Category: US/Texas CRE News

Real Estate Firms Adapt To COVID, Prepare For Post-Pandemic Era

Posted on by Sarah

We find ourselves at an intriguing juncture in the novel coronavirus pandemic’s evolution. Just as promising vaccines burst into prominence, promising a brighter post-COVID era, we also stand at the dawn of a predicted unprecedented surge in COVID infections, bringing what’s sure to be a concomitant spike in hospitalizations, ICU stays and deaths. “It’s going to get a lot worse before it gets better,” seems the understatement of the autumnal season. Given all the uncertainty, this could be an opportune moment to capture a snapshot of the real estate industry’s response, as seen through the lens of several widely disparate trends and developments. Coral Gables, Fla.-based development, investment and property management firm Codina Partners proved visionary in rolling out its “Codina Cares” signature program to its South Florida and Texas properties just as COVID’s impact seemed to wane in early summer. As if certain a second wave would grip the nation in the months ahead, Codina implemented a number of measures at the commercial properties of its Downtown Doral mixed-use community in west Dade County. Click to read more at www.forbes.com.

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Gross-ups and COVID: Alpha Office Escalations Solves Complicated Calculation Issues

Posted on by Sarah

With news of a potential vaccine on the horizon, the thought of returning to “life as normal” seems more possible than ever. However, the pandemic may have changed some of our behavior permanently, specifically impacting how we think about the safety of our work environment. “For the first time in my life, I find myself unconsciously counting to twenty every time I wash my hands, which I now do more often than ever before,” said Bill Brownfield, Counselor of Real Estate (CRE), Certified Commercial Investment Member (CCIM) and co-author of The Escalation Handbook for Office Buildings with Larry Mayerhofer, CPA. “Extrapolate that behavioral change out to include many millions of office employees and you can quickly conclude that some, probably a lot, will want to work in offices that have an office version of the proverbial Good Housekeeping Seal of Approval.” As a result, Brownfield said many office owners and managers are executing new and/or expanded operational protocols designed to improve air quality and safety so tenants will feel comfortable when they return. “Most of their operational adjustments have been implemented by now and are becoming normal daily routines for cleaning, security and social distancing,” Brownfield said. “Some have made capital investments in HVAC upgrades, touchless technologies, UV lighting and other preventive strategies.” In many cases, those operating expenses can be allocated on a pro-rata basis to a property’s tenants, along with their base rent, via escalations. But because leases so often vary, calculating the appropriate share for each tenant accurately can be a challenge. “We know that owners and property staff care deeply about doing the right thing. But the scope of responsibilities for property managers and accountants has expanded so much over the past two decades that they have little time for deep dives. They’re pedaling as fast as they can, so they need new tools to automate and speed up work processes,” said Brownfield. Click to read more at www.rednews.com.

A Year Like No Other: Reviewing 2020’s Impact on Three Texas Markets

Posted on by Sarah

What a year. The pandemic, civil unrest, a retreating economy, plummeting oil prices and more have all had varied impacts on Texas’ markets. While everyone is eager to leave 2020 behind, what are the real estate prospects for the state’s largest metros in 2021?

Dallas-Fort Worth

According to Michael Caffey, president, advisory services, South-Central Division and Latin America at CBRE, investment activity in the Dallas-Fort
Worth area hasn’t tapered off as much as many may have feared. “Investor activity in Dallas-Fort Worth has continued throughout the year,” Caffey said. “While activity is down overall, we’re still a top-four market for total
investment volume behind New York, Los Angeles and the Bay Area.” There is one main attraction, of course. As logistical warehouses remain the most sought-after and dynamic commercial property type, DFW’s industrial sector has been immune to the headwinds of 2020 and seen year-over-year growth. In fact, demand among e-commerce tenants, 3PLs and the food and beverage industry has increased rents and sent vacancy rates to a near all-time low. Industrial submarkets have all remained remarkably stable, with activity largely driven by the amount of available space. For example, in the GWS/Arlington submarket, where the vacancy rate is 4.7 percent, there is naturally less activity than in submarkets that have more available space like South Dallas or North Fort Worth. It’s not just investors who are eager to tap into the Metroplex’s strong industrial performance. Click to read more at www.rednews.com.

Leaving a Legacy: Celebrating the Life of James B. DeGeorge, Sr.

