municipalities have enacted bans and others have left the decision up to restaurant owners.
The association in a statement Wednesday said, "The Texas Restaurant Association is disappointed by the failure of the proposed statewide smoking ban to pass the Texas State Senate. While this issue has long been a contentious one, TRA believes that applying a smoking ban across all workplaces and all jurisdictions is the only equitable solution to a growing social concern." From HBJ may 20, 2009 for more information see www.houstonrealtyadvisors.com

New Industrial space assignment for Houston industrial Broker

2009-05-15T07:23:00.000-07:00

Stream Realty Partners LP has landed the management assignment for nearly 2 million square feet of industrial property in Houston owned by Cabot Properties Inc.
The deal represents a 50 percent increase in industrial business for Stream which, upon securing the assignment, leases and/or manages more than 6 million square feet of industrial properties in the Houston area.
Stream was tapped to manage the large Cabot portfolio, but is only responsible for leasing a portion of the buildings, a mixture of flex, manufacturing and distribution space.
The portfolio includes Main Park, a 660,000-square-foot project in eight buildings located at 3605-3651 Willowbend. Stream will also manage 259,000 square feet in six buildings at 3404-3556 Yale St.
Cabot is a private equity real estate firm based in Boston that specializes in buying, developing and operating industrial properties. Since it was formed in 1986, the firm has been responsible for more than $4.5 billion in property investments and 50 million square feet of leasing.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

New Marina in Tiki Island

2009-05-15T07:15:00.000-07:00

International Bancshares Corp. is doing double duty as lender and developer to build a $25 million marina on Tiki Island, now that the project’s original developer is no longer on board.
IBC-Houston originally loaned money to Tiki Ventures Ltd. for construction of 90 residential condominiums and 150 boat slips on the tiny hamlet just outside of Galveston. But a sinking economy scuttled the deal and the bank took possession of the property late last year. The site is now owned by an IBC subsidiary called Premier Tierra Holdings Inc.
The bank has brought in Yacht Clubs of the Americas to market 400 proposed marina slips as condominiums for boats. The Florida-based operator of upscale marinas launched a marketing effort last week in conjunction with Laredo-based IBC. The partners will not disclose the nature of their business arrangement.
“It’s the first time we’ve developed a project,” says Jay Rogers, chairman and CEO of IBC-Houston. 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

TUG BOAT OPERATOR TAKES SPACE

2009-05-14T14:10:00.000-07:00

O'Rourke leases ACL Channelview property

O’Rourke Marine Services LP has signed a long-term lease agreement with American Commercial Lines Inc. to lease the company’s facilities in Channelview.
Houston-based O’Rourke will provide full-service towboat fueling and lubricant services to the inland marine industry, according to a news release issued by Jeffersonville, Ind.-based American Commercial Lines (NASDAQ: ACL).
Provided by O’Rourke also will collect used oil and bilge discharge at the facility, which is located in the Houston Ship Channel.
“This partnership is a win for both ACL and O’Rourke,” Dan Jaworski, American Commercial Lines general sales manager for liquids, said in a news release. “Having O’Rourke as a tenant at our Channelview facility will enable us to more efficiently fuel our towboats, and, as part of the agreement, O’Rourke will utilize ACL’s towing and barge services as the need arises.”
American Commercial Lines closed its liquid tanker barge headquarters in downtown Houston in late March as a cost-cutting measure. for more information see www.houstonrealtyadvisors.com

Buffalo Bayou received ASLA Award

2009-05-06T09:36:00.000-07:00

Buffalo Bayou Promenade has received the American Society of Landscape Architects’ top award.
The project, designed by Houston-based SWA Group, received the ASLA’s award of excellence in the general design category.

The promenade runs west along Buffalo Bayou from downtown Houston and adds 23 acres of parkland to Houston’s inner city.
The judges selected 49 projects for recognition out of nearly 600 entries worldwide. Buffalo Bayou Promenade was one of only three projects granted the award of excellence.
The project was “what being a landscape architect is all about,” the awards jury said.
“All awards should inspire and teach and this project sends a great message on scale, proportion, materials, and perseverance. So many cities have these opportunities. By capturing open space under a labyrinth of highways the landscape architect has made the intimidating unintimidating. It sends a great message for the future of parks.”
In addition, the Brays Bayou Greenway Framework, also designed by SWA Group, and the Urban Corridor Planning Study won honor awards in the analysis and planning category
For more information see: www.houstonrealtyadvisors.com

Enterprise Products buys rail, truck facility from Martin Midstream

2009-05-04T14:31:00.000-07:00

Enterprise Products Partners LP has purchased Martin Midstream Partners LP’s Mont Belvieu rail and truck terminal facilities.Financial details of the agreement with Kilgore-based Martin Midstream were not disclosed.

The acquisition allows the Houston midstream energy company to offload, store and transport refinery grade propylene from rail cars for use at its Mont Belvieu propylene/propane and natural gas liquids fractionation complex.
As part of the deal, Enterprise (NYSE: EPD) has acquired infrastructure to load propane for sale to local distributors.
Also included in the purchase are storage facilities that can accommodate up to 85 rail cars, allowing Enterprise to double its capacity going into Mont Belvieu. For more information see: www.houstonrealtyadvisors.com

Simon is backing out of Houston Mall

2009-05-01T07:57:00.000-07:00

Simon Property Group Inc. appears to be pulling back on plans for a proposed Katy mall project that’s been on the drawing board for more than a decade.
The S&P 500 company has attempted to build a major retail center on 134 acres near the northeast corner of Interstate 10 and the Grand Parkway since 1997.
The circular acreage surrounded by a mall ring road has at various times been earmarked for an outlet mall, regional mall, lifestyle center and mixed-use center.
Simon recently began marketing the vacant land for sale through local retail brokerage firm Page Partners. For information: see www.houstonrealtyadvisors.com

