Category: News

M Financial Group signs lease at The QUAD development in Uptown Dallas

Posted on by Mia Goulart

A major financial services firm headquartered in Portland, Oregon, has agreed to open its first Dallas office in Stream Realty Partners’ The QUAD, located at 2699 Howell Street.

M Financial Group, a financial services distribution company that services a network of 130-plus independent Member Firms located across the nation, recently signed a lease for approximately 52,000 square feet in the 12-story office building under construction in the heart of Uptown Dallas.

M Financial has been headquartered in Portland since its incorporation in 1978. The expansion to Dallas represents the company’s first foothold outside of the Portland area.

Stream Senior Vice President Ryan Evanich and Vice President Marissa Parkin represented Stream, the owner of The QUAD, in the transaction. Cushman & Wakefield’s Dean Collins, Mark Collins and Doug Deurwaarder represented M Financial.

Stream, a national commercial real estate firm offering an integrated platform of services, is developing the 345,425-square-foot office building and surrounding 18,500-square-foot retail area heralded as the dawning of “A Different Dallas.” The QUAD is expected to open in March 2024.

Executive Managing Director & Partner of Development Ramsey March, Director of Development Brad Dornak, Senior Director of Design & Construction Jerry Mays and Director of Design & Construction Blake Bell led Stream’s development efforts for The QUAD project.

M Financial is the third office tenant to sign a lease in The QUAD. Earlier this year, Revantage, a Blackstone Real Estate portfolio company, agreed to take 32,000 square feet. Chicago Title, the largest title insurer and provider of real-estate related products, was the first office tenant to commit to the project, agreeing to occupy 21,000 square feet. Additionally, Two Hands, a community-focused eatery based in Australian café culture, was the first retail tenant to come on board. The eatery is scheduled to open in the Q1 2024. Stream will announce the remainder of the restaurant lineup later this fall.

The QUAD will set a new standard in Dallas with an integrated “smart” building end-user interface. Pathogen-reducing technologies such as hospital-grade air filtration and outside air circulation on office floors are 50% higher than industry standards. Tenants such as M Financial will appreciate the tower’s full-service fitness studio, top-floor outdoor terrace with expansive views, a club lounge and conference center, an acre of outdoor space, a bike valet, and dedicated underground parking. The building is also steps away from popular Uptown restaurants, hotels, entertainment venues, and multifamily complexes.

Navigating the future: Houston office market embraces change

Posted on by Mia Goulart

The Houston office market continues to undergo a period of recovery and adaptation in the aftermath of the COVID-19 pandemic. As businesses and employees explore new work models and redefine their office space requirements, the market landscape is experiencing shifts that reflect the changing needs and expectations of tenants. REDnews spoke with industry experts to gain insights into the current state of the Houston office market, emerging trends, the evolving amenities used to attract workers and predictions for the upcoming year.

According to Abby Alford, transaction management director for CBRE, Houston has felt the impact of the current economic conditions, but that does not imply a complete halt in activity.

“While leasing activity slowed overall this quarter, we’re seeing submarkets identified in drive time analysis studies to be a convenient location for employees, such as West Houston, strengthen,” Alford said.

In Q1 2023, Houston posted negative net absorption, but the overall average vacancy rate slightly decreased to 23.1%. It’s worth noting, however, that CBRE analysis found roughly 80% of that vacancy rate can be attributed to 10% of buildings.

Bob Cromwell, managing director of office services for Moody Rambin, noted that large users are contracting their office footprints, leading to negative absorption. However, the amenities-rich environment in areas like Memorial City/CityCentre have fared well with vacancy rates as low as 3%.

“There is no space,” added Cromwell. ”That amenity-rich environment is actually doing quite well.”

COVID-19 significantly reshaped the use and perception of office space. Cromwell emphasized that the dust has yet to settle, as businesses navigate the new normal. He observes that tenants are gravitating toward spec suites, highlighting the need for flexibility and ready-to-use spaces. Furthermore, tenant lounges and recreational areas, incorporating features such as golf simulators, are emerging as new trends.

Alford added that landlords are rethinking traditional amenities and exploring innovative ways to create collaborative environments. The emphasis is on fostering a comfortable and destination-like workspace that encourages employee interaction and engagement. Common areas, break rooms and huddle rooms are receiving increased attention to promote a dynamic and productive environment.

“The important thing for amenities is thinking outside the box and creating collaborative environments,” Alford stressed.

To entice workers back to the office, employers are embracing a live-work-play approach. Amber Carter, CEO and managing broker for Seven Fourteen Realty, highlighted the importance of a supportive atmosphere and company culture.

