REDNews February 2016 - Southeast Texas

FEBRUARY 2016

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

Nothing Plain About Plano

Everything's

Bigger in Texas

Interview with

Doug Simpkins

From Left: Hap Peyton, Chuck Townsend, Alicia Hicks, and Vic Condrey

Why Houston?

660+ Acres 30 Minutes East of Downtown (Old Hwy 90 @ San Jacinto River)

$4,130,000 W/POSSIBLE OWNER FINANCING

BEAUTIFUL, HUGE RECREATIONAL TRACT • Miles of San Jacinto River frontage • Heavy Timber/Multiple (7+) deep lakes • MUD District Available MASSIVE UPSIDE AS AN RV TRAILER PARK FOR PLANT WORKERS CENTERED NEAR BAYTOWN, PASADENA, MT. BELVIEU

Mitch Zarsky@yahoo.com 713-825-0728

10%

Broker Commission (Owner/Seller is not a realtor)

Possible Owner Financing Available

CONTENTS

Market

Sales & Leases 1–3, 5, 7–9, 13, 17, 19–21, 25, 27, 29

Services

Environmental Services 30 Land Servicing 44 Legal Services 41

Scoop

Events 32, 34, 36 Social 33, 35, 37 Bulletin 38–40

Features

Nothing Plain About Plano 10–12 Why Houston? Allegiance Title 22–23 Texas Office Insight 26, 28 CIVIL FAIR PLAY Everything’s Bigger in Texas 14–16 Houston’s Industrial Energy Outlook 18 Healthcare Real Estate Trends 20 RAY'S BUZZ Interview with Doug Simpkins 24–25 CCIM Luncheon – Houston Economy 42

4

February 2016

Major Redevelopment! Come see the AMAZING CHANGES!

MALL OF THE MAINLAND 10000 Emmett F. Lowry Expressway, Texas City, TX 77591

PROPERTY INFORMATION • New Power/Entertainment Redevelopment • Current retailers include Cinemark Movies 12, Sears, Palais Royal, World Gym, Olive Garden, Gringos, Beyond Burger, Tuscany Village Salons and Galaxy Nutrition • 7,000 new homes coming to immediate trade area • 3 miles from College of Mainland with over 5,000 students

RENT NOW AT YESTERDAY’S PRICES

PAD SITES FOR SALE surrounding the mall

10

1

2

3

4

5

1

6

7

8

9

16,308 SF

CONTACT INFORMATION

Deanna Jerome (409) 986-7000 (832) 282-8451 mainlandmalltx@gmail.com Press 0 for more information on sales or leasing

PAD SITES

1

Parcel #

Size (acres)

Size (SF)

1

4.0260

175,373

2

1.1040

48,090

3

1.0000

43,560

4

0.6037

26,297

5

4.4600

194,278

6

0.7161

31,193

7

3.9390

171,583

8

1.1060

48,177

9

9.3710

408,201

10

9.6830

421,791

Total

36.0088

1,568,543

AVAILABLE IMMEDIATELY! • • •

PREVIOUS FURNITURE STORE Great location right in between Sears, World Gym, and Palais Royal Glass front windows and doors Wide open space can be fitted to suit your needs

CALL TODAY Brokers welcome 6% commission

Letter from the Publisher

YOUR COMMERCIAL REAL ESTATE MARKETING SOURCE

PUBLISHER

Ginger Wheless ginger@REDNews.com

EDITOR

Margie Gohmert info@REDNews.com

STAFF WRITER

Janis Arnold janisarnold1@gmail.com Brandi Smith info@REDNews.com

Dear Readers,

Is your CRE glass half full or half empty?

All of you seasoned CRE professionals who have weathered the highs and lows of this industry know the answer to doing business in a cyclical market is to find the upside, the niches in the market, and to ignore the media (other than REDNews, of course!).

For the past several months, I’ve been posing the following question to CRE professionals: “What is your opinion of the 2016-2017 Texas CRE market?” From an investment side, it’s interesting to note that there are reportedly a lot of buyers out there ready to pounce on opportunity. From a leasing perspective, the office and all the other markets are strong everywhere but Houston. The Houston office tenant brokers are either hunkering down or looking to expand their horizons to the industrial and retail markets to weather the downturn in office leasing.

JLL International Director, Bruce Rutherford, recently speculated at an O’Connor & Associates Houston Office Forecast Luncheon, that the price of oil would increase to $60 - $62 barrel by the end of 2016 and that 2018 would be a super year for Houston and all of Texas. (For a full overview of Bruce’s talk, log on to REDNews.com/ BruceRutherford )

CONTRIBUTING WRITER

Ray Hankamer rhankamer@gmail.com

ART DIRECTOR

Payton Watkins payton@camalla.com

DATABASE MANAGER

Rahul Samuel emarketing@REDNews.com

DIGITAL/MARKETING DIRECTOR

Laura Salazar digital@REDNews.com

ACCOUNTING

Benton Mahaffey accounting@REDNews.com

SALES

Laura Salazar digital@REDNews.com Ginger Wheless ginger@REDNews.com

PRINT & DIGITAL DISTRIBUTION

REDNews is directly mailed each month to commercial real estate brokers, investors & developers.

I hope you are having a fabulous February and remember that February 14th is Valentine’s Day! Best Regards,

Texas Brokers: 7,650 Texas Leasing/Tenant Rep: 6,232 Texas Investors: 4,979 Texas Developers: 4,710 Outside Texas Investors, Brokers, Developers etc: 81,577

Ginger Wheless

TOTAL REDNews DISTRIBUTION: 105,148 REDNews has gone green using recycled paper.

Thank you Midway Press!

To subscribe to REDNews call (713) 661-6300 or log on to REDNews.com/subscription.

5909 West Loop South, Suite 135 Bellaire, TX 77401

6

February 2016

listings Medical Office Space • Building Size: Approximately 38,880 RSF • Floor: Three (3) • Year Built: 1975 / Renovated 2005 • Land: 1.70 Acres • Available Space: 38,880 RSF • Sales Price: Contact Agent • Rental Rate: $18.00 RSF / Year

A SELECTION OF COLLIERS INTERNATIONAL AVAILABLE PROPERTIES

FOR SALE OR LEASE 6300 Richmond Ave. Houston, TX 77057 • Parking: 133 Surface Parking Spaces, 4:1000 Ratio • Medical Office Improvements • Ideal for Owner/User • Highly Visible Location • Monument and Building Signage • Traffic Count - Richmond @ Unity Drive: 44,682

COY DAVIDSON Senior Vice President +1 713 830 2182 coy.davidson@colliers.com

Premier Development Site +/-16 Acres • Pricing: $3,824,000 ($5.25 SF) (whole tract) • Strategically located at southeast corner of FM 529 & Fry Road in West Houston • Available Acreage: +/- 16.7244 Acres • Utilities: Harris County MUD #157, Tax Rate: $0.845

FOR SALE > PREMIER DEVELOPMENT SITE

+/- 16 Acres

FM 529 AND FRY ROAD, HOUSTON, TX 77449

FOR SALE FM 529 and Fry Rd. Houston, TX 77449 • Flood Plain: Not located within the 100 year flood plain • Detention: Regional Detention Pond available • Key Map: 406Q

CHRISTOPHER D. WINTERS Principal | Director +1 713 830 2106 chris.winters@colliers.com

colliers.com/p-usa1001160

Property Overview > Pricing:

8901 Gaylord Boutique Offices • 26,000 SF boutique office building with 10,000 SF on the 1st floor • Opportunity to purchase and relocate offices to a class A office building and earn a return on investment • Built in 2008 • No deferred maintenance • Quality location in highly sought after

$3,824,000 ($5.25 SF) (whole tract)

> Available Acreage: +/- 16.7244 Acres

8901 Gaylord Houston, TX 77024 Katy Freeway market / Hedwig Village • Rental rates for existing 2nd floor tenants are currently $5-$7/SF below market

DAVID CARTER Principal +1 713 830 2135

JOHN PARSLEY Principal | Director +1 713 830 2140

david.carter@colliers.com

john.parsley@colliers.com

colliers.com/p-usa1001697

To view all listings, please visit www.colliers.com/texas

> Utilities:

Harris County MUD #157, Tax Rate: $0.845

> Flood Plain:

Not located within the 100 year flood plain

> Detention:

Regional Detention Pond available

> Key Map:

406Q

CHRISTOPHER D. WINTERS 713 830 2106 HOUSTON, TX chris.winters@colliers.com

> Grand Parkway is now open, located 3 miles west of the property FOR SALE OR LEASE > FM 529 widening is now complete Click here for additional information

BILL BYRD, CCIM, SIOR 713 830 2131 HOUSTON, TX bill.byrd@colliers.com

COLLIERS INTERNATIONAL 1233 West Loop South | Suite 900 Houston, TX 77027 www.colliers.com

Personalized Service. Proven Results.

www.tarantino.com ASHFORDPROFESSIONAL PROFESSIONAL ASHFORD

• Two Story Story Medical Medical • Two Office Building Building Office • Renovated in 2008 • Up to 2,392 SF Available • Services the Memorial & Surrounding Neighborhoods

909 Dairy Ashford Rd, 909 Rd, Houston, TX 77079 Houston, 77079

NANES NANES PROFESSIONAL PROFESSIONAL

17030 Nanes Dr, Dr, Houston, 77090 Houston, TX 77090

MEDIC AL MEDICAL • Two Story • Medical/ Two Story Medical/ Professional Office Building • 11,929 NRA Contiguous Space Available on Second Floor • Located 2 Miles from the Houston NW Medical Medical Center • Center 15 Minutes • 15 fromMinutes IAH & The from IAH & The Woodlands Woodlands

NORTHGREEN ATRIUM BUILDING 7660 WOODWAY • • • • • •

7660 1300 N. SamWoodway Houston Parkway Houston, 77063 Houston, TX 77032

5507575 GREENS SANPARKWAY FELIPE

7575 San Felipe 550 Greens Parkway Houston, Houston, TX TX 77063 77067

8

ASHFORD PROFESSIONAL February 2016

• 46,462 SF, SF, Three Three • 46,462 Story Medical Medical Story Office Building Building Office • 80 Free Free Surface Surface • 80 Parking Spaces Spaces Parking • Recently Renovated Lobby • Generous TI Allowance

Up toOwnership 16,014 New NRA Available 1,000-56,000 Five Level, Class B NRA Available Office Building Building Identity Available Renovated in 2014 Beautiful Atrium Property Secured Lobby with Granite

by Security Gate & Finishes Card Key Access

• Three Story Office Building • Beautiful Fully Remodeled Lobby & Common Areas • Conveniently Located Across Bayshore Medical Center • Generous • Generous TI IT Packages Allowance

• 1,000-40,000 • 1,000-40,000 NRA NRA Available Available • Completely • Completely Remodeled Remodeled in in 2015 2015 • Private Corner Corner • Private Balconies on on Upper Upper Balconies Floors Floors • Located near near FM FM • Located 1960 & & I-45 I-45 in in 1960 Champions Forest Forest Champions

OFFIC E OFFICE • 1,510-2,398 SF Available in • Suburbs Full Building, of the 72,000 NRA Galleria Available for Lease • Common Areas, • Lobby New Ownership & Restrooms in • Remodeled Beautiful Atrium 2015 Lobby, High End • Monument Signage Finishes & Lush Available Landscaping • Numerous Secured Covered Shopping Parking Centers & Restaurants Nearby

• Two Story Medical Office Building • Renovated in 2008 • Up to 2,392 SF

908 908E. E. SOUTHMORE SOUTHMORE

908 E 908 E Southmore Southmore Blvd, Blvd, Pasadena, TX TX 77502 77502

PASADENA PROFESSIONAL PROFESSIONAL PASADENA

3315 Burke Burke Rd, Rd, Pasadena, TX TX 77504 77504

NORTHCHASE BUSINESS NORTHCHASE BUSINESSPARK PARK

14505 14505 Torrey Torrey Chase Chase Blvd, Blvd Houston, TX 77014

1505 HIGHWAY HIGHWAY 66 1505

• 1, 1,117-10,551 117- 8,849 SF Available • Lobby & Common Areas Remodeled in 2014 • Covered two Two (2) (2) story Story parking Parking garage Garage • Located • Located near near the the Energy Energy Corridor Corridor

Personalized Service. Proven Results.