Record CRE Loan Defaults Expected This Month

2009-04-30T07:02:00.000-07:00

Major U.S. retailers closed nearly 7,000 stores while opening approximately 5,700 new locations in 2008 resulting in a net loss of more than 1,000 stores for the year, according to exclusive research compiled by CoStar Group Inc.'s news division. Although not unexpected, the extent of the net loss in store count is sobering as it follows several consecutive years of retail expansion and substantial net store growth. What's more, with industry experts predicting the country won't see the start of a retail recovery until late 2009 or early 2010, the net store result for 2009 could easily echo that of 2008. The approximately 250 major retail chains CoStar included in this study have reported plans to open nearly 4,000 and close nearly 3,600 stores in 2009. However, if signs of an economic recovery remain elusive, retailers could adjust their store opening guidance downward by mid-year, as they have the past two years. In addition, the store-closing guidance issued by these retailers of 3,600 stores for 2009 will almost certainly increase, as additional retailers fall victim to the economy in the form of store closings and liquidations. Also, most major retailers publicly share store opening guidance but many remain reluctant to provide store-closing guidance. The major retailers CoStar sampled for this study opened nearly 6,500 stores in 2007 and 5,700 stores in 2008. If the nearly 4,000 planned openings are carried out in 2009, store opening activity would be down a staggering 39% in comparison to 2007 levels. On a net basis, as a percentage of total store count, retailers in the pet supply, dollar store/ deep discount, warehouse club, drugstore, grocery, and big box discount categories are projecting the biggest gain in stores in 2009, while retailers in the electronics, discount department, jewelry, apparel and office supply categories are projecting the biggest loss in store counts for 2009. Among those included in this CoStar analysis, the specific retailers planning to open the most U.S. stores in 2009 include Walgreens (540), Dollar General (450), CVS (275), Gamestop (250), Dollar Tree (235), Family Dollar (200), Walmart Supercenter (125), Aldi (80), Target (75), and Tractor Supply Company (75). Conversely, the specific retailers credited with the highest level of 2009 closings include Circuit City (567), Ritz Camera (400), Goody's (287), Steve & Barry's (252), Jones Apparel (225 - note this is for 2009 and 2010 closings), Blockbuster (150), Office Depot (118), Rite Aid (117), Zales (115), Gap (100), and Charming Shoppes (100). In 2008, Linens 'n Things (589), Movie Gallery (530), Friedman's Jewelers (377), Whitehall Jewelers (373), Blockbuster (277), Ace Hardware (242), Rite Aid (200), Sharper Image (184), Mervyns (176), Charming Shoppes (156), Circuit City (155), Demo (153), Claire's (118), Value City (113), Waldenbooks (112), Transworld Entertainment (111), Zales (105), and CompUSA (103) are credited with closing the most stores -- this list is overwhelmingly comprised of retailers that liquidated in bankruptcy. The following results of CoStar's analysis of store openings and closings by major retailers provides total store activity by retailer category. The International Council of Shopping Centers (ICSC) also released results from its most recent store opening / closing study this week. ICSC takes a different approach, however, tracking the number of major store closing announcements retailers made on a monthly basis. However, it too reflected the grim economic realities facing the retail industry. "The number of announced store closings in 2008 spiked to the highest [level] since 2004. This clearly reflected the severity and rapidity of the deterioration in the economy and its impact on the retail sector," said ICSC. According to ICSC's data, 2,284 store closings have been announced so far in 2009, compared to 2,785 announcements during the same period in 2008; 2,411 announcements during the same period in 2007, and 2,255 announcements during the same period in 2006. Based on this comparison, ICSC said that the latest round of announcements appears "a bit more upbeat than the news during 2008," because it is more "consistent with the degree of reduction experienced in the 2006-07 period." For more information see: www.houstonrealtyadviosrs.com By COSTAR"S Mark Heschmeyer
April 29, 2009

U.S. Green Building Council develops new energy-efficient standards

2009-04-29T06:12:00.000-07:00

The U.S. Green Building Council has developed a new set of LEED regional credits as part of the latest version of the LEED Green Building Rating System.
This new category sets out a regional standard by which companies can design, build or operate energy efficient buildings.

LEED stands for Leadership in Energy and Environmental Design. It is a voluntary program designed to encourage building owners to invest in energy efficient properties.
“Because environmental priorities differ among various regions of the country — the challenges in the Southeast differ from those in the Northwest, for example — regionally specific credits give LEED a way to directly respond to diverse, regionally grounded issues,” says Brendan Owens, vice president of technical development for the U.S. Green Building Council. “The inclusion of these regional LEED credits is the council’s first step toward addressing regional environmental issues.”
The U.S. Green Building Council will launch the next version of its LEED green building certification program on April 27. Recent updates to LEED 2009 reflect updates in building science and technology. As part of the updated program, building owners will be able to earn additional “bonus points” on their LEED certifications for implementing green building strategies that specifically address issues in their region.The U.S. Green Building Council is also rolling out a faster, easier tool to manage the latest version of LEED Online. This online program will help streamline the LEED registration and certification process. The Washington, D.C.-based organization has 78 local affiliates, more than 20,000 member companies and organizations, and more than 100,000 LEED accredited professional. For more information see : Houston Business Journal www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net

