Oldham Goodwin's Commercial Quarterly | 1st Quarter 2010

Commercial Quarterly Retail • Office • Industrial • Multifamily • Land • Hospitality

Commercial Real Estate Quarterly Review

1st Quarter

Offered In Conjunction with:

We know retail.

Southeast to Northwest Perspective

2010

www.OldhamGoodwin.com

Commercial Quarterly 1st Quarter 2010

Brokerage Division Profile About Us The Oldham Goodwin Group, LLC was formed in early 2004 as a commercial real estate brokerage firm. A short time thereafter, the company launched the commercial real estate management division. Early brokerage and management efforts centered on small multifamily and commercial projects, however it became apparent that an opportunity existed to serve larger institutional grade investments in underserved markets similar to Bryan/College Station. Encouraged by early achievements, The Oldham Goodwin Group expanded its line of brokerage and management services throughout the region and soon began to grow into a team of highly skilled and specialized brokers and managers.

In 2006, having experienced success as a commercial real estate brokerage and management company. The company was able to expand into the commercial development and hospitality management arena. Two years later, the management division grew its hospitality portfolio to include hotel partnerships with the most prestigious select service brands including Hyatt, Hilton, Marriott, Best Western, Wyndham and Intercontinental Hotels.

Today, The Oldham Goodwin Group has grown into a robust integrated commercial real estate firm offering brokerage, development and management services to emerging markets throughout the country. Headquartered in College Station, Texas, The Oldham Goodwin Group currently employs over 300 employees and has approximately $300 million in assets under management. The Oldham Goodwin Group currently provides integrated and highly specialized commercial real estate services for a variety of commercial property types including land, hotels, multifamily, retail, office, industrial, mixed-use and self-storage properties.

2008 Brokerage Transactions (As A Percentage)

15% Office

Recent Brokerage Transaction Locations

15% Retail

10% Hospitality

5% Self Storage

Granbury

10% Industrial 20% Multifamily 25% Land Retail Multifamily

Lubbock

Hospitality Self Storage

Industrial Office

Fort Worth

Killeen Bryan/College Station Austin Somerville Hempstead Houston New Braunfels Bellville Freer

Land Note: All Locations Are Approximate

Mission of The Oldham Goodwin Group, LLC Maximize value creation for all stakeholders by providing integrated commercial real estate services to select market segments. We have a distinct accessible expertise and connection with our target markets.

About the Cover: Tower Point College Station–Located at Highway 6 & Highway 40, this mixed use development offers in-line retail, office space, and multiple pad sites available for ground lease, purchase and build to suit opportunities. Tower Point offers restaurants, retailers and business owners the opportunity to capture the currently underserved expanding South College Station market. Tower Point will be anchored by an ~90,000 SF HEB grocery store with an additional, planned, ~30,000 SF of in-line retail to be completed in 2010 or early 2011. For more information, visit www.OldhamGoodwin.com.

Editor & Graphic Design: Dale Sandlin

Volume 2, Issue 1

© 2010 The Oldham Goodwin Group, LLC. The information herein has been obtained from sources deemed reliable. Although we believe it to be accurate, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any values, projections, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Stock photos from Microsoft Clip Art Gallery.

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979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Property Items Explained Featured Properties

Beverley Estates Center | Bryan

Location/Name: This box describes the address and city or the name of the available property.

New Listing: This star indicates a New Property.

Property’s Description: This box explains the property’s features.

For Lease

For Sale or Lease: This box descirbes whether the property is For Sale, For Lease, Sold or 100% Leased.

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Convenient & Easy Access From Two Thoroughfares • Recently Renovated • Excellent Visibility With Frontage On Texas Avenue

Property’s Map Location: This icon indicates and matches the property’s location on the map.

Visit www.OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

Commercial Properties For Sale 4444 Carter Creek, Suite 110 | Bryan

For Sale

Park Hudson Lots | Bryan

805 S. Texas | Bryan

For Sale

For Sale

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Professionally Managed Owners Association • Quality Finish Out In Excellent Condition • Usable Floorplan With Large Offices And Workstations

Ready To Develop Office Tracts In Upscale Park Hudson • All Utilities Available To Site • ~39,640 – 54,014 SF • Architectural Controls And Deed Restrictions

~8,650 SF Metal Showroom Warehouse • Ready To Open Body Shop, All FF&E To Convey • Excellent Retail Location On Texas Avenue • Over 1.4 Acres With Ample Yard Space

3850 Corporate Center Drive | Bryan

2617 South Texas Avenue | Bryan

Market Square Shopping Center | Brenham

For Sale

For Sale

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Located In Class “A” Park Hudson Business Park • Shell Conditions Lends Itself To A Custom Office Finish Out • Convenient Access To University Drive & SH 6 South • Architectural Controls & Deed Restrictions

For Sale

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Turn Key Dry Cleaning Plant Facility • Approximately 15,597 SF On 0.8724 Acres • Excellent Location With Texas Avenue Frontage • Real Estate And All FF&E To Convey

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~79,686 SF With Adjacent Pad Site • JC Penney Anchored Neighborhood Shopping Center • Potential Redevelopment Opportunity With Availability Of Grocery Box • Good Mix Of Local & National Tenants

RECENT TRANSACTIONS For More Information Contact:

Clinton D. Oldham

Senior Broker Associate Commercial Group p 979.268.2000 f 979.846.7020 c 409.781.7734 clint@OldhamGoodwin.com

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Oldham Goodwin represented the buyer in the acquisition of a 2,846 SF Retail Building near Blinn College

Oldham Goodwin represented the buyer in the acquisition of a 8,174 SF Office Building near Texas A&M University

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Commercial Properties For Sale Downtown Bryan Flex Space | Bryan