1505 Highway Highway 66 www.tarantino.com Houston, TX TX 77077 77077

• 46,462 SF, Three Story Medical Office Building • 80 Free Surface

908 E. SOUTHMORE

WOODFOREST SHOPPING SHOPPING CENTER WOODFOREST CENTER • Up Up to to 11,017 30,979 SF SF • Available Available End Cap Cap Available Available • End NWC I-10 I-10 EE • NWC Frontage @ @ John John Frontage Ralston Ralston

10907-11095 I-10 East 10907-11095 Houston, TX 77029 Houston,

RETAIL RETAIL

RESEARCH PLAZA RESEARCH PLAZA

19189 I-45 North 19189 Shenandoah, TX 77385 Shenandoah,

DE DE ZAVALA ZAVALA

12770Cimarron Cimarron Path, Path 12770 SanAntonio, Antonio, TX 78249 San 78249

1005 INDUSTRIAL

• Up to 6,882 SF • Up to 6,845 Retail Space Retail Space Available Available • Easy • Easy Access Access to to Highway Highway 6 6& & U.S. U.S. Hwy Hwy 59 59 • Traffic • Traffic Count Count Exceeds Exceeds 30,653 30,653 CPD CPD

• 3,965 3,965 SF SF End End Cap Cap • Available Available Freeway Visibility Visibility • Freeway from I-45 I-45 North North from • Ample Ample Parking Parking • Anchored Anchored by by Walgreens, Walgreens, Party Party City, Subway City, Subway

• Hard Corner Corner of of • Hard Hwy 90 90 & & Dairy Dairy Hwy Ashford Ashford • Up to 3,901 2,170 SF Available • Great Co-Tenancy • Traffic Count Exceeds 78,000 CPD

• 3,000 3,000 –- 10,000 • 10,000 SF, Flex Flex Office Office & & SF, Biomedical Space Biomedical Space Available Available Climate Controlled Controlled • Climate Warehouse Warehouse • Generous Generous Tenant Tenet Finish-Out Finish-Out Allowance Allowance • Northwest Northwest Location Location with with Easy Easy Access Access to to I-10 I-10 & & 1604 1604

• Suite 250: 4,225 • SF 16,346-40,029 Warehouse & NRA Available 3,336 SF Office for Lease Space Available • Easy Access to 8. I-45 Beltway 8, & IAH and IAH Semi-Dock High •2 Conveniently Loading Bays Located to Accommodate •1 Up- Ramp Land, Air Drive & Railin Allowing Transportation Access • Air Conditioned Warehouse

INDUSTRIAL INDUSTRIAL • 10,663 SF Available • 3 Phase Power • 18ft Ceiling Height • Easy Access to Beltway 8

1005 Industrial Sugar Land, TX 77478

Houston, TX 77063 (713) 974-4292

3340 FM 3340 FM 1092 1092 Missouri City, Missouri City, TX TX 77459 77459

SUGAR SUGARPOINT POINTSHOPPING SHOPPING CENTER CENTER

9920 Hwy Hwy 90 90 Sugar Land, TX TX 77478 77478

1540215340 VANTAGE PARKWAY E VANTAGE

15402 15340 Vantage Parkway Parkway E, E, Houston, TX 77032 77032 INTERCONTINENTAL BUSINESS PARK

LEGACY PARK BUSINESS CENTER • Stand-alone 15,000 SF Building • (3) 10ft. Roll Up doors- Grade Level Loading • Warehouse Ceiling Height 20ft.

• New Roof

CORPORATE OFFICE: WOODFOREST CENTER 7887 SanSHOPPING Felipe, #237

TOWNSHIP TOWNSHIP SQUARE SQUARE

• 3500 SF, Air- Conditioned Space Available • Deed Restricted Business Park Located at the Corner of Fallbrook & Beltway 8 • Tilt Wall Construction with Decorative Interior Walls

15344 Vantage Parkway E N. 10930 W. Sam Houston Parkway Houston, TX 77032 Houston, TX 77064 SAN ANTONIO OFFICE:

AUSTIN OFFICE:

TOWNSHIP 12770 Cimarron Path St. 122 502 East 11th Street, #400SQUARE February 2016 San Antonio, TX 78249 • Up to 6,845 Retail Austin, TX 78701 Space Available (512) 302-4500 • Up to 11,017 SF 212-6222 (210) Available

• Easy Access to

9

Credit: KDC

Toyota Campus

Nothing Plain About Plano Texas’ 9th Largest City Makes the Case for Why It’s #1

BY BRANDI SMITH

Its terrain might be as flat as its name suggests, but Plano’s stock is rising as fast or faster than any other city in Texas. The community of 270,000 added a staggering 11,000 job to its economy in 2014 and 2015 with an onslaught of corporate relocations guaranteed to add to that total in the years to come.

“We're a big city and we're a strong community,” said Plano Mayor Harry LaRosiliere. “Despite being the ninth largest city in Texas and 72 square miles in size, we still have a sense of community and that really is a difference maker.”

“Plano 3.0”

Plano got its start in the 1840s, with its name coming from the Spanish word for “flat” (“llano”). Railroads helped the city thrive into the early 1900s, but the population exploded to 72,000 in 1980 from just 17,872 a decade before.

10

February 2016

“In the 1980s, we were a bedroom community of about 80,000. All the jobs went to Dallas during the day,” explained Mayor LaRosiliere.

In addition to a growing roster of residential residents, Plano began to add corporations as well, including JC Penney and Frito Lay. By 1990, the city’s population had passed that of the Collin County seat, McKinney, and it continues to grow.

“In the next two decades, we grew from 125,000 to 250,000. We were one of the fastest growing cities in America and we were known as the big suburb of Dallas,” Rosiliere said.

“In the next two decades, we grew from 125,000 to 250,000. We were one of the fastest growing cities in America and we were known as the big suburb of Dallas,” Rosiliere said. “Plano is rated one of the safest cities in America. Our

schools graduate 98 percent of our kids.

Accessibility, mobility around town is great. We have a very educated workforce.

Two thirds of our adults have a bachelor’s or master’s degree.”

The mayor, who took office in May 2013, describes the latest phase of development and growth “Plano 3.0.”

“We are now our own city. We have our own identity. We're vibrant and safe,” he said. “We offer our citizens a varied, various cultural and educational opportunities. We're comfortable to compete on the global stage for any business, family or individual that's looking for a home.”

With its own identity comes the challenge of balancing development needs, something the city started preparing for years in advance.

“We've done things like hire more people on our planning and building inspections, so that the ease and facility of the construction and the projects are moved along in a manner that is conducive, because we all know in business time is money,” LaRosiliere said. “We even created a position of special projects director for major projects of a certain size, or square footage, or scope.“

“Best of both worlds”

Plano’s special projects director is no doubt busy with one corporation after another announcing its move to the city.

“Plano is experiencing unprecedented growth from a corporate side,” said Mayor LaRosiliere. “As of the end of last year, before we had the last two announcements of JP Morgan and Fannie Mae, we've created nearly 11,000 jobs in the past two years, with a median salary of a little $75,000 per job.”

Because the city is surrounded by other municipalities, it cannot expand its boundaries.

It is, however, making use of what little undeveloped land remains within its limits with the help of companies such as KDC, a commercial real estate

company that got its start in Texas back in 1989.

“KDC is very customer-focused and tenant-driven, so our clients kind of tell us where to go,” said Colin Fitzgibbons, the company’s vice president. KDC is currently working on the Legacy West project, which already has several big names attached to it.

“The corporations that we're fortunate to do business with have been attracted to that best of both worlds scenario where you get the convenience of the suburbs but the vibrancy of an urban area,” Fitzgibbons said, explaining why its clients chose Texas’ ninth-largest city over some of its peers.

Plano currently has 33 companies with 500 or more employees, of which 15 have

FedEx Campus

at least 1,000 employees.

Those corporations include FedEx Office, Hilti North America, Toyota, Liberty Mutual and Capital One.

It was far from the first to move its headquarters to Plano, but Toyota’s decision to relocate its North American headquarters there seemed to usher in a new wave of development.

The automaker is currently building its $350 million facilities, which include seven towers, in KDC’s Legacy West development. The project, initially set for 1.3 million square feet, has grown in scale substantially and is now up to 2 million square feet.

“We’re just about done with the final, final estimates,” Jim Lentz, Toyota North America’s CEO, told The Dallas Morning News. “In the next 90 days, we will nail that down.”

Construction on the massive complex is set to be complete in early 2017, even as the company tries to determine just how many of its employees will relocate to the Lone Star State.

Legacy West

“Toyota sent about 400 of what they call ‘pioneers’ to live here and kind of scout the area out for the rest of the company,” Fitzgibbons explained. “The company maybe felt that 40 or 50 percent of the folks would make the move from California to Texas, but because those pioneers have had such a great experience here, [Toyota] really thinks that maybe 75 or 80 percent of the folks will make the move.”

Just months after Toyota North America announced its decision to call Plano home, Hilti North America opened the doors to its new corporate offices there. The company, which specializes in tools and fastening systems for

the construction industry, has roughly 250 employees working in the two floors it leased in the 23-story Legacy Tower.

CEO Cary Evert told the Dallas Business Journal: “While we wanted to relocate the headquarters to a city with a thriving business environment, we also wanted to ensure that our team members had a great place to live. We feel that Plano is that city."

FedEx Office’s managers obviously felt the same, opening their new 265,000-square-foot headquarters in October 2015. The $40 million space provided the company and its 1,200 employees with room to grow as needed, according to Ari Spitzer, vice president of real estate and development for FedEx Office.

“The facility brings our team members together under one roof, increasing collaboration and enabling us to provide even better support for our internal and external customers,” said Brian Philips, the company’s chief executive officer.

“We are a mature city”

A question that may stand out to those outside of Plano might be: why? Why are so many of these international corporations relocating to a city that typically flies under the radar. The answer is a list of qualities that, city leaders say, makes Plano stand out.

“We’re a safe city. We have a fantastic school district and we have a terrific infrastructure. Those are the three key components.

The fourth one is what I call the secret sauce, which is our people,” said Mayor February 2016

11

Credit: KDC

Hilti North America Campus

Credit: Granite Park

Granite Park Development

LaRosiliere. “The labor pool here is really deep. The companies that are moving large numbers of jobs here or even small numbers of jobs are having no problem at all filling those positions and finding the talent that they came here to seek.”

Not only does Plano provide an excellent area for employees to live, it cultivates an environment where businesses can thrive.

“There's no state income tax. There's a right to work state so that makes it a little bit easier to do business. Most of the municipalities here are very business friendly and have a can-do attitude in terms of helping companies get things done. It's in the Central time zone, which seems to be pretty attractive to businesses.

We've got 2 major airports that can get you anywhere virtually,” explained Fitzgibbons.

Those attributes only mean the city can expect more attention from international corporations in the years to come.

Barely a few weeks into 2016, Plano city leaders were already celebrating relocation announcements from Fannie Mae and JP Morgan Chase, which will bring an estimated 8,000 more jobs to the community.

“Companies are consolidating here and they're able to find the talent that they 12

February 2016

need to run their business so it's been great to see the explosive growth in the past three to five years and I do hope it continues,” Fitzgibbons said, though he admitted that it’s difficult to predict if and when lightning will strike again.

“These kind of mega-projects seems to fall out of the sky,” he said.

KDC’s Legacy West, however, is expected to blossom in 2016 and buildings finally start to take shape.

“This is going to be a construction year for Legacy West,” Fitzgibbons said, “but in 2017, we'll have grand openings for the retail, the hotel and a couple of the office buildings.”

Plano city leaders also admit continued corporate growth at the the current level is likely unsustainable.

“I don't know that we'll grow exponentially from here because as of last year we had maybe about seven percent of our undeveloped commercial property left, but enough to still make an impact on the community,” said Mayor LaRosiliere. “From there, it's redevelopment because we are a mature city. There are going to be places that may need to change from what it was to something new.”

There are many ways to describe the evolution that lies ahead for Plano explosive, captivating, astounding, exponential - but flat is certainly not one of them. ●

- -

Wolverine Property Management LLC

Cinco Ranch Office

Superb Prestigious Corner Location SEC Mason Rd & Fry Rd., Cinco Ranch Lease Offering Data

Space Available:

15,000 +/- SF (can be subdivided-call for terms) Space Condition: 2nd Generation Term: 5+ years (negotiable) Base Rental Rate Space: $24.00 PSF NNN NNN Charge (2015 Est): $11.00 PSF/Year (Landlord paying electric!)