Retail across USA in the dumps

2009-04-28T14:01:00.000-07:00

The nation's retail market posted negative quarterly net absorption for the first time, along with the highest vacancy and availability rates, since CoStar Group began tracking retail trends in 2000, according to the Bethesda, MD-based company's first-quarter 2009 retail review and forecast. On the heels of the release of CoStar's First Quarter 2009 National Retail Report, Senior Director of Research and Analytics Jay Spivey conducted a webinar titled "The State of the Commercial Real Estate Industry: 1st Quarter 2009 Retail Review," on April 17. Spivey noted that quarterly retail leasing activity has dropped off about 9 million square feet over the last two quarters, leading to 24 million square feet of negative net absorption and a 7.2% total vacancy rate recorded during first quarter. Retail space listed as "available" for lease (which could be vacant or occupied) has been rising at an increasing rate. Since the start of the recession, 697 million square feet of available retail space has been added to the market, Spivey showed. This level of availability may be a more realistic indicator of the state of the market than vacancy, said Spivey. Specifically, retail space availability has increased a staggering 1,280 basis points to 19.4% since second-quarter 2006, while the vacancy rate has increased only 120 basis points over the same period. Supporting the build-up of available retail space, CoStar's research shows that the average days a retail space is listed on the market as "available for lease" has continued to rise -- from 174 days in first-quarter 2006 to 370 days in first-quarter 2009. Landlords have only recently showed a definitive response to the down market by lowering asking rental rates. The average rental rate has declined from $17.64 per square foot in second-quarter 2008 to $17.51 per square foot at the close of first quarter. To demonstrate the impact retailers closing large amounts of stores can have on retail real estate fundamentals, Spivey used Circuit City's closure of 567 stores as an example. As Circuit City was typically an anchor tenant at community or power shopping centers, CoStar found that the average vacancy rate at shopping centers where Circuit City occupied space has shot up to 22.2%, while average asking rental rates have lowered from a high of nearly $25 to a low of about $21 per square foot. If that's not enough pressure on those landlords, Spivey pointed out co-tenancy issues may arise, causing additional vacancy at these centers. For example, CoStar found that Verizon Wireless is a co-tenant in 192 of 388 Circuit City shopping centers. Aside from retailers closing stores and a lack of retailers opening new stores, Spivey showed that retail real estate is feeling more pain during this recession due to excess inventory. In the past 15 years, 510 million square feet of retail space has delivered, accounting for 7% of total retail square footage. The good news is that developers have backed off, showing a downward trend in deliveries since 2006, said Spivey. So far in 2009, Spivey said 895 retail buildings totaling 23.5 million square feet have delivered and this new space is about 67% leased. Developers have lowered the average asking lease rate on these new buildings from their peak by about 7% to try to keep leasing momentum going. Currently, there is about 82 million square feet of retail space under construction, but square footage scheduled to deliver this year will cause only about a 0.6% addition to the total retail market, Spivey said. These under-construction properties are currently 57% leased and to attract new tenants, developers have responded by lowering the average asking lease rate a hefty 29% from a peak of $37.74 per square foot, he added. The Westchester, Northern New Jersey, and Dallas markets were identified as having the most retail square footage under construction as a percentage of total inventory. Benchmarking new retail space deliveries against absorption levels, Spivey identified Los Angeles and Atlanta as having more excess retail inventory than any other markets. For more regional leasing trends, follow this link. To put the U.S. retail real estate market in perspective, Spivey said that average retail building was built in 1968 and is 15,568 square feet. Further supporting the role small retail centers play, Spivey said that only 3% of retail buildings in the U.S. are 100,000 square feet or larger, but these buildings account for 39% of total retail space. Spivey then broke down retail leasing trends by property type. For more on that, follow this link. Unfortunately, CoStar is forecasting that the retail vacancy rate will continue to climb, surpassing 9% sometime in the next year, said Spivey. Additionally, negative absorption nearing 100 million square feet is expected against a backdrop of about 125 million square feet of new retail space and continually declining rents. For more information see www.houstonrealtyadvisors.com

Retailers still love Houston

2009-04-28T13:59:00.001-07:00

Golfsmith is set to unveil a golf and tennis store on May 1 that will be the largest in the Houston area.
The 40,000-square-foot store, located at 25415 North Interstate 45 in Spring, will also be the first Golfsmith Xtreme store in Texas. It will feature an indoor driving range that allows golfers to try out the latest golf gear and evaluate their swing on launch monitors and an indoor hitting area for tennis equipment.
Golf lessons with biofeedback will also be available from Professional Golf Association-certified professionals at the store’s GolfTEC Improvement Center.
The Austin-based retailer currently operates four stores in the Houston area. Houston Business Journal – by Allison Woolman Reporter , for more information see : www.houstonrealtyadvisors.com

2009-04-28T13:53:00.000-07:00

Sandvik Inc. has leased new industrial space in northwest Houston that will allow the company to expand the local material technology tube products operation by 60 percent.
Sandvik leased an 80,000-square-foot building in Cole Creek Business Park where it will place the southeast regional sales office and warehouse for material technology tube products.

Blake Kendrick of Stream Realty Partners LP, the real estate broker who represented Sandvik in the transaction, says the new site will consolidate operations from two locations in the Houston area.
The new building will have 9,000 square feet of office space, whose employees are relocating from space at another Sandvik site in Stafford. The rest of the building will be warehouse space that will replace a warehouse Sandvik occupies at 5973 South Loop East.
“They turned the lights on this week,” said Kendrick, who works in Stream Realty’s Dallas office.
Cole Creek Business Park is a 90-acre project located at 8618 West Little York Road that has more than 1 million square feet of single-tenant and multitenant industrial buildings. Cole Creek, developed by a partnership of ING Clarion Partners and Trammell Crow Co., was represented in the lease deal by Faron Wiley of CB Richard Ellis Inc.
Sweden-based Sandvik is a high-tech engineering group operating in 130 countries with 50,000 employees. For more information see: www.houstonrealtyadvisors.com
Houston Business Journal - by Jennifer Dawson Reporter

UPDATED: ON THE BRINK: 15 Real Estate Firms Going, Going...