For Sale

Hwy 79 Shopping Center| Franklin

Bryan Medical Center | Bryan

For Sale

For Sale

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~10,000 SF Office Warehouse Facility • Central Downtown Bryan Location • Fully Climate Controlled Warehouse & Shipping Area • 3 Phase Power With 1,200 Amp Service

High Volume Exxon Branded Gas Station/ C-Store • Over 17,000 SF Attached In-Line Retail • Long Term Leases With Dollar General & Subway Corporate • Highly Visible Location On US Highway 79 In Franklin, TX

High Quality Medical Building Adjacent To St. Joseph Regional Hospital • 10 Year NNN Lease With St. Joseph’s For First Floor • Energy Management Systems And Key Card Entry • Ideal For Medical Practitioner Owner Occupant

3010 East Villa Maria | Bryan

601 S Texas Avenue | Bryan

United Plaza | College Station

For Sale

For Sale

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New quality construction, built in 2008 • Modern open area office floor plan, high exposed ceilings • Stone/Stucco exterior with glass storefront • Convenient access to several major thoroughfares • High growth area of Bryan

For Sale

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Highly visible property with excellent frontage on Texas Avenue • Glass storefront with large lobby and showroom area • Approximately 19,000 SF of office and shop space • Multiple drive through shop bays with roll up doors

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Great opportunity for Investor or Owner Occupier in an irreplaceable location • Significant upside with lease-up of vacant suites • Tremendous location close to Texas A&M University • Easy access from several major thoroughfares

RECENT TRANSACTIONS For More Information Contact:

Clinton D. Oldham

Oldham Goodwin represented the seller in the disposition of a 121,689 SF Multi-Tenant Business Park

Oldham Goodwin represented the buyer in the acquisition of a 3,437 SF Office Building

Senior Broker Associate Commercial Group p 979.268.2000 f 979.846.7020 c 409.781.7734 clint@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

A Look at the Possible Impacts of the Impending Texas Land Boom on the Central Texas Triangle According to Texas A&M University Real Estate Center economist, James P. Gaines, the state of Texas is in for a population and commercial real estate explosion over the next 20 years, the likes of which we have never witnessed, barring any unforeseen catastrophic events like the oil bust of the 1980’s.

centers. What implications will all of this have on land values in the Central Texas Triangle going forward?

As people begin to immigrate in to Texas from other markets, the highly urban areas within the Central Texas Triangle will begin to congest and inventory will begin to shrink.

As a result, many secondary markets within the triangle will begin to see an influx of both population and industry The U.S. Census Bureau has projected that the United States of various forms. Some of these areas are likely to include will add roughly 68 million people by the year 2030, up markets like Bryan/College Station, Waco, Temple, San from a total population of Marcos and New Braun296 million in the year 2005. fels. In fact, areas along Simple math shows that this the I-35 corridor between is an increase of roughly 1% New Braunfels and Austin per year. At the same time, are currently experiencing the population in the state of residential and commercial Texas is expected to grow building booms on land Fort Worth Dallas from a total of 23 million that just a decade ago people in 2005, to 33 million may have been considered people in the year 2030. This farmland. These properties Bryan/College likely traded on a price per increase represents a 43.5% Station increase in a period of only acre basis a decade ago Austin 25 years. State demographers and are now being marketHouston have estimated that Texas ed in dollar per square foot population could be as high as figures. It stands to reason San Antonio 41 million by 2030, depending that as more and more on the actual rate of populapeople flood our state in the tion immigration, both foreign coming years, land prices and domestic. It is projected should continue to see an Note: All Locations Are Approximate that most of this growth will upward movement in other occur in close proximity to the areas of the triangle, espestate’s most urban areas, all cially in those areas situated of which currently lie in what is referred to as the Central on the major corridors between D/FW and Houston.

Texas Triangle. This triangle consists of the D/FW metroplex, Houston, San Antonio, Austin, and everything in between.

Given the current climate of economic uncertainty and the real threat of impending inflation, land investment in Texas One might ask what the impetus is for such a large projectstill appears to be a relatively safe bet. With the flood of ed uptick in the Texas population. Historical trends have ilpeople expected over the next 20 years, investors should lustrated that Texas has consistently been one of the top job take a long hard look at opportunities that exist within the creation states in the country. Texas is also one of few states Central Texas Triangle. that has seen personal income levels increase steadily every The Oldham Goodwin Group, LLC Land Group offers a year since 1969. While residents of other highly popucomplete array of rural and commercial land brokerage lated states have seen their disposable income continue to services to meet all of your needs and expectations. Call me shrink due to rising state income taxes, Texas still boasts the today for a consultation.

Sources: US Census Bureau; J.P. Gaines, Looming Boom: Texas Through 2030 absence of a state income tax. The Texas housing market from Tierra Grande No: 1841 is also currently seen as quite possibly the most stable and most affordable in the United States. While other highly Vernie D. Bodden populated states are experiencing high levels of congesSenior Sales Associate - Land Group tion and ever decreasing land inventories to accommodate growth, Texas has a supply of millions of acres of raw land, c 979.777.4641 all located within a short distance of the state’s most urban vernie@OldhamGoodwin.com

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979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Urban Land For Sale ~25 AC on Old Reliance Road

3 Office Lots on Greens Prairie Rd | College Station

For Sale

For Sale

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~.95 AC Acres on Texas Avenue | College Station

For Sale

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Mixed Zoning With 19 Acres Multifamily & 6 Acres General Commercial • Directly Across From The New Earl Rudder High School • All Utilities Available To Lot Line • High Growth Corridor Of Northeast Bryan

3 Individual Office Lots • All Utilities Available To Lot Line • Located In High Growth Corridor Of South College Station • In ETJ & Not Subject To College Station Zoning