Parking Ratio: 4 per 1,000 SF • • • •

Property Data/Attributes

5005 S. Mason Road, Katy, TX 77450 Newly Constructed 2010 Two Story Building Easy access to Grand Parkway and West Park Tollway Area Demographics

2013 Total Pop.*

FOR LEASE

2013 Avg. HH Income*

1-mile

3-mile

5-mile

11.857

105.681

202.320

$199,351

$132,960

$124,086

*Demographic Data Source: ESRI 2015 Forecast

Contact: Roxanne Edmond February 2016 281.391.9252 Roxanne@wolverinepm.net

13

civil fair play

Everything’s Bigger in Texas: Reforming the Lone Star State’s Ballooning Property Tax System

BY BRANDI SMITH

The month of January provides an opportunity to reflect on the year that was, look ahead at the year that could be and, without fail, take a punch to the gut when you open your property tax notice. Over the past few years, residential and commercial property owners in Texas have watched the amount they owe steadily increase.

“Property taxes, if you look at opinion polls, are probably one of the least popular taxes around and part of the reason is that they’re paid in a lump sum,” said Jim Popp, managing partner of Popp & Ikard, which bills itself as “The Property Tax Firm.”

Texas is one of just nine states without a personal income tax, a benefit for its residents to be sure. However, that shifts the burden of state and municipal revenue to sales and property taxes. In fact, property tax is the largest tax assessed in Texas, generating more than $45 billion dollars for taxing units in 2013, the most recent year full data is available.

The Texas Comptroller, in its 2012 report Your Money and the Taxing Facts, reported that property taxes outgrew population by a nearly 5 to 1 margin between 1992 and 2010. The revenue shot up so much in that time that it’s now almost twice that of the second-largest tax: sales.

“Sales taxes can vary dramatically based on the economy from year to year,” said John 14

February 2016

Hightower, partner at Olson & Olson. “Sales taxes will go up and down, but property taxes are much more consistent, much more dependable.”

According to analytics site WalletHub, the average Texan pays $3,327 in property taxes, the 6th highest rate in the country. Compare that to the national average of $2,089 or the averages of our neighboring states, such as Arkansas ($1,068), Louisiana ($832), Oklahoma ($1,499) or New Mexico ($1,249).

Voters in the Lone Star State made it known in November 2015 that they were fed up with the rising taxes, buoying Proposition 1 with 86 percent support.

Some critics of the state’s property tax system, including Senator Paul Bettencourt,

label it “riddled with inconsistencies.”

Bettencourt, who is CEO of Bettencourt Tax Advisors and former Harris County Tax Assessor-Collector, is chairing the governorappointed Select Committee on Property Tax and Relief.

In our January issue, Bettencourt told REDNews, “We’re looking to make tax rates and appraisals more consistent across the state.”

However, Popp, who primarily represents commercial property owners in their fight against appraisal districts, defends how Texas does business.

“The system is really not broken. We have probably the most fair, accountable and transparent property tax system, I think,

TEXAS PROPERTY TAX - BY THE NUMBERS The most recent complete data from the Texas Comptroller reveals that nearly half the taxes generated in Texas come from property owners.

TYPE OF TAX

2012 TAX AMOUNT

% OF TOTAL TAX

2013 TAX AMOUNT

% OF TOTAL TAX

PROPERTY

$42,750,397,415

45.79%

$45,266,935,369

45.21%

STATE SALES

$24,191,240,632

25.91%

$25,943,807,086

25.91%

LOCAL SALES

$6,526,901,584

6.99%

$7,073,231,268

7.06%

OTHER

$19,887,878,117

21.30%

$21,837,238,580

21.81%

TOTAL

$93,356,417,748

100.00%

$100,121,212,303

100.00%

in the United States,” insisted Popp. “I’ve drafted and pushed to passage about 50 changes to the property tax law in the past three [legislative] sessions and I’m always trying to fine tune it.”

Popp agreed: “Our chief appraisers are doing an admirable job and I think generally they’re doing a real service to the taxpayers.”

According to the Texas Comptroller, “an appraisal district in each county sets the value of taxable property each year.” It does so by assessing properties at least once every three years. That means that on January 1, the 254 districts in Texas are required to set a market value for each of the parcels within their boundaries. They typically do this through a series of mass appraisals.

“Then if I’m not happy with the results, I would appear before a three-member panel of the appraisal review board,” explained Hightower, who defends districts when the dispute escalates to a lawsuit.

To understand how property taxation in Texas works, one must examine its two sides: the property value set by appraisal districts and the tax rate set by local jurisdictions.

“It’s very expensive as it is to do a mass appraisal on that many properties, but if you sat down and hired an individual appraiser to do an individual appraisal on each piece of property, it would cost a phenomenal amount of money,” Hightower explained. “In some cases, the cost of appraisal would exceed the amount of taxes that would be generated from the property.”

As with any process completed in bulk, Hightower said some compromises must be made.

“The process of appraising property is not an exact science,” said Hightower. “People who have looked into the issue recognize that the margin of error is something like 10 percent to 15 percent.”

Even so, Hightower argued against changing the educational process for appraisers: “There are very stringent training requirements currently and the science of doing mass appraisal is pretty well developed.”

Once a value has been set and the notice mailed, the property owner has choice of paying the bill or contesting it. The latter decision, depending on which district issued the notice likely first results in an informal meeting with staff.

“We only represent local government, we have since we were created 40 years ago,” he said, referring to the firm of Olson & Olson.

A marginal number of cases make it to court. Using Harris County as an example, of the more than 1.6 million properties that are taxed each year, just a few dozen will make it to trial.

“When I talk to the Legislature, I tell them, ‘Look, if you were only completely wrong 25 times out of a million floating decisions, I think you’re doing pretty darn good,” Popp said.

Despite Hightower often being on the other side of a case from Popp, the two seem to agree that though this first branch of property taxation receives the most complaints, that is typically to blame not on appraisal districts, but on the local jurisdictions that set the tax rate.

“People complain about the values rising on their commercial property, but they’re really complaining about the increase in taxes as a result of the value rising on their commercial property,” said Popp.

February 2016

15

civil fair play His approach to solving the issue is at odds with Hightower; Popp suggests reining in the local agencies that set the rates, whereas Hightower emphatically supports local control of those rates.

“I think some of the focus is on how do we find ways to control, limit or watch growth in government spending?”

Popp said. “The problem is that many of the homeowners out

likely to hear the increasing calls for an end to Texas property tax all together. Proponents of this approach, which was laid out in a 2012 study by the Texas Public Policy Foundation would replace property taxes with an expanded sales tax. The report suggested the change could create new jobs and increase personal income.

Whatever information the committee gathers, the senators will present their results and

“The process of appraising property is not an exact science. People who have looked into the issue recognize that the margin of error is something like 10 percent to 15 percent,” Hightower says. there don’t understand that the increase in their value is not the direct result of their taxes; what’s happened is values go up, but taxing units leave rates the same. The result is: they get more revenue.”

“Property taxes are a big part of the revenue of cities,” said Hightower. “They have money from property taxes, sales taxes, franchise fees and user fees, but the most dependable and substantial source of revenue for cities is property taxes.”

Jim Popp

recommendations to their fellow state legislators. Then begins an entirely new process of debate and negotiation, which, in the end, will weigh the financial needs of taxpayers with that of the cities and counties in which they live or do business.

“The system,” said Bettencourt, “is out of balance.” ●

John Hightower

That’s why, he argues, a city’s residents should be the ones to decide whether rates are too high or, in some cases, too low.

“It would be a shame if their citizens couldn’t say, ‘OK, we’re willing to pay a little more taxes in order to get our streets rebuilt more quickly,’” said Hightower.

The issue of rate control is bound to be considered by Sen. Bettencourt’s committee as it tours the state to gather information from the taxpayers themselves. The group is also 16

February 2016 Paul Bettencourt

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Houston's Industrial Energy Lookout SUPPLY

DEMAND

Total stock: 400,607,763 s.f.

Total energy occupancy: 89,441,053 s.f.

Q3 2015 vacancy: 4.7 % Under construction: 9,710,453 s.f.

Construction pre-leased: 38%

YTD net absorption: 1,540,247 s.f.

YTD net absorption by energy tenants: 61.4 % Energy demand: 7,364,450 s.f.

Energy market themes RISING GIVE-BACKS: As a result of some of the nearly 200,000 worldwide layoffs that have occurred in the energy sector, Houston’s industrial market has and will continue to feel an impact in terms of sublease space. As M&A activity has picked up, so too has the amount of sublease space on the market, with a 400 percent increase occurring in the past 12 months to the current 2.1 million square feet of space available.

LOCATION IS EVERYTHING: Within Houston’s industrial market, there remains a line of demarcation in place between the east and west side of the city when it comes to energy. The eastern portion of industrial Houston is enjoying a jolt thanks to the nearly $30 billion in petrochemical growth slated to occur over the next five years as the industry capitalizes on the ethane advantage currently in play.

GROWTH ON THE HORIZON: The petrochemical advantage that Houston is poised to feel over the next 10 years will have a trickle down effect. As plants begin to come online in the next 24–48 months and the products (PVC and plastic resin) are produced, it is anticipated that an additional 20–30 million square feet of real estate across Houston will be needed to handle the logistics involved in the manufacturing, storage and exporting of these goods. This need will be felt across all Houston’s industrial submarkets and the Port of Houston in 2016 and beyond.

RENTAL RATE Overall market: $5.99 p.s.f. NNN Energy submarket: $6.49 p.s.f. NNN Change in energy submarket rent (Q3 2014- Q3 2015): 11.5%

Outlook

for Tenants • •

Stable and well-positioned energy tenants will be able to drive the terms during leasing discussions Tenants will look to second generation space within prime submarkets due to rental rate increase

for Landlords • •

Potential uptick in sublease space along with spec construction presents challenges for leasing Continued blue and white collar job cuts by midstream and downstream companies will cause tenants to contract space and potentially hit pause on long-term lease renewals

DEVELOPMENT PIPELINE (S.F.)

EMPLOYMENT PICTURE (12-MONTH NET CHANGE, 000S)

2015 significant energy company transactions

Franklin Valve Prologis Northpark 12 132,600 s.f.

120 months

Spitzer Industries 2902 E. 13th Steet 100,000 s.f.

240 months

Spitzer Industries 2902 E. 13th Steet 100,000 s.f.

240 months

© 2015 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

18

February 2016

Industrial Lease

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February 2016

19

1/6/2016 11:04:04 AM

Forecast 2016

Healthcare Real Estate Trends

BY BETH YOUNG Senior Vice President Colliers International-Houston

Many 2016 healthcare trends will continue from 2015; but some trends will be more noticeable. Overall, medical providers want to be more accessible to patients, provide better care and lower expenses.

For real estate investors who focus on healthcare properties, here’s a list of what you may expect: • The greatest demographic factor to affect healthcare: age!

Everyone knows about the Baby Boomers and the effect they will have on healthcare; but did you know 35% of all men over age 25 are considered obese. The work/life balance is now more important than compensation. As people age, they move closer to their children. Family members are making choices for their parents. The demographics in the U.S. will continue to evolve, so developers and landlords will adjust and put more emphasis on flexibility for their clients.

• The greatest amount of ambulatory care or outpatient care is occurring off-campus or away from the main hospital.

• There has been a narrowing of the gap between cap rates for various healthcare property types.

The world capital markets and the lack of available properties for sale are driving this change.

• Institutional investors have moved toward real estate and view medical real estate as a stable alternative.

• Average national cap rates are still around7 % with plenty trading higher; but some investors are dealing with cap rates in the fi • Developers’ viewpoint: Hospital campus driven deals two to three years ago were in the eight caps.

Now off-campus credit-tenant leases with a health system are in the sixes or lower. Developers’ 20

February 2016

IRR is now going into lower teens or single digits. Their debt cost is higher than yield in some cases.

They underwrite based on the dividend yield if held ten years.

Renewal probabilities are a big factor. Developers are finding that an 80% chance of renewal isn’t a good assumption any longer because doctors are moving more often to new buildings with newer systems.

grab the patient, brand them as your client, and keep them in the health systems’ in circle.

• Freestanding EDs (FEDs) and urgent care centers seem fragmented and you could see some consolidation long term if they don't have a health system backing. It’s the retailing of healthcare.

• REITS are bigger now, so they need to buy bigger transactions.

Some REITs say they're carrying elephant guns - but there aren't many elephants out there.

• The triple aim: better access to higher quality healthcare at a lower cost.

• There's a real "speed to market" need to get on a good corner, because a competitive health system will be planning to be on the opposite corner.

• Additional parking solutions: When beds increase, parking needs increase. Onsite is not going to be an option in many cases,

• Financing - there will be more joint ventures between systems and providers.

• Net-leased sales by physicians for surgery centers and other medical properties require the right buyer because the doctors want a good long-term relationship.