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When Michele DeGeorge (née DiGiorgio) arrived in Houston from Italy in the 1880s, he could never have predicted the impact he and his descendants would have on his new home. Several generations later, the community he quite literally helped build is saying goodbye to Michele’s last surviving grandchild, James B. DeGeorge. Born in 1932 to parents Gasper M. DeGeorge, Sr. and Josephine Pinto DeGeorge, James attended school and even some college in Houston before attending the University of Texas at Austin. The call of duty interrupted his studies in 1951; James, a United States Marine Corps reservist, served at Camp Pendleton during the Korean War. He married several years later in 1955 and, two years after that, welcomed his first child into the world. James “Jimmy” Bernard DeGeorge Jr. was followed by Gregory “Greg” Allman DeGeorge in 1958 and Lance Clayton DeGeorge in 1970. “He was like a lot of dads,” said Greg. “He was very interested in my upbringing and how I did in sports.” James would often take the time to come to his sons’ games or, as a special treat, take them to a pro football game on the weekends. As they grew older, Greg said his father never pressured him or his brothers to pursue a career in real estate. “His attitude was ‘You can do whatever you want to do,’” Greg said. “I actually got more pressure from a couple of friends who told me I’d be crazy if I didn’t go into real estate because it’s in my blood.” To understand that, you need to look back into the history of the DeGeorge family. James’ grandfather, Michele DeGeorge, immigrated to the United States in 1882 with his wife Ursula and settled in Houston by 1884. There, he operated a grocery store and saloon, which he eventually expanded to three different locations. Michele invested the money he earned into real estate, eventually founding the DeGeorge Hotel in 1913 and the Auditorium Hotel (now the Lancaster Hotel) in 1926. Click to read more at www.rednews.com.

As More Californians Arrive in Texas, an Exclusive Community has Become Increasingly Popular for Relocation

Posted on by Sarah

BOERNE, Texas — Texans love Texas, and apparently, a lot of other people do too. The Lone Star State is one of the top places to move to in the nation. One exclusive community in the Texas Hill Country has been a popular spot for newcomers. The culture, food, weather, and diversity, you name it! There’s a lot to love about Texas. According to the 2020 Relocation Report by Texas Realtors, the Lone Star State was the second-best place for relocation in the country. Texas had 563,945 new residents in 2018. Researchers gathered data from the U.S. Census Bureau and U-Haul. According to the report, 57,173 people moved to the state in 2017 compared to 101,805 people in 2018, which is a 78.1% jump. The highest number of new Texans relocated from these states in this order: California (86,164), Florida (37,262), Louisiana (29,108), Oklahoma (24,590) and New York (21,509). One of the popular spots for relocation activity has been northwest of San Antonio. Cordillera Ranch is 8700 acres, an exclusive community nestled in the Texas Hill Country. Residents have access to the Guadalupe River, hiking trails, the Clubs of Cordillera Ranch, swimming, tennis, equestrian and a par 72 Jack Nicklaus Signature Golf Course. Dave and Carrie Arata are former Californians who moved to Cordillera Ranch a little less than a year ago. The couple says their friends recommended the area and after they visited the community, they were sold. Click to read more at www.kvue.com.

NAIOP Projects Negative Absorption of Office Space to Continue in the Short Term; Expects Positive Trend to Begin in the Second Quarter of 2021

Posted on by Sarah

A new office space demand forecast published by the NAIOP Research Foundation projects a period of negative absorption through late 2020 and early 2021, but total net absorption from Q2 2021 to Q3 2022 will exceed negative absorption from the recession, resulting in overall gains. In addition, the forecast negative absorption is less than the negative absorption that has been reported for the last two quarters. “Given the continued challenges facing the U.S. economy, office net absorption is forecast to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021,” according to the forecast. “The coronavirus pandemic has led to conditions that are remarkably different from past recessions but are nonetheless challenging for the office sector.” “Although vacancy rates have risen, there are many multiyear leases that are set to outlast the projected return to the office,” said Thomas J. Bisacquino, president and CEO of NAIOP. “Office space users face a unique dynamic presented by the pandemic, but the shift to remote work has allowed businesses to keep going in certain sectors.” For example, October unemployment rates in the financial-activities sector (3.8%), information sector (5.8%) and professional and business services sector (6.1%) were below the U.S. national average of 6.9%. Click to read more at www.naiop.org.