~.95 Acres On The Corner Of Redmond Drive & Texas • Prime Commercial Corner In The Heart Of College Station • Within ½ Mile Of Texas A&M University • All Utilities Available To Site

~1.09 AC on Longwood Drive | Pearland

4.76 AC on Highway 21 | Caldwell

~3.92 AC on N. Earl Rudder Fwy | Bryan

For Sale

For Sale

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Ideal Office Or Specialty Retail Tract • Located Off Of Extremely Busy Thoroughfare • Close Proximity To Various National Retailers • All Utilities Available

For Sale

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Located At Lighted Intersection On Highway 21 • Highly Visible Hard Corner • Adjacent To Proposed Nationally Flagged Hotel • Close Proximity To Highway 36 & Highway 21 Intersection

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Highly Developable Commercial Tract • Located In High Growth Corridor Of Northeast Bryan • Highly Visible • Access From 2 Roads • Ideal For Office Development Or Car Lot

RECENT TRANSACTIONS For More Information Contact:

Vernie D. Bodden

Oldham Goodwin represented the buyer in the acquisition of a ~15 AC tract on Earl Rudder Freeway

Oldham Goodwin represented the buyer in the acquisition of a ~17 AC tract in Tower Point Development

Senior Sales Associate Land Group p 979.268.2000 f 979.846.7020 c 979.777.4641 vernie@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

Urban Land For Sale 2112 W. Briargate Drive | Bryan

~10 AC on FM 2818 | Bryan

For Sale

~12.69 AC on S. Ranch Road 620 | Austin

For Sale

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For Sale

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Located In Close Proximity To Texas A&M University • In Close Proximity To New Texas A&M Health Science Center • Ideal For Neighborhood Strip Retail Development • All Utilities Available

Well Situated & Highly Developable • In High Growth Corridor Of Northeast Bryan • All Utilities Available • Ideal For Restaurant Or Carwash User

Highly Visible On Ranch Road 620 • Located In The High Growth Community Of Lakeway, Texas • Located Adjacent To New Lakeway Regional Medical Center • Ideal For Medical Office Or Assisted Living Facility

~6 AC on Clarks Lane | Bryan

~2.4 AC on Wilkes Street | Bryan

~4 AC on William J. Bryan Pkwy | Bryan

For Sale

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Ideal Light Industrial Tract • Access From 2 Roads • All City Utilities Available • In Close Proximity To State Highway 6 & Highway 21

For Sale

For Sale

Highly Visible From State Highway 6 • All City Utilities Available • Ideal For Office Warehouse Or Mini Storage

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Highly Developable Tract In High Growth Corridor Of Northeast Bryan • Situated At A Signaled Intersection • Extrememly High Traffic Counts • All City Utilities Available • Ideal For Neighborhood Retail Or Hotel Use

RECENT TRANSACTIONS For More Information Contact:

Jesse C. Durden

Senior Sales Associate Land Group p 979.268.2000 f 979.846.7020 c 979.492.0425 jesse@OldhamGoodwin.com

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Oldham Goodwin represented the seller in the disposition of a ~617 AC recreational tract

Oldham Goodwin represented the seller in the disposition of a ~2.4 AC tract on Autumn Lake Drive

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Development Spotlight: Boonville Town Center Bryan, Texas

Last summer, Boonville Town Center welcomed Walgreen’s Pharmacy to the corner of Austin’s Colony Parkway and Boonville Road. In early August, the landmark Best Western Atrea hotel opened its doors to the public.

The 5-story, 100-room hotel comes packed with marketleading guest room amenities, a full-service bar, and nearly 4,000 square feet of conference and meeting space. The hotel’s sleek look and affordable rates have been welcomed by travelers. BTC’s most recent addition, International House of Pancakes (IHOP), opened in December of 2009. The community has embraced the new restaurant, as witnessed by the perpetually-packed parking lot.

Five tracts are still available within the development.

Two high-visibility retail/restaurant tracts (1.27 acres & 1.57 acres) are located along the Highway 6 frontage road. A 5.00 acre (multifamily, hotel, or office) tract is available in the heart of the development. Finally, an outstanding neighborhood corner (just across from Walgreen’s) is ready to be developed.

As residents of Bryan/College Station, the Oldham Goodwin Group and the owner’s of Boonville Town Center want to thank the community for its tremendous support. We’re working hard to continue to bring new, exciting, quality development to Boonville Town Center.

For more information on Boonville Town Center and remaining parcels, please go to www.oldhamgoodwin.com.

FM 158 - Boonville

Road

Parkwa y

“B” ~68,389 SF

St

at

e

“C” ~217,800 SF

Colony

“A” ~55,321 SF

Austin’s

Anyone traveling through Bryan on Highway 6 in recent months has probably noticed 3 new exciting additions to the Bryan landscape. The Oldham Goodwin Group, in partnership with Five Ags Investments, has completed its 18.5 acre commercial land development at Boonville Road and Highway 6. The site, formerly the center of the historic town of Boonville, boasts over 1,200 feet of lighted parkway, and access to both Highway 6 and FM 158. With roughly 20 feet of gradual rise from the frontage road, Boonville Town Center (BTC) has outstanding visibility for the roughly 70,000 cars that travel by each day.

“D” gh~68,389 SF w

Hi

ay

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Boonville Town Center – An Investment Perspective Why consider BTC for your investment?