• Other hot property types: freestanding ED’s (emergency departments/centers). Texas and Colorado are expanding in this area quickly. The idea is to

• The pure multi-tenant building is a dinosaur. It will be replaced with hybrid buildings: 50% system-employee space, 50% independent private doctors.

• Many developers are doing large single-tenant projects.

• Indication of an uptick for development: Attorneys are seeing more rights of first refusal on land, options to buy, etc.

Overall, we’ll continue to see plenty of money for healthcare property investments, but not enough highquality properties on the market for all of the investors. That will encourage some investors to take more chances, and perhaps try out some value-add opportunities. The challenge will be to educate the sellers of challenged investments to be realistic about their pricing. ●

Excerpts from Beth Young’s Healthcare Real Estate Trends Report. To read the full report, log on to rednews.com/heathcaretrends.

MEDICAL SPACE FOR LEASE

15210 Interstate 45 S at The Woodlands, TX

• Lease renewals are down due to functional obsolescence for medical tenants. The physician groups that were bought by hospital systems are in place now, but will be moved to higher quality functional MOBs in the future.

• Developers will act as a "trusted advisor" to health systems more often. Otherwise, they will have to compete with health systems who can develop their own buildings and then monetize them once they're occupied.

so hospitals are getting leases or easements to increase parking.

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SWC of I-45 & FM 1488, Adjacent to The Woodlands 2 miles to Major Hospitals: CHI St. Luke’s Health Hospital, Methodist Hospital, Texas Children’s Hospital, Memorial Hermann Hospital, Texas Children’s Pediatrics, Conroe Medical Center, Aspire Hospital, Conroe Cancer Center Area Demographics 5 Miles Up to 44,000 SF Available Population 89,717 $12.00-$23.00/SF New construction Projected Growth 21% I-45 visibility & access Average HH Income $112,961 Multi-Tenant pole and monument signs Stone façade & Landscaped courtyard Traffic Counts 2015 New paving & LED lighting I-45 126,000 CPD 3 end caps & 244 parking spaces

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19426 OIL CENTER BOULEVARD For Sublease - 11,820 SF Industrial Office/Warehouse

• Total SF is 11,820 - 9,000 SF Warehouse - 2,820 SF Office

• • Easy access to Hardy Toll Road, Sam Houston Tollway, I-45 and Highway 59 • 34 buildings - multiple space and dock layouts

• Power: 480 AMP / 480V / 3 Phase • Sprinklered with clear heights of 19’ to 22’ • Land or fenced area: 41,616 SF • Easy access to Hardy Toll Road and FM 1960

Contact: John Ginder or Brad McGuire

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• Economically priced, small plug and play spaces

5655 W. SAM HOUSTON PARKWAY N.

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For Lease - 15,000 SF Office/Warehouse

Building and Land For Sale or Lease

• Free standing, new construction shell building

• 277,000 SF on +/- 20 Acres

• Beltway 8 frontage and signage

• 17’ to 24’ clear heights

• Close to City Centre amenities

• +/- 50 oversize roll up doors

• Generous TI allowance

• +/- 50 One-ton to Two-ton crane systems

• 2 oversized grade level doors

• Distribution sites - new roof installed in 2013

Contact: Bill Ginder, CCIM, SIOR

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Caldwell Companies has the extensive local experience and unmatched market expertise needed to serve your industrial leasing and brokerage needs.

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February 2016

21

BY BRANDI SMITH

Why Houston?

Allegiance Title Expands to the Bayou City Independent. Experienced. Resourceful. Diverse.

They’re words one could certainly use to describe the city of Houston, but they’re just as well suited for Allegiance Title Company.

The Dallas-based title services firm truly got its start back in 1995 when Dawn Moore formed the company with two others. After selling in 2003, she bought the name back five years later and started over.

“She started over again in 2009 and we have now grown to 20 offices,” said John Hall, Allegiance’s executive vice president of business and strategic development.

In the late ‘00s, while other companies were still cost cutting, Moore rapidly expanded Allegiance’s reach throughout Dallas by scooping up employees whose value she easily recognized.

“During that down time, it had to do with the fact that Allegiance is a privately owned company that bases its business decisions on long-term growth. We know the value of our employees,” Hall said.

Within a short time, Allegiance had built a solid foothold in the real estate industry just in time for the current building boom. “The commercial market returned in 2011 and our Dallas commercial division, led by 35 year veteran Traci Miller, was already in place to capitalize on its return.” said Hall.

“As an independent agent, we were top 10 in the state, conceivably the third largest,” said Hall. “It's a team effort. Every office is helping us grow as a company and all the offices assist one another in their individual growth.”

Because Moore didn’t want to stack those offices on top of each other in the Dallas market, the company started looking at opportunities for expansion in other parts of the state. Houston moved up to the top of the list very quickly, according to Hall.

22

February 2016

“It just seemed natural. The only way we were going to be able to continue our growth was to move into additional cities.

We committed to Houston. It was the most logical choice due to its diversity, opportunity and potential. Houston is one of a kind and we are thrilled to be here,” he explained.

While the choice was simple, the move itself proved to be a challenge. Many players in the Houston title industry were gun shy about joining a new firm. All too recently, an outof-state company had made the same move and, after just more than a year, bailed on the Bayou City and its employees.

“A year ago, I began to visit with several folks in the industry and they all had the same reaction, ‘We'd love to go work for a company that's like the one you described, but we don't want to be the first,’” Hall recalled, which prompted a heart-to-heart discussion with Moore.

In the end, they made the call to demonstrate their commitment to the market by purchasing an existing company.

Shortly thereafter, Hall met William V. “Vic” Condrey, then the owner of Houston’s Riverway Title Company. Condrey did end up selling his company, though not to Allegiance. Instead, he and his team opted to come on board with Hall and Moore to open Allegiance’s first Houston office.

“We're starting with six people who just have stellar reputations in Houston and we couldn’t be more excited,” Hall said.

Those six people include Condrey, as well as Alicia Hicks, Katie Guillory, David Ratchford, Hap Peyton and Chuck Townsend.

“The thing I like about Allegiance is that it’s not a mom and pop shop and it’s not a huge

conglomerate,” said Townsend. “It’s just right.”

“Allegiance values each of our staff members for their abilities and diversity. Often you’ll see larger, national companies advertise, ‘Join our team, you will have more job security.’ But in reality, it isn’t the size of the company that renders security or stability; it is the company that values and invest in its employees.

Allegiance does just that,” Hall said.

That’s something Condrey, Allegiance’s executive vice president and director of Houston operations, knows all too well. After many years of practicing real estate law, he ventured into title insurance when Chicago Title brought him on as a fee attorney. He went on to start his own business in 2000 when he opened First American Title Tanglewood, then launched Riverway in 2012. The next step: Allegiance.

“It is truly a first-rate organization that excels in professionalism, integrity and hard work,” he said. “I am honored to have the opportunity to grow their Houston division.”

Peyton, a native Houstonian, has spent the majority of his career in commercial real estate. Allegiance’s new vice president of business development said the title insurance industry in Houston comes with its share of challenges, such as uncertainty, but those are far outweighed by the opportunities it provides.

“Local investors are now in position to make competitive offers without the institutional players jumping in with significantly higher bids,” Peyton said. “In addition, refinances have been a significant source of business for title work in the current market.”

Vice president and senior escrow officer Hicks agreed, saying, “The current market is great

for purchasers. It’s a good time to buy now.”

An Aggie, Hicks has lived in Houston almost her entire life - all but those four years spent at Texas A&M University bringing considerable market insight to Allegiance.

“I love the complexity of the title insurance industry in Houston,” she said. “There are so many different types of transactions here.”

Townsend echoed that: “Almost every real estate and financing transaction requires title insurance. With such a diverse city, you get to see all types of real estate transactions.”

Along with variety, Allegiance’s Houston team said the third largest city in the country is booming, despite the current fears over oil prices.

“With the long-range projections of continued growth of Houston and Texas, the demand for real estate should grow with it,” said Ratchford, Allegiance’s commercial examiner and escrow officer.

“Right now, industrial seems to be a very hot market on the east side,” said Townsend, who has nearly 40 years of experience in Texas commercial real estate industry. “You hear about the doom and gloom with energy and oil - and there is

some truth to that - however, there are other areas within energy that are doing very well.”

Along with their vast knowledge of the town they call home, the Houston staff brings considerable experience in the commercial real estate world to the table, which complements Allegiance’s reputational strength in the residential market.

“To start with a commercial department and then grow residentially is the perfect combination for us,” Hall said. “We have a residential office opening in the first quarter and will continue to grow our residential moving forward.”

As an independent agency, Allegiance is able to work with many of the top title companies in the country, an important and invaluable tool for its clients.

“That's the sizzle that I personally love: you have a lot of options to get the deal done,” Townsend said. “We write for the top five companies that insure title. We have access to options that company-owned operations do not.”

Now that its Houston office is staffed, Allegiance is ready to demonstrate what has made it so successful in Dallas.

“The neat thing about title insurance is we touch so many different parts of the real estate transaction. It's never boring and no two days are the same,” Hall said. “That's what I like about it the most. We say the one constant in the title business is change.

The people who have been in it forever will tell you it's in their blood. They thrive on the constant challenge and unexpected”

“It’s a great organization and I’ve been pleasantly surprised by how well everyone works together to produce great customer service for our clients and future clients,” Hicks said. “I’ve been impressed by the camaraderie and professionalism.”

Said Hicks: “We look forward to a successful year!” ●

“The Allegiance Title family is comprised of the best in the industry,” said Peyton.

“There is a long term vision for where we want to be in the future and I am excited and honored to be a part of that vision.”

Allegiance officially opened its Houston office on Dec. 1 and is working out of a temporary office while it puts the finishing touches on its Uptown office. Already a major player in Texas, Allegiance hopes to now prove that in addition to being independent, experienced, resourceful and diverse, it can add wide-reaching to its already impressive résumé.

GET TO KNOW ALLEGIANCE’S HOUSTON STAFF what is your favorite thing about Houston?

W. VIC CONDREY

executive vp & director of houston operations

“Most people in Houston are not pretentious; they are sincere and friendly.”

HAP PEYTON

vp of business development “Houstonians are easily some of the nicest and hardest working people that you’ll find anywhere.

The restaurants too. Houston has always had great food, but I think the restaurant scene in town right now is exceptional.”

ALICIA HICKS

vp & senior escrow officer “Its diversity. There are tons of things to do, see and experience here without having to travel very far.”

KATIE GUILLORY

commercial escrow assistant “My favorite thing about Houston would have to be all of the events and festivals it has to offer throughout the year.”

CHUCK TOWNSEND

vp of commercial development “I enjoy the friendly people of Houston, who are always easy to talk with.”

DAVID RATCHFORD

commercial examiner & escrow officer “I love the variety Houston offers in business opportunities and in the diversity of cultures, not to mention the restaurants!”

ray’s buzz

Interview with Doug Simpkins

BY RAY HANKAMER rhankamer@gmail.com

Doug, you have been in commercial real estate (CRE) for a long time. How did you first gravitate to the industry, and who were your early teachers/mentors?

R

I have been in commercial real estate for 51 years. Initially, my first job out of college was with a real estate appraisal firm and then I worked for two commercial mortgage banking firms for 12 years. In 1981 we started our development firm.

The appraisal and mortgage banking experience was invaluable as I learned the economics and financial aspects of a wide variety of commercial properties.

You began developing in the industrial sector. How did you choose this sector and what type of product did you

R

build: spec, or build-to-suit?

Initially we started developing spec multi-tenant light industrial projects in 1981as my partner was an industrial broker and I had been arranging financing for industrial projects for a long time. Our timing was not fortuitous as the Houston recession was just starting, but we had good equity partners and we made it through this difficult time.

How and why did you begin moving away from industrial only and into buildto-suit in other segments?

R

In 1985 we started focusing on build-to-suit projects for Federal Express and to date we have developed 18 projects for them in 15 cities and 6 states.

It is hard to get started in build-to-suit development but it is probably the most conservative type of real estate development. For the past 30 years we have specialized in single-tenant, net-lease, buildto-suit projects and have been involved with 101separate buildings in 25 cities. We have also purchased, developed, or redeveloped another 20 projects which include several ground leases and multi-tenant office, retail, and industrial properties . In total we have developed or purchased 10.3 million square feet.

Additionally, we purchased the last remaining 150 acres in the Sugar Land Business Park and the remaining 213 acres in The Park of Katy Mills. We have sold all the sites we owned in Sugar Land Business Park and we are still marketing 75 acres left in The Park of Katy Mills.

Doug, what role have relationships played growing your business over the years: with clients, lenders, national brands, etc.?