2009-04-24T11:53:00.000-07:00

Frozen Credit Markets Put Survival in Doubt for More Than a Dozen Property Holding Companies..................................Just how tough a year 2008 was on property investment companies is evident in the fact that accountants for at least 15 firms issued "going concern" doubts in their year-end annual reports filed with the U.S. Securities & Exchange Commission. The distressed companies' holdings include controlling or managing interests in at least 618 shopping centers with 230.5 million square feet of space, more than 800 hotels/resorts/casinos with more than 122,000 rooms, 36 office properties totaling 4.8 million square feet and 33 multifamily complexes with more than 2,280 units. CoStar Group, Inc. has reported widely on the problems of many of the firms, including Centro Properties Group and General Growth Properties (NYSE: GGP). Others, such as Prime Group Realty (NYSE: PGE-PB), Meruelo Maddox Properties, Lodgian Inc. (AMEX: LGN) and Interstate Hotels & Resorts, have not received widespread media coverage.
(EDITOR'S NOTE:We updated the section of this story pertaining to Prime Group Realty Trust. The previous version incorrectly reported that the going concern opinion related to Prime Group's office operations. This version contains the corrected text showing that the going concern opinion relates to Prime Group's investment in Extended Stay Inc.)
Liquidity and debt issues are primary issues raising the most doubt about the companies' survival. The companies either do not have enough cash on hand or don't have the ability to raise new money to meet their debt obligations. Or, the companies are having trouble refinancing maturing debt. Four of the companies have already sought respite from their most pressing problems through the U.S. bankruptcy courts: General Growth Properties, which filed just this past week, ILX Resorts, Meruelo Maddox Properties and Trump Entertainment Resorts. In the case of Trump Entertainment, the legendary and bombastic investor Donald Trump has even relinquished control over the Atlantic City casino operator. The following summaries of the 15 firms' property holdings were compiled from the firms' annual reports, identifying their most pressing problems and the primary steps they are taking to address the issues.
Centro NP LLCCentro NP, based in New York, NY, owns 203 retail properties in 28 states, and operates another 257 held through unconsolidated joint ventures. The 460 properties include 445 community and neighborhood shopping centers with 71.2 million square feet of space, and 15 related retail assets with approximately 1.3 million square feet. There is substantial doubt about the company's ability to continue as a going concern given its liquidity issues, which includes its ability to negotiate extensions of credit; current prohibition upon its ability to take on more debt and restrictions on operations that increase the risk of default. In addition, uncertainty also exists due to the liquidity issues currently experienced by the company's ultimate parent investors in Sydney, Australia, Centro Properties Ltd. and Centro Property Trust. The company recently received an extension of its major debt facilities to Dec. 31, 2010, which it said provides more time to consider a range of different plans. Still during 2009, Centro has $188.5 million of mortgage debt scheduled to mature, $19.3 million of scheduled mortgage amortization payments and a $9.4 million required loan paydown. If principal payments on debt due at maturity cannot be refinanced, extended or paid, it will be in default under its debt obligations and may be forced to dispose of properties on disadvantageous terms. Such defaults could in turn cause additional defaults. In addition, Centro NP is no longer permitted to make draws under its primary lending agreements and may not be able to repay or refinance its short-term debt obligations coming due. Management is working with its lenders to assess a number of options that address the company's ongoing liquidity issues. As of Dec. 31, 2008, Centro NP's breakdown of properties is as follows. State - # of Properties - SqFt Alabama - 8 - 1,623,436 Arizona - 5 - 804,791 Arkansas - 1 - 129,897 California - 14 - 2,256,369 Colorado - 6 - 1,484,159 Connecticut - 14 - 2,156,605 Florida - 40 - 6,742,800 Georgia - 36 - 5,024,416 Illinois - 14 - 2,592,789 Indiana - 12 - 1,885,624 Iowa - 2 - 510,173 Kansas - 2 - 267,486 Kentucky - 15 - 2,930,637 Louisiana - 4 - 624,850 Maine - 2 - 274,026 Maryland - 2 - 243,568 Massachusetts - 6 - 739,334 Michigan - 23 - 3,669,205 Minnesota - 7 - 1,021,806 Mississippi - 3 - 279,869 Missouri - 3 - 446,948 Nevada - 5 - 826,513 New Hampshire - 3 - 369,385 New Jersey - 8 - 928,624 New Mexico - 2 - 176,712 New York - 24 - 4,164,067 North Carolina - 17 - 2,744,833 Ohio - 34 - 6,326,568 Oklahoma - 2 - 481,464 Pennsylvania - 14 - 2,841,358 Rhode Island - 1 - 148,126 South Carolina - 7 - 1,215,471 Tennessee - 19 - 3,486,817 Texas - 82 - 10,470,648 Virginia - 14 - 1,806,953 Vermont - 1 - 224,514 West Virginia - 3 - 357,606 Wisconsin - 4 - 646,244 Wyoming - 1 - 155,022
Davidson Diversified Real Estate III LPDavidson Diversified Real Estate III is an affiliate of AIMCO Properties in Denver, CO. The partnership owns the Plainview Apartments, a 480-unit complex in Louisville, KY. The property is subject to a first mortgage of $15.34 million at a 9.33% interest rate. In addition, as of Dec. 31, the partnership was in the hole to AIMCO Properties for about $6.88 million in advances and interest payments. According to its accounting firm Ernst & Young, the partnership has recurring operating losses and an accumulated deficit. Management is evaluating its options relative to the payment demand by an affiliate of AIMCO. Options include refinancing its debt and/or selling the property prior to maturity in November 2010.
Excellency Investment Realty Trust Inc.Excellency Investment Realty Trust in New York City, owns eight residential real estate properties with 271 apartment units all in Hartford, CT. As of Dec. 31, the properties' occupancy rate was approximately 90.4%. The company has suffered recurring losses from operations. During 2008, it had a net loss of $.17 million and had a net accumulated deficit of $16.9 million. Management is hoping to raise capital through any combination of debt and equity financing. Its properties are as follows. Property Address - Mortgage Amount - Monthly P&I 154-160A Collins St. - $1,251,112 - $7,507 21 Evergreen Ave. - $675,447 - $4,053 243 & 255 Laurel St. - $1,082,250 - $6,493 252 Laurel St. - $560,314 - $3,362 270 Laurel St. - $1,918,883 - $11,513 360 Laurel St. - $567,989 - $3,408 117-145 S. Marshall St. - $1,373,920 - $8,243 56 Webster St. - $460,531 - $2,763 Total: - $7,890,446 - $47,342
