Ralph Bivins new report

The Highest Price Ever? Houston Office Tower Hits Market

HOUSTON - After a year of singles, grounders and bunts, the investors may be ready to hit a grand slam home run in the Houston office market.  In fact, it could be the biggest deal in Houston's real estate history.

The 36-story office building at 1000 Main Street in downtown Houston is being marketed for sale and it is expected to fetch more than $440 million or $526 per square foot - an all-time record or a per square foot price, according to Real Estate Alert.

The building, owned by an Invesco Real Estate partnership, is more than 99 percent leased, according to Real Estate Alert, an authoritative investment newsletter.  CBRE is marketing the 837,000-square-foot building, which was formerly known as Reliant Energy Plaza.

Houston office investment activity has been slower in 2014, as it has been in many parts of the nation.  So far this year, there's been only one trophy deal in Houston over $200 million: AEW Capital's $426 million purchase of a 90 percent stake in the Heritage Plaza building, according to Real Estate Alert.  In 2013, Houston had six trophy deals.

The lack of inventory in the trophy-level price bracket could push prices upward and the 1000 Main sales price could be surprising.

Houston's highest price on a per square foot basis was H&R REIT's purchase of the Hess Tower in 2011. The 845,000-square-foot tower, which is located near Discovery Green park in downtown, sold for $442.5 million or $524 per square foot. The seller was a partnership of Trammell Crow and Principal Real Estate Investors.

The 1000 Main building was developed by Century Development and opened in 2003. The Invesco partnership bought the building in 2012 for $355 million.

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BECHTEL...BIG EPC FIRM STAYS IN THE GALLERIA

HOUSTON-Long-term tenant Bechtel has reupped yet again at the Lakes on Post Oak, signing a renewal for 565,916 square feet. As part of the agreement, landlords Crocker Partners and File Mile Capital will make common area improvements to 3000 Post Oak, one of the three buildings making up the 1.2-million-square-foot office complex in the Galleria submarket.

Also on tap is a new parking garage. Ziegler Cooper is providing architectural services and Balfour Beatty will construct the new parking garage.

According to CBRE's Cody Armbrister, who represented the seller with colleague Rima Shpolyansky, Bechtel – through previous entities, mergers, acquisitions and spinoffs -- has been at Lakes on Post Oak since it was completed in 1979. He tells GlobeSt.com that the most recent deal signed by the San Francisco-headquartered company is a long-term agreement.

In addition to 3000 Post Oak, Lakes on Post Oak consists of the 22-story 3040 Post Oak Blvd. and the 17-story 3050 Post Oak Blvd. The office complex, located on a 23-acre stretch, is 93% occupied.

Just because Bechtel was a long-term tenant didn't mean the deal was a slam-dunk, however. According to tenant representative Derrell Curry with Studley Inc. Bechtel had "multiple options in the market." Still, he notes that the landlord worked hard to keep the company at Lakes on Post Oak. “An aggressive offer from Crocker coupled with the abundant amenities of the Galleria, made remaining at the Lakes on Post Oak the most attractive and logical choice for Bechtel,” sais Curry, who worked with Mark O'Donnell of Studley on behalf of the tenant.

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.

 

Regards,  

 

Ed A. Ayres

Houston Realty Advisors, Inc.

Young Brokers today in CRE must have good skills

Although the escalating commercial real estate recovery may reinforce the sense that "it's back to business as usual," to those responsible for recruiting brokers in the CRE industry, 2013 hardly seems like business as usual at all.

More and more brokerage firms are actively recruiting new prospects who possess highly specialized experience and skillsets capable of understanding and addressing the real estate needs of firms across the technology, finance, REIT and CMBS industries.

While there is still no substitute for experience, those responsible for bringing in new talent increasingly are looking to attract those with specialized skills to bring to CRE brokerage according to David J. Rubenstein, principal of Cresa Atlanta, who is actively hiring new brokers locally and nationally.

"Particularly with regard to younger brokers who may not currently have significant books of business, we look for ones that have unique skillsets that help us secure new business and execute business once it has been secured," Rubenstein said. "Examples would include a comprehensive understanding of social media, interior and base building design, construction, financial analysis and capital markets."

"I agree that the qualifications for working effectively as a CRE broker have expanded," said Rachel Maman, managing broker for Boston Investment Realty in Newton, MA. "Besides already having degrees in business with a focus on marketing and/or finance just to get their foot in the door, the new generation of brokers will also have to have strong skills in social media and alternative forms of e-marketing. Experience in zoning, permitting and planning is another skillset that is quickly becoming another basic requirement."

