JLL formed the JLL Healthcare Center of Excellence to provide an increased depth of resources and expertise for JLL health system and healthcare provider clients nationwide.

JLL named Executive Managing Director Brannan Moss as the National Healthcare Center of Excellence Lead.

Comprising experienced JLL healthcare professionals within JLL’s Leasing Advisory business, the JLL Healthcare Center of Excellence (COE) will act as a hub for specialized knowledge and expertise in representing healthcare occupier clients across the country. Together, the COE will work alongside hundreds of local JLL market healthcare Leasing Advisory experts, as well as healthcare partners across JLL business lines, to provide a fully integrated solution in creating and implementing an optimal real estate portfolio strategy for healthcare occupiers across the U.S.

In this new role, Brannan oversees JLL’s COE offerings, including strategic advisory services such as the advanced data analytics platform OneMapIQ for Healthcare, and leads an experienced team that specializes in healthcare location analytics, market strategy, complex healthcare transactions for medical office and land, ground-up development advisory, portfolio optimization and portfolio account management.

Moss joined JLL in 2006 and has built an impressive, 25-year career representing US-based health systems and healthcare providers across the continuum of care nationwide

Marcus & Millichap brokered the sale of Extra Space Storage, a 114,236-square-foot privately-owned, REIT-managed self-storage facility in Carrollton, Texas. 

Brandon Karr exclusively marketed the property on behalf of the seller, a local mom-and-pop operator, and also procured the Dallas-based buyer.  

Built in 1996 and expanded in 2001, the facility sits on two adjacent parcels at 2422 Marsh Lane. It includes 143 climate-controlled units, 448 drive-up units, six office suites and 101 uncovered parking spaces. The property also has a leasing office, a two-bedroom manager’s residence, gated keypad access, 24-hour video surveillance and perimeter fencing. 

In what has become a long-term trend, cap rates in the single-tenant net-lease sector continued to rise in the first three months of the year, marking the 12th consecutive quarter in which cap rates increased for this key commercial sector.

That’s one of the big takeaways from the first quarter Net Lease Market Report released April 7 by The Boulder Group.

According to The Boulder Group’s research, overall cap rates in the single-tenant net-lease sector rose to 6.78%, a modest jump of two basis points from the fourth quarter of 2024.

 Single-tenant cap rates increased to 6.56% for retail assets, a jump of four basis points from the fourth quarter of last year; 7.80% for office properties, which represented an increase of two basis points since the fourth quarter of 2024; and 7.23% for industrial. That industrial cap rate was unchanged from the last quarter of 2024.

Randy Blankstein, president of The Boulder Group, a national net lease CRE firm with offices in Wilmette, Illinois, and Denver, said that the most recent increase in cap rates should not have been a surprise to anyone following this sector.

And the reason behind these cap rate jumps shouldn’t be a surprise, either. It’s all about how expensive it is to borrow money today.

“The persistent upward trend in net lease cap rates now spans three years,” Blankstein, said in a statement. “This is reflective of sustained high borrowing costs and inflationary pressures.”

The number of net-lease properties rose in the first quarter, too, according to The Boulder Group’s research.

The net-lease report said that property supply in the single-tenant sector increased by more than 5% when compared to the prior quarter. This, too, is a trend: During the past two years, the supply of net-lease properties has surged by nearly 30%.

The reason behind this? The Boulder Group points to a slowdown in transaction speed and a pricing gap that still exists between buyers and sellers.

The increase in supply, though, isn’t hitting all net-lease sectors the same.

“Of all the net lease sub-sectors, the drug store sector is experiencing the slowest transaction volume and a glut of supply,” said Jimmy Goodman, partner with The Boulder Group, in a statement.

Recent news regarding private equity company Sycamore Partners’ acquisition of Walgreens further compounded the slowdown in sales activity in the drug store category, The Boulder Group reported.

Uncertainty over Sycamore’s long-term strategy has deepened the sub-sector’s supply and slowed deal flow. Not surprisingly, cap rates in the drug store sector increased by 44 basis points from the last quarter of 2024 to the first of this year.

Higher interest rates, as they have with all CRE sectors, have also impacted net-lease sales activity.

According to The Boulder Group, the net-lease market continues to adjust to the higher interest-rate environment experienced in recent years. Transaction volume increased in the fourth quarter of last year, and The Boulder Group is predicting a slight uptick in sales volume in 2025.

There is still caution, though. The Boulder Group said that investors will be carefully monitoring the capital markets following the Federal Reserve Board’s decision to hold interest rates steady during their March meeting.

