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THE TEXAS COMMERCIAL REAL ESTATE NEWS SOURCE | JUNE 2025

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Features

Recalibration, resilience and regional power: Texas' industrial markets are evolving in 2025 While cities like Dallas and Austin are settling into a steadier rhythm, Houston’s industrial real estate sector leads the way with a recalibrated yet confident market outlook.

Border to boomtown: Inside Texas’ diverse retail surge The retail commercial real estate market across Texas remains resilient amid macroeconomic uncertainty with cities like Austin, Dallas, McAllen and Houston each showcasing distinct growth patterns and investor opportunities.

The rising tide of legal

in multifamily: 16 challenges Implications for insurance In

recent months, the real estate sector has been swept up in a surge of legal challenges, particularly surrounding pricing practices and allegations of anticompetitive behavior.

REDnews Events: Austin

18 Commercial Real Estate Summit REDnews Events: Houston

19 Commercial Real Estate Summit Houston Commercial Real Estate

20 Summit: Event Profile

21 Scoop/People on the Move 25 CRE Marketplace

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Recalibration, resilience and regional power: Texas' industrial markets are evolving in 2025 BY BRANDI SMITH

Image by onlyyouqj for freepik

While cities like Dallas and Austin are settling into a steadier rhythm, Houston’s industrial real estate sector leads the way with a recalibrated yet confident market outlook that reflects the region’s diversified economy, port-driven logistics power and investor interest in strategic flexibility. Houston moves toward ‘more sustainable pace’ After years of explosive growth driven by e-commerce surges and pandemic6

JUNE 2025

era supply chain reshuffling, Houston’s industrial market is entering a new chapter. “We’re not in a downturn; we’re in a recalibration,” said Mary Doetterl, research manager at Lee & Associates. “Houston’s industrial market is adjusting to a more sustainable pace, but demand fundamentals remain rock solid, especially in port-adjacent and infill locations.”

Doetterl noted that while vacancy has increased slightly, it reflects market normalization rather than distress, especially given the 130 million square feet of inventory added over the past five years. Leasing velocity has slowed from its peak, but absorption remains positive and rent growth continues in strong submarkets like the Northwest and Southeast. “I believe the current industrial market is healthy and balanced from a supply and demand standpoint,” echoed Travis Land, partner at Partners. “Unless there is a major reduction in interest rates or a significant negative longterm policy enacted on trade, I think this balance will remain throughout 2025 and 2026.” A diverse tenant mix continues to drive absorption across the Houston metro. Key sectors include energy services, construction materials, food logistics and especially third-party logistics operations. For manufacturers, oil and gas remains the dominant force. “Oil & Gas is driving most of the demand as always for the manufacturing buildings,” Land said. “This product type has seen tremendous rent growth in the last year.” At the same time, tenants seeking distribution space are showing a clear preference for mid-sized footprints. “The activity in the last six months has been the slowest on distribution spaces above 500,000 SF,” Land said. “The most active is on spaces 150,000 SF and under.”

Mary Doetterl

Travis Land

Developers are responding to this demand shift by investing in speculative projects that prioritize flexibility, infill access and quality. With timelines for build-to-suit facilities extending beyond tenant preferences, spec development has become the faster, more attractive option for many. “Tenants today are moving fast and making smarter decisions,” said Doetterl. “They want flexibility, efficiency and speed-to-market, and that’s exactly what modern spec buildings in Houston are offering.” Land added that spec buildings are increasingly accommodating a wide range of needs.

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“Port Houston is one of the strongest industrial demand drivers in the country right now. As the channel expansion progresses, we expect even more activity in the Southeast submarket and beyond.” “The time frame to complete a build-to-suit has increased, so if a company does not need an overly specialized facility, making retrofits to existing spec facilities is often more economical,” Land said. “The variety of speculative building size options has also expanded so the demand from historical buildto-suit candidates is more easily met with broader size availability.” Despite higher vacancy in some segments, Houston’s speculative market remains stable and selectively strong. Infill projects, especially those under 300,000 square feet or located near Beltway 8, are attracting tenants quickly. Meanwhile, big-box facilities in more remote areas are taking longer to lease and offering concessions to stay competitive. Port Houston remains one of the region’s most consistent and strategic demand drivers, influencing everything from site selection to lease structure. “Our port is a tremendous asset and differentiator for the Houston industrial market now and in the future,” Land said. “The port continuing to implement projects that increase capacity is great for Houston.” “Port Houston is one of the strongest industrial demand drivers in the country right now. As the channel expansion progresses, we expect even more activity in the Southeast submarket and beyond,” added Justin Tunnell, principal at Lee & Associates. The port’s growth is especially significant as global trade patterns evolve. As shippers diversify away from West Coast congestion and nearshoring to Mexico accelerates, Houston’s proximity to those supply routes and its deepwater port access offer a long-term competitive edge. 8