"If the '90s was the Environmental Decade, then we are now in the Urban Planning decade or decades," said Francis P. Rentz, senior commercial advisor of SouthLand Commercial Advisors Inc. in Tallahassee, FL. "You need to learn what they are teaching the urban planners in college because they are all now taking jobs at these cities and implementing what they have learned. How to stop traffic congestion, How to stop sprawl, How to stop sewer plant problems, How to make bus service work… they have an "app" for all of these problems."

Speaking the Language of Business
Aside from business experience, individuals who can quickly size up and understand a company's operations, business model and competition rank very high on recruiters' wish lists. Having a deep acumen also rates highly.

"To be a successful broker in the industrial real estate marketplace, one has to be able to speak the language of a very broad constituency of owners, users and tenants," said Rick Vanderbeck, marketing/leasing director of First Industrial Realty Trust in Pine Brook, NJ. "Many pension funds have increased their allocations to industrial properties as they seek yield in the current low interest rate environment."

To be in a position to provide valuable advice to sophisticated investors like pension funds, brokers need to be keenly aware of various investment strategies, underwriting criteria and possess impeccable market knowledge, Vanderbeck added. They're also expected to have a working knowledge of investment criteria, cap rates and supporting market fundamentals. Finding qualified candidates is becoming an increasingly tall order.

"With brokers in big markets who work for big CRE firms that support Fortune 1,000 firms, there is definitely an increase in specialization," said Chris Gary, vice president | industrial services of NAI Hiffman Commercial Real Estate Services in Oakbrook Terrace, IL.

These days, brokers are not just specializing in office, retail and industrial property. Logistics, food production, and LEED are some of the areas that have increased in specialization in recent years, according to Gary, adding these sub-specialities affect roughly 20% of the brokers at those companies.

Also gone are the days when a broker would arrange the initial outline of a deal and then 'hand it off' to the numbers guys to hammer out the details. Commercial brokers today are expected to possess financial expertise.

"Being able to demonstrate overall cost savings to buyers/tenants is an increasingly crucial component of the job," Gary said. "I have an MBA with a concentration in finance, and I've found myself dusting off old textbooks in recent years as finance has become increasingly important."

Also being able to 'switch gears' and adjust your approach to the specific business of client is also crucial.

"I used to work for a Fortune 50 company (AT&T), so I feel that I can speak the language of corporate managers," added Gary. "It's a different skill set than talking to small- to medium-sized business owners, where the real estate expense more directly affects their take-home pay."

Gary Metzler, managing director/ broker of Metzler Enterprises in McKinney, TX, said he has drawn on his architecture license and a long career in high tech to distinguish himself to clients who are typically technology or medical industry related.

"I'm using numerous skills I picked up in the high tech (semiconductor) industry; strategic planning, cost effective execution, a brutal adherence to schedules, plus insight on the global workplace- cultures and diversity."

Asked To Provide and End-to-End Services
"I have been in brokerage now for three years after spending a little more than a decade in office furniture, interior design and construction," said Dan Thomson, transaction advisor of DTZ, a UGL company in Raleigh, NC. "Companies and real estate executives are being asked to maximize their workplace resources and the only way to do this is through a holistic, end-to-end approach."

Being in a position to advise clients on a broad range of real estate-related issues, from design, project/construction management and capital expense forecasting to change communication, workplace trends and understanding generational differences in the workplace has given Thomson a competitive edge. "I'm able to provide enhanced value to executives seeking to know more than the best rate they can get on a space."

Increasingly, CRE headhunters say, it's getting very difficult for people just graduating from college to break into brokerage. Competition comes from business executives with years of experience who decide to make a career change, such as Craig Daste, owner of High Performance Properties in Metairie, LA, who sold his construction business 10 years ago and then began a full time career in commercial real estate.

"The many years past experience negotiating with various sub-contractors, suppliers, bankers, and customers made things much easier when we started rehabbing office properties in the New Orleans area following Hurricane Katrina. Cost controls implemented during renovation along with controlling monthly property management expenses are important for your success," Daste said.

"We also found the commercial bankers were more at ease knowing they were lending to investor/owners with a history of job completion and controlling work schedules," Daste added.