If short-term rates continue to drop in the near term and uncertainty remains in the overall financial markets, net-lease activity is expected to increase, said The Boulder Group. But the CRE firm says that even with an increase, activity in this sector won’t rise close to the heights in pricing or transaction volume that it saw during the peak times of 2020 and 2021.

Marcus & Millichap closed the sale of a fully occupied 10,578-square-foot retail strip in Houston, Texas.  

“Investors and businesses love the Heights because of its central location, excellent demographics, and diverse architecture,” said Justin Miller, senior vice president investments in Marcus & Millichap’s Houston office. “These characteristics are an outstanding foundation for investment and helped us source offers from a broad cross-section of local and out-of-state investors.” Miller represented the seller, a Houston-based developer, in the transaction.  

Located at 1129–1141 E 11th St., the property sits at the signalized intersection of East 11th Street and Studewood Street, with traffic counts exceeding 17,000 vehicles per day. Tenants include Three Dog Bakery and Republic Boot Co. The site benefits from strong area demographics, with an average household income exceeding $175,000 within a one-mile radius. 

Houston-based Pelican Builders is set to break ground this month on a multifamily development within the Pearland Town Center community in Pearland, Texas, in the greater Houston market.

This project, featuring approximately 380 residential units, represents one of the few multifamily communities to be built in Pearland in the last decade, offering a new housing opportunity in the growing suburban market.

Pelican Builders worked closely with the City of Pearland to secure the necessary zoning approvals for the project at 3200 Business Center Drive in Pearland. Unlike in Houston, where development is guided by ordinance codes rather than zoning regulations, Pearland requires developers to navigate a formal zoning and approval process, making this project a significant achievement.

Situated within Pearland Town Center, a thriving mixed-use destination featuring retailers such as Macy’s and Dillard’s along with an array of dining and entertainment options, the new multifamily community will provide residents with unparalleled walkability and convenience. The development will feature Class A amenities, including a resort-style pool, dog park, children’s play area, fitness center, business center, and direct access to a scenic walking trail.

Units will have one to two bedrooms each, ranging in size from 604 to 1,196 square feet and include upgraded appliances, finishes and fixtures.

“As a Houston-based firm, we take pride in building communities that reflect the character and needs of the neighborhoods we serve,” said Drake Dominy, senior vice president of multifamily at pelican builders. “We are thrilled to be part of Pearland’s future and look forward to delivering a project that enhances the lifestyle of the community and its residents.”

Strategically located approximately 20 minutes from the Houston Medical Center, the community is expected to attract a diverse range of residents, including medical professionals, first responders, educators, and other essential workers. The architectural design incorporates a subtle nod to coastal influences, paying homage to the region’s proximity to the Texas Gulf Coast. The light and fresh aesthetics create a welcoming atmosphere for future residents.

The site, purchased from CBL Properties, the master developer of Pearland Town Center, was presented to Pelican Builders by a multifamily broker approximately two years ago. Since then, Pelican Builders has worked diligently to bring the project to fruition, securing the necessary approvals and collaborating with top-tier partners to ensure a high-quality development.

Austin-based OHT Partners has been selected as the general contractor for the project. OHT Partners brings 15 years of multifamily construction experience to the table.

“Pelican worked long and hard to conceive a thoughtful project, and we look forward to our role in helping see this high-quality concept through to completion,” said Thomas Terwilliger, vice president of construction, with OHT Partners.

Construction for Pearland Multifamily is set to begin this month, with completion anticipated in the second quarter of 2026.

In addition to OHT, additional team members include:

• Architect: Meeks + Partners
• Civil engineer: Kimley-Horn
• Structural engineer: Integrity Structural Corp.
• Mechanical, electrical and plumbing engineer: CFI Companies
• Interior design: MP Studio
• Landscape architect: KW Landscape Architects

JLL Capital Markets closed the sale of Driftwood Self Storage, a 482-unit self-storage facility in southwest Austin, Texas.

JLL represented the seller, The Jenkins Organization, Inc. and procured the buyer, Platinum Storage Group.

Driftwood Self Storage is located on 13.46 acres at 9900 Darden Hill Rd., approximately 17 miles southwest of downtown Austin. The facility is surrounded by new housing developments near the rapidly growing Highpointe and Driftwood neighborhoods. Driftwood Self Storage is the only self-storage facility in the three-mile trade area and there are currently no planned self-storage developments.

Completed in 2021, Driftwood Self Storage totals 96,433 square feet and is currently 93.4% occupied. The Class A facility offers modern features, including climate controlled-units, drive-up units, covered parking and fully enclosed RV units. The property also has smart unit technology, security lighting, 24/7 cameras and electronic gate access.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Managing Directors Steve Mellon and Brian Somoza and Directors Adam Roossien and Matthew Wheeler.