JUNE 2025

As expansion at the Houston Ship Channel moves forward and highway and rail upgrades take shape, industrial stakeholders expect even greater efficiencies and leasing momentum in 2025 and beyond. ‘A solid year’ in Dallas Dallas-Fort Worth’s industrial market remains one of the most powerful logistics hubs in the country. Even as vacancy rates remain elevated compared to historical norms, experts say this is not a red flag, but a result of timing. “While absorption pulled back from its recent highs, 2024 was a solid year, with 2025 getting a fast start as this key demand indicator remains well above its pre-boom 14.4 msf average,” according to Avison Young’s Q1 2025 report. The region’s strategic location, affordability and access to multimodal infrastructure continue to attract distribution tenants and investors alike. “DFW continues as a premier U.S. logistics hub due to its affordability, central U.S. location and access to roads, rail and air that easily serves a large part of the U.S., as well as its proximity to Mexico for international trade,” Avison Young reported. With 22.7 million square feet under construction and pre-leasing in motion for many of those properties, the market is expected to regain balance gradually through 2025 and into 2026. Austin boasts ‘healthy occupier demand’ Austin’s industrial market remains on firm footing, supported by steady population growth, active housing construction and a vibrant retail base. But unlike prior years, developers are taking a more measured approach to new deliveries. “Construction activity has slowed as the market works through existing supply, reducing the risk of oversaturation. Absorption remains positive and continues to outperform pre-pandemic averages, signaling healthy occupier demand,” according to Avison Young’s Q1 2025 market snapshot. Leasing volume held steady at 1.5 million square feet in the first quarter, with net absorption of 1.9 million square feet. Most tenant demand is concentrated in the mid-size range, between 20,000 and 49,000 square feet. “Leasing activity remained strong throughout Q1, signaling continued tenant engagement,” Avison Young reported. With vacancy holding steady, developers are closely monitoring pipeline risk. With 5.2 million square feet under construction, much of it concentrated in Georgetown and the East submarket, developers are watching tenant demand closely before greenlighting further expansion. From Houston’s spec-driven shift to Dallas’ lease-up lag and Austin’s balanced recovery, Texas’ industrial sector is proving once again that regional context matters. As 2025 unfolds, flexibility, location and logistics efficiency remain the currency of success.

Border to boomtown: Inside Texas’ diverse retail surge BY BRANDI SMITH

Galleria Dallas Ice Rink. Photo Courtesy Trademark Property Company

The retail commercial real estate market across Texas remains resilient amid macroeconomic uncertainty with cities like Austin, Dallas, McAllen and Houston each showcasing distinct growth patterns and investor opportunities. Experts from across the state offered REDnews key insights into Texas’ evolving retail landscape, reflecting both optimism and strategic adaptation. ‘Very bullish’ on Austin In Austin, strong demand and limited supply continue to define the retail market, with personal services, restaurants and junior anchors leading the 10

JUNE 2025

charge. The challenge, experts say, lies in finding enough space to meet tenant needs. “We are currently at a sub-4% vacancy rate in the market with a lot of good activity,” said Kheili Hiller, senior associate at Cushman & Wakefield. “A number of national retailers are looking at options to enter the Austin market or expand their existing footprint.” Developers have slowed new construction, raising concerns that demand could outpace supply.

Jamie Cox

Kheili Hiller

“I think most people have a ‘wait and see’ attitude right now given the economic uncertainty,” Hiller said. “I tend to be very bullish on Austin and think we will continue to see strong demand, which is great, but that demand can only sustain itself if there is product in which to put tenants. With developers putting the brakes on new projects, I worry that supply will become so limited that it becomes difficult to get deals done.” Adam Zimel, principal at Endeavor Real Estate Group, echoed the sentiment.

Michael Wheat

Adam Zimel

“Absorption matching deliveries is a result of strong demand,” Zimel said. “Said otherwise, most all retail product being delivered is leasing because the Austin MSA is undersupplied.” Tenants range from chef-driven restaurants and quick-service operators to junior anchors. “Personal services and restaurants continue to be most active in the pad and small shop product type,” Zimel said. “In terms of the junior anchors, they are as active as I have seen in the last 10 years. It doesn’t always translate to

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Galleria Dallas.. Photo Courtesy Trademark Property Company

deals but they need store counts and performance has generally been good within the market.” Austin’s cultural reputation adds to its appeal. “One driver is that Austin is a cool place to be. If you are a young, cool brand, you want to be here,” Hiller said. “We are also maturing enough as a city that the more established, super high-end retailers want to be here, too.” She added that local support for independents fosters growth. “We have so many amazing local retailers and a population who really gets behind local concepts,” she said. “It makes these retailers able to exist and grow.” Retailers are also adapting to new consumer habits. “Retailers want customers to feel like they have been transported somewhere when they enter their space,” Hiller said. “The customer base seems to have moved away from wanting to see every option possible in front of them to preferring a smaller amount of well-curated items.” Zimel noted changes in tenant pairings. “The shift in active anchors has aligned some that once were not cotenants,” he said. “We are working a few deals at projects with both grocery and fitness as they see overlap in customer profiles with both being health oriented. They have aligned to co-tenant at projects where they once wanted separation between them.”

JUNE 2025

Dallas retail ‘thriving’ In Dallas-Fort Worth, strong demographics continue to drive momentum, especially in the northern suburbs. “The North Texas submarket is thriving,” said Jamie Cox, senior vice president of property operations at Trademark Property Company. “Strong market fundamentals, such as population growth and a business-friendly environment, are fueling tenant demand and contributing to healthy, stable leasing trends.” While the region posted its first quarter of negative absorption since 2020, experts say it’s not a sign of weakening demand. “Recent negative absorption was almost entirely related to the closings of big-box spaces such as JoAnn, Party City and Big Lots,” said Michael Wheat, managing director and North Texas retail lead at JLL. “Despite this negative absorption, DFW continues to be one of the strongest retail markets in the country and activity has not slowed down. While the closings put large blocks of space on the market, the majority of it has been leased or is in the process of being leased.” “The sector is facing new challenges that retailers and owner/operators will need to learn to navigate, but this likely won't have a long-term impact,” Cox echoed. Leasing activity remains healthy. “The tenants we’re seeing are most active in the market include grocery,

The Vickery. Photo Courtesy Trademark Property Company

health and wellness, beauty services and restaurants,” Wheat said. “Rapid population and economic growth in DFW and the health-conscious trend that’s continuing to gain popularity are just a few of the motivating factors behind these categories of retail expansion.”

“We recently welcomed the first H&M Home in the state of Texas, the first UNIQLO store in North Texas and one of only two locations in the country for Netflix’s upcoming experiential entertainment destination, Netflix House,” Cox said.

Cox pointed to Galleria Dallas as a sign of momentum.

Experiential and fitness tenants are also driving foot traffic.

