Category: Editorial

Breaking Down Austin’s $460 Million Bond for Bike Lanes, Trails, Sidewalks and More

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By Jack Flagler | 3:00 PM Nov 25, 2020 CST | Updated 2:59 PM Nov 25, 2020 CST

Project Connect, the $7.1 billion plan to revamp public transit in Austin, was not the only transportation decision city voters made Nov. 3. More than two-thirds of voters—276,137 out of 411,794—elected to approve Proposition B, which provides $460 million in bond funding for transportation projects broken down into nine different categories. Unlike Project Connect, which takes effect immediately, Proposition B will not affect homeowners’ tax bills for 2021. Instead, it will be phased in over years until it is fully levied in 2026. Once it fully takes effect, the owner of a median-valued $361,000 home would pay an extra $72 annually in tax dollars. The largest category of funding will go toward major capital improvements, which include redesigning Congress Avenue and paying for construction of a bridge over the Longhorn Dam along Pleasant Valley Road that will connect the two sides of the Ann and Roy Butler Hike and Bike Trail. Additionally, the bond provides a combined $200 million to fund bikeways, sidewalks and urban trails. While no timelines have been established for individual projects, the goal is to finish all bond-funded projects in six years, according to the office of District 8 Council Member Paige Ellis—one of the leaders of the effort on the dais. Click to read more at www.communityimpact.com.

This Is the Altered Normal

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The COVID-19 pandemic continues to necessitate unimagined change. The impact it has brought to our world would have seemed, for many, unthinkable at the turn of the year. Some refer to this change as the “new normal.” Really, however, it’s the ”altered normal.” We are experiencing significant alterations to supply chain, manufacturing, and education models. How families live together and apart, how and where we shop, the shape of our workplaces, the meaning of an essential worker, and every facet of recreation and leisure have seen major changes as well. While the sharpness of these shifts may make life and work feel like a new reality, this altered normal has been in motion for decades — and most of us have missed it. Businesses most able to adapt in this pandemic are helmed by leaders who previously built into their thinking and strategic plans the ideas of disruption and digital transformation. These are strategic leaders who previously understood the forces and trends that were shaping the future, and grasp that the industry is ever-evolving beyond COVID-19.

Consumer Response

After hitting a peak in February 2020, the United States officially entered an economic recession, ending its longest expansion in history, lasting just over 10 years. Other global economies are also suffering. This recession is different to those of before. How fast the economy has slowed, who its slowing is affecting, and its leading factors all distinguish it from previous downturns. Jason Furman, an economist and professor at Harvard Kennedy School, described the current U.S. economy as being in a “medically induced coma.” Others highlight the fact that for many consumers and politicians, the remedy for the pandemic is an economic pause. Click to read more at www.ccim.com.

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

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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

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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

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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.

Keller Williams City View Takes Full-building Lease in Northwest San Antonio for New Campus

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Transwestern Real Estate Services announced that Keller Williams City View, a franchise of Keller Williams Realty International, has signed a full-building lease for 30,000 square feet at The Park at Vance Jackson. The property, located at 15510 Vance Jackson Road in San Antonio, was delivered in February 2020. Transwestern executive managing director Russell T. Noll, CCIM, CPM, and Deborah Bauer of Drake Commercial provided agency leasing services on behalf of the landlord, The Park on Vance Jackson LLC. Managing director Cynthia Lee, CCIM, GRI, of KW Commercial City View represented the tenant. “We are thrilled to welcome Keller Williams City View as it creates its first campus in the nation at The Park at Vance Jackson,” said Noll. “The Park at Vance Jackson will provide a cohesive campus that aligns with Keller Williams’ goals, while simultaneously launching a dynamic future and dramatically lowering occupancy costs.” The Park at Vance Jackson includes two 30,000-square-foot, single-story buildings. The property delivers on location, access, high-profile signage opportunities, proximity to best-in-class amenities and the highest standard of service levels in a dynamic and growing submarket. More than any time in recent history, a company’s office environment is vital in attracting and retaining top talent as well as communicating culture, brand and a sense of place for clients. Keller Williams City View has designed its new campus to adapt to the post-pandemic way of working and collaborating. Agents will have their own front doors to individual suites and access to conference rooms with video call capability and a 100-seat training facility to accommodate everyone under one roof. In the midst of COVID-19, Keller Williams has proven its faith in the San Antonio market’s ability to weather economic storms by its decision to move forward with this significant commitment. “This was a nuanced transaction that required a seasoned and experienced real estate team to negotiate, educate, mentor and coach throughout the process, and working with a fellow CCIM allowed for a highly collaborative approach,” said Lee. “Several factors motivated this location decision, including an environment that is conducive for collaboration, space for facetime that encourages connection, and a campus-like environment as we continue to expand and grow to better serve our customers. We are thrilled with our new home at The Park at Vance Jackson and look forward to recruiting more agents, connecting with our vendors, and enhancing our customer’s experience.”