"Generally, qualifying to be a commercial broker at our firm is harder [because] many more applicants today have better resumes than in the past," said Ken Ulsaker, executive vice president, Commercial Division of Long & Foster Real Estate in Vienna, VA.

"Currently our brokers have come from the following backgrounds: lawyers, lobbyists, business owners, salespeople from various compatible industries, experienced real estate brokers, developers, computer consulting firms, executives from fortune 500 firms, commercial property managers and commercial appraisers."

Ulsaker said his firm looks for applicants with highly specialized skillsets, such as having a vital knowledge base to satisfy a specific clientele or a complementary skill to what the firm already offers, including those who who can better tap into the large minority commercial activities. By Mark Heschmyer at COSTAR

 

May 29, 2013

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.

 

Regards,  

 

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin

- ConocoPhillips has signed an 850,000 SF long-term lease encompassing two new office buildings

: Houston -
ConocoPhillips has signed an 850,000 SF long-term lease encompassing two new office buildings within Houston's prestigious Energy Corridor submarket. ConocoPhillips will fully occupy Energy Center Three, a 550,000 SF office tower currently under construction, by 2nd quarter 2015, and in 2016, will also lease an additional 300,000 SF in Energy Center Four, a planned 600,000 SF office building slated to commence construction later this year. Aaron Thielhorn, Kevin Schmok, and Brandon Houston with Trammell Crow Company, and Joe Wanninger with Principal Real Estate Investors will lead the development team. Executive Vice President Cody Armbrister and Steve Rocher, Senior Vice President, with CBRE's Houston office.

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.

Regards,  

 

Ed A. Ayres

Houston Realty Advisors, Inc.

 

BREAKING NEWS FACEBOOK BUYS ASTRODOME

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Talk about a cool crib: Facebook purchased the Astrodome and announced plans for a regional hub officing out of the iconic dome.

Facebook will relocate 150 workers and look to hire about that many locally. Facebook founder Mark Zuckerberg (who reportedly will owe $1 billion in taxes this year) says he couldn't ignore all the headlines about Houston's job growth and low taxes. "We like to be cutting-edge in all our decisions, and our facilities are no different," he said in a statement. "When we heard the Astrodome was sitting unused, we just couldn't resist. Such an iconic building is the perfect addition to our portfolio."Although plans aren't finalized, we learned renowned architect Pickard Chilton is spearheading design of the office; what was once first base will become a swimming pool surrounded by beanbag desks for Facebook's youthful employee base. A track will ring the outside, where employees could run but more likely will race robots. And of course, the roof will be emblazoned with its signature blue and white F. Our calls to the Mayor's office for how this will impact the area went unanswered

Here we go again..RLJ LODGING TRUST ACQUIRES HUMBLE OIL

A new group called RLJ Lodging Trust has acquired the historic Humble Oil Building, a three-tower complex that occupies an entire city block in downtown Houston, for $79.5 million. This building has been in and out of play for 15 years....at one time it was to be a downtown new Ritz Carlton..The purchase price equates to approximately $151,000 per key, based on a combined forward room count of 528 keys. The Humble Oil Building consists of an 82-room apartment tower that will be converted to a 166-room SpringHill Suites, as well as two existing hotels. The hotels include the 191-room Courtyard Houston Downtown Convention Center and the 171-room Residence Inn Houston Downtown Convention Center. RLJ Lodging purchased the buildings with its revolving credit facility. The new SpringHill Suites is scheduled to open in mid-2015. 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.   Regards,     Ed A. Ayres Houston Realty Advisors, Inc. Mitaquye Oyasin

767,632 SQ FT RENEWAL LEASE IN HOUSTON BY DHL

EXEL RENEWS LEASES TOTALING 767,632 SF IN

HOUSTON — Exel, part of the supply chain division of Deutsche Post DHL, renewed leases at 8607, 8609, 8711 and 8833 City Park Loop in the City Park East Business Park in Houston. The lease renewals total 767,632 square feet of rail-served industrial space. Sam Brown with Sam H. Brown Interests represented the tenant in the lease transaction. John Kruse and Jason Dillee of Holt Lunsford Commercial represented the landlord, The Realty Associates Fund VIII 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  Thank you for your interest.   Regards,     Ed A. Ayres Houston Realty Advisors, Inc.