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Westbend stores and trail. Photo Courtesy Trademark Property Company

“The experience economy has become a driving force in retail’s evolution,” Cox said. “People’s growing desire to gather with friends and family has reinforced demand for experiences at retail destinations, and these tenants have become a top target for landlords.”

Even with the slowdown, leasing activity remained notable at 1.7 million square feet, driven by major retailers including Chipotle, Target, HEB and Walmart. The average asking lease rate climbed to $20.69 per square foot, reflecting modest gains both quarterly and year over year.

“[Experiential and fitness] users serve as fantastic cotenants and attract significant foot traffic, provided sufficient parking is available,” Wheat said.

Construction activity also cooled. Deliveries dropped to 530,189 square feet, a 50% decline from the same period last year, and the development pipeline shrank by more than 1 million square feet year over year. Still, large-scale projects like a new 120,256-square-foot HEB in west Houston broke ground, reinforcing long-term confidence in the market.

New development continues in family-driven suburbs. “The majority of new retail development in the northern suburbs of DFW is associated with grocery anchored centers, due to the needs of familyoriented areas like Frisco, Prosper, Celina and beyond,” Wheat said. ‘Wait-and-see’ approach for Houston developers Houston’s retail market held steady in early 2025, showing resilience despite softening fundamentals and broader economic uncertainty. According to Colliers most recent market report, vacancy rose slightly to 5.5%, up just 10 basis points from the previous quarter. Net absorption dropped to 153,538 square feet, down more than 60% quarter over quarter.

JUNE 2025

Colliers analysts described the mood as “wait-and-see,” as retailers adjust to trade tariffs, rising costs and shifting consumer behaviors. Despite these pressures, the report noted that Houston continues to outperform many peer markets, supported by its affordability, population growth and a solid pipeline of future development. RGV emerges as a “retail powerhouse” In the Rio Grande Valley, the retail sector is booming. McAllen recorded $96.8 million in sales tax remitted in 2024, ranking first in the region, 15th in Texas and second in per capita retail sales among Texas cities over 100,000.

“Coupling economic vibrancy, high safety, affordability and strong cross-border tourism makes the RGV a retail powerhouse,” said Rebecca M. Olaguibel, director of retail and business development for the City of McAllen. Retailers are diversifying to meet the needs of a growing and bilingual population. “Retailers are widening their range: from value-driven big-box stores (Ross, Dollar Tree) to upscale soft goods (Lululemon, H&M, Zara) to specialty dining and entertainment,” Olaguibel said. Cross-border customers fuel demand for discount and electronics, while domestic migrants drive growth in home and lifestyle retail. Development is booming in Central and North McAllen. “Factors like new residential construction and high volume of consumer traffic offer the perfect setting for success,” Olaguibel said. “Both big-box retailers and discount stores are thriving, often ranking among the bestperforming stores nationally. High-performing national players include bigbox discount (Burlington, Ross, Hobby Lobby, Five Below, dd’s), soft goods anchors (H&M, Zara, Mango, Lululemon), electronics and value chains (Dollar General).”

Mixed-use development and logistics are expected to gain momentum. “McAllen and the Rio Grande Valley’s continued population growth and economic diversification present ample opportunities for developers,” Olaguibel said. “Mixed-use developments that combine retail, residential, and recreational spaces are poised for success. Additionally, the region's strategic position in international trade corridors makes it ideal for logistics and other international ventures.” Challenges remain, but leaders are responding with investment and collaboration. “As a rapidly growing region, we see these as opportunities,” Olaguibel said. “Through strong collaboration with local, state and federal partners, we are actively investing in and upgrading infrastructure to support sustainable retail growth. It’s a dynamic time — pardon our progress as we build for the future!” Across every region, the message is consistent: Texas continues to lead the nation in retail real estate, backed by demographic strength, investor confidence and a sector willing to evolve.

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The rising tide of legal challenges in multifamily: Implications for insurance BY MARSHALL BALLARD AND STEPHEN MCCORD, MARSH MCLENNAN AGENCY

Image by wirestock on Freepik.

In recent months, the real estate sector has been swept up in a surge of legal challenges, particularly surrounding pricing practices and allegations of anti-competitive behavior. Three significant cases have emerged, shedding light on the potential risks and costs associated with these lawsuits for landlords and property management companies. As a multifamily owner and operator, it is imperative to grasp the implications of these legal battles, especially concerning insurance coverage and the financial burdens they may impose. 16

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Price-fixing On December 5, 2024, a U.S. judge ruled that Yardi Systems, a leading software provider for property management, must confront a price-fixing lawsuit. The case alleges that Yardi conspired with landlords to manipulate rental prices through its widely used software. This lawsuit not only raises questions about the practices of software providers but also subjects the landlords who utilize these systems to intense scrutiny

“The recent legal challenges facing landlords and property management companies highlight the complex interplay between technology, pricing practices, and regulatory scrutiny in the real estate sector.” The implications of such a lawsuit are profound. Even if the claims are ultimately deemed frivolous or unfounded, the legal fees associated with defending against such allegations can be exorbitant. For many real estate companies, these costs can escalate rapidly, straining financial resources and diverting attention from core business operations. The potential reputational damage can also deter prospective tenants, further complicating recovery efforts. Antitrust In a parallel development, the U.S. Department of Justice (DOJ) recently filed a lawsuit against six large apartment owners/managers, accusing them of engaging in an algorithmic pricing scheme that allegedly harmed millions of renters. The DOJ claims that these landlords used sophisticated algorithms to coordinate pricing strategies, effectively stifling competition and inflating rental prices. This case underscores the increasing scrutiny of pricing practices in the multifamily sector, particularly as technology becomes more integrated into property management. The potential for hefty fines and legal repercussions looms large, and the financial burden of defending against such claims can be crippling for landlords. The stakes are high, and the need for robust legal and insurance strategies has never been more critical. Hidden fees