“Offering healthy snacks that are available throughout the day, fitness centers/ gym memberships, outdoor walking space or trails have been a few of the top amenities that employers have incorporated,” said Carter. “Offering space for childcare and pet care has also reflected positively in attracting workers back to the office. Most families are having to decide whether to have the expense of childcare or have a parent stay at home if a work from home option isn’t available.”

Carter predicts that the office space landscape will not return to pre-pandemic levels, but rather evolve into a new normal. She anticipates that property owners with larger buildings will explore repurposing options, combining housing, entertainment and office or co-working spaces to meet the changing demands.

As far as Houston office development, Cromwell believes it will slow down due to interest rates and how much space is currently available.

“You’re not going to see much in the way of speculative office development in the near term,” Cromwell said.

Looking ahead, experts in the Houston office market tell REDnews it will continue to evolve with property owners exploring creative repurposing options and emphasizing collaborative work environments. By embracing change and meeting the evolving demands of the workforce, Houston’s office market is well-positioned for a successful future.

Financing secured for Four Oaks Industrial Park in Texas

Posted on by Mia Goulart

JLL Capital Markets has arranged the financing for Four Oaks Industrial Park totaling 170,000 square feet in Schertz, Texas.

JLL worked on behalf of the borrower, Rosewood Property Company, to secure the loan from Lincoln Financial Group.

The single-building, two-tenant industrial park was delivered in 2022 and is fully occupied. The building sits on a 9.59-acre parcel and features 32 dock-high doors, two drive-in doors and 30-foot clear heights.

Located at 17670 Four Oaks Lane, Four Oaks Industrial Park is strategically situated approximately 1,300 feet from I-35 and is less than a 60-minute drive to both the San Antonio and Austin metros. The region also boasts a highly accessible location that is proximate to many of Texas’ major thoroughfares. This accessibility to dense population centers has led to steady demand along the I-35 Corridor. This demand has also allowed the surrounding Guadalupe/Comal County submarket to become one of the best performing industrial submarkets in Central Texas.

The JLL Capital Markets Debt Advisory team was led by Senior Managing Director John Brownlee and Director John Bauman.

Merriman Anderson Architects designs affordable rental community in Round Rock

Posted on by Mia Goulart

Merriman Anderson Architects (MAA) announces construction has commenced on their Preserve at Mustang Creek project, an $88 million rental community located in Round Rock north of Austin, Texas. MAA provided architecture and interior design services for the three-story family friendly, garden-style project which includes 252 units, clubroom, indoor play space, outdoor playground, resort-style pool with grill stations, garages and covered parking. A large solar carport will offset 90% to 100% of common electricity use.  

LS Black Development of St. Paul, Minnesota, is developing the 11.3-acre site at 1401 County Road 118 in Round Rock which will provide stylish modern apartments and amenities priced for affordability to households earning 30% to 60% of the area’s median income. MAA designed one- to four-bedroom configurations as well as Type A Accessible Units, and units equipped with accessibility equipment for residents with hearing and visual impairments. 

Public financing assistance was provided by the Texas Department of Housing and Community Affairs, along with private financial partners on the project. In addition to MAA, professional consultants include Westwood Professional Services (civil engineering); BHB (mechanical, electrical, plumbing); Salas O’Brien (structural, facilities planning); and Cadence McShane Construction (general contractor). 

Construction commences this month and is scheduled for completion in September 2025. 

The life sciences industry is betting on Texas. Developers should too

Posted on by Mia Goulart

The State of Texas is a natural mooring for life sciences companies. It has one of largest clusters of biotech and pharmaceutical professionals in the country, and a network of universities and institutions focused on building strong biochemistry, biophysics and technology-based programs designed to churn out highly skilled talent. Texas has the makings of a mature market, but a void of turn-key manufacturing, lab/R&D real estate is slowing momentum. Together, the state’s three largest metros, Dallas-Fort Worth, Houston and Austin, boast an aggregated population of over 15.5 million but only nine million square feet of inventory, a fraction of other dynamic life sciences markets.  

So, what is driving the disconnect? Texas seems to be caught in the middle of a chicken-or-the-egg riddle. While biotech companies are waiting for the arrival of new state-of-the-art facilities, developers are standing by for the arrival of biotech companies. To resolve the standoff, developers can look to evidence of the impending real estate demand to justify breaking into this technical market. There are three key trends that will ensure the continued expansion of the life sciences sector in the state, and each is reason alone to motivate new development.

Economic incentives
The Cancer Prevention & Research Institute of Texas (CPRIT) has been a substantial driver of the industry’s expansion. The $6 billion grant program has helped to recruit 285 researchers and 16 companies to the state since launching in 2007. PanTher Therapeutics is a recent example of how the grant program is supporting growth. The clinical-stage oncology company, which focuses on treating solid tumors, received $14.2 million from CPRIT to expand the development of its clinical therapies. A taxpayer-funded program, CPRIT currently has capacity to deliver significant funding grants like this through 2027.