1. Competitive pricing 2. High visibility 3. High traffic counts (~70,00 vpd on SH 6, and ~40,000 vpd on both FM 158 an Briarcrest Drive) 4. Easy access from Austin’s Colony Parkway, Boonville Rd (FM 158) and the Highway 6 frontage road 5. Quality neighbors (IHOP, Walgreen’s, Best Western Atrea) 6. Maximize your investment - no on-site water detention required 7. Buildable lots in place – full utilities to lot lines 8. Deed restricted – protect your investment 9. Local knowledge to expedite permitting and construction 10. Momentum – most active Bryan development along Highway 6

Jesse C. Durden

Senior Sales Associate - Land Group c 979.492.0425 jesse@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

Urban Land For Sale ~3.72 AC on Texas Ave | College Station

For Sale

Boonville Town Center-Tract A | Bryan

Boonville Town Center-Tract B | Bryan

For Sale

For Sale

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Great Commercial Tract Centrally Located In College Station • Access From Texas Ave & Morgans Lane • Ideal For Hotel Or Office Development • All City Utilities Available

Planned Commercial Development Ideal For Restaurant • Exceptional Location & Visibility • Next To New IHOP • ~70,000 Vehicles Per Day On Highway 6

Planned Commercial Development Ideal For Retail Or Bank • Exceptional Location & Visibility • Architectural Controls • Great Neighborhood Corner

Boonville Town Center-Tract C | Bryan

Boonville Town Center-Tract D | Bryan

~6 AC on Associates Avenue | College Station

For Sale

For Sale

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Planned Commercial Development Ideal For Multifamily Use • Exceptional Location & Visibility • Great Value On Interior Lot • Deed Restrictions

For Sale

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Planned Commercial Development Ideal For Restaurant or Retail • Exceptional Location & Visibility • ~70,000 Vehicles Per Day on Highway 6

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Commercial Development • Quick Access To Highway 30 & SH 6 • Office/Warehouse Users • Preliminary Site Plan & Master Preliminary Plat Created

RECENT TRANSACTIONS For More Information Contact:

Vernie D. Bodden

Senior Sales Associate Land Group p 979.268.2000 f 979.846.7020 c 979.777.4641 vernie@OldhamGoodwin.com

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Oldham Goodwin represented the seller in the disposition of a ~1.27 AC tract to an IHOP Franchisee

Oldham Goodwin represented the seller in the disposition of a ~1.57 AC tract to Walgreens

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Recreational & Farm/Ranch For Sale ~70 AC on Taylor Road | College Station

For Sale

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10658 CR 175 | Iola

5412 Satterwhite Road | Buda

For Sale

For Sale

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Ideal Recreational Tract • Located In Direct Growth Path Of College Station • New Fencing & Entrance • Rolling Topography With Large Trees

Great Recreational Tract • ~5 Miles From College Station • Adjacent To Established King Oaks Development • Possibility For Future Commercial Use

Ideally Situated Tract In High Growth Buda, Texas • Close Proximity To Austin Metropolitan Area • Within 1 Mile Of New Austin Toll Road • Within 2 Miles Of I-35 • Close Proximity To Super Walmart & Cabelas Anchored Developments

~11 AC on N. Graham Road | College Station

~11.26 AC on N. Graham Road | College Station

~120 AC in Washington County | Brenham

For Sale

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Good Residential Tract In Rapidly Growing Area • College Station ISD • Ideal For 1 To 3 Acre Lot Residential Development

For Sale

For Sale

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Good Residential Tract In Rapidly Growing Area • College Station ISD • Ideal For 1 To 3 Acre Lot Residential Development

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Outstanding Development Potential • Adjacent To BNSF Rail • Strong Rail Spur Potential • Industrial Neighbors/ Zoning • Potential for R & D Facility

RECENT TRANSACTIONS For More Information Contact:

Jesse C. Durden

Oldham Goodwin represented the buyer in the acquisition of a 53 AC tract for Commercial Expansion

Oldham Goodwin represented the seller in the disposition of a ~10 AC tract next to the College Station Police Department

Senior Sales Associate Land Group p 979.268.2000 f 979.846.7020 c 979.492.0425 jesse@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

Multifamily Properties For Sale 1831, 1833, 1835 Wilde Oak | Bryan

For Sale

So Ho Lofts | Bryan

Rock Hollow Loop Duplexes | Bryan

For Sale

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For Sale

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18 Units • W/D Included • Fully-

Six Units • Convenient To Texas A&M • Historical High Occupancy • Bike To Campus • Fenced Yard • Located In The Popular Johnson Elementary Attendance Zone

20 Units • Convenient To Texas A&M • On TAMU Bus Route • Fully-Equipped Kitchens • W/D Included • Bike To Campus • Polished Silver Fixtures

Equipped Kitchens • Central A/C • Ceiling Fans • Fenced Yards • Individually Metered

Briargrove Apartments | College Station

300 Ayrshire| College Station

3907 Aspen | Bryan

For Sale

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36 Units • Convenient to Texas A&M, Blinn College & St. Joseph’s Regional Health Center • Located In An Established Single Family Home Neighborhood

For Sale

For Sale

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Historic Southgate Neighborhood • Walk To TAMU & Kyle Field • W/D Connections • Fenced Yards • Claw Foot Tubs • Slate Countertops • Polished Silver Fixtures

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Popular Northgate Neighborhood • Near TAMU Bus Route • Walk To TAMU • Fenced Yards • Convenient To Texas A&M & Blinn College

RECENT TRANSACTIONS For More Information Contact:

Rick Lemons

Senior Broker Associate Multifamily Group p 979.268.2000 f 979.846.7020 c 979.255.1950 rick@OldhamGoodwin.com

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Oldham Goodwin represented the buyer in the acquisition of a 112 Unit Apartment Complex

Oldham Goodwin represented the buyer in the acquisition of a 134 Unit, Student Oriented Apartment Complex

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Common Real Estate Terms In Lease Transactions The current economy and market conditions have brought many challenges to commercial real estate. In previous years, tenants would review lease terms and negotiate letters of intent and leases without representation. In today’s ever changing and increasingly complex environment, Tenant’s are starting to realize the benefit of having an agent represent their interests and negotiate lease terms. This is called TENANT REPRESENTATION: Arrangement whereby a prospective tenant engages a real estate broker as its exclusive agent in negotiating a lease for commercial space. Regardless if a Tenant is being represented by a licensed real estate agent; it will always help to be familiar with the most common and basic commercial real estate terms. This is a brief overview of terms that every tenant should be familiar with before entering into lease negotiations.