Post Oak Central three buildings sells for $232.6 Million

Cousins Properties, Inc., an Atlanta, Ga.-based real estate company, acquired Post Oak Central, a Class A office complex in the Galleria submarket of Houston, Texas, for $232.6 million from institutional investors advised by J.P. Morgan Asset Management.

Post Oak Central consists of three 24-story properties located at 1980, 1990 and 2000 Post Oak Blvd. The acquisition also included a two-acre parcel adjacent to the property that may be used for future development.

The towers were built between 1975 and 1981 and offer 1.3 million square feet, currently 92 percent leased by tenants such as Apache Corp., Stewart Information Services and GDF Suez.
According to Gellerstedt, Post Oak Central provides the company with an attractive entry into Houston’s Galleria submarket, a location it had been targeting for a while due to its solid in-place yield and significant development opportunity.

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.

 

Regards,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

 

BUY CRE NOW in Houston!!!

COSTAR SAYS: Sensing that commercial real estate markets are near a point that properties are not going to get any less expensive, there is a strong temptation to jump in and grab deals while the getting is good and real estate is still affordable.

However, CRE brokers and advisors who have been refined by five years of recession are cautioning their clients against over-exuberance. Instead, they are encouraging clients to measure their risk tolerance and move forward at an unrushed pace.

"There are a tremendous amount of deals available, some riskier than others; some short term and some long-term turnarounds,” said Gregory P. Schenk, president of The Schenk Co. in Columbus, OH. “The first thing we do is judge our clients risk tolerance and how much capital they have on hand. We need to find out if the client is looking for immediate monthly income, or seeking longer term appreciation on a sale.”

“Once we know those items, we can find what properties suit them best and align them with like-minded individuals,” Schenk said.

“We are seeing a faster pace of activity combined with an urgency,” said Adelaide Polsinelli, senior director of Eastern Consolidated in New York. “The momentum is continuing due to 1031 exchange buyers who have dollars to place as a result of last quarter dispositions. Clients are approaching the market with fervor! There is no time to waste. However, every deal must be properly vetted and pricing razor sharp."

Benjamin Phillips, director of operations at Phillips Commercial Real Estate Services Inc. in Dallas, said multifamily is seeing strong demand from buyers in DFW. "Investors have voiced concerns regarding the overbuilding of new units but I don’t think it’s there yet, athough developers always seem to know how to rain on our parade when demand climbs," said Phillips. "Generally speaking, my most common advice is get good management, get long-term fixed interest, non-recourse, fully assumable financing (another reason I like multifamily), and be realistic with what the numbers are going to take to do what you want to do."

Brokers are also sharpening their skills in anticipation of increased deal volume, and telling their clients to sharpen their pencils so that they don’t overpay.

“To prepare for the eventual market turnaround, I have attended educational courses, expanded my referral network, re-established connections with local lenders, purchased a new laptop and become proficient with CoStarGo on my iPad,” said Bob Zavakos, principal of NAI Dayton in Dayton, OH.

Steve Collins, executive vice president of Environmental Liability Transfer in St. Louis, MO, said there are clear signs that more people are trying to clear out distressed assets.

“We are seeing more deal opportunities,” Collins said. “We are traveling more to tour sites, meet brokers and sellers, and attend networking conferences. Although the information available online is helpful, we believe it is still important to meet brokers and owners face-to-face to build the strong relationships that help close deals.”

More Distressed Properties Coming To Market

“In Dallas, our group is keeping an eye on troubled assets, which we believe the lenders are now prepared to take control of and bring to market,” said Robert Deptula, principal, Tenant Advisory at Transwestern in Dallas. “But we are focused on getting assets with significant vacancy, and positioning tenants who can purchase the building and occupy that vacant space.”

“The institutional community is not looking kindly on these buildings when valuing for purchase. That provides our owner occupants a chance to buy the building at below market prices and underwrite the vacancy favorably with their tenancy,” Deptula said. “We believe that 2013 will provide our clients with other opportunities to acquire equity ownership in properties in return for bringing their lease to the table either as the purchaser or part of a partnership. Low financing rates coupled with a low purchase price makes for an excellent economic opportunity for our corporate users who have the ability to purchase or be part of a partnership.”

Meanwhile, the availability of distressed assets is expected to had a direct impact on deal volume.