FX Real Estate and Entertainment Inc.FX Real Estate and Entertainment owns Las Vegas property made up of six contiguous parcels aggregating 17.72 acres on the southeast corner of Las Vegas Boulevard (the Strip) and Harmon Avenue. The parcel is zoned to allow for casino gaming and can support a variety of development alternatives including hotels/resorts, entertainment venues, a casino, condominiums, hotel-condominiums, residences and retail establishments. The Las Vegas property is currently occupied by a motel and several commercial and retail tenants with a mix of short- and long-term leases. The Las Vegas property’s generated total revenue of $19.5 million in 2008. The company is in severe financial distress and its current cash flow and cash on hand as of March 27, were not sufficient to fund its past due obligations or short-term liquidity. It is currently in default under a $475 million mortgage loan and its lenders could foreclose at any time. The company has engaged in preliminary discussions with its first lien and second lien lenders regarding potential solutions. In the meantime, it continues its current commercial leasing activities for the properties.
General Growth PropertiesThis past week, U.S. mall REIT General Growth Properties as well as 158 of its 200 malls filed for Chapter 11 bankruptcy protection. GGP's third-party management businesses, as well as its joint ventures, have not filed for protection. The REIT made the decision to file after its extensive efforts to refinance or extend its overwhelming debt burden proved futile. For more background on its debt predicament, click here. GGP said day-to-day operations of its shopping centers will continue as usual during the bankruptcy process. GGP signed a commitment letter for Pershing Square Capital Management to provide debtor-in-possession (DIP) financing of $375 million (at an interest rate of 12%+ LIBOR) that GGP will utilize to continue operations while in bankruptcy. During the bankruptcy process, GGP will continue to pursue "strategic alternatives and search the markets for available sources of capital." The REIT has been marketing several of its Class A mall properties for sale (in Las Vegas and the Northeast) for months now. No deal has yet to surface. GGP intends to execute a reorganization plan that extends its mortgage maturities and reduces its corporate debt and overall leverage. The company expects to "emerge from bankruptcy as quickly as possible" with its national business model in tact. GGP listed $29.6 billion in assets and $27.3 billion in debts in its filing. The company hired Weil, Gotshal & Manges LLP as attorneys handling its bankruptcy, while Kirkland & Ellis LLP was hired as co-counsel to certain subsidiary debtors. General Growth has published a list of its properties in bankruptcy at http://www.ggp.com/company/Default.aspx?id=101. (By: Sasha M Pardy)
ILX Resorts Inc.ILX Resorts in Phoenix, AZ, develops, markets and operates timeshare resorts in the western United States. The company’s current portfolio of resorts consists of seven resorts. The company also holds 2,241 weeks at the Carriage House in Las Vegas, 174 weeks at the Scottsdale Camelback Resort in Scottsdale and 194 weeks in the Roundhouse Resort in Pinetop, AZ. ILX Resorts and 15 of its subsidiaries filed voluntary petitions to reorganize in the U.S. Bankruptcy Court for the District of Arizona last month. During 2008, the company sold 1,342 annual and biennial vacation ownership interests, compared to 1,561 during 2007. The average sales price was $15,606 for an annual interest and $8,935 for a biennial interest. As of Dec. 31, the company had an existing inventory of 7,873 unsold interests. Resort - Location Los Abrigados Resort & Spa - Sedona, AZ The Inn at Los Abrigados - Sedona, AZ Kohl’s Ranch Lodge - Payson, AZ The Historic Crag’s Lodge at the Golden Eagle Resort - Estes Park, CO Sea of Cortez Premiere Vacation Club - San Carlos, Mexico Premiere Vacation Club at Bell Rock - Village of Oak Creek, AZ Rancho Mañana Resort - Cave Creek, AZ Premiere Vacation Club at the Roundhouse Resort - VCA-South Bend - South Bend, IN VCA-Tucson - Tucson, AZ Los Abrigados Lodge - Sedona, AZ As part of its Chapter 11 proceedings, IXL rejected its long-term lease of the Los Abrigados Lodge.
Interstate Hotels & Resorts Inc.Interstate Hotels & Resorts in Arlington, VA, manages 226 hotel properties with 46,448 rooms and six ancillary service centers (a convention center, a spa facility, two restaurants and two laundry centers), in 37 states and the District of Columbia in the U.S. and in Russia, Mexico, Canada, Belgium and Ireland. Of its managed properties, it owns even with 2,051 rooms and held non-controlling equity interests in 18 joint ventures, which owned or held ownership interests in 50 of its managed properties. Last month, Interstate Hotels was suspended from trading on the New York Stock Exchange and faces potential delisting. The company's senior secured credit facility includes a debt covenant requiring continued listing on the NYSE. If that happens, its lenders could demand immediate repayment of all outstanding debt. KPMG LLP, its accounting firm stated that uncertainty exists as to whether the company would have the ability to generate liquidity to meet that obligation. At year-end, Interstate Hotels had an outstanding debt balance of $244.28 million. The majority of that debt matures in March of next year. In addition to that complication, there is uncertainty as to whether it will meet one of the financial debt covenants regarding its total leverage ratio for its fourth quarter 2009 calculation period. Interstate has already begun discussions with its lenders to amend the terms of the Credit Facility Including extending the maturity date and adjusting the above-mentioned covenants The company said it believes it will have sufficient liquidity from cash on hand and cash from operations to fund its operating needs in 2009. Wholly-Owned Properties - Guest Rooms Hilton Concord, East Bay area near San Francisco, CA - 331 Hilton Durham, Durham, NC - 195 Hilton Garden Inn Baton Rouge, Baton Rouge, LA - 131 Hilton Arlington, Arlington, TX - 308 Hilton Houston Westchase, Houston, TX - 297 Westin Atlanta Airport, Atlanta, GA - 500 Sheraton Columbia, Columbia, MD - 289