the lack of adequate insurance coverage to address these specific legal challenges. Most casualty insurance policies contain exclusions for antitrust claims, meaning that carriers may deny coverage for legal fees or defense costs associated with these lawsuits. This exclusion poses a significant risk for landlords, apartment owners, and property management companies. As legal challenges become more prevalent, the potential for financial loss increases, and many companies may find themselves unprotected against the very lawsuits that threaten their operations. Understanding the nuances of insurance policies is essential to safeguarding against these emerging risks. The recent legal challenges facing landlords and property management companies highlight the complex interplay between technology, pricing practices, and regulatory scrutiny in the real estate sector. As these lawsuits unfold, the financial implications for the companies involved can be severe, particularly in light of the potential for high legal fees and the lack of insurance coverage for antitrust claims. As commercial risk advisors, it is essential to educate clients about these risks and the importance of understanding their insurance policies. In this evolving landscape, proactive risk management strategies will be crucial in navigating the challenges posed by legal disputes and ensuring financial stability in an increasingly litigious environment.

Adding to the legal landscape, the Federal Trade Commission (FTC) has accused one of the largest property management companies in the U.S., of imposing hidden fees on tenants. The FTC's lawsuit alleges that these fees are not transparently disclosed, leading to consumer deception and unfair business practices.

If you are a multifamily owner or operator, now is the time to assess your insurance coverage and ensure you are adequately protected against these emerging legal challenges. Reach out to a specialist in commercial real estate insurance today to discuss your options and develop a risk management strategy tailored to your needs. Don’t wait until it’s too late—protect your investment and secure your future in this dynamic market.

The financial implications here could be significant. The costs associated with legal defense, potential settlements, and reputational damage can have lasting effects on a company's bottom line. As public awareness of these practices grows, the pressure on property management companies to maintain transparency and ethical standards intensifies.

The opinions and thoughts expressed here are those of the individual authors and should not be taken as legal advice. They are providing them based on their professional and personal experience. They do not represent the views or opinions of Marsh & McLennan Agency, its parent companies or any of its affiliated companies

The insurance coverage gap

Marshall Ballard is advisor, real estate, and Stephen McCord is executive vice president, real estate, with the Marsh McLennan Agency, a provider of business insurance with locations across the United States.

For many real estate companies embroiled in these lawsuits, the financial ramifications extend beyond immediate legal fees. A critical concern is

JUNE 2025

Austin CRE Summit

The State of the Market: (L-R) David Bass, HPI; Wes Bass, Colliers; Ted Rohan, Avison Young; Erin Morales, Savills; Hutch Hutchings, Edge REalty Partners

Regional Economic Development Opportunities: (L-R) Molly Martin, City of Crowley; Jerry W. Jones, Jr., Pflugerville EDP; Holly Malish, City of Lockhart; Amy Madison, Schertz EDC; April Daniel, REDnews

Navigating Capital Markets & Investment Market Opportunities: (L-R) Patton Jones, Newmark; Chad Knibbe, Foresite CRE; Kent Myers, IPA; April Daniel, REDnews

Development, Construction & Design: (L-R) Ryan Buicko, Galesi Group; David Knoll, Ryan Companies; Paul Wagner. ARCO/Murray; Jeremy Armstrong, American Constructors

JUNE 2025

events

Houston CRE Summit

The State of the Market - Office, Retail, Industrial and Multifamily: (L-R) Shane Waddell, Porter Law Firm; Chris Reyes, SHOP Companies; Jennifer Meehan, Savills, Lacee Jacobs

Regional Economic Development Opportunities: (L-R) Vince Yokom, Waller County; Kelly Violette, Tomball EDC; Jevon Gibb, The Woodlands; Betsy Giusto, City of Webster; Irma Sanchez, Westchase District; Paul Chavez, City of Alvin

Navigating Capital Markets & Investment Opportunities: (L-R) Nikhil Shah, SCRE Capital Group; Keith Lloyd, Marcus & Millichap; April Daniels, REDnews; Darrell Betts, Avison Young; Ash Shah, impex Capital Group

Development, Construction and Design: (L-R) Aamir Chandio, CIVE; Tina Khatri, TDK Construction; Joseph Fried, Skyline Development; Aura Malpica, Lincoln Property Company; Steve Williams, CIVE

JUNE 2025

event profile

Houston Commercial Real Estate Summit BY RAY HANKAMER The State of the Market-Office, Retail, Industrial, and Multifamily Moderator: Shane Waddell, Porter Law Firm Panelists: Chris Reyes-SHOP Companies; Jennifer Meehan-Savills; Lacee Jacobs-Rebel Retail Advisers; Lucian Bukowski-Stream Realty Partners

Ray Hankamer

Bullets:

Takeaway: A lot of diverse, new types of activity are taking place in all segments. New concepts are coming into Houston, which is more profitable than other major markets due to our lower costs of living, construction, etc., and our burgeoning diverse population. Due to uncertainty over construction costs due to tariff confusion out of the White House, developers are being cautious.

• There is a flight to quality in Class A office; amenities are super-important to companies with young employee base, especially when trying to lure remote work employees back to the office • Lots of activity in retail but due to lack of available space, landlords are being very choosy on their tenant mix • City Centre offices are 90% occupied with new tower going up, largely pre-leased • Post Oak Central in Galleria area is rejuvenating, with retail, restaurants, and other new construction • There is a dip now in luxury spending as consumers brace for a possible recession; it is going to be a good time for discount retailers as consumers gird for the confusion caused by tariff ups and downs • On the restaurant scene, fast casual is getting ahead in the race, while full service suffers in part because of over-zealous tipping demands • Retail has only 5% vacancy, and understandably rents are rising • What to do with older office product: conversion to residential is often impossible due to floor plans, inner core utilities, elevators, etc. • As infill development becomes more dense, infrastructure adjustments are paramount, and sometimes difficult: where to locate detention, dumpsters, etc.?