"Banks have finally decided that 'commercial short-sale' is not a dirty word and won’t get you fired,” said David S. Miller, vice president/National Accounts at Chicago Title Insurance Co. in Scottsdale, AZ. “That will shrink the pool of buyers as the risk-reward buyer will not be wanting to pay non-distressed prices. "

As the values rise, fewer properties will be subject to material defaults and replacement financing will be more available, further shrinking the amount of product coming to market, added Miller.

“With the re-entry of financing by the commercial banks, more buyers will want leverage to increase their yields as cap rates continue to be compressed," Miller said. “This will slow down transaction volume as sellers and buyers will start to reach an impasse on price and terms. If buyers can’t get a lower price for cash, they’ll be turning to the capital markets for leverage.”

Nudging Values A Little Higher

“On the assumption there is a recovery underway, with the inevitable rise in long-term rates from their historic lows, we plan to 'reach' on acquisition values in 2013, and anticipate an inflationary rise in rents, particularly because of the supply-constrained character of the market in eastern New England,” said Leonard Bierbrier, president of Bierbrier Development in Lexington, MA. “We believe the competitive position of a cost basis built on low cost debt, versus players who delay entering the market, will be well rewarded.”

Neal Jernigan, partner in Crossley, Jernigan & Ellison Inc. in Alpharetta, GA, is advising clients that the industrial market is in the beginning stages of recovery and that the office, while slightly behind in the recovery process, is also likely on th emend as well.

"With the anticipated general lower risk profile in both investment products, we are encouraging them to be a bit more aggressive in their underwriting while tempering their yield requirements for selected investment opportunities, be it core, value add, or opportunistic plays, in well located, dynamic markets,” said Jernigan.

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                                           

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

BakerHostetler Signs a 75,000-SF Lease

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

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com  Thank you for your interest.

 

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

North Houston Industrial Space Heating UP!!!

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

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

 

Thank you for your interest.

Ed A. Ayres

Houston Realty Advisors, Inc.

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

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

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

 

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com  Thank you for your interest.

 

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye oyasin                                           

 

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

 

The Big Boys in 2012

Top 25 Office Space OWNERS

1. RREEF
Total 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 COO
2. 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/COO
3. The Blackstone Group
Total 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/COO
4. Hines
Total 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/CFO
5. CB Richard Ellis Investors
Total 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, Chairman
6. TIAA-CREF
Total 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 estate
7. ING Clarion Partners
Total 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 Director
8. Vornado Realty Trust
Total 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/CFO
9. Boston Properties
Total 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, President
10. LaSalle Investment Management
Total 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, Acquisitions
11. 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, COO
12. HRPT Properties Trust
Total 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, SVP
13. 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, EVP
14. 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 & COO
15. Brandywine Realty Trust
Total 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, Operations
16. Behringer Harvard
Total 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-COO
17. 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, Europe
18. Highwoods Properties
Total 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/CFO
18. Liberty Property Trust
Total 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/CFO
19. Shorenstein Properties
Total 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/CFO
20. Wells Real Estate Funds
Total 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, CFO
21. KBS Realty Advisors
Total 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 Chairman
22. 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, Chairman
23. AEW Capital Management
Total 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 Investments
24. 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 Division
25. Forest City Enterprises
Total 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/CEO

For more information see: www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net

New Inner Loop Mix USE Development Alive and Kicking Again

A New River Oaks development will be managed by director Greg Wattson of OliverMcMillan and it is starting up its $450M mixed-use project,again. It will be a 15-acre site, bounded by Westheimer, Westcreek, and Bettis. The 650k SF River Oaks District will feature 270k SF of luxury retail (including restaurants and a theater), 279 units of multifamily (on top of retail) and a 93k SF office (which may end up as 63k SF of office over retail). Greg believes that retail Will drive the project and the experience of living and working there is an added benefit. The firm is vacating existing buildings now, and demolition begins in early 2013. Look for grand opening in fall 2014.

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.

Apache purchases land in Galleria from BLVD Place

Apache Corp. has purchased 6.4 acres of land at BLVD Place, a new mixed-use development located on Post Oak Boulevard and San Felipe Street in Houston. The property is located on the southwest corner of Post Oak Boulevard and the future BLVD Place Drive and includes frontage on Post Oak Lane and Ambassador Way. The Pavilion, a former shopping complex located on the site, is undergoing demolition with a completion date by year's end. Upon completion, BLVD Place will feature 388,000 square feet of retail and office space, as well as 1,000 high-rise multifamily units. Tim Relyea and Scott Wegmann of Cushman & Wakefield represented the buyer in the transaction. Ed Wulfe and Bob Sellingsloh of Wulfe & Co. represented BLVD Place.