When a prospective tenant calls, the first thing that they ask about a property is “How much will it cost?” Depending upon the Landlord or Broker, you are likely to get a variety of responses to this question. The most common form of “cost” is calculated on a per square foot basis and quoted from an annual perspective. In addition, Leases can take on varying forms, including gross, triple net or a combination of the two.

A TRIPLE NET LEASE (NNN) is: A Lease in which the Tenant pays the Landlord a Base Rent as well as their proportionate share of Common Area Maintenance, Insurance and Taxes (Operating Expenses). A GROSS LEASE is: Also known as a full service lease whereas the Tenant pays a flat Base Rent and the Landlord pays all operating expenses. In a NNN lease scenario, a Tenant will be quoted a BASE RENT: Typically specified as the minimum rental amount due quoted monthly or annually.

Note: If the Lease is not a NNN, the Base Rent may be higher as the operating expenses are “built-in” to the lease rate; this is also known as a Full Service or Gross Lease. After quoting the Base Rent, in a NNN, the Landlord or Broker will quote that year’s estimated OPERATING EXPENSES: The actual costs associated with operating a property including Common Area Maintenance (maintenance, repairs, management, utilities, etc.) taxes and insurance. The estimated NNN expenses will fluctuate each year depending upon the current year’s expenses. An adjustment will occur and a record of this will be sent to the Tenant. With a Full Service Gross lease, there is no need for reconciliations and the Tenant is only required to pay the pre-negotiated Base Rent.

If a prospective tenant decides to take new space within a new building, that is referred to as FIRST GENERATION SPACE: A space that is currently available for lease and has never been occupied by a tenant. First-generation space lacks walls, floor covering, ceiling tiles, HVAC, lighting; etc. and has never been built-out. SECOND GENERATION SPACE:

Refers to previously occupied space that becomes available for lease. If a Tenant elects to lease a first generation space, the Landlord will typically provide a TENANT IMPROVEMENT ALLOWANCE: A fixed amount of money contributed by the Landlord toward TENANT IMPROVEMENTS: Improvements made to the leased premises by or for a Tenant. The BUILD OUT: space improvements put in place per the Tenant’s specifications is typically handled one of two ways. First, a Landlord will agree to a set dollar amount to provide to the Tenant. After the Landord’s approval of the construction drawings and plans, the Tenant will be responsible for hiring contractors and overseeing the construction of the space. After the build out is completed and all documentation submitted, the Landlord will provide the tenant the agreed upon funds; however, the total amount will not exceed the maximum amount agreed upon in the Lease and any excess costs will be borne by the Tenant. Second, a Landlord may elect to complete the construction and pay for all associated build out costs. A Landlord’s contractors can sometimes complete the work for less than the Tenant could. In addition, the Tenant may not have the necessary experience to oversee a build out. For second generation space, the tenant improvement allowance will be greatly reduced from the amount given on a first generation space.

There are a lot of factors, including the credit worthiness of a Tenant, length of lease, etc. that impact a Landlord’s decision for Tenant Improvement Allowances.

After you have decided to pursue a lease on a selected site, you will then typically move on to a LETTER OF INTENT (LOI): A preliminary agreement outlining the proposed terms with the intention to enter into a final contract. An LOI is typically a 2-5 page document where the main items of a lease will be negotiated between the Landlord and Tenant. An LOI is probably the single most important part of lease negotiations as the majority of negotiations will occur prior to drafting a lease.

A firm understanding of these basic terms can prove invaluable in negotiating a lease transaction. As you can see, the commercial lease transaction is a complicated and time consuming process that requires a dedicated team of professionals in order to ensure your best interests are in mind. Please do not be afraid to ask questions about any term or how the process works. If you or your business is considering expanding, downsizing, or moving to another location, please contact me today.

Travis M. Fincher

Leasing Associate c 713.444.9326 travis.fincher@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

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Commercial Quarterly 1st Quarter 2010

Office Properties For Lease Williamsburg at Park Hudson | Bryan

For Lease

Executive Office Plaza | Bryan

United Plaza | College Station

For Lease

For Lease

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Located In Park Hudson • Adjacent To Adam Plaza & Crescent Pointe • Customizable Floor Plan • ~3,984 SF Available

Centrally Located Within Bryan/College Station • Small To Mid-Sized Suite Configurations • Within ~1.5 Miles Of Texas A&M University

One Mile From The Briarcrest Exit Off Highway 6 • Within 2 Miles Of Both TAMU Main Campus And Blinn College • Centrally Located

Prosperity Bank Building | College Station

Cambridge Court | College Station

Southwood Business Center | College Station

100% Leased

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Prime Location On Hwy 6 • Near College Station Medical Center • ~4 Miles From TAMU

For Lease

For Lease

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Executive Style Office Suites • Located Along Hwy 40 Near Castlegate & Castlerock Subdivisions • ~1 Mile From Hwy 40/Hwy 6 Intersection

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Central Location To Thriving Commercial And Residential Growth • Vast Traffic Flow From Texas Avenue • ~400 Ft Of Frontage On Hwy 6 • Available Space: ~1,268 SF

RECENT TRANSACTIONS For More Information Contact:

