How real estate attorneys can help project owners avoid delays, defects, and disputes

Brad Porter, Managing Partner and Owner
Porter Law Firm

Real estate development projects can be exciting undertakings for investors, builders, and other stakeholders, but it’s certainly possible for complications to arise. Projects of this nature often encounter hurdles related to miscommunications, unclear contracts, construction defects, or other causes, but these can be easily cleared by partnering with an experienced attorney early in the process.

There are, in fact, many steps that real estate attorneys can assist with, in order to help project owners find success. 

From the get-go, attorneys can help owners understand the complexities of their construction agreement to avoid unwanted surprises down the road. Negotiating these agreements before the project begins ensures everyone is clear about their responsibilities. 

Once the project is underway, delays can be common, ranging from regulatory or approval obstacles, supply chain issues or labor shortages, or contractor performance issues, to coordination or communication challenges. The exact causes and impact of these delays can vary greatly, but having an attorney involved from the beginning can help mitigate or even prevent these hold-ups. For instance, developers may sometimes face unexpected regulatory hurdles midway through a project, causing significant lags. But with the help of an attorney, all stakeholders can be briefed in advance on locally-relevant regulations, so that none of them are surprises.

Another type of mid-project complication is the construction defect. There can be numerous such defects – including problems with the building envelope, a poorly laid foundation, plumbing errors, or water intrusion – that can cost potentially millions to rectify, depending on the project’s size and scope. Attorneys can play a crucial role in such a circumstance by collaborating with third-party experts who can inspect the site and identify potential problems early on. If a construction issue leads to litigation, these experts can also gather information on-site to determine what happened and who is liable.

Speaking of litigation, attorneys who specialize in real estate see project-related disputes with some frequency, so they know the sort of minor issues that can turn into bigger problems without attention. When disputes arise, several steps can be taken. Initially, many contracts require all parties to participate in dispute-related discussions. Attorneys are often involved before this initial step, with the hope that these negotiations will lead to a successful resolution. If these initial negotiations are unsuccessful, the next step is mediation. If mediation fails, the next step is likely to be private arbitration or a public lawsuit. Before filing, owners or developers will rely on their attorney to gather evidence through the aforementioned third-party experts to fully understand the project’s issues: what went wrong, why it happened, and who is responsible.

While attorneys are best known for handling lawsuits, their expertise can be highly valuable to developers and owners during other stages of their projects, with the goal to keep them out of the courtroom and instead headed for their ribbon-cutting.

About Porter Law Firm

Founded in 2009, Porter Law is a Houston-based boutique law firm known for its extensive experience in real estate law. The firm advises on investing in a business, buying or selling commercial real estate, HOA law, construction matters, and planning for the next generation. For more, visit www.porterfirm.com

Partners Capital, the investment platform of Partners Real Estate Company, closed the disposition of Trails at 620, a retail property in Austin, Texas.

The property at 8300 N FM 620, spans 69,037 square feet across seven buildings on 15.42 acres. Partners Capital acquired the asset in October 2020.

JLL brokers Shea Petrick and Chris Gerard represented Partners Capital in the transaction.

After years of conflict and tension around return-to-office mandates and hybrid schedules, the latest annual survey from design-build firm Unispace shows that U.S. employees and employers have finally found an acceptable middle ground.

According to the report, From Restrictions to Resilience, 98% of employers in the region are happy with their current hybrid working arrangement, while 90% of employees feel the same. In fact, American companies and workers demonstrate more harmony on this issue than their global counterparts at 95% and 87% on average, respectively. U.S. employees are currently in the office 3.8 days per week, a slight increase from 2023 (3.6 days).

While the amount of time spent in the office hasn’t changed dramatically in the past year, employers’ attitudes about the return-to-office (RTO) have evolved. Last year, 80% of employers in the U.S. mandated their employees to return to the office. However, they acknowledged that employee retention and attraction suffered as a result – half (50%) of these employers experienced higher turnover than normal, and more than a quarter (27%) found it harder to recruit. When you consider this was the general sentiment just over a year ago, the current mutual contentment around hybrid schedules is even more notable.