JUNE 2025

• As for office, tenants are picky, knowing many landlords are on the financial ropes • Tenant improvement costs are soaring for restaurants and retail and landlords are straining over down time during TI construction and tenant demands to share costs of TI; pricing becoming nigh impossible due to tariff changes and confusion almost every day; some are thinking about hitting the ‘pause button’ while Trump is in the White House • Steadily rising insurance costs are a problem for owners and lenders, and the day may come where insurance from traditional sources is unavailable due to natural disasters not just in Houston, but anywhere that insurers have large payouts • New building in all sectors have much higher rents due to land and construction cost inflation • Retail sites are is such demand that some re-leasing never hits the open market • There is increasing crime along the Katy Corridor; predators around mixed use developments are out and owners such as Metro National are responding with added security • The Houston SMSA is expanding so rapidly that only 2/3 of area’s population is now in Harris County • As far as CBD occupancy is concerned, parking expense is a big negative to returning employees; more and more, companies are trying to locate nearer to where their people live Regional Economic Development Opportunities Moderator: Paul Chavez-Economic Development Director, City of Alvin Panelists: Betsy Giusto-City of Webster; Herman Rodriguez-City of Missouri City; Irma Sanchez-Westchase District; Jevon Gibb-The Woodlands; Kelly VioletteTomball Economic Development Corporation; Vince Yokom-Waller County Economic Development Partnership Takeaway: There are numerous strategies for attracting companies, and for discouraging companies which do not fit in the master plans of a given city, county, or township. These include specialized infrastructure, tax incentives, and promise of rapid permitting. There is high competition for the most attractive deals. Bullets:

• “Little things” like sidewalks, bike paths, dog parks, and other amenities can be important to some incoming companies, but not to others • Hotel occupancy taxes can be used to pay for amenities, since this tax money comes into an area from out-of-towners • Sometimes counties partner with cities to offer incentives; “we try to find the best companies and then go after them” • Best recruiting of companies is achieved by the ‘rifle and not the shotgun approach • Trade shows are not a preferred way of meeting and wooing potential companies to an area • Bonds to pay for infrastructure to woo new companies are not always approved by citizens in the area • Zoning complicates the work economic development councils do in many cases, and they would prefer to manage locating new companies to their area

• Eleven rate increases in last 2 years; hard to plan in unstable environment, and going forward promises more instability with incoming administration and its ‘tariff wars’ • Some banks say money is available and some have stopped lending; contractor bidding is in some cases at a standstill due to uncertainty over costs of imported materials • Office buildings still slammed, with Class A the only ones with high occupancy and the rest around 60%; owners ‘can’t give away the older class C buildings’ • Could be good time to buy these distressed buildings ‘at the bottom’ • Local creative office management teams have an advantage over out of town passive owners • Private equity and numerous other new sources compete with banks for CRE financing, which have higher overhead • Experience separates the successful from the unsuccessful in this market

• Communities which have overly strict deed restrictions and zoning are sometimes at a competitive disadvantage when it comes to selling a new company to move to their area

• New categories of investments are drawing attention and investment capital, such as RR yards, data centers, energy infrastructure, but some of these take far longer to develop that standard CRE categories

• Too big and sudden a growth surge with many new resident-employees coming in can change the politics of an area, especially if it is a rural “red’ county; economic growth present transition challenges

• We must never forget how important our port is to our regional economy

• Does the new company pollute or otherwise present a shock to the established way of life? • What are the energy and water requirements of a new company? Be sure to investigate all aspects of a company before you pursue it Navigating Capital Markets & Investment Marketing Opportunities Moderator: April Daniel-Texas Managing Director, REDNews Panelists: Ash Shah-Impex Capital Group; Darrell Betts-Avison Young; Keith LloydMarcus & Millichap; Nikhil Shah-SGRE Capital Group Takeaway: There have been investors who have ‘scored big’ in last two years and those who have ‘lost big’, all the while adjusting to the changed interest rate environment, which for many years was very low by historical standards. There are many new categories of competitors to traditional lenders out there now, competing with banks and life companies; Bullets: • Leverage ranges from 60-40 to 80-20 depending on a multitude of factors; some banks require balances, some do not • 70% of buyers are ‘no longer there’ since they lost everything in recent times

• Malls are largely out, but smaller mixed use developments are now in vogue, such as Sugar Land Towne Center and City Centre • Houston has a big monopoly on the energy related intellectual capital of the world • Future CRE potential in Texas is superb-we have everything in one state to attract population and investment • Current interest rates are at historical norm…2-3% may never happen again

advertiser index Centerpoint Properties ......................................................................................2 City of McAllen..................................................................................................1,9 National Environmental Services, LLC ...........................................................5

JUNE 2025

“Many new types of projects are on the boards, and opening, which do not fit into past categories. These include micro residential units, and luxury apartments which include a full office layout for workers-fromhome. More standard projects are increasing their SF for amenities to get their tenants out of their units and into the public spaces. AI is taking on more and more importance in architecture, planning, and construction.” Development, Construction, and Design Update Moderator: Aamir Chandio-CIVE Panelists: Aura Malpica-Lincoln Property Company; Joseph Fried-Skyline Development Company; Steve Williams-CIVE; Tina Khatri-TDK Construction Takeaway: Many new types of projects are on the boards, and opening, which do not fit into past categories. These include micro residential units, and luxury apartments which include a full office layout for workers-fromhome. More standard projects are increasing their SF for amenities to get their tenants out of their units and into the public spaces. AI is taking on more and more importance in architecture, planning, and construction. Bullets:

• Infrastructure for solar and auto charging stations is going in, but sometimes just the underground preparation for it • Some of the futuristic amenities desired by some tenants are not considered affordable by developers • Entire staffs of architectural firms and interior designers need to be trained in AI • AI can price out a development down to the cost of a single 2x4 • Industrial continues to be the favored asset class by developers in Houston