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                                           

Weingarten Unloads Industrial Portfolio in Fl, Tx, Ga, and Virgina

HOUSTON -- Houston-based Weingarten Realty Investors (NYSE: WRI) has completed the sale of its 52-property, wholly owned industrial portfolio to DRA Growth and Income Fund VII for $382.4 million. The sale price represents a capitalization rate of approximately 8 percent.

"We are pleased to acquire this sizable industrial portfolio featuring solid income returns and value-added upside," said David Luski, president and CEO of New York City-based DRA Advisors. "This transaction is exemplary of our strategy of collaborating with public REITs who wish to strategically divest assets via outright sale or joint venture."

The properties total 9.6 million square feet and are located in Florida, Georgia, Tennessee, Texas and Virginia. As part of the transaction, DRA assumed one secured loan of $4.9 million.

For more information on Houston office space, Houston retail space or Houston warehouse space and Houston industrial space, please call 713 782-0260 or see my web site at : www.houstonrealtyadvisors.com  Thank you for your interest !!!!!

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye Oyasin

A new Houston HOME for Phillips 66 after split with Conoco

Phillips 66 Phillips 66Latest from The Business JournalsFollow this company will build a brand new home in Houston once its split from ConocoPhillips ConocoPhillipsLatest from The Business JournalsFollow this company (NYSE: COP) is complete.
The new headquarters of refining and marketing spin-off company Phillips 66 will be near Interstate 10 and Beltway 8, within 10 miles of ConocoPhillips' current Dairy Ashford location, according to an email sent to employees Tuesday and quoted in the Swamplot blog.
During the two- to three-year construction period on the new facility, Phillips 66 employees will be located in temporary locations in the company’s current space in Westlake Park office buildings and an unidentified building in the Westchase area. ConocoPhillips employees in those locations will relocate back to the Dairy Ashford complex.
ConocoPhillips was not immediately available for comment on the report.
Last July, Houston-based ConocoPhillips said it would split itself into two publicly traded companies, separating its exploration and production unit from the refining and marketing segment in a tax-free transaction. The split is expected to be complete this summer .

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                                           

Midway, Pension Fund JV on 119 KSF Houston Office Bldg Purchase

Midway, Pension Fund JV on 119 KSF Houston Office-Building Purchase

Midway Cos. and its joint venture partner, a pension fund client advised by L&B Realty Advisors, have sold part of the office segment of their 1.8 million-square-foot City Centre mixed-use development in Houston. Midway Cos. and its joint venture partner, a pension fund client advised by L&B Realty Advisors L.L.P., have sold part of the office segment of their 1.8 million-square-foot City Centre mixed-use development in Houston. With the assistance of commercial real estate services firm Jones Lang LaSalle, the partners sold One City Centre, a 119,000-square-foot office building within the 37-acre complex. Real estate investment management firm Stockbridge Capital Group is the proud new owner.

One City Centre made its debut in 2008 as the first of what will ultimately be four office towers totaling 425,000 square feet at City Centre. The five-story structure’s tenant roster will be at maximum capacity once again come June.

With demand for Class A accommodations growing stronger and stronger, Houston is presently an office owner’s dream. “The increased competition for space (especially among energy firms) has enabled landlords to quote higher-than-average rental rates for space,” noted a fourth-quarter report by JLL. “And, since there is a scarcity of available quality space in the market, tenants have and will reluctantly agree to high prices as there are no other viable options in some instances.”

The players in the One City Centre transaction have not disclosed the financial terms of the deal. However, with investors clamoring for premier assets in the city, price tags are on the rise. In late December of last year, H&R Real Estate Investment Trust snapped up the 845,000-square-foot Hess Tower, not yet one year old and fully occupied by energy firm Hess Corp., from Trammell Crow Co. and Principal Real Estate Investors at a cost of $524 per square-foot. Also during the fourth quarter, the 242,000-square-foot Westway II, developed in 2009 and fully occupied by four tenants, changed hands, with Wells Core Office Income REIT picking up the property from Dienna Nelson Augustine Co. for $290 per 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 Thank you for your interest.

Thanks,

Ed A. Ayres

Houston Realty Advisors, Inc.

Mitaquye Oyasin                                           

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

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!!!!

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.