Lodgian Inc.Atlanta-based hotel operator Lodgian owns and operates nearly 7,600 hotel rooms in 41 properties under management. The company lists 35 hotels as continuing operations and six as held for sale. Lodgian has $128 million of outstanding mortgage debt scheduled to mature in July 2009. The current severe economic recession has hurt the company’s operating results, which has affected its operating cash flows as well as its ability to refinance the maturing debt. Lodgian is negotiating with prospective lenders and has hired Jones Lang LaSalle to facilitate the refinancing process. It is also negotiating to extend the maturing mortgage debt. In addition to the July 2009 maturity, the company has three other 2009 debt maturities that in the aggregate total approximately $169.5 million of mortgage debt. Each of these debt facilities has extension options of one to three years, and the company expects to exercise those extension options. For the year 2008, Lodgian lost $12 million compared to losing $8.4 million in 2007. Last year, Lodgian sold five hotels for gross proceeds of $25 million. Location - Brand - Rooms Bentonville, AR - Courtyard by Marriott - 90 Little Rock, AR - Residence Inn by Marriott - 96 Phoenix, AZ - Crowne Plaza - 295 Phoenix, AZ - Radisson - 159 Palm Desert, CA - Holiday Inn Express - 129 Denver, CO - Marriott - 238 Melbourne, FL - Crowne Plaza - 270 West Palm Beach, FL - Crowne Plaza - 219 Atlanta, GA - Courtyard by Marriott - 181 Ft. Wayne, IN - Hilton - 244 Florence, KY - Courtyard by Marriott - 78 Paducah, KY - Courtyard by Marriott - 100 Kenner, LA - Radisson - 244 Lafayette, LA - Courtyard by Marriott - 90 Dedham, MA - Residence Inn by Marriott - 81 Worcester, MA - Crowne Plaza - 243 Baltimore (BWI Airport), MD - Holiday Inn - 260 Baltimore (Inner Harbor), MD - Holiday Inn - 375 Columbia, MD - Hilton - 152 Silver Spring, MD - Crowne Plaza - 231 Pinehurst, NC - Springhill Suites by Marriott - 107 Merrimack, NH - Fairfield Inn by Marriott - 115 Santa Fe, NM - Holiday Inn - 130 Albany, NY - Crowne Plaza - 384 Strongsville, OH - Holiday Inn - 303 Tulsa, OK - Courtyard by Marriott - 122 Monroeville, PA - Holiday Inn - 187 Philadelphia, PA - Four Points by Sheraton - 190 Pittsburgh - Washington, PA - Holiday Inn - 138 Pittsburgh, PA - Crowne Plaza - 193 Hilton Head, SC - Holiday Inn - 202 Myrtle Beach, SC - Holiday Inn - 133 Abilene, TX - Courtyard by Marriott - 99 Dallas (DFW Airport), TX - Wyndham - 282 Houston, TX - Crowne Plaza - 294 Lodgian's Hotel Assets Held for Sale Phoenix, AZ - Holiday Inn - 144 East Hartford, CT - Holiday Inn - 130 Towson, MD - Holiday Inn - 139 Troy, MI - Hilton - 191 Memphis, TN - Independent - 105 Windsor, Ontario, Canada - Holiday Inn Select - 214
Meruelo Maddux PropertiesMeruelo Maddux Properties is one of Los Angeles' largest owner/developers of commercial properties. It owns 28 properties totaling 3.7 million square feet. It also has a development pipeline underway that includes seven multifamily projects totaling 995,000 square feet. The company has suspended construction of an additional 12 projects totaling 774,000 square feet. Meruelo Maddux has been experiencing significant, recurring cash shortfalls and last month it and numerous of its subsidiaries filed for relief under Chapter 11 in an effort to restructure its debt last month. Excluded from the filing is the company's 35-story 717 W. Ninth Street residential tower project currently under construction. Meruelo Maddux recorded a net loss in the fourth quarter of $85.8 million. This result was derived in large part from the decision to take $117.4 million of non-cash impairment charges in the fourth quarter. The company also stopped making interest and principal payments and therefore was in default on 26 of its 30 loans totaling $266 million. It has been seeking loan workout agreements with four lenders on loans that total approximately $177.8 million. Projects - Square Feet Commercial Projects 788 S Alameda - 33,984 Washington Cold Storage - 59,000 500 Mateo Street - 12,938 Meruelo Wall Street - 98,245 Washington at Central - 5,479 Southern California Institute of Architects - 81,741 Washington Produce Market - 31,876 905 E 8th Street - 28,200 3rd and Omar Street - 23,297 1919 Vineburn Ave. - 122,345 1500 Griffith Ave. - 50,058 4th Street Center - 14,472 Seventh Street Produce Market - 122,120 Alameda Square - 1,463,696 620 Gladys Ave. - 57,354 1000 E. Cesar Chavez - 50,373 306 North Avenue 21 - 80,712 Crown Commerce Center - 301,491 420 Boyd St. - 47,806 230 W. Ave. 26th - 67,671 5707 S. Alameda - 55,729 Santa Fe Plaza - 16,000 Barstow Produce Center - 261,750 1211 E. Washington Blvd. - 108,000 Residential Projects American Apartments - 13,550 Union Lofts - 81,609 Southpark Tower - Phase 2 - J Restaurant - 11,829 Center Village - 176,628 Pomona West - - 242,042
NNN 2003 Value Fund LLCNNN 2003 Value Fund based in Santa Ana, CA, holds interests in eight commercial office properties. Three of the properties are classified as held for sale and efforts are actively underway to market and sell these properties. Grubb & Ellis Realty Investors LLC manages the fund. As of year-end, the fund had guaranteed the payment of approximately $2.5 million of mortgage loans payable that mature in May 2009 related to one of its properties. Based on cash flow projections it currently does not have the ability to satisfy this guaranty if it becomes due and is actively marketing the property for sale. It anticipates the property will be sold this year but maybe not prior to maturity or that if it is sold, it will raise enough money to pay off the debt. The fund has initiated discussions with the lender regarding amending or extending the mortgage loan. Property - Property Location - (Sq Ft) Consolidated Properties: - - Executive Center I - Dallas, TX - 205,000 901 Civic Center - Santa Ana, CA - 99,000 Tiffany Square - Colorado Springs, CO - 184,000 Four Resource Square - Charlotte, NC - 152,000 The Sevens Building - St. Louis, MO - 197,000 Unconsolidated Properties: - - Executive Center II & III - Dallas, TX - 381,000 Enterprise Technology Center - Scotts Valley, CA - 369,000 Chase Tower - Austin, TX - 386,000 Totals - - 1,136,000