Travis Fincher

Leasing Associate p 979.268.2000 f 979.846.7020 c 713.444.9326 travis.fincher@OldhamGoodwin.com

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Oldham Goodwin represented the tenant in the lease for Elite Security at 707 Texas

Oldham Goodwin represented the landlord in the lease for Designio, LLC at United Plaza

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Office Properties For Lease Southwood Plaza | College Station

For Lease

Texas Enterprise Bank Building | Bryan

Star Tel Tower | Bryan

For Lease

For Lease

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50

51

Anchored By Proposed Super Walmart Of College Station • Great Access To The Center With Entrances On Longmire & Texas Avenue • Available Space: ~800 - ~1,200 SF

~1.5 Miles From St Joseph Regional Health Center & ~1 Mile From Blinn College • Range of Available Spaces: ~ 1,500 - ~6,000

Superior Construction • Near Traditions Golf Course • Near Future Texas A&M Health Science Center • Range of Available Spaces: ~465 - ~3,685 SF

The Emporium | College Station

University Park Plaza | College Station

Wolf Pen Ridge | College Station

For Lease

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Easily Accessed From Anywhere Within Bryan/College Station • Located Along Highway 6 • Great For A Small To Medium Business

For Lease

For Lease

53

Centrally-Located • High Traffic Counts • Dynamic Growth Area • Range Of Available Spaces: ~3,000 - ~9,000 SF

54

~1 Mile From Texas A&M University • One Block From Wolf Pen Creek Amphitheater & Park • Range Of Available Spaces: ~1,000 - ~3,524 SF

RECENT TRANSACTIONS For More Information Contact:

Travis Fincher

Oldham Goodwin represented the landlord in the lease for KCEN-TV Waco at Executive Office Plaza

Oldham Goodwin represented the landlord in the lease for Flores For Congress at United Plaza

Leasing Associate p 979.268.2000 f 979.846.7020 c 713.444.9326 travis.fincher@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

15

Commercial Quarterly 1st Quarter 2010

Office Properties For Lease Oxford Court | College Station

Bryan Medical Center | Bryan

For Lease

Copper Chase Office Park | Bryan

100% Leased

55

For Lease

56

High Quality Medical Building Adjacent To St Joseph Regional Hospital • Energy Management Systems And Key Card Entry • Covered Parking • Range Of Available Spaces: ~3,000 - ~9,000 SF

Executive Style Office Suites • Located Along Hwy 40 Near Castlegate & Castlerock Subdivisions • ~1 Mile From Hwy 40/Hwy 6 Intersection

206 N. Sims | Bryan

12761 State Highway 30 | Bryan

57

Less than one mile from Blinn College • Small, mid and large sized suite configurations available • Less than 1/4 mile from St. Joseph’s Regional Medical Center

Industrial Properties For Lease For Lease

For Lease For more information regarding our Office & Industrial Lease Services, please contact me today.

58

~8,000 SF Commercial Building • Located Two Blocks From Downtown Bryan • Security System • Chainlink Fenced Yard With Access Gate

59

Upstairs & Downstairs Offices • Two Roll Up Doors • Fenced Yard Space • Paved Parking • Built in 2005

Travis Fincher

Leasing Associate c 713.444.9326 travis.fincher@OldhamGoodwin.com

RECENT TRANSACTIONS For More Information Contact:

Travis Fincher

Leasing Associate p 979.268.2000 f 979.846.7020 c 713.444.9326 travis.fincher@OldhamGoodwin.com

16

Oldham Goodwin represented the landlord in the lease for Civil Development at Cambridge Court

Oldham Goodwin represented the landlord in the lease for Community Bible Church at The Emporium

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

How Do I Become A Franchisee?

A common trend in today’s real estate market involves numerous entrepreneurs deciding to take a leap of faith and become a franchisee. Here are a few select questions that every franchisee will need to be familiar with to get started.

What franchise is right for me?

This is probably the most difficult question to answer and involves a multitude of factors. A great amount of research needs to be put in to determining the best franchise including start-up costs, product or service demand, franchise support, business model, franchisee’s previous experience, capital, advertising, royalties, name recognition, branding, etc.

What will it take for me to be approved for a franchise?

The initial steps include completing an application, signing a confidentiality agreement regarding the company’s standard operating procedures and propriety processes, and submitting a set of personal or company financials demonstrating your fiscal ability to purchase and support its operations. There may be multiple conferences and face to face meetings with the franchisor to answer any questions about the franchise, as well as each of your expectations should you decide to move forward in the venture.

Most franchisors require an initial investment in the purchase & licensing of the franchise that will vary from $5,000.00 to $100,000.00 or more; however, most are less than $40,000.00.

A franchisee will be responsible for initial and on-going costs.

Initial costs are one-time expenses that are needed to set your business in motion. On-going costs are those expenses that you anticipate paying on a recurring basis. Initial costs could include fees for franchisor, entity filing fees, attorney fees, licenses and permits, security deposits, signage, build-out, initial inventory and FF&E (furniture, fixtures and equipment). On-going costs could be rent or mortgage, utilities, inventory, supplies, business insurance, payroll, loan payments, royalties, etc. Royalties are charged to franchisors and is typically an on-going fee calculated as a percentage of gross sales or a flat charge paid on a monthly, quarterly or annual basis.

How soon until I can open my doors? How long does the process typically take?

This depends on several factors including how extensive your build out will be and whether or not your business will be using a second generation space or a shell space with no improvements. It will also depend on how long the permitting process will take from the city, county or Texas Alcohol Beverage Commission (TABC) license if you plan on serving liquor. In a typical scenario the process averages from 4-6 months once you decide on a franchisor until you serve your first customer.

What support will I receive going forward?

The main reason for an entrepreneur to use a franchise as a business model is that you do not have to recreate the wheel.