In addition to CPRIT, the Texas Medical Center Innovation Institute funds a series of programs to support the growth of early-stage life sciences companies, providing advisory and essential amenities. Both of these programs illustrate the state’s ardent investment in expansion of the life sciences industry. As more companies take advantage of funding opportunities and state-supported services, it will be imperative that there are quality facilities in place to meet demand.

Utility infrastructure
Like real estate availability, power is a major need for life sciences companies, many of which utilize substantially more power and water than a standard office tenant. Life sciences companies are looking for reassurance that Texas power and water utilities can meet their needs given its checkered reliability history—and many local municipalities are meeting the moment. Cities throughout Texas have committed to accelerating the expansion of substations and bringing in larger water and sewer infrastructure.

CenterPoint Energy is investing and expanding its electrical infrastructure in the Texas Medical Center area, which has helped to support an expansion of TMC Innovation Factory Labs, scheduled to open sometime this year. In addition, Xcel Energy is building new substations throughout Northern Texas, another hotspot for life sciences activity in the state, to ensure the region’s power grid can accommodate growth. These are just a few of the ways utility companies are supporting the industry’s growth.

Business-friendly suburbs
Austin, Dallas-Fort Worth and Houston are expectedly in the biotech spotlight. The three cities have established life sciences networks and a ripe pool of professional talent. However, the surrounding suburbs are presenting tremendous opportunity for developers. Markets like The Woodlands, Taylor, and Round Rock have quickly captured demand due to their business-friendly environment and commitment to infrastructure support. There has been a steady migration to these metros, foreshadowing further momentum to come. With ample land for new development in these suburban areas, there is a unique opportunity to create life science campuses that most tenants prefer to settle into, being close to other likeminded companies and talent.

There are many examples of this suburban flight. In partnership with Nurix Therapeutics, Alexandria Equities is developing 12 acres of life sciences real estate in The Woodlands, representing an investment of $200 million, and NexPoint has announced plans to develop a 200-acre “cutting-edge” life science project known as the Texas Research Quarter in Plano, representing a $3.8 billion investment. . Plus, Dallas’s Pegasus Park has reimagined the former corporate campus of jeweler Zale Corp. as a life science hub, adding 135,000 square feet of lab and office space to the development, which includes tenants like UT Southwestern, TAYSHA Gene Therapies, McKesson, Colossal, ReCode, etireaRX and BioNTX Each of these projects will attract new demand from companies that support these global giants and that want to establish a presence in the area.

The expansion of the life sciences industry marks a new era in commercial real estate, with the introduction of light-industrial, technology-enabled properties. The asset class is a new horizon for the industry, and undoubtedly, forward-thinking real estate developers have an opportunity to support the industry’s expansion throughout the state. However, even the most discerning developers can overlook demand cues. Having a partner that is embedded in local market dynamics and that deeply understands the nuanced fundamentals that inform development decisions is essential to drive strategic decisions and capitalize on this tremendous opportunity.

Project Management Advisors, Inc. Senior Project Manager Grayson Mann specializes in tenant improvement and ground-up development for biotech, pharma and the distribution industries.

Connection Park Logistics Center trades in San Antonio

Posted on by Mia Goulart

JLL Capital Markets arranged the sale, joint-venture equity, and financing for Connection Park Logistics Center, a newly developed, Class A distribution center totaling 490,083 square feet in San Antonio, Texas.

JLL marketed the property on behalf of the seller, Triten Real Estate Partners, and procured the buyer, CAPSTAR Real Estate. Additionally, JLL arranged an equity partnership between CAPSTAR Real Estate and an undisclosed investor, and secured a floating-rate, interest-only loan from Prime Finance for the acquisition of the property.

Connection Park Logistics Center is situated on 42.23 acres and includes 36-foot clear heights, six ramped doors and 348 trailer and car parking spaces. The cross-dock configured warehouse was completed in early 2023.

Located at 6851 Cal Turner Drive, the distribution center sits within an established industrial park, offering proximity to major national and global distribution centers. Connection Park’s location offers immediate access to three major regional highways allowing for tenants to easily access the entire metropolitan area in addition to Houston (via IH-10) and Austin (via IH-35). Given its exceptional distribution reach, this industrial pocket is one of the most infill logistics locations in San Antonio.

The JLL Capital Markets Debt and Equity Placement team representing CAPSTAR Real Estate was led by Director Jarrod McCabe and Analyst Blake Jones.

The JLL Capital Markets Investment Advisory team representing the seller was led by Senior Managing Director Trent Agnew and Director Josh Villarreal.