Extended Stay Inc. / Prime Group Realty TrustPrime Group Realty is a Chicago-based REIT that owns, manages, leases, develops and redevelops office and industrial real estate primarily in the Chicago metro area. Its portfolio consists of nine office properties, containing an aggregate of 3.5 million net rentable square feet. In 2005, an affiliate of The Lightstone Group LLC bought the basically all of the outstanding common shares of the company and its Operating Partnership. In its annual report Prime Group Realty reported receiving a "going concern" opinion from its auditors for BHAC Capital IV LLC, an entity that owns 100% of Extended Stay Inc. and in which Prime Group had invested $120 million in 2007. During fiscal year 2008, Prime Group recognized aggregate losses of $66 million (including a $5.6 million provision for asset impairment) related to that investment in Extended Stay, Extended Stay owns 552 extended-stay hotel properties in 43 U.S. states consisting of approximately 59,000 rooms and three hotels in operation in Canada consisting of 500 rooms. BHAC Capital's auditors issued a going concern opinion for BHAC due to recurring losses from Extended Stay operations, net working capital deficiency, members’ deficit, and inability to generate sufficient cash flow to meet its obligations and sustain its operations. Prime Group's auditors have not questioned Prime's ability to continue as a going concern and have not issued a going concern opinion as a result of their 2008 audit. Prime Group purchased the Extended Stay interest through a wholly owned subsidiary and financed the purchase with a non-recourse loan. Because of that the fact that Extended Stay auditors issued a going concern for that company does not affect the cash position of Prime Group. In addition, the aggregate losses of $66 million during 2008 did not affect the cash position of Prime Group.
Real Estate Associates Ltd.Real Estate Associates holds limited partnership interests in six multifamily entities controlled by AIMCO Properties in Denver, CO. The partnership continues to generate recurring operating losses. In addition, liabilities exceeded available cash at year-end. Available cash at year-end totaled just about $110,000. The partnership said it may seek operating advances from AIMCO or its affiliates but AIMCO is not obligated to fund such advances. Property - Location - Units Belleville Manor - Marion, KY - 32 Bethel Towers - - Detroit, MI - 146 Clinton Apts. - Clinton, KY - 24 Northwood Village - Emporia, VA - 72 W. Lafeyette Apts. - W. Lafeyette, OH - 49 Williamson Towers - Williamson, WV - 76
Real Estate Associates Ltd. VIIReal Estate Associates VII holds limited partnership interests in 11 multifamily entities controlled by AIMCO Properties in Denver, CO. The partnership is obligated for non-recourse notes of $6.32 million due to the sellers of some of its partnership interests, bearing interest at 9.5% to 10%. Total outstanding accrued interest at year-end was $14.13 million. Unpaid interest was due at maturity of the notes and the partnership has not repaid the notes and is in default. Management is attempting to negotiate extensions of the maturity dates on the three notes payable and not subject to a forbearance agreement. If the negotiations are unsuccessful, the Partnership could lose its investment in the Local Limited Partnerships to foreclosure. Property - Location - Units Aristocrat Manor - Hot Springs, AR - 101 Arkansas City Apts. - Arkansas City, AR - 16 Bellair Manor Apts. - Niles, OH - 68 Birch Manor Apts. I - Medina, OH - 60 Birch Manor Apts. II - Medina, OH - 60 Bluewater Apts. - Port Huron, MI - 116 Clarkwood Apts. I - Elyria, OH - 72 Clarkwood Apts. II - Elyria, OH - 120 Hampshire House - Warren, OH - 150 Ivywood Apts. - Columbus, OH - 124 Jasper County Prop. - Heidelberg, MS - 24 Nantucket Apts. - Alliance, OH - 60 Newton Apts. - Newton, MS - 36 Oak Hill Apts. - Franklin, PA - 120
Riviera Holdings Corp.Riviera Holdings owns and operates the Riviera Hotel & Casino on the Las Vegas Boulevard (the Strip) in Las Vegas, NV, and Riviera Black Hawk Casino, a limited-stakes casino in Black Hawk, CO. Riviera Las Vegas’ hotel is comprised of five towers with 2,075 guest rooms Including 177 suites. Its current debt consists of a 7-year, $225 million term loan that matures on June 8, 2014, and a $20 million 5-year revolving credit facility. In February, the company received a notice of default on its New Credit Facility from Wachovia Bank. In March, the company decided not to pay the accrued interest of approximately $4 million that was due March 30. It has entered into discussions with Wachovia to negotiate a waiver or forbearance regarding the debt and the anticipated payment default and an anticipated going concern default.
Trump Entertainment ResortsTrump Entertainment owns and operates three casino hotels in Atlantic City, NJ. In February, Trump Entertainment Resorts and some subsidiaries filed voluntary petitions for Chapter 11 restructuring in the U.S. Bankruptcy Court for the District of New Jersey. The filing constituted an event of default on $1.25 billion 8.5% senior secured notes and on $493 million on a senior secured term loan agreement. As a result, all of the debt became automatically due and payable. The company was also was delisted from the Nasdaq Stock Market Donald J. Trump and his daughter Ivanka M. Trump resigned as members of the company's board of which Donald Trump was chairman. Mr. Trump also abandoned any and all of his 23.5% direct limited partnership interest in Trump Entertainment Resorts. Property - # of Rooms Trump Taj Mahal - 2,027 Trump Plaza - 900 Trump Marina - 728 Total - 3,655 As of May 2008, Trump Entertainment Resorts had a deal to sell Trump Marina to , Coastal Development LLC. That deal still needs approvals from New Jersey governmental authorities.
Download this story and all of the stories in the Watch List Newsletter here. The Adobe pdf version also includes all of this week’s leads of distressed properties and loans of concern, lease cancellations applied for in bankruptcy proceedings, all of the local and national facility closures & layoffs, banks with distressed real estate portfolios and lists of loans approaching their maturity date. Plus the pdf version contains bonus news items not found in these columns or the CoStar Group web news pages.
More US National Commercial Real Estate News Stories:
Macklowe Defaults, Loses Another New York Office Tower
CoStar's People of Note for Friday (Apr. 12 - 18)
Opus South Corp. Files Bankruptcy
Retail Space Availability Reaches All-Time High
Updates to GGP's Bankruptcy Filing: More Malls Put into Chapter 11
Talking TALF: CRE Industry Urges Quick Fed Action to Extend Loan Lengths
Building Energy Label Proposed in Climate Change Bill
Closures & Layoffs (Apr. 19-25): GM Fires 1,800 This Week
Lease Cancellations (Apr. 19-25): Luxury Los Angeles Lofts File for Bankruptcy
Expansions, Relocations & Extensions (Apr. 19-25): Target, IDS Sign Major Leases