R

We have always worked with a small group of architects, brokers, mortgage bankers, banks, contractors, and other professional firms and have

FedEx build-to-suit

24

February 2016

Doug Simpkins

established close business and personal relationships with same over the years. These relationships allow us to promptly and aggressively respond to build­-to-suit proposals and to quickly start development to meet tight schedules.

Financing should be a lot easier with a build-to-suit and a take-out from the client on completion. Can you tell us a little about how financing large projects has changed during your career in general, and for you specifically?

How has structuring a deal evolved? Do you stick with the same lender/s or do you "go to market" each time you need to finance a new project?

R

It can take 6–12 months to finalize a lease agreement with a major tenant for a proposed build- to-suit project. However, pre-leasing eliminates most of the development risk and thus it is relatively easy to obtain favorable interim financing with a long-term lease finalized.

Interim financing for fully-leased projects has not changed much over the past 25–30 years.

The equity requirement has increased somewhat but most

ray’s buzz

British International School of Houston

banks will loan 80- 90% of cost when we have a major tenant. A typical bank loan is for 2 to 3 years which allows us to complete the project, and hold for 12–18 months or more before we sell or refinance the project. We only work with a few select banks and typically on new projects we receive loan proposals from 3 or 4 banks.

Can you tell us about some of the build-to-suit projects you have done- what segments of CRE and what sort of clients, local or national?

R

We pride ourselves on repeat business and we have done 18 projects for Federal Express, 11 projects for Walgreens, 4 projects for Eckerd, 4 projects for Unisource Worldwide, and 2-3 projects for Yokohama, Academy, and Garden Ridge.

We developed a 40,500 SF building for John Crane in 1990 and when they outgrew this building in 2013 we built them a 62,280 sq. ft. building.

Most of our tenants are regional or national tenants but we occasionally develop a building for local and smaller tenants if we feel comfortable with their financial condition.

You have said that you are working now on your biggest project to date in your career. Can you tell us a little about what it is and how it came your way?

R

We entered into a development management agreement to coordinate the design and development of a new campus for the private British International School of Houston.

Eventually 2,000 students (kindergarten through high school) will occupy this 275,000 sq. ft. building situated on 33 acres in west Houston. We were recommended by the architectural firm that had been selected to design the project.

And last but not least, what are you doing these days for fun?

R

I have enjoyed being a founding director of the Bank of River Oaks. This successful10-year old bank has grown steadily and presently has three locations with more to come .

Last year I purchased a 1973 XKE roadster and I enjoy driving that car when the weather

is good. I play golf 2–3 days a week in Houston and more in Aspen in the summer. We have a home in Aspen and spend a lot of time there in the summer. My wife and I also travel frequently and we go to Europe annually as well as Santa Fe and Palm Springs. ●

Offering Properties & Hotel Consulting PROPERTIES AVAILABLE • Hotel, Condo, Retail Site - Cruise Terminal - Galveston, TX • Freeway Sites - I-20 - Monahans, TX • 30 Acres Commercial/Rail Serviced - Tomball, TX • 12 Acres Residential/Commercial - I-45 - Huntsville, TX • Hotels - Statewide • Hotel/Retail/Restaurant/Office Sites - League City, TX • Knights Inn/100 Rooms - Victoria, TX • Hotel Sites.......Katy, TX

Contact: Ray Hankamer

HANKAMER & ASSOCIATES BROKERS, L.L.C.

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H & B

3) 789-7060 www.hankamer.com February 2016 Simpkins and his 1973 XKE Roadster

25

BROUGHT TO YOU BY JONES LANG LASALLE IP, INC.

Office Insight: Q4 2015 HOUSTON: 2015 Closes in the Red as Oil Volatility Catches Up 173,679,885

Total inventory (s.f.)

16.5%

Total vacancy

308,A427

Q4 2015 net absorption (s.f.)

-89,748

YTD net absorption (s.f.)

Limited pockets of activity not enough to offset significant losses in 2015: 2015 concluded as an uneven but eventful year for Houston’s office market with positive events in the fourth quarter that helped lessen the impact of the decelerating Houston office market. After a 370 basis point jump in vacancy year-over-year resulting in the first annual net occupancy loss since 2010, asking rental rates saw growth of 1.7 percent and several large leases were signed during the quarter. Additionally, despite the infusion of over 8.7 million square feet of new inventory, vacancy remained in the mid-teens.

Whether silver linings such as these continue into 2016 remains to be seen, as oil prices are to remain under $50.00 a barrel and Houston’s job growth is forecasted to be weak.

The spigot is turned off on the construction faucet: Within As M&A activity and right-sizing by companies contribute to a dramatic slowdown in leasing, a secondary (and welcome) result is the abrupt halt of new construction starts within Houston both on a build-to-suit and speculative basis. This time last year, Houston accounted for nearly 20.0 percent of all the office buildings under construction within the United States; today that number is roughly half. To further illustrate how dramatic construction has halted, when completions slated for 2016 are removed, less than 1.6 million square feet remain in the pipeline to be delivered in 2017 and 2018; making them the lightest delivery years since the recession. Looking ahead, with the inventory of direct and available sublease space growing, the likelihood of new office projects breaking ground in 2016 is slim, barring those tenants who opt for the build-to-suit route.

Building sales activity gives some positive momentum to 2015: Prices for West Texas Intermediate oil, the benchmark for American oil production, fell by roughly 31.0 percent during 2015. With Houston so deeply tied to the energy sector, the impact has been far-reaching. However, 2015 remained a solid year for office sales transactions. By year-end, nearly $2.0 billion in building sales were inked in 38 transactions. Notably, the fourth quarter saw a few Class A buildings trade over $500 per square foot including 2200 Post Oak in the Galleria submarket ($527 per square foot) and 935 N. Eldridge in the Energy Corridor ($503 per square foot). Investors still have a steady appetite for well-tenanted office buildings in Houston despite volatility in the energy market.

$29.80

Direct average asking rent

2.6%

59.1%

12-month rent growth

Total preleased

Majority of net absorption in 2015 was in new construction

Class A & B rental rates by submarket p.s.f.

More than $2.0B in office sales in 2015 935 N. Eldridge and 2200 Post Oak sold for greater than

$500/P.S.F.

DALLAS: 2015 a Banner Year for Demand and Rate Increases 162,054,191

Total inventory (s.f.)

18.7%

Total vacancy

839,434

Q4 2015 net absorption (s.f.)

4,794,274

YTD net absorption (s.f.)

6,306,180

Total under construction (s.f.)

$24.38

Direct average asking rent

6.6%

12-month rent growth

7,605,715

Total under construction (s.f.)

57%

Total preleased

Demand for space closely tied to new construction deliveries: The Dallas economy has shown great strength in 2015 with 103,500 jobs added over the past 12 months. The improving labor market has resulted in office net absorption running at more than double the 10-year average. Almost 4.8 million square feet were absorbed in 2015; while the 10-year average is about 2.2 million square feet. For 2015, the vast majority of positive net absorption was directly attributed to recently completed new construction. The Richardson/Plano submarket recorded the most new construction and net absorption, all of which were built-to-suit projects for State Farm and Raytheon, while Far North Dallas and the Downtown area saw more of a mix of built-to-suit and spec projects (FedEx, KPMG, Frost Bank, The Richards Group). ©2015 Jones Lang LaSalle IP, Inc. All rights reserved.

26

February 2016

Continued on pg. 28

FOR LEASE RETAIL SPACE • Shopping center size 75,620 SF - Built in 1985 • Retail space available (1st floor) - 1,600 SF - 4,000 SF - $13.00/SF + NNN • Aggressive lease terms • Pylon signage available • Traffic counts - 82,880 CPD (Westheimer) • +/- 592’ of frontage on Westheimer • 372 surface parking spaces available

Woodland Park Shopping Center 11380 Westheimer, Houston 77077

1 • 2 blocks west of Beltway 8 • 2,952 SF - 2nd floor • Excellent for retail, office or professional use

Kaleidoscope 10612-10692 Westheimer, Houston, 77042

Kenneth K.Y. Leung 281.467.3535 713.988.0888 x108

A A Realty Co

Accredited Management Organization

eleung8888@aol.com www.aarealtytx.com

1

2

Beltway 8 West

For more information

2

Westheimer Rd

ay Westpark Tollw

February 2016

27

Rate pressure remains in place: Though a significant amount of new construction has been brought to the market, vacancy did not increase and upward rate pressure remains strong. The 18.7 percent total vacancy rate is not low by national standards, but is low by local, historic standards.

The lower vacancy rate has helped push rates higher for all local area submarkets. Year-over-year, overall direct asking rates increased for Class A & B space by 6.6 percent, and ranged from 1.1 percent in Preston Center to 11.5 percent for North Central Expressway. Class A space is outpacing this slightly (6.9 percent) with some of the more value-driven submarkets seeing above average increases (Class A space in North Central Expressway and LBJ Freeway went up 12.9 percent and 14.2 percent, respectively).

Class A & B rental rates by submarket p.s.f.

Construction pipeline is large; high absorption needed to keep pace: Over the next year about 4.5 million square feet of space is expected to deliver to the market. Of that near term construction pipeline, over 2.6 million square feet is unaccounted for (not built-to-suit or preleased). In addition, a half dozen properties in the West End area of the CBD are in various stages of renovation that will convert them from old industrial properties into office properties. To keep new supply and demand in balance, the Dallas market will have to maintain near record absorption levels over the next two years to match the current construction pipeline.

In-demand submarkets seeing the most new construction

AUSTIN: 2015 is One for the Record Books in Austin 49,189,629

Total inventory (s.f.)

12.4%

Total vacancy

724,467

Q4 2015 net absorption (s.f.)

2,253,197

YTD net absorption (s.f.)

Record breaking citywide absorption places: Austin in second Austin closed out 2015 with the second highest citywide absorption as a percent of inventory in the nation. Coming in first place was the San Francisco MidPeninsula region at 4.9 percent (1.4 million square feet), followed by Austin at 4.6 percent (2.3 million square feet) and Silicon Valley at 4.2 percent (2.9 million square feet). Austin has never experienced a greater amount of absorption within a twelve-month period. The submarkets that yielded the greatest absorption include the CBD (722,000 square feet), Northwest (660,000 square feet) and Southwest (574,000 square feet). The first half of 2016 will also behold a period of record-high absorption as large leases executed in early 2015 will commence.

Austin ranks third in the nation for most construction deliveries: The top three markets for new deliveries in 2015 are all located within the Lone Star State: Houston with 8.7 million square feet (3.6 percent of inventory), Dallas with 4.7 million square feet (4.7 percent of inventory) and Austin with 2.9 million square feet (4.1 percent of inventory). Two large projects in Northwest Austin expected to deliver during the fourth quarter have now been pushed to the first quarter of 2016 (Research Park Plaza V and Domain 1). Fourth quarter deliveries include: Lamar Central (132,000 square feet), Aspen Lake 2 (129,000 square feet), Encino Trace II (158,000 square feet) and Quarry Oaks III (138,000 square feet). Collectively, these projects are 70.0 percent leased with the largest tenants being BazaarVoice at Quarry Oaks III (138,000 square feet) and Q2 Holdings at Aspen Lake 2 (129,000 square feet).

One in three tenants are searching in this submarket and it’s not the CBD: While demand for office space downtown is at an all-time high, tenants during the fourth quarter showed more interest in the Northwest submarket. Of 165 tenants searching for space, 32.0 percent searched Northwest (53 deals), 26.0 percent searched downtown (43 deals) and 15.0 percent searched Southwest (25 deals). While only 2.0 percent of tenants in the market (3 deals) looked Northeast, these tenants required the largest average size requirement of 110,000 square feet. Citywide searches boasted the second highest average size requirement at 83,000 square feet (7 deals) while Central ranked in at third with 53,000 square feet (11 deals).

Š2015 Jones Lang LaSalle IP, Inc. All rights reserved.

28

February 2016

$32.26

Direct average asking rent

2.5%

12-month rent growth

2,007,666

Total under construction (s.f.)

32%

Total preleased

Top performing submarkets by YTD absorption (s.f.)

Target submarkets from tenants in the market (%)

INDUSTRIAL/ RETAIL OR MEDICAL/MULTI-FAMILY DEVELOPMENT SITES N E A R E X X ON MO B I L

FM 1 1960

Tract 1

• 1,136 FF Kuykendahl Rd • 5.69 Acres NORTH FOREST

Tract 2

• • •

EAGLES AGLES LANDING

I-45

•

529 FF on Kuykendahl Road 9.92 Acres +/- 400’ NW of Ella Blvd.

Great visibility on heavily traveled Kuykendahl Rd. GLEN ABBEY Y Located in dense residential area just west of I-45 Zoning: None Utilities: HC MUD #399 Key Map: 372B

.