• Big competition with competitive sets as to who can offer the most amenities, since residents will pay higher rents to have access to them

• There is now a waiting game on the subject of willy nilly tariffs and future costs, and development is slowing down because of it

• Combo apartment and home office is a big thing

• The pandemic created many shortages of things like appliances and the tariff mess from the White House is promising to cause even more, since so much is manufactured overseas

• With tighter developments, retention must often go underground, doubling its cost • Permitting issues and delays are maddening and costly and often they draw out so long that deals have to be rebid, causing havoc on budgets • Some neighborhoods do not welcome MF, complicating development plans 22

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• Hotel development in our market is slow • Developers are buying land farther and farther afield, such as in Magnolia and Baytown

SCOOP/PEOPLE ON THE MOVE Cushman & Wakefield adds executive managing director to Austin office Kelsey Shebay has joined the Austin, Texas, office of Cushman & Wakefield as Executive Managing Director, Capital Markets, Office Investment Advisory. To Cushman & Wakefield, Shebay brings nearly two decades of expertise in providing investment advisory services, particularly in institutional-quality office sales. With a primary focus on Central Texas, she will collaborate across Cushman & Wakefield’s capital markets platform of office advisory professionals, leveraging their deep institutional-client relationships. Shebay joins Cushman & Wakefield following the addition of Todd Savage, Executive Managing Director of Office Investment Sales based in Dallas, earlier this year. Across her career, Shebay has been involved in capital markets transactions valued at more than $10 billion. Shebay joins Cushman & Wakefield from JLL. She started her career with HFF, prior to the firm’s acquisition by JLL, in Dallas and then relocated to Austin in 2011. She is a graduate of the University of Texas at Austin, and a member of the Urban Land Institute and the Real Council of Austin.

Dominium names VP of asset management Dominium an affordable housing developer, owner, and manager hired Kevin McKee as the company’s new Vice President of Asset Management. Dominium has offices in Dallas, Minneapolis, Atlanta and Phoenix. McKee brings more than two decades of leadership experience in the multifamily real estate and financial service industries. He will be responsible for optimizing property operations while also working with Dominium’s project partners to maximize long-term financial value. Additionally, McKee will champion technology-driven improvements, the adoption of best practices, as well as the development of annual asset-management business plans that align with company objectives. Prior to joining Dominium, McKee served as Chief Operating Officer for E&S Ring Management Corp, a Los

Angeles-based family office, where he instituted a longterm financial planning framework for asset management and helped to improve strategic capital allocation, among many other responsibilities. Earlier in his career, McKee held senior executive roles at Rose Community Management, Related Management Company and GE Capital Real Estate. He also has experience in the construction and maintenance side of the multifamily real estate industry. McKee holds a bachelor’s degree in industrial technology from Cal Poly San Luis Obispo, and a master’s degree in business administration from Rice University.

Ty Teague hired at Terrell General Contractors With 20 years of experience across construction, real estate, and commercial services, Ty joins Terrell GC during a major growth phase. He will focus on enhancing client support and leveraging his strong track record of driving expansion through strategic partnerships. Known for his expertise in client engagement, Ty is recognized for strengthening companies and scaling operations. His appointment reinforces Terrell’s commitment to strategic leadership and client service.

Avison Young names SVP in Austin office Avison Young promoted Sullivan Johnston to Senior Vice President in the firm’s Austin, Texas, office. Johnston is a founding member of Avison Young’s Land, Development, and Industrial Advisory (LDI) team, where she represents a diverse range of clients, including institutional investors, private developers, corporate users, and landowners, in the acquisition and disposition of commercial properties and development parcels across Texas and the U.S. She leverages her background and experience to provide clients with strategic insight and hands-on guidance at every stage of the deal process. Sullivan joined Avison Young in 2016 and is a graduate of the University of Texas at Austin.

Houston’s Transwestern Development Group adds managing partner

Darren Conner, PE promoted to Chief Operating Officer at Dewberry Darren Conner has been named Dewberry’s chief operating officer (COO), where he will oversee business development and strategic planning for the firm’s 60 offices, which provide architecture; construction; engineering; environmental; geospatial, mapping, and survey; planning, consulting, and advisory; and technology services. Conner will also align Dewberry’s client management program to further serve the needs of its new and existing clients. He was appointed COO of Dewberry’s holding company.

markets.

Carl DeLuca has joined Houstonbased Transwestern Development Group as Managing Partner of its National Logistics Group. In this role, Deluca will guide the strategic direction of TDC’s industrial development platform, overseeing an expansive pipeline and managing regional teams across key U.S. logistics

This strategic addition reflects Transwestern’s continued investment in the industrial sector and underscores the strength of the firm’s integrated platform in delivering value across the real estate lifecycle. DeLuca brings more than 20+ years of experience to his role, most recently leading Real Estate Development & Investment for the Americas at DHL, where he oversaw investment strategy, development execution, and platform growth. Prior to DHL, DeLuca spent 16 years at Duke Realty in senior roles across capital markets, acquisitions, dispositions, and national development strategy. DeLuca will be based in Houston and will transition into the role currently held by John Thomas, who will retire after the transition. Thomas has led TDC’s National Logistics Group since 2018, bringing experience from

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prominent roles at Clarion, Hillwood, Trammell Crow, Panattoni and CBRE Investors. Under his leadership, TDC expanded its geographic footprint from a regional program to a top-tier national operation. TDC’s National Logistics Group specializes in developing speculative and build-to-suit industrial projects in key distribution hubs across the U.S., focusing on intermodal logistics, e-commerce, and port strategies. During the last eight years, the group has completed or commenced over $3.3 billion of logistics development projects totaling more than 36 million square feet.