Most of these companies have spent years perfecting their business model from size, shape, quantity, taste and texture, right down to the aesthetics of the product’s packaging. They may also offer pre-designed marketing campaigns. Franchisees will typically be required to attend and complete a very extensive

hands-on training, lasting last from 1-6 months, including operations, management, human resources, inventory and ordering, point of sale terminal training, planning, marketing and on-site training at an existing franchise location for a period of time. It is important that you understand the level of support you receive from the franchisor and you may interview existing franchisees to determine their level of satisfaction. If the franchisee completes the required course work, background checks and meet the minimum financial requirements, then the candidate will become a franchisee.

How do I select a site for my new store?

In most cases a market area is purchased by the franchisee and excludes any other potential franchisee from opening up a competing store location. The franchise agreement may require a set number of stores to be opened within a given time frame, depending upon the market. In selecting the optimal site, typically the franchise will conduct research to confirm or deny the market area as a potential site for the franchisee. The franchisee then works with the franchisor to select preferred locations based on the demographics of that market area and other factors including pricing, availability and the location of competitors before selecting the best site.

Summary A great amount of money, time and resources will be invested by the franchisee and the ultimate success depends on the quality of the franchisor, reputation and historical performance. It is important to research the long term viability and success of a franchisor and interview multiple franchisors before deciding on the partnership that is best suited for your individual tastes.

It is important to know what the franchisor will do for you in the partnership and remember to get everything in writing! Oldham Goodwin is in communications with multiple franchisors who are interested in the Texas market. A franchisor may have corporately owned stores, however, in most cases they prefer to have a franchisee who is a local owner with a network in specific market.

If you are interested in purchasing a franchise or interested in finding a franchisor currently looking in the Texas market, please contact Robert Young, Director of Retail Leasing today at robert@oldhamgoodwin.com or 979.268.2000.

Source: History of Franchising, EFranchiseNews.com, retrieved from http://openafranchise.com/blog/?p=474#more-474

Robert J. Young

Director of Commercial Leasing c 979.324.1717 robert@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

17

Commercial Quarterly 1st Quarter 2010

Retail Properties For Lease Grant Plaza | Huntsville

Mid-Town Center | Bryan

For Lease

University Shopping Center | College Station

For Lease

For Lease

61

60

62

Convenient & easy access from two thoroughfares • Recently renovated with fresh exterior paint • Excellent visibility with frontage on Texas Avenue

Convenient & easy access from Interstate 45 • Excellent visibility with frontage on 11th street • Diverse and established retail tenant mix

Junior Anchor Availability • Over 600 Feet Of Frontage Along Texas Avenue • Less Than 1/2 Mile From TAMU • Five Points Of Access Off Of Three Major Thoroughfares

Beverley Estates | Bryan

Park Central Center | Bryan

Park Plaza Center | College Station

100% Leased

63

Convenient & Easy Access From Two Thoroughfares • Recently Renovated • Excellent Visibility With Frontage On Texas Avenue

For Lease

For Lease

65

64

Convenient & Easy Access From Two Thoroughfares • Recently Renovated • Excellent Visibility With Frontage On Texas Avenue • Available Space: ~1,250 SF

Located in the heart of College Station’s retail corridor • Excellent visibility at the corner of Texas Avenue & Harvey Road Located within close proximity to H-E-B & Target

RECENT TRANSACTIONS For More Information Contact:

Robert J. Young

Director of Commercial Leasing Senior Broker Associate p 979.268.2000 f 979.846.7020 c 979.324.1717 robert@OldhamGoodwin.com

18

Oldham Goodwin represented the landlord in the lease for J & J Asian Bistro at Freedom Center

Oldham Goodwin represented the landlord in the lease for Windy Sport & Fitness at Plazas at Rock Prairie

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Retail Properties For Lease Plazas at Rock Prairie | College Station

For Lease

Post Oak Square | College Station

Shops on Texas | College Station

For Lease

For Lease

66

67

68

Range Of Available Spaces: ~1,000 - ~5,040 SF • Four Miles From TAMU • High Daytime Population • Southern “Gateway” Of College Station

Range of Available Spaces: ~1,430 ~19,225 SF • Competitive rental rates and build-out allowance • Restaurant space available • Adjacent to Post Oak Mall

Available Space: ~1,594 SF • Dynamic Growth Area • Central Location With High Traffic Counts • Great Visibility And Access On Texas Avenue

Freedom Center | Bryan

Market Square Shopping Center | Brenham

Southwest Crossing | College Station

100% Leased

For Lease

69

Close Proximity To TAMU & Blinn • Adjacent To The Walmart Supercenter, Chick-Fil-A & Wells Fargo Office Building

For Lease

70

Big Box Availability • Less Than 1 Mile From Hwy 290 • Less than 3 miles from Blue Bell Creameries • Range of Available Spaces: ~2,000 - ~38,046 SF

71

~8,000 SF Pad Site Available • Located In The Center Of The Most Densely-Populated Student Area In College Station • Located Less Than ½ A Mile From TAMU

RECENT TRANSACTIONS For More Information Contact:

Robert J. Young

Oldham Goodwin represented the landlord in the lease for Andrew’s Flowers at Mid-Town Center

Oldham Goodwin represented the tenant in the lease for Complete Nutrition at Texas Avenue Crossing

Director of Commercial Leasing Senior Broker Associate p 979.268.2000 f 979.846.7020 c 979.324.1717 robert@OldhamGoodwin.com

979.268.2000 • www.OldhamGoodwin.com

19

Commercial Quarterly 1st Quarter 2010

Retail Properties For Lease Longwood Crossing | Pearland

West Wind Shopping Center | Lubbock

For Lease

For Lease

72

~3.5 Miles From Silverlake, A 3,500 Home Residential Development • ~5 Miles From The 288/518 Intersection • Available Space: ~2,200 SF