Rd hl da en yk Ku

• • • •

Tract 1 Tract 2 EAGLES EAG AG GLES LANDING BLUE ASH lvd.

B Ella A RT XPLAZA P LAZA AT AIRTEX-E AIRTEX-ELLA QUAIL CHASE CHAS WOODS WOOD S OF KUYKENDAHL Grand Parkway (Proposed) da

en

yk

Ku

WOODFALL WOODFALLS WOOD DFALLS COURT CO OURT

hl .

Rd Ella

PRICED TO SELL!

Blv d.

VAND RB LT VANDERBILT

Tract 1: $4.50 PSF; Tract 2: $4.50 PSF

Brokers Welcome

PARK AT KIRKSTALL RKSTALL KSTALL

FULL 6% COMMISSION PAID

Rachel S. Grant

7887 San Felipe Suite 122,

Houston, TX 77063 February 2016

(O) 713.789.3133 | (M): 281.686.2993 | RachelGrant@RSHart.com

29 R. S. Hart

Commercial Brokerage, L.L.P.

Danny Nguyen, CCIM - Broker

Environmental Due Diligence Can Get Sticky.

Let Us, Your TEXAS Environmental Consulting Firm, Help You Navigate Through Your Environmental Risks.

Melanie Edmundson, P.G., Principal 832 485 2247 Melanie@PhaseEngineering.com

Full range of nationwide professional environmental services including: Phase I and Phase II ESAs • USTs • Asbestos • Mold • Lead • NEPA Reports Vapor Assessments • Wetlands • Property Condition Assessments

events social

Scoop

bulletin

The following pages contain a calendar of Texas CRE events, networking photos and deals/announcements. For more of the above, log on to REDNews.com. We update CRE news and events daily!

GENTLEMAN JIM Commercial Real Estate lost one of the good guys in January.

Jim Cockrill was a man of style, class and charisma. Our industry got better with Jim. His time spent making commercial Realtors a highly respected profession was quite evident. Jim’s time spent volunteering and actively participating in professional organizations was very important to him. His special touch reached far beyond his profession, through his personal association with friends and colleagues and he was a terrific father to Zachary and Ben. Jim will be missed, but his passing provides an opportunity for us all to take his legacy of what he did and how he left things BETTER to make us all BETTER. We will miss Jim, and will strive to follow the legacy that he left. His selfless manner provided him with many rewards and recognition, but the value to him was that he helped others.

If Jim had a motto to leave us, I believe it would be: Be Exceptional To The End Result.

John McFarlin VP/Managing Broker Coldwell Banker Commercial Jim left behind two teenage sons that could use some help. If you would like to assist, please go to: https://www.gofundme.com/ftj8nn58

events

CENTRAL SOUTH TEXAS

February 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

BREAKFAST ULI AUSTIN

monthly breakfast series Fed 24 7:30m–9am.

austin.uli.org/events

high standards while wearing many hats. This seminar blends various strategies together that are necessary for driving the success of properties and organizations.

11:30am–2:30pm.

iremaustin.org/events/listing.phx

EDUCATION

CBA AUSTIN

CTCAR

Feb 17 11:30am–1pm.

luncheon at sullivan’s

ce course “protect your commissions and stay out of trouble"

Feb 10 The Protect your Commissions portion will review the legal requirements to earn a commission, the statutory requirements to file a commercial broker’s lien, and practical aspects to consider in connection with commission agreements. (1 hour) The Stay out of Trouble portion will review common problems and mistakes that result in violations of the Texas Real Estate Licensing Act, protective actions that can be taken, and what to do when a complaint is filed against you with TREC (1 hour).

1pm–3pm.

BOMA SAN ANTONIO

RECA

past president's luncheon

Feb 18 Please join the IREM San Antonio Past President's in honoring Ginger Miller as our 2016 IREM Chapter President. 11:30am–1pm.

iremsanantonio.org/events/listing.phx BOMA AUSTIN

program committee meeting

city of austin policy committee meeting

Feb 5 11:45am.

ULI AUSTIN

open committee meeting CTCAR

texas realtors® 2016 winter meeting

Feb 18 11:30am–1pm.

CCIM CENTRAL TEXAS

RECA

Feb 23 11:30am–1pm.

Feb 8 A presentation Mobility 35 by TXDOT's Karen Lorenzini, Project Development Manager. Discussion will follow. 12pm–1pm.

bomaaustin.org/events

MEETING

texasrealtorswintermeeting.com

regional issues committee meeting

CTCAR

RECA

member advocacy - land development code advisory group meeting

LUNCHEON

IREM AUSTIN

property information exchange "tbd" Feb 11 7:30am–9am.

BOMA SAN ANTONIO

memebership committee Feb 11 11:45am.

february 2 board & committee chair meeting

IREM AUSTIN

ULI AUSTIN

Feb 16 11:30am–1pm.

nd

Feb 2 11:30am–1pm.

program committee meeting Feb 3 11:30am–1pm.

Feb 17 1pm.

BOMA SAN ANTONIO

Feb 5–9 The association business event for the Texas Association of REALTORS®. All Day.

february monthly membership luncheon

reca.org/events

February 2016

Feb 17 7:30am–9am.

bomasanantonio.org/events

Feb 1 6pm–9pm.

32

Feb 4 7:30am–9am.

young leaders committee meeting

Feb 4 12pm.

cetalliance.com

Feb 9 With guest speaker, Dr. Debbie Phillips , PhD, CPM. The world’s most successful leaders are able to focus on the big picture and uphold

product council | housing and community development

IREM SAN ANTONIO

ccimtexas.com/web243/events/

leadership seminar & luncheon: it's all about time

ULI AUSTIN

ULI AUSTIN

board meeting

CETA

IREM AUSTIN

Feb 3 4pm–6pm.

Dr. Debbie Phillips, PhD, CPM

BOMA SAN ANTONIO

ctcaronline.com/events/event_list.asp

Feb 11 Learn how communities are bridging the gap between tomorrow’s leaders and today’s communities with some of the best experts in the field. 9am–2pm.

february 3rd board & committee chair meeting & social

cbaaustin.org/calendar/details. phx?itemid=128&navid=32

networking luncheon & presentation

ceta focus series: the classroom and the community

IREM SAN ANTONIO

candidate & future candidate information meeting

Feb 17 12pm–1pm.

management committee meeting Feb 18 11:30am–1pm.

BOMA AUSTIN

february board of directors meeting Feb 25 7:45am–9:15am.

SOCIAL CBA AUSTIN

knock out night after party Feb 4 10:30pm–1:30am.

RECA

knockout night

Feb 4 This black-tie, fundraising gala is complete with a cocktail reception and dinner, casino gaming, entertainment and more! Sponsoring this event is a wonderful outreach opportunity to position you and your company to existing and potential customers and contacts. Proceeds from this event fund RECA's continued operations as the leading voice for commercial real estate.

6:30pm–11:30pm.

February 2016

social

CENTRAL SOUTH TEXAS CREW SAN ANTONIO

JANUARY LUNCHEON From Top: Scott Joslove, CEO and President of the Texas Hotel and Lodging Association.

CREW San Antonio members enjoying the Luncheon.

Some lovely CREW San Antonio ladies attending the January Luncheon.

RECA

IDEAS FORUM

Elle Linwinetz, Candace Neal, and Chelsy Houy.

From Top: Cara Lyons and Amy Dunnem Hageman.

David Carter and Devon Vo. Ingrid Gonzalez and Alex Reyna.

Greta Goldsby and Ashley Kegley Whitehead.

Leah Baxter, and Peter P.

STCAR

2016 LEADERSHIP From Top: 2015 President Tray Bates swore in 2016 President Tip Johnson.

STCAR's 2016 President Elect Randy Summers, 2015 President Tray Bates and Catylist's Shane Hayes.

The 2016 STCAR leadership was sworn in.

BOMA AUSTIN LEADERSHIP

Welcome and congratulations to STCAR's 2016 Board of Directors!

Karisa Johnson, Texas BOMA's Immediate Past President, swears in 2016 Texas BOMA officers at today's board meeting. Congrats to all!

February 2016

33

events

NORTH TEXAS

February 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

industrial office local product council breakfast

your clients, vendors, IREM (and other professional organizations) and within your own Company.

11:30am–1pm.

irem-dallas.org/events/event_list.asp

BOMA FORT WORTH

northtexas.uli.org/events

NTCAR

Feb 24 12pm.

BREAKFAST ULI NORTH TEXAS

Feb 11 7:30am–9:30am.

BOMA DALLAS

real estate principal member breakfast Feb 16 7am.

bomadallas.org/calendar_list.asp ULI NORTH TEXAS

breakfast forum - live and learn: the interplay between redevelopment and education Feb 25 TBA.

Feb 11–12 The objective of the this course is to supplement and expand on information in TREC’s Broker Responsibility course and to cover best practices for real estate brokerage practice management.

8:30am–6:30pm.

ntcar.org/events/upcoming

LUNCHEON CREW FORT WORTH

EDUCATION BOMA DALLAS

bomi course: air handling, water treatment and plumbing systems

Feb 2 Through this course, you will learn about climate control for human comfort, the components of HVAC systems, and the basics of water treatment and plumbing systems. You will gain the skills and knowledge to perform common water tests, maintain air-conditioning systems, maintain water services, and inspect portable fire extinguishers. 5pm–7pm.

bomadallas.org/calendar_list.asp IREM DALLAS

knowledge college & pizza

Feb 18 Utilizing current technology to improve your professional life. Our speakers will go over the benefits and introduce multiple apps that are great tools for your business (and personal) needs. Additionally there have been many changes to Linked In that will be reviewed to improve utilizing this platform for keeping informed and informing 34

broker responsibility + legal i & ii

February 2016

february luncheon: six points urban village redevelopment Feb 3 11:30am–1pm.

crewfw.org/calendar.php BOMA FORT WORTH

february 2016 luncheon Feb 9 11:30am–1:30pm.

bomafortworth.org/events

MEETING IREM DALLAS

executive council meeting Feb 3 12pm.

CREW FORT WORTH

communications/pr committee meeting Feb 9 11:30am.

BOMA FORT WORTH

membership committee meeting Feb 10 12pm.

BOMA DALLAS

allied council panel Feb 17 TBA.

BOMA FORT WORTH

csc meeting

Feb 18 11:30am–1:30pm.

board meeting BOMA DALLAS

board of directors meeting Feb 25 TBA.

SOCIAL CREW DALLAS

annual industry mixer hosted in collaboration with corenet southwest, cew dallas, & naiop north texas Feb 4 5pm–7pm.

crew-dallas.org/Events.aspx

REC OF GFW

a fireside chat with jeff williams, mayor of the city of arlington Feb 11 5:30pm–8pm.

recouncilgfw.com/events CREW FORT WORTH

cfl social event Feb 16 4pm–7pm.

BOMA DALLAS

young professionals: bring your boss happy hour Feb 18 5:30pm–7:30pm.

February 2016

social

October 2015

NORTH TEXAS

BOMA DALLAS

WOMEN IN COMMERCIAL REAL ESTATE

PLANO ECONOMIC DEVELOPMENT

CEDA AWARDS LUNCHEON From Top: CEDA luncheon.

Liberty Mutual breaking ground.

BOMA DALLAS GALA

BOMA Dallas guests enjoying the “Masquerade” themed-Gala.

February 2016

35

events

SOUTHEAST TEXAS

February 2016 Calendar The events listed are confirmed at the time of printing. Please make sure to check with the event host for any changes. For the full listing of events, visit REDNews.com.

EDUCATION IREM HOUSTON

intro to property management

Feb 18 Introduction to Property Management is a 4-hour, interactive course that provides an in-depth overview of property management.

The course is appropriate for new employees, existing property staff, career changers, students, and anyone interested in a career in real estate management.

8:30am–12:30pm.

property maintenance operations.

8am–5pm.

IREM HOUSTON

investment real estate financial tools (fin402)

Feb 25–26 This course addresses the core issues that impact fiscal planning, giving you the ability to calculate important financial components and take control of your property’s financial outlook.

8am–5pm.

iremhouston.org/calendar

LUNCHEON

CREN GULF COAST

CREW HOUSTON

marketing session at kw commercial texas gulf Feb 19 7:15am–9am.

crengulfcoast.com/calendar.php

2016 february luncheon Feb 3 11:30am–1pm.

crewhouston.org/events.aspx CREN GULF COAST

HOUSTON BOMA

luncheon at hess club

Feb 23 8:30am–10am.