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or www.houstonrealtyadvisors.net

New Industrial park for Houston

2009-04-24T08:24:00.000-07:00

Pinto Realty Partners is developing a 1,000-acre project that is being called the largest office/warehouse distribution business park in the city of Houston.
The yet-to-be-named business park is designed for a huge chunk of vacant land near the southwest corner of Interstate 45 and the North Belt. The acreage is owned by the Cockrell family, which controls Houston-based Pinto Realty.
Ernie Cockrell, managing director of Pinto Realty, declined to comment on the project.
However, promotional materials on the business park were being distributed last week at the 2009 Commercial Expo, an annual trade show by the Society of Industrial and Office Realtors and Commercial Gateway that attracted more than 800 professionals. For more information on this site and other checkout: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net

Not so Rosey

2009-04-18T12:59:00.001-07:00

The Houston office market experienced the highest quarterly negative net absorption rate in the last five years in the first quarter of 2009, according to the Office Market Trends Houston report by Grubb & Ellis Co.
Houston had nearly 919,000 square feet of negative net absorption for the quarter. Of the total, about 6,600 square feet was Class A space, 768,000 square feet was Class B space and 143,500 square feet was Class C space.
The Grubb & Ellis report shows the Houston office market reached a 14.7 percent vacancy level during the first quarter, the highest level since the end of 2006. Vacancy rates are expected to continue rising since 5.3 million square feet of office space is under construction in the Houston area.
The sublease space, or space put back onto the market by companies that no longer need it, rose by about 845,300 square feet to nearly 3.5 million square feet during the first quarter. The amount is still significantly lower than the 5.5 million square feet of sublease space that hit the market during the last economic downturn that began in 2001, according to Grubb & Ellis.
Asking rents for Class A space, or the nicest, newest office space, declined by 7 cents to $30 per square foot for the quarter. But asking rents in downtown Houston actually rose by 5 cents during the quarter to $38.43 per square foot.
Asking rents for Class B space decreased the most during the quarter, dropping by 36 cents to $20.68 per square foot. Asking rents for Class C space also fell — by 23 cents to $15.65 per square foot. For more information see www.houstonrealtyadvisors.com

Z Gallerie Closes stores in USA

2009-04-15T19:53:00.000-07:00

Z Gallerie has filed for Chapter 11 bankruptcy reorganization.
The Gardena, Calif.-based retailer filed Friday in the U.S. Bankruptcy Court for the Central District of California in Los Angeles.
It has stores locally in Memorial City Mall, Market Square in The Woodlands, Highland Village and Sugar Land Town Square.
Z Gallerie “filed to reorganize voluntarily under Chapter 11 in order to remove the liability from 22 leases associated with closed stores and an Atlanta distribution center and to strengthen its balance sheet,” the company said in a news release.
Z Gallerie closed 21 stores, mostly in March, and has not announced any more store closings, a company spokesman said in an interview Tuesday.
Z Gallerie stores will be remain open without interruption. The retailer, in the release, said it “has sufficient cash to operate all aspects of its business, including custom furniture orders through its stores and Web site, and is seeking court approval to do so.”
The filing allows Z Gallerie to “eliminate certain lease liabilities from discontinued stores, and to continue to operate and serve our customers well,” Mike Zeiden, chief financial officer and co-founder, said in the news release.
The retailer is seeking court permission to pay pre-filing wages and benefits, honor existing customer programs and deposits and maintain its cash management system.
“Vendors who do business with the company going forward will be paid on an administrative priority basis for all goods and services the company receives after today,” the company said in the release on Friday. “The law prohibits payment for goods and services received before today’s filing.”
Z Gallerie began closing 21 stores nationwide on Feb. 18. Those stores were either poor performers or in markets that the retailer wanted to pull out of, the release said. The company also made arrangements to close its Atlanta distribution center. Now Z Gallerie is supplying merchandise from its central distribution center facility in Gardena.
Founded in 1979, the retailer now has 56 retail locations in 18 states and one outlet at headquarters in Gardena. It employs nearly 900 people.
Turnaround manager Broadway Advisors LLC is advising Z Gallerie. Its bankruptcy counsel is Pachulski Stang Ziehl & Jones LLP. for more information see: www.houstonrealtyadvisors,com or www.houstonrealtyadvisors.net

BIG INDUSTRIAL LEASE FOR HOUSTON, TX.

2009-04-07T09:12:00.000-07:00

Parsippany, N.J.-based B&G Foods has renewed its lease for 151,966 square feet of warehouse space for an additional 5-year term. The space is located at Suite 140 of 7150 Business Park Dr. in Houston. Edward Bane of Houston-based Holt Lunsford Commercial represented the landlord, Des Moines, Iowa-based Principal Financial Group. B&G Foods was represented by Mike Hill of Michael Hill Properties. for more information see: www.houstonrealtyadvisors.com oe www.houstonrealtyadvisors.net

New Ellington Armed Forces Complex

2009-03-30T13:29:00.000-07:00

Four Houston companies are set to begin construction at Ellington Field next month.
SpawGlass Construction Corp. will serve as contractor for the new $48.4 million Armed Forces Reserve Complex Phase II.

Gensler & Associates Architects will provide architecture services for the project, Walter P. Moore will serve as the structural and civil engineer and Lockwood, Andrews & Newnam Inc. will provide mechanical, electrical and plumbing and fire protection services.
Construction on the second phase is scheduled to be completed by November 2010.
The design-build project consists of 10 buildings and associated site improvements required for Army Reserve, Navy, Marine Corps Reserve and National Guard support and training missions. It includes a training center building, an entry control facility, a welcome center, a battle projection center, a vehicle maintenance building, a vehicle holding shed, one heated and three unheated storage buildings.
The new AFRC could accommodate Texas National Guard units from areas including Baytown, Pasadena and Ellington Field if the state decides to relocate those National Guard units, according to the U.S. Army. For more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net

BIG NAME CHANGE

2009-03-27T15:34:00.000-07:00

The Houston Realty Breakfast Club has changed its name to Houston Realty Business Coalition to better reflect the organization’s activities.
More than 275 businesses, real estate professionals and political leaders belong to the political action committee.
“The previous name did not express the purpose or the importance of our PAC and educational activities,” HRBC President David Dominy, said in a prepared statement.
The organization was formed in 1967 to help elect leaders who support rights associated with the private ownership of property. The coalition holds 10 to 15 meetings each year, which often feature top politicians from the city, county and state levels. For more information see www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net or www.houstonrealty.org
or Houston Business Journal - by Jennifer Dawson Reporter