Brookhaven Retail Center | Bryan

For Lease

75

~5 Miles From TAMU • ~1.5 Miles From Miramont Country Club • Range Of Available Spaces: ~1,500 - ~2,100 SF • Rapid Population Growth & Business Development Within The Area

Crossroads Retail Center | College Station

For Lease

74

73

~3.6 Miles From Texas Tech University & ~2 Miles From Lubbock Christian University • Range Of Available Spaces: ~1,243 ~1,952 SF • Great Visibility From Loop 289

Total Capacity: ~18,000 SF • Range Of Available Spaces: ~1,000 - ~10,000 SF • Centrally Located In College Station With Quick Access To Highway 6

Whether you or your firm are looking for up to date leasing information, examining market trends, or considering a relocation, expansion, or opening a new business in the Bryan / College Station area, the Commercial Leasing Division at The Oldham Goodwin Group, LLC is positioned to be the preferred resource to evaluate your specific leasing requirements. Our group specializes in the leasing of Office, Retail, and Industrial buildings and in the representation of Tenant’s that are searching for a perfect location combining visibility, rental rates, floor plan, accessibility, etc. If you are considering leasing space in today’s complex market, please contact our group and allow us to provide you with the insight and accessible expertise you need to make an informed decision. For more information regarding our leasing services, please contact me today.

Robert J. Young

Director of Commercial Leasing Senior Broker Associate p 979.324.1717 robert@OldhamGoodwin.com

RECENT TRANSACTIONS For More Information Contact:

Robert J. Young

Director of Commercial Leasing Senior Broker Associate p 979.268.2000 f 979.846.7020 c 979.324.1717 robert@OldhamGoodwin.com

20

Oldham Goodwin represented the landlord in the lease for Merge Boutique at Post Oak Square

Oldham Goodwin represented the tenant, Just Brakes, in the lease at 3300 South Texas Avenue

979.268.2000 • www.OldhamGoodwin.com

Commercial Quarterly

1st Quarter 2010

Property Locations 2223

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This map is a rendering of Bryan & College Station city limits and does not accurately show city limits. This map is not to scale and all property locations are approximate.

979.268.2000 • www.OldhamGoodwin.com

21

Commercial Quarterly 1st Quarter 2010

“Accessible Expertise” Rick Lemons

Multifamily Group

Clinton D. Oldham

Senior Broker Associate

Commercial Group Senior Broker Associate

Rick’s background encompasses over 20 years of hospitality and property management experience with Aramark, Pappas Restaurants, Inc. and Oldham Goodwin. Since 2004, he has managed and operated the multifamily division of Oldham Goodwin. As a commercial real estate broker, Lemons has listed and sold numerous multifamily and single family properties to local and national investors.

C 979.255.1950 | rick@OldhamGoodwin.com

Clint represents our private investment and corporate clients in the acquisition and disposition of Retail, Office and Industrial real estate. In addition to buyer and seller representation, Clint’s experience includes project leasing, tenant representation, as well as investment and financial analysis. Clint’s broad range of experience in the local commercial real estate market has made him a valuable asset to clients seeking to acquire or dispose of their assets.

Vernie D. Bodden, III

Jesse C. Durden

Land Group

Senior Sales Associate

C 409.781.7734 | clint@OldhamGoodwin.com

Land Group

Development Manager, SR Sales Associate

Vernie’s background in the ranching industry has enabled him to build a broad base of knowledge in rural land, both from an operational and valuation perspective. Vernie has used these principals to broaden his scope of knowledge to include the commercial realm. As a result, he has been able to represent some of the states largest retail and hospitality developers.

C 979.777.4641 vernie@OldhamGoodwin.com

Jesse specializes in development and site selection for TOGG. Jesse’s experience includes commercial development and construction, as well as real estate investment analysis. Prior to his arrival at Oldham Goodwin, Jesse worked with Austin Commercial in Dallas and Caldwell Companies in Houston.

C 979.492.0425 | jesse@OldhamGoodwin.com

Robert J. Young

Travis M. Fincher

Leasing Division Senior Leasing Associate

Leasing Division Leasing Associate

Over the last 4 years, Robert has focused on increasing his understanding of the B/CS real estate market, the emerging trends that affect the city, county, and state, and the commercial real estate growth indicators that real estate experts use to predict the future of the local market.

Robert strives to deliver the highest levels of client services available.

C 979.324.1717 robert@OldhamGoodwin.com

Travis graduated from Texas A&M where he excelled at marketing and property evaluation.

He was intimately involved in real estate transactions from a young age working with his family members in the Houston market. Previously he held a job with The Staubach Company in Houston where he assisted in market research.

C 713.444.9326 travis.fincher@OldhamGoodwin.com

Daniel Powell

Erin Sissell

Sales Division Sales Coordinator, Associate

Daniel coordinates sales marketing and transaction efforts as well as assists executives with brokerage strategic initiatives. Daniel is known by his peers as highly organized and extremely knowledgeable of brokerage services.

C 979.575.2551 | daniel@OldhamGoodwin.com

Leasing Division Leasing Coordinator, Associate

Erin coordinates leasing marketing and transaction efforts as well as assists executives with brokerage strategic initiatives. Erin is Oldham Goodwin’s Ambassador to the Bryan/College Station Chamber of Commerce. In addition she was also a former member of the Real Estate Development Association at Texas A&M. C 254.592.2615 | erin@OldhamGoodwin.com

809 University Drive East, Suite 101A College Station, Texas | 77840 T 979.268.2000 | F 979.846.7020 www.OldhamGoodwin.com