Category: News

What’s Squeezing the Commercial Property Insurance Market?

Posted on by Sarah

The US commercial property insurance market continues to feel the sting from catastrophic weather and disaster events, which have become more severe, more frequent and harder to predict, according to the 2022 U.S. Property Market Outlook report from Risk Placement Services (RPS).

Expecting the unexpected has become standard for a market where losses from unanticipated catastrophic weather have reached the billions of dollars, RPS said. In recent years, such events have occurred in unusual regions or seasons, such as last February’s Winter Storm Uri in Texas, or the tornadoes that devastated portions of the central and southern US in December.

In a bid to boost profitability, E&S carriers have been dropping unattractive risks, raising rates, lowering coverage limits and adjusting policy terms, RPS said. Click to read more at www.insurancebusinessmag.com.

Retail Wrap: Target, H-E-B, Burlington Signal Rebound in Houston Retail Construction

Posted on by Sarah

Retail construction in the Houston region is set to rebound in 2022 as retailers such as H-E-B, Target and Burlington plan expansions, according to commercial real estate firm Weitzman. Retail projects completed in 2021 dropped by 11 percent over the year to 615,000 square feet, according to the company, which tracks projects with at least 25,000 square feet.

Target plans a 135,000-square-foot store at Valley Ranch Town Center at 11985 Grand Parkway N. in New Caney and a 145,000-square-foot store at 22165 FM 529 near the Elyson community the north Katy area. Fort Bend Town Center II in Missouri City will bring a Cinemark theater and Burlington, among other tenants. H-E-B plans stores in Magnolia, Manvel Town Center and the Market at Willis. Life Time Fitness is building a 140,000-square-foot location at 9000 Six Pines Drive in Shenandoah.

Houston retail occupancy returned to its pre-pandemic level of 95 percent at the end of 2021 as fewer stores closed and restaurants and other retailers filled in vacant spaces, according to Weitzman. The occupancy rate was up from 93 percent in 2020. Among the restaurants expanding are Halal Guys at The Crossing at 288 in Pearland, Southern Yankee Crafthouse in the former Good Dog Houston space at 1312 W. Alabama in Montrose, and Willie’s Grill & Icehouse in Pearland. Click to read more at www.houstonchronicle.com.

Laura Hines-Pierce to Carry on Grandfather’s Legacy as Co-CEO of Hines Real Estate Firm

Posted on by Sarah

HOUSTON – Hines, the global real estate firm, announced Thursday that Laura Hines-Pierce has been promoted to co-CEO.

Hines-Pierce has served as the firm’s senior managing director in the office of the CEO since 2020, and previously served as Hines’ transformation officer.

“Laura has brought tremendous innovation to the firm and has been instrumental in driving efficiency and creating value for our investors and clients. It’s an honor to have her join me as co-CEO,” said Jeff Hines, chairman and co-CEO of Hines. “Leading Hines during the real estate industry’s massive transformation takes strategic thinking, vision and empathetic leadership, which are qualities that Laura exemplifies. I’m looking forward to us continuing my father’s legacy of prioritizing quality, service and integrity together.”

“I’m proud to become co-CEO and continue the momentum we’re experiencing across the board at Hines,” said Hines-Pierce. “My father has been the catalyst for our global expansion and growth over the past three decades and I’m excited to partner with him at this pivotal moment for the firm. The pace of innovation in real estate is finally catching up with other industries; my primary focus has always been – and continues to be – positioning Hines at the forefront of those changes.” Click to read more at www.click2houston.com.

Force Majeure: COVID-19 Pandemic Prompts Evolution of Longstanding Lease Clause

Posted on by Sarah

What had long been an afterthought in most lease agreements has been spotlighted the past two years as tenants, property managers and landlords wrestled with ‘force majeure.’

In its most basic interpretation, ‘Force Majeure’ translates to a superior force.’ Its use can be traced back to Roman law, which incorporated the term ‘vis major’ and determined “possibility” was the limit of obligations. Today, the clause included in many contracts “is meant to protect the parties in the event that a contract cannot be performed due to causes which are outside the control of the parties and could not be avoided by the exercise of due care,” according to Black’s Law Dictionary.

“The benefit of a force majeure clause is that it allows the parties to fashion a rational allocation of the risk imposed by unknown and uncontrollable events,” says Paula M. Bagger, Principal at Bagger Law. “In an ideal world, in which the parties have equal bargaining power and (importantly) are paying equally close attention to the entire contract, including the “boilerplate” during negotiations, a force majeure clause allows the parties to select a resolution that works best for their situation.” Click to read more at www.rednews.com.

San Antonio Makes Debut on List of Best Markets for Commercial Real Estate Investment

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If a new ranking is accurate, San Antonio’s hot market for commercial real estate will continue to sizzle in 2022.

The ranking, from Austin-based CrowdStreet, positions the Alamo City as the country’s No. 14 market for commercial real estate investment this year, marking the city’s debut on the top 20 list. CrowdStreet’s online platform enables private investment in commercial real estate.

San Antonio’s military presence, population growth, and retail growth led to “outsized growth” here last year, CrowdStreet points out. 

“A military presence and above-average population and retail sales growth have helped to spur outsized growth for the local economy in 2021,” CrowdStreet says, also noting a LaborIQ report that its proximity to Austin could eventually lead to a combined market that could have a significant impact on labor, the economy, and real estate. “San Antonio and Austin may be moving closer to merging into a single labor market, similar to Dallas-Fort Worth.”

CrowdStreet ranked the top 20 commercial real estate markets based on nearly 30 factors, including population growth, job growth, unemployment rate, economic diversification, education levels, climate, property prices, and quality of life. Click to read more at www.sanantonio.culturemap.com.

Inspire Development Embarks on Massive Pearson Ranch Mixed-Use Project in Northwest Austin

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Inspire Development broke ground Jan. 27 on Pearson Ranch, a 156-acre mixed-use project that aims to bring office space, retail, hotels, housing and parks to an area developers called Williamson County’s “burgeoning technology corridor.”

Located at the northeast corner of SH 45 N and West Parmer Lane, the development is 2 miles from Apple’s $1 billion new campus. Pearson Ranch will feature 2.6 million square feet of Class A office space; 200,000 square feet of retail, restaurant and community spaces; two hotels, thousands of multifamily housing units; and 30 acres of parkland, according to a Jan. 31 release from Inspire Development.

In the release, Pearson Ranch developers said the community is designed to attract local restaurants and retailers and provide access to parks, public spaces and hike-and-bike trails. The site is also located east of Capital Metro’s Lakeline Station, which provides access to the MetroRail Red Line as well as bus service. Click to read more at www.communityimpact.com.