Amy Koch, recognized at DLR Group DLR Group announces the appointment of Amy Koch to Principal. Amy is a strategic partner, establishing relationships outside DLR Group’s walls, extending the firm’s reach and growing business for K-12 Education, Higher Education, Hospitality, and Justice+Civic. Amy is the president of the A4LE Central Texas Chapter, collaborating with other chapters and educational planners across the country to plan educational events and other initiatives.

Dominium names VP Of human resources in Dallas Dominium, an affordable housing developer, owner and manager, promoted three-year company veteran Jen Densmore to Vice President of Human Resources.

Adam Mahoney, PE, PLS promoted to Principal at Kier + Wright Kier + Wright (K+W) has promoted Adam Mahoney, PE, PLS, to Principal in a newly created role focused on Technical Design and Implementation. With more than 20 years at K+W, Adam is a duallicensed engineer and surveyor known for simplifying complexity, mentoring staff, and leading technical excellence. His promotion marks a strategic move to strengthen design culture and develop the next generation of industry leaders across the firm.

Emily Moore, RA, recognized at DLR Group DLR Group congratulates Emily E. Moore, RA on her appointment to Principal. The global design community admires her active role in through site tours for leadership and emerging professionals activities. Clients and colleagues appreciate her engagement and guidance through the design process. Emily is an active public speaker for industry events and conferences, most notably the American Alliance of Museums, and a professor at the University of Houston.

Method Architecture expands ownership group with addition of new partner

In her previous role as Director of Talent Acquisition, Densmore played a key role in driving the growth and development of Dominium’s Talent Acquisition team, optimizing recruitment processes and supporting the company’s ongoing nationwide expansion. In her new position as Vice President, Densmore’s role will expand to oversee all aspects of Dominium’s HR team and functions. Densmore joined Dominium with more than 20 years of experience in human resources and talent acquisition. Prior to joining the company, she spent over 15 years as a Talent Acquisition Manager at Blattner Company. Densmore holds a Bachelor of Science degree in Human Resources Management from St. Cloud State University and is a Society for Human Resource Management Certified Professional.

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group to five.

Method Architecture, Texas-based architecture and interior design firm, has announced the addition of Corryn Williams to its ownership group. The strategic expansion reinforces Method Architecture’s commitment to growth, innovation, and investing in the future of the firm. This addition will bring the firm’s shareholder

Williams, who has been an integral part of the firm, brings her expertise in marketing, business development, communications, and strategic growth to the leadership team. Since joining Method Architecture, Williams has made a significant impact with the firm’s growth leading the brand and client relations strategy through four acquisitions and three new geographic market expansions. Her ability to connect with clients, develop creative solutions, and contribute to the firm’s evolution has positioned them as a rising leader in the industry.

“Since joining Method Architecture, Corryn has been a dynamic leader and a driving force in strengthening our brand across all our markets,” said Partner and Principal of Design Services, Eric Hudson. “Her strategic vision in setting firm-wide goals, business development and client relationships has been instrumental to our success. I’ve learned so much collaborating with her, and I’m thrilled to welcome her as a Partner as we continue to grow and innovate.” “Corryn has been instrumental in helping Method grow strategically, navigate multiple acquisitions, boost our digital presence, and scale our business in our industrial and tribal sectors,” said Managing Principal, Jake Donaldson. “She is a creative, passionate, and visionary leader. Method is fortunate to have her as a part of the executive team, and now as a Partner.” Williams joined the firm in Houston in 2017 as the Marketing Communications Manager. In 2018, she moved to San Antonio and began laying the foundation for firm’s local office while supporting the Austin office with the acquisition of Architecture Plus and later in 2023 with the acquisition of GSC Architects. She directly oversees the marketing and business development functions of the firm while also playing a key role in the firms’ senior leadership team responsible for the strategic vision and growth of the firm. This leadership expansion comes as Method Architecture continues to grow its presence within Texas, working on diverse projects in industrial, manufacturing, retail, and federal sectors.

Parallel adds Jennifer Davila as Accounting Manager Parallel, an Austin-based real estate development firm, recently hired Jennifer Davila as Accounting Manager. Ms. Davila brings over 20 years of development and multi-family accounting experience to the Parallel team. Before joining Parallel, she started her career in 2003 at LYND as a multi-family staff accountant, working her way up to Director of Accounting – Development & Investment. In 2015, Ms. Davila joined Kairoi Development, where she advanced her career to Senior Director of Development Accounting. Ms. Davila and her team were responsible for all aspects of development accounting, ranging from JV/land/loan closings to the construction and disposition of assets. During her time there, she led the accounting team on more than 30 projects, totaling over $3.8 trillion in development transactions.

CRE MARKETPLACE

ARCHITECTS/DESIGN-BUILD FIRMS

CONSTRUCTION COMPANIES/GENERAL CONTRACTORS

KDS de stijl interiors, LLC 2006 E Cesar Chavez St. Austin, TX 78702 P: 512.457.1332 Website: kdsaustin.com Key Contacts: Jill Laverentz, Owner, jill@kdsaustin.com; Clark Kampfe, Principal, clark@kdsaustin.com Services Provided: Programming & Client Process Analysis – Due Diligence & Building Analysis – Schematic Design – Test Fit & Pricing Notes – Project Scheduling Goals – Consultant Team Formation – Cost Analysis & Value Engineering – Design Development – Construction Documentation – Racking, Commodity, & Equipment Coordination – Permit Processing – Project Management – Construction Administration – Project Budgeting & Cost Tracking – As-Built Documents Company Profile: KDS is a full-service commercial design firm with 30+ years of experience including 25,000,000+ SF of Industrial/Flex and 3,000,000+ SF of Office Projects. We are committed to responsiveness and to providing well designed and implemented solutions. Our extensive knowledge base and adept management of critical milestones creates consistently successful projects. Notable/Recent Projects: American Canning – Austin, TX – 101,000 SF – Manufacturing & Distribution FlightSafety International – TX & OK – 186,000 SF Combined – Manufacturing GT Distributors – Pflugerville, TX – 58,000 SF – Retail, Office, Fabrication, Storage & Distribution