“For years, U.S. employers have been experimenting with the carrot vs. stick approach when it comes to RTO. This year, it’s firmly in the carrot’s favor as evidenced by the mutual agreement on hybrid work schedules,” said Albert DePlazaola, Senior Principal, Strategy, Americas at Unispace. “Employees’ goodwill must continue to be earned, however. To ensure the office continues to work for employees, organizations must offer quiet workspaces that enable focused, heads down work in a shared space.”

The survey data puts a finer point on this. While employees emphasize that “building social connections” and “face-to-face collaboration” are top office benefits, they also expect to have the opportunity to do focus work so they can “feel more productive” – and this is where the current office is missing the mark.

Striking the balance between concentration and connection

While face-to-face collaboration remains a top incentive for coming to the office, U.S. employees spend most of their time (60%) at their desks, doing focused work. Unfortunately, they’re finding that limited space options, noise and in-office interruptions often disrupt their focus. The difficulty in doing heads-down work is just one of several challenges highlighted in the survey results.

To mitigate these challenges, the report recommends a combination of furniture and workplace configurations that cater to various tasks and working styles. Employers should consider designating quiet, peaceful spaces for concentration or rejuvenation, as well as more dynamic areas for connection and teamwork.

For example, Columbus, Ohio-based Bread Financial, a leader in data-driven payment, lending, and saving solutions, created ‘zones’ to support varying employee work styles, enabled by a phone app that allows staff to conveniently book a desk when they need to do focus work. 

With pioneering organizations like Bread Financial leading the way, U.S. employee and employer harmony on hybrid is notable compared to their counterparts in other regions. They’re among the most likely to say that their workplace enables employees to be innovative (80% vs. 76% globally).

Narrowing generation gaps in the office

Younger generations (ages 18-34) prefer remote work compared to their older counterparts. But their response to prized office ‘perks’ intended to entice them back to the office is the highest of all generations.

For example, younger generations see the most benefit from mentorship, and 79% of U.S. employees would be happier to spend more time in the workplace if they had access to it. And the vast majority of them said they would happily spend more time in the office if their employer provided subsidized travel (86%) or access to amenities like a gym (86%). 

“Clearly, investments in the office and incentives—not mandates—drive Gen Z office occupancy,” said DePlazaola. “It’s strategic for employers to explicitly understand these employees’ needs in order to create an office environment that works best for them.”

Creating welcoming spaces that inspire

To enhance the office’s appeal for all generations, the report notes that spaces must foster a sense of employee belonging and identity, reflect organizational values, and allow for flexible start times. In fact, nearly three-quarters of employees (71%) in the U.S. say they would be happier to spend more time in the office if their workplace had spaces that connect them to the organization’s brand, culture, and values.

People want to work in spaces that are bright, inviting and engaging, and that celebrate not only the organization, but the diverse individuals it comprises. For example, Downstream, Unispace Group’s experience design agency, recently transformed the employee experience within the New York headquarters for Google’s Global Business Organization in St. John’s Terminal. The new office includes a mix of spaces, enhanced by sculptural elements, QR code-driven story plaques, and advanced workplace technologies, to foster DEIB (diversity, equity, inclusion, and belonging) and accelerate innovation.

The importance of creating a workplace that fosters belonging and identity cannot be understated. When asked what elements U.S. employees would like to see in their “future workplace” (i.e. the office in five years), a workplace that fosters belonging and identity remains in the top three responses, along with access to a “tech-enabled workspace” that provides advanced collaboration tools and smart features, as well as flexible schedule options such as compressed workweeks.

Gauge Real Estate Partners began construction on its latest Class-A industrial project and largest speculative development to date. Marketed for sale or lease, Gauge Southgate will feature three state-of-the-art industrial buildings designed to meet the demands of tenants in the strategically located Southeast Houston industrial submarket.