IREM HOUSTON

marketing session at kw commercial texas gulf web.houstonboma.org/events IREM HOUSTON

managing the physical asset (mnt402) Feb 23–24 Introduction to Property Develop a first-rate, proactive, and sustainable property maintenance and risk management program by learning the specifics of planning, implementing, and monitoring

Feb 5 11am–1:30pm.

irem february luncheon Feb 11 11:30am–1:30pm.

BACREN

monthly luncheon Feb 18 11am.

bacren.com/bacren-monthlyluncheon O'CONNOR ASSOCIATES

apartment/multi-family

forecast lunch

Feb 24 11:30am–1pm.

poconnor.com/au_upcoming_ events.asp HOUSTON ULI

february leader luncheon – redeveloping the east end Feb 25 This luncheon provides an in-depth look behind the headlines at the findings and recommendations of a recent ULI Houston expert Technical Assistance Program (TAP) panel on Houston’s East End. In recent years, neighborhoods in Houston’s inner loop have experienced a high degree of redevelopment. Stoked by an influx of new residents drawn to major employment centers and urban core amenities, residential and commercial construction in central Houston soared. But not all of the redevelopment spread evenly.

11:30am–1:30pm.

houston.uli.org/events

MEETING GREATER HOUSTON PARTNERSHIP

state of the county featuring harris county judge ed emmett

Feb 2 Please join Harris County Judge Ed Emmett and the Greater Houston Partnership on Tuesday, February 2, 2016 for the State of the County event. In his annual address, Judge Emmett will discuss his top three priorities for Harris County including the importance of improving transportation infrastructure to support the region's growing economy, meeting the county's health care needs, and what is next for the iconic Astrodome. 10:30am–1:30pm.

events.houston.org/?id=247&ssid=

36

February 2016

Ed Emmett, Harris County Judge

FBSCR

monthly meeting

Feb 16 10:30am–1:30pm.

fbscr.com

HOUSTON BOMA

houston boma business exchange

Feb 25 Join us for one of the most anticipated events of the year...Business Exchange is back!

This event provides a valuable opportunity for Property Managers to meet Allied Professional members while raising funds for our BAC PAC. This reverse trade show gives attendees the opportunity to make new connections with some of our top owner/manager members.

3pm–6pm.

IREM HOUSTON

irem executive council board meeting Feb 25 4:30pm–6:30pm.

SOCIAL CCIM HOUSTON

commercial re forecast competition Feb 12 8am–12pm.

ccimhouston.org/events ACRP

cocktails/networkinghouse of beers taps Feb 23 5pm–7pm.

acrp.org/events2016.htm CREN GULF HOUSTON

happy hour at paul’s kitchen Feb 25 4:30pm–6:30pm.

February 2016

social

SOUTHEAST TEXAS CCIM

HOLIDAY PARTY

Sam Scott, Reid Wilson and Gary Martin, CCIM.

October 2015

From Top: McKenzie Followwill, CCIM, Pius Leung, CCIM, Trey Miller, CCIM, Andre Satchel, CCIM, Evelyn Ward, CCIM, Twee Truong, Jane Nodskov, CCIM, Ray Lopez, CCIM and Julian Kwok, CCIM.

CCIM

JANUARY LUNCHEON From Top: Bob Watson, Bud Friedman, and Jim Gustafson.

Ed Travalla and Pius Leung.

REDNews

INTERVIEW WITH LEE GIRARD AND NABIL M. MURAD

Karl Willmann, Duane Heckmann, and David Hightower.

Kevin Dalrymple and Li-Shen Kline.

Sue Jacobson, Arlis Brody, and Cindy Young.

CREN

JANUARY LUNCHEON Below: Jason Franklin, Sales Manager of The Ivy Lofts & Realtor with REMAX Inner Loop, drew a big crowd to hear about the 24-story Ivy Lofts micro-condo tower in East Downtown with 550 units, some as small as 300 square feet.

O'CONNOR & ASSOCIATES

JANUARY LUNCHEON From Top: Bruce Rutherford and Pat O'Connor.

Lauren Sudhakar and Kayla Ashby.

Robert Orkin and Richard Miller.

February 2016

37

bulletin

CENTRAL TEXAS

Austin/San Antonio Areas

CCIM CENTRAL TEXAS 2016 BOARD OF DIRECTORS

President: Travis Waldrop, CCIM, Carr Development, Inc. Vice President: Jim Young, CCIM, Longbow Real Estate Group Secretary/Treasurer: Kelli Morrison, CCIM, Morrison & Head Past President: Nick Nelson, CCIM, Longbow Real Estate Group Director At Large: Lise Wineland, CCIM, Kennedy Wilson Director At Large: Josh Hubka, CCIM, RECO Austin

Forrest Bass has joined HFF as a director in its Austin office.

AUSTIN

EDINBURG

HIGHRISE CONSTRUCTION

HOTEL CONSTRUCTION

The Independent, a $300 million, 58-story tower is being constructed near Third St. & West Ave. The project is a joint venture of locally based Constructive Ventures & Aspend Heights. CIM Group of Los Angeles is a primary investor.

MULTI-FAMILY SALE

Colorado-based Griffis Residential purchased the 384-unit, Chez Moi Apartments located at 12100 Metric Blvd.

OFFICE CAMPUS DEVELOPMENT

Oracle Corporation is building a 560,000 SF office campus along Lady Bird Lake for the purpose of cloud computing.

The California company is also purchasing a 295-unit adjacent apartment project for Oracle workers.

OFFICE LEASE

New York-based GateHouse Media Inc is adding 10,534 sq. ft. to its 18,444 sq. ft. Center for News Design located at Northview Business Center, 9001 N. I35. GateHouse owns more than 200 newspapers in 27 states.

OFFICE SALE

Nashville, TN-based OakPoint Real Estate & local partner Haverwood Management purchased Park Place II & III, located at 4009 & 4005 Bniseter Lake. The seller was Houstonbased Braun Enterprises. Cathy Nabours, Walter Saad, Todd Mills & Hunter Mills with CBRE represented the seller.

OFFICE SALE

A joint venture of Brandywine Realty Trust & DRA Advisors LLC purchased the 320,000 sq. ft. Encino Trace office complex located in southwest Austin. The seller was Brandywine, who had developed the property.

VACANT LAND SALE

Local craft beer maker Jester King Brewery purchased 58 acres surrounding its operations at 14187 Fitzhugh Road. The company plans to preserve the land by planting crops.

Qube Hotels is building a Marriott TownPlace Suites at the corner of Professional Dr & Trenton Road. The hotel development will be geared towards next-generation travelers and is dubbed Generation 4.0.

ELGIN VACANT LAND SALE

MS General Contractors purchased 2 acres at County Line Road & Carlson Lane from Reginald Winssinger. Kurt VanderMeulen represented the seller & Moore Land Company represented the buyer.

GEORGETOWN MASTER-PLANNED DEVELOPMENT

Hillwood Communities, the city of Georgetown, Williamson County & the Wolf family are constructing a 755-acre master planned community near SH 29 & I-35. The project will include more that 1600 single-family homes & 900 multi-family units plus 140 acres of green space.

RETAIL LEASE

The Golf Ranch leased 8300 sq. ft. at 610 N. Austin Avenue. Dave Burggraaf & Preston Wolfe of Retail Solutions represented the landlord.

MCALLEN HOTEL CONSTRUCTION

Choice Hotels International is building a 121-room Cambria Hotel & Suites across from the McAllen Convention Center.

MISSION RETAIL SALE

Houston-based NewQuest Property purchased the 99,424 sq. ft. Big Kmart located at 1405 E. Expressway 83 in Mission.

The store was previously owned

by Los Angeles-based, Tishman International.

SAN ANTONIO CUSTOMER SERVICE CENTER CONSTRUCTION Fort Worth-based General

38

February 2016

Motors Financial Company Inc is building a 100,000 sq. ft. customer service center on 13.8 acres at the intersection of Westover Link & North Ellison Drive. The building is scheduled for occupancy in first quarter 2017.

DATA CENTER CONSTRUCTION

Microsoft Corp has acquired 158 acres of Texas Research Park land for the development of a 1.2 to 1.3 million sq. ft., eight-building data center development.

Construction will consist of four phases over a five year period.

HOTEL CONSTRUCTION

A four-story, 73-room, LaQuinta Inn & Suites is being planned for 2011 SE Loop 410 with construction commencing in April. Over the past several month, plans for additional hotels in San Antonio include: a WaterWalk Hotel, Best Western Plus, Holiday Inn Express, Marriott TownePlace, WoodSpring Hotel and TheISOLA.

HOTEL CONSTRUCTION

Kansas-based WaterWalk Hotel & Apartments has purchased four acres at 5385 N. Loop 1604 W for the construction of a mixed hotel-apartment development.

The project will be split between hotel & apartment living.

OFFICE SALE

Endeavor Real Estate purchased The Forum, a 381,345 sq. ft. building at 8000 W. I10. Endeavor will be adding a 2000 sq. ft. fitness center and a 1000 sq. ft. conference center to the building.

RETAIL SALE

Ridge-Coz LLC purchased a 19,300 sq. ft. center located at 12601 Harris Ridge Blvd. Ryan Hoff of SRS represented the seller, Parmer South 97 Ltd and Logan Reichle of CBRE represented the buyer.

SAN MARCOS RETAIL/RESIDENTIAL CONSTRUCTION

John David Carson is developing The Local, a seven-story mixeduse building on the 200 block of Edward Gary. The project will include retail on a two-story first floor & five floors of residential units. The project is scheduled for opening by mid-2017.

ARLINGTON The Cordish Companies is creating a 100,000 sq. ft. dining & entertainment district between the Texas Rangers’ Globe Life Park & the AT&T Stadium, home of the Dallas Cowboys. The project will include a 300-room hotel & a 35,000 sq. ft. convention facility.

West End District office buildings located at 501 Elm Street, 211 Record Street & 800 Jackson Avenue. The buildings total 202,887 sq. ft.. Crescent Real Estate Holdings, LLC, a whollyowned subsidiary of Goff Capital Partners will handle property management & Sarah Hinkley & Lauren Perry of Peloton will handle leasing.

RETAIL SALE

RETAIL SALE

MIXED-USE DEVELOPMENT

Rockstreet Partners purchased Cooper Oaks Crossing, an 86,175 sq. ft. center located at the SEC of S. Cooper Street & Southwest Green Oaks Blvd.

The center is 91% occupied despite having anchor space available.

CARROLLTON VACANT LAND SALE

American Bank of Texas sold approximately 5.6 acres of land in north Carrollton for the development of senior living residential community. The seller was represented by NOVUS Realty Advisor Principal, John St. Clair.

DALLAS HOTEL/RESIDENTIAL TOWER CONSTRUCTION

Cityplace Co. & Forest City are teaming up with The Javelin Group, a hotel developer, on a new residential tower & adjacent hotel between Cityplace Blvd West & Blackburn Street. The project will include a nine-story, 150-room hotel & a 24-story, 389-unit residential tower.

OFFICE CONSTRUCTION

Dallas-based Lincoln Property Co. has started construction on a 25-story, 260,000 sq. ft. office tower located at 1900 Pearl. The project will also include 9,000 sq. ft. of retail & restaurant space.

OFFICE SALE

Coral Gables, Florida based America’s Capita Partners purchased Signature Exchange, a two-tower, 460,000 sq. ft. office complex at 14755 Preston Road. The seller, CBRE Global Investors was represented by Gary Carr, Robert Hill, John Alvarado & Eric Mackey of CBRE.

OFFICE SALE

Goff Capital Partners, LP & Long Wharf Real Estate Partners, LLC negotiated the purchase of three

Dallas-based Centennial Real Estate Company, Montgomery Street Partners, the real estate investment affiliate of Blum Capital Partners & USAA Real Estate closed on a $1.1 billion acquisition of five regional malls from Westfield Corporation. The portfolio includes more than 6 million sq. ft. and includes Connecticut Post Mall, MainPlace Mall, Hawthorn Mall, Fox Valley Mall & Vancouver Mall.

DENTON VACANT LAND SALE

FSA & S Collin County LLC purchased 444 acres of land in Lakeview Ranch from Canyon Energy Partners. The seller was represented by John St. Clair & the buyer was represented by Grant Brodeur, both with NOVUS Realty Advisors.

FORNEY MASTER-PLANNED DEVELOPMENT

The $250 million Clements Ranch master-planned community is getting underway in west Forney. The project is being developed by Mabrey & Partners LLC of Dallas and will include approximately 800 single-family homes.