ALSTON CONSTRUCTION COMPANY HOU: 1300 W. Sam Houston Pkwy S Suite 225, Houston, TX 77042 DAL: 10440 North Central Expressway Suite 720, Dallas, TX 75231 Website: alstonco.com Key Contact: HOU: Nick Dwyer, Director of Business Development, ndwyer@alstonco.com DAL: Brittany Schneider, Director of Business Development, bschneider@alstonco.com Services Provided: Alston offers a diverse background of design-build experience, general contracting and construction management of industrial, commercial, healthcare, retail, and municipal projects. Company Profile: Alston Construction’s success begins and ends with our approach to planning, scheduling, and choosing the right team. We have been adhering to an open and collaborative approach since our founding more than 35 years ago. Notable/Recent Projects: Innovation Ridge Logistics Park, a 1.1 million SF 3 building industrial business park in Forney; 610 Business District, a 388,795 SF industrial park located in Houston; 1.2 million SF logistics facility located in Conroe.

LGE DESIGN BUILD 280 E. Levee Street Dallas, TX 75207 P: 469.498.0998 Website: lgedesignbuild.com Key Contact: Ray Catlin, Regional Vice President, rcatlin@lgedesignbuild.com Service Provided: LGE Design Build provides comprehensive design and construction services, including architecture, engineering, and interior design. LGE specializes in commercial, industrial, retail, healthcare, and tenant improvement projects. Utilizing a client-centric, design-build model, LGE ensures streamlined processes, reduced costs, and sustainable building practices for customized, high-quality results. Company Profile: LGE, with dual headquarters in Phoenix and Dallas, provides full-service architecture, design, engineering, budget control, permits, and construction. Renowned for integrity and craftsmanship, LGE has completed over 1,200 projects across industries like industrial, office, hospitality, medical, and more, delivering award-winning designs. Notable/Recent Projects: LGE Dallas Headquarters, Mesquite 635, Fort West Commerce Center, Houston Point 290, Cypress Creek Distribution Center, McKinney Trade Center II, Sunridge Industrial Park, Park West Phase III, Bottled Blonde / Backyard Fort Worth.

BROKERAGE FIRMS

CMI BROKERAGE 820 Gessner, Suite 1525 Houston, TX 77024 P: 713.961.4666 Website: cmirealestate.com Key Contacts: Trent Vacek, tvacek@cmirealestate.com; James Sinclair, jsinclair@cmirealestate.com Services Provided: Central Management, Inc. is a full-service commercial real estate firm providing Brokerage Services; Property, Facility, Construction and Asset Management Services; Landlord and Tenant Representation; Land Sales; Receivership and Real Estate Recovery. Services are available for Industrial, Land, Multifamily, MOB, Office and Retail. Licensed in Oklahoma and Texas. Company Profile: Central Management, Inc. (CMI) was founded by Houston real estate professional Vic Vacek in 1978. Our team understands the intricacies of the markets that offer investors an edge both from a leasing and an asset management perspective. Certified AMO® 1984, IREM, CPM, CCIM, NAR, HAR, NALP, ICSC, and TREC. Notable Transactions/Clients: Armada Big Springs Ptnrs, Barbour Invts., Baytown ISD, Core Real Estate, Hoffpauir Estate, JLC Properties, KBR, Prudential, Rawson Blum & Leon, Subway, Texas Hearing Institute, Triple Crown Invts., US Oncology, Vigavi Realty, Walgreens.

ROOFING COMPANIES

HIGHUP ROOFING 6620 Isabelle Dr. Austin, TX 78752 P: 512.566.9989 Website: highuproofingllc.com Key Contact: Nasir Hussain, Owner, highuproofing94@gmail.com Services Provided: Flat Roof Coating, Roof Repair, Roof Installation, Roof Maintenance, Torch Down Roofing, Commercial Roofing, Residential Roofing.

SUMMIT DESIGN + BUILD, LLC 98 San Jacinto Blvd, 4th Floor Austin, TX 78701 P: 512.872.6698 Website: summitdb.com Key Contacts: Adam Miller, President, amiller@summitdb.com; Doug Hayes, Project Executive, dhayes@summitdb.com; Amber Autumn, Business Development, aautumn@summitdb.com Services Provided: Summit Design + Build, LLC is a provider of full service general contracting, construction management and design/ build construction services for the commercial, industrial, multifamily residential, office/tenant interiors, hospitality and institutional markets. Company Profile: Located in downtown Austin and with offices in Tampa, FL, Chicago, IL and North Carolina, Summit Design + Build has been involved in the design and construction of over 400 buildings and spaces totaling more than 10 million square feet over the firm’s 18 year history. Notable/Recently Completed Projects: Montage – 2323 S. Lamar (Multifamily), Congress Lofts at St. Elmo (Multifamily), UpCampus Student Housing Tallahassee (Multifamily), WeWork (Office TI), Eli’s Cheesecake (Industrial), Lockheed Martin (Industrial), Stadium Lofts North Carolina (Multifamily).

HEALTHCARE MOB PUREFYT COMMUNITY CARE 14205 N MoPac Expy, Suite 570 PMB #565290 Austin, TX 78728 P: 512.775.3704 Website: purefytcc.com Key Contact: Ge'O-Vanna Smith, Owner, mobileivtherapyaustin@gmail.com Services Provided: Mobile Medical Services; emergency medical services; medical service company; emergency medical services; family health medical services; behavioral health services; behavioral mental health; behavioral healthcare services; behavior health services; behavior health service; advanced behavioral health services; mobile iv therapy; mobile iv therapy near me; mobile iv therapy austin; community medical services.

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