The development will offer 192,660 square feet of premium industrial space, with each building tailored to optimize distribution patterns and operational efficiency.

Building A will provide 33,600 square feet with a rear-load configuration and prime Beltway 8 visibility, 2,680 square feet of permit-ready office, 28-foot clear height, 15 dock-high doors, and 31 parking spaces. Building B will encompass 77,160 square feet with a front-load configuration, 2,400 square feet of speculative office, 32-foot clear height, 19 dock-high doors, 53 parking spaces, and the ability to provide 1,600 amps of power. Building C, at 81,900 square feet, will have a dedicated truck court, front-load configuration, 2,280 square feet of permit-ready office, 32-foot clear height, 15 dock-high doors, 55 parking spaces, and the ability to provide 1,600 amps of power.

Stream Realty Partners, a national commercial real estate firm, will oversee sales and leasing for the property.

The project is expected to deliver in the second quarter of 2025. With close proximity to Bayport Container Terminal, Barbour’s Cut Container Terminal, and Hobby Airport, Gauge Southgate presents a variety of locational and connectivity advantages for industrial users. Located entirely outside of the 500-year flood plain and offering superior access in all directions to both Beltway 8 and Interstate 45, this project is poised to become a key asset for businesses looking to expand their presence in Southeast Houston.

The Gauge development team includes co-founders Jeff Pate and Brian Attaway. Corvus Construction serves as the general contractor, and Powers Brown Architecture serves as the architect. Woody Hillyer and Managing Director Tyler Maner of Stream are responsible for building sales and leasing activity.

 JLL Capital Markets arranged financing for Hanover Autry Park and Hanover Parkview, two luxury multi-housing properties in Houston.

JLL represented the borrowers, Hanover Company and Lionstone Investments, to arrange the five-year, fixed-rate loans from accounts managed by KKR for both respective properties to refinance their existing construction loans that JLL sourced in December 2019.

Hanover Autry Park and Hanover Parkview are part of the transformative 14-acre master planned development located off Allen Parkway on the doorstep of River Oaks.  These complexes, both completed in 2022, offer an array of community amenities, including resort-style pools, outdoor grilling areas, social lounges with entertaining kitchens, state-of-the-art fitness centers, and rooftop lounges with indoor/outdoor bars offering picturesque views of downtown Houston.

Hanover Autry Park, located at 811 Buffalo Park Dr., is a 23-story high-rise with 324 units and nearly 23,000 square feet of ground floor retail. The residential portion is currently 92% occupied.

Hanover Parkview, located at 3737 Cogdell St., is a 421-unit midrise apartment building, with 24,000 square feet of ground floor retail. The residential portion is currently 95% occupied.

JLL Capital Market’s Debt Advisory team representing the borrower was led by Senior Managing Directors Cortney Cole and Colby Mueck, Senior Director Laura Brown and Analysts Davis Burnett and Scot Sarlin.

JLL Capital Markets closed the sale of Atrium Crest, a six-story, 107,529-square-foot office building in Clear Lake, Texas.

JLL represented the seller, Fullerton Properties, and procured the buyer, who was represented by Patrick Hill of Colliers.

Atrium Crest is located at 18333 Egret Bay Blvd. in Clear Lake, a community in southeast Houston that is home to NASA’s Johnson Space Center, driving both aerospace employment and tourism. In addition to NASA, southeast Houston has a diverse economic base comprising companies in medical, technology, logistics, tourism and the booming petrochemical industry. The 4.23-acre site is convenient to Interstate 45, providing access north to Houston and south to Galveston Island. Additionally, the Port of Houston is just a short drive from the property, which is the busiest container port on the Gulf Coast.

Renovated in 2004, Atrium Crest has a flexible layout that can accommodate a wide variety of users and space requirements. The property is currently 79% leased to a variety of tenants.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Director Marty Hogan.