FORT WORTH VACANT LAND SALE

Fort Worth’s Pate family sold 468 acres to Dallas-based Provident Realty Advisors for future development along the newly completed $1.4 billion Chisholm Trail Parkway. The project is located at the southwest quadrant of Altamesa & Bryant Irvin Road.

Chris Harden, Tom Salanty, Kyle Vinson & Kristopher Von Hohn of Cushman & Wakefield represented the sellers.

GARLAND MULTI-FAMILY CONSTRUCTION

Georgia-based apartment developer ArchCo Residential purchased 30 acres near the President George Bush Turnpike & Bunker Hill Road for the construction of a 3-story, 300 – unit apartment project. The seller was Realty Capital Management who was represented by Mark Boone. Andrew Prine of Dallasbased Stratford Land Company represented the buyer.

GRAND PRAIRIE RETAIL CONSTRUCTION

bulletin

NORTH TEXAS

Dallas/Fort Worth Areas

Adam Herrin has been promoted to managing director of the HFF Dallas industrial investment sales group.

IKEA is planning to build a 297,000 sq. ft. store on the east side of SH 161 & Mayfield Road.

Groundbreaking will commence fall 2016 with completion planned for fall 2017.

Steve Jarvie has been named president of E Smith Realty Partners.

GRAPEVINE

Daniel Taylor has been named managing director of retail for Texas & Oklahoma for CBRE Group Inc.

INDUSTRIAL SALE

Matthew Smith, VP of ML Realty Partners LL announced the purchase of a 58,775 sq. ft. industrial building at 600 Westport Parkway. Tyson Erwin of NAI Robert Lynn represented the seller in the acquisition.

OFFICE/DISTRIBUTION CENTER LEASE

Michaels Companies Inc is relocating to 270,000 sq. ft. office/distribution space at Trade Center VI at International Commerce Park at 2450 Esters Blvd. Approximately 30,000 sq. ft. of the space will be dedicated for corporate offices.

LANCASTER INDUSTRIAL CONSTRUCTION

MetLife Real Estate Investors & Panattoni Development Co. LLC will develop MidPoint Logistics Center, a 250-acre masterplanned industrial development at Dallas Avenue & I20. The multi-phase, build-to-suit projects in four buildings will total 3.9 million square feet. Kurt Griffin, Terry Darrow & Nathan Orbin of JLL are leasing & marketing the development.

Rebecca Galuppo has joined The Woodmont Co. as vice president of center marketing & Steven Sless has joined the company as vice president of leasing.

Bret Bunnett has been named acting regional managing director of Cushman & Wakefield’s Dallas-Fort Worth operations.

Frank McCafferty has joined Savills Studley as executive managing director & co-branch manager for its Dallas office.

February 2016

39

bulletin

SOUTHEAST TEXAS Houston Area

BELLAIRE OFFICE LEASE

Jones Carter leased 47,482 sq. ft. at 6330 West Loop South.

Derrell Curry of Savills Studley represented the tenant and Mike Adams represented the landlord, Accesso Partners LLC.

BUFFALO SPRINGS

CCIM HOUSTON/ GULF COAST

RETAIL CONSTRUCTION

2016 BOARD OF DIRECTORS

President – Gary Martin, CCIM, US Trust/Bank of America President Elect – Trey Miller, CCIM, Boxer Property Treasurer – Blake Willeford, CCIM, Grandbridge Real Estate Capital Secretary – Jane Nodskov, CCIM, ICO Commercial Past President – Evelyn Ward, CCIM, Transwestern Director at Large – Andre Satchell, CCIM Director at Large – Sandy Benak, CCIM, Granite Properties

Jeffrey Roberts has joined HFF as a chief information officer.

Jonathan Aron has joined Hunington Property, Inc as a leasing & development associate.

Construction has begun on a Kroger Marketplace & an adjoining retail center totaling 120,000 sq. ft. located at Hwy 105 &FM 2854. The store is expected to open by early 2017.

HOUSTON DISTILLERY DEVELOPMENT

Omar Afra, Free Press Houston publisher, and Dutch Small, a Houston pr professional, will develop a vodka distillery at 2118 Lamar. The distillery is expected to open in the second half of 2016 & will occupy more than 4000 sq. ft.

HOSPITAL SALE

Foundation HealthCare Inc purchased University General Hospital out of bankruptcy for $33 million. The hospital is located at 7501 Fannin and will be rebranded as Foundation Surgical Hospital.

HOTEL/RETAIL DEVELOPMENT

A former 150,000 sq. ft. office building located at 1709 Dryden and previously occupied by Baylor College of Medicine is being redeveloped with a new 23,000 sq. ft. Embassy Suites Hotel & retail space.

NON-PROFIT DEVELOPMENT Richard Barbles has joined Stream Realty Partners as vice president of office leasing.

Star of Hope is building a new 48-acre campus in north Houston on West Drive.

Groundbreaking is scheduled for first quarter 2016 with completion summer 2017.

OFFICE LEASE

Loomis, a cash handling service company, leased 45,185 sq. ft. at 2500 CityWest. The JLL team of Dan Bellow & Kevin Block represented the tenant and Win Haggard & Marilyn Guion of Colvill Office Properties represented the landlord.

40

February 2016

OFFICE LEASE

Kirkland & Ellis LLP, an international law firm, leased 62,000 sq. ft. at 609 Main at Texas, Hines new office building. Michael Anderson & Damon Thames of Colvill Office Properties represented the landlord and Chad Baker & Steve Burkett of JLL represented the tenant.

OFFICE LEASE

Quintana Minerals Corporation leased 17,465 sq. ft. at 1415 Louisiana. Connor Saxe of Colvill Office Properties & Richard Barbles (now with Stream Realty) represented the landlord and Philip Price (formerly with Cushman & Wakefield & now with NGKF) along with Trey Strake of Cushman & Wakefield represented the tenant.

OFFICE MEDICAL SALE

museum along with restaurants, retail, hotel, mini-golf course & a water park.

PASADENA INDUSTRIAL LEASE

Memphis, TN-based Dunavant, a logistics & supply chain company, currently occupies 365,000 sq. ft. in Phase II of Bay Area Business Park and has preleased 565,760 sq. ft. in Phase II to expand their business. The development is owned by Principal Real Estate Investors and was developed, leased and managed by Stream Realty Partners. Floor & Décor Outlets of America Inc leased 480,480 sq. ft. in Phase I of Bay Area Business Park.

PEARLAND

Houston-based i3 Interests & New York, based Atlas Real Estate Partners purchased the 202,978 sq. ft. Northwest Medical Center located in three building along Peakwood Drive & FM 1960. The property was previously owned by Peakwood Professional Partnership.

Scott Carter of Transwestern represented the seller.

BIOTECH CONSTRUCTION

RETAIL SALE

SPRING

A family trust sold the property located at 2105 Yale Street to an undisclosed buyer. Justin Miller and Derek Hargrove of Marcus & Millichap represented the seller. The property will be redeveloped.

RETAIL SALE

A Los Angeles based private investor sold Westgate Market, an 80,690 sq. ft. center located at 19504 -19740 Katy Freeway to an Argentina-based private real estate holding company.

Nicholas Coo, Matthew Mousavi & Patrick Luther of Faris Lee Investments represented the seller.

LA PORTE MIXED-USE DEVELOPMENT

Developers plan to break ground on the La Porte Town Center located on 20-acres off Highway 146. The development will be anchored by a Gilley’s-themed bar, restaurant & dance venue and also include a 20,000 sq. ft. conference center, theater &

Basel, Switzerland-based Lonza Group is building a 100,000 sq. ft. biotech facility in Pearland’s Lower Kirby District. The office, lab & other space facility is scheduled for completion in 2017 and will be utilized for production of Lonzo’s current viral gene & virally-modified therapeutics.

RETAIL DEVELOPMENT

NewQuest Properties is expanding its 46-acre Town Center near the Grand Parkway to include an additional 11,550 sq. ft. freestanding building at the SEC of Kuykendahl & FM 2920. Groundbreaking is timed with the opening of the Grand Parkway extension from US 290 to US 59.

STAFFORD INDUSTRIAL SALE

GSL Welcome Group purchased 1 15,000 sq. ft. industrial building at 13310 Pike Road from Houston-based SBP Development VII Ltd. John Ferruzzo & Darren O’Conor of NAI Partners represented the seller.

classifieds & index

ADVERTISER INDEX A. A. Realty Company 27 Allegiance Title 1- SE Texas, 22, 23 Caldwell Companies 21 CBRE 19 CCIM Forecast Competition 43 DN Realty 29 Glauser Properties 19 Greenberg & Company 13 Hankamer & Associates 25 Levcor, Inc. 17 Mall of the Mainland 5

McAlister Real Estate 19 Newmark Grubb Knight Frank 20 Phase Engineering, Inc. 30 Plano EDC/Legacy West 1- North Texas, 3 Showalter Law 41 Tarantino Properties Inc. 8, 9 Texas First Real Estate 17 Windrose Land Services 44 Wolverine Management 13 Zarksy Industries 2

Civil Fair Play The March Civil Fair Play column will focus on the issue of extractions in the land development process and the controversy that can ensue between municipalities and developers related to land use and who foots the tab.

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41

ray’s buzz

CCIM Luncheon

Speaker: Patrick Jankowski, Sr. V.P. – Research, Greater Houston Partnership TAKEAWAY: The Houston economy is in for a slowdown in its economy focused only in the oil & gas sector and not in the other sectors, and that this slowdown should be relatively mild since there is no national/international recession underlying it like there was in 2008.

BY RAY HANKAMER

• There will be some ripple

effect to other industries as the E&P (upstream) part of the oil & gas industry hits the brakes

• Big oil has a lot of debt and

when recovery does come, revenues will go to pay down debt, continue dividends, and ramp up exploration again before hiring starts back up

• Job loss in oil & gas is

being partly offset by hiring increases in leisure, hospitality, and healthcare, although it takes three of those jobs at lower salary levels to replace one lost oil & gas industry job

• There are more quarters of

negative office and multifamily absorption to come, and more layoffs coming all during 2016, but by the end of the year, the negatives should taper off, as oil prices slowly begin to recover

• Industrial and office and

multi-family construction is slowing down sharply, but retail is still playing catch-up, as our population grows by about 150,000 per year, with

42

February 2016

half of that being ‘organic’ growth, i.e. local births over deaths, and the other half inmigration from elsewhere

• Panama Canal will see uptick in outgoing cargos from our port, as we ship out to Asia plastics, chemicals, and LNG

• Residential construction and

• There are way too many

sales should soften but not hit the wall

variables at work now on oil prices to be able to make any sort of accurate prediction

• We will see no repeat of the

‘80s, since many of the other pillars of Houston’s economy remain strong

• No collapse in oil industry

• We have perhaps 18-24months ahead of us of challenges in this industry

• We should eventually lose

about 1 in 5 oil industry jobs in Houston, or 56,000, while keeping a net overall jobs increase this year of 30,000

seen, but the going words

“restructuring” and We’ve been herearebefore

Jobs (millions)

“consolidating”

WTI ($/bbl) 160

Oil Prices and Employment Growth

3.0

Employment

Monthly Oil Prices

140

2.8

120

2.5

100

2.3

80

60

2.0

40

1.8

20

1.5

0

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

Source: U.S. Energy Information Administration and Texas Workforce Commission data

'14

'16

COMMERCIAL REAL ESTATE FORECAST COMPETITION

FRIDAY FEBRUARY 12, 2016 8:00 AM - 12:00 Noon

OFFICE

SPEAKERS

Competitors: Bob Parsley (Colliers) Chad Beck (Cushman & Wakefield) Moderator: Sandy Benak, CCIM (Granite)

MULTI-FAMILY

Keynote Speaker:

Mark Dotzour, Ph.D.

SPONSORS

Location:

Westchase Marriott 2900 Briarpark Drive, Houston, TX 77042

Tickets:

$75 Members $100 Non-Members $1000 Table of 8 4 Hours of MCE

Register Now! www.ccimhouston.org

Competitors: Ryan Terrell (Greystar) Chris Curry (HFF) Moderator: Kim Small (Wood Partners)

RETAIL

Competitors: Eric Walker, CCIM (Capital Retail) Micha Van Marcke, CCIM (Transwestern) Moderator: Lily Golden, CCIM (Evergreen Commercial Realty)

LAND

Competitors: Tom Dosch (ARA) Keith Edwards, CCIM (Caldwell Companies) Moderator: Frank Fitzgerald, CCIM (NewQuest Properties)

INDUSTRIAL

Competitors: Trent Agnew (HFF) Justin Bennett (DCT) Moderator: Greg Barra, CCIM (Boyd Commercial) February 2016

43

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