Category: North Texas News DO NOT USE

Texas developer Hines teams up with venture that includes Mayo Clinic for safer workplaces

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A collaboration that includes the Mayo Clinic and two of the country’s top commercial property firms is studying workplace adaptations to reduce infection from the COVID-19 virus. Houston-based developer Hines, international brokerage firm Cushman & Wakefield and the Well Living Lab are teaming up for the effort to make offices safer as the economy begins to restart. Well Living Lab is a joint venture by Minnesota-based Mayo Clinic and Delos, a New York-based environment and “wellness solutions” firm. The group plans to contribute designs and science “for reducing the risk of respiratory virus transmission in work environments.” “Our people have been pioneers in creating progressive real estate that advances the built environment, so joining this effort is a natural way for us to give back while continuing to anticipate and meet the needs of tenants, clients and investors,” Hines CEO Jeff Hines said in a statement. Hines — which has office projects in the Dallas area — will provide expertise from its decades-long experience creating successful real estate projects. Click to read more at www.dallasnews.com.

The Texas real estate market is headed for a slowdown. The question is for how long.

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As Texans adjust to life under orders to stay at home during the coronavirus pandemic — and scramble to cover expenses with incomes that were drastically cut or abruptly shut off — housing and real estate experts say it’s hard to predict what the parallel public health and economic crises will do to home values and sales. A lot depends on how long the twin troubles last. “We definitely will have a slowdown, but the question is how much and how long,” said Scott Norman, executive director of the Texas Association of Builders. That’s a sudden about-face for what had been, until now, one of the most dynamic real estate markets in the country. The state has had five consecutive years breaking records in terms of numbers of houses sold and median prices, according to Texas Realtors. And Texas’ home building industry has been solid, too; no other state had more building permits in 2019, according to census data. Luis Torres, an economist with the Texas A&M Real Estate Center, said the housing sector can be a barometer for the economy as a whole because it affects jobs of laborers, builders, Realtors and a litany of other professions. “And it has a multiplier effect into the rest of the economy, from moving companies to furniture stores,” Torres said. Already, experts are seeing slowdowns in home showings — which are now largely done virtually — and expect that permits for new construction might also drop. For regions whose residents rely largely on the energy industry for work, like Houston or the Permian Basin, or on cross-border trade, like the Rio Grande Valley, home values and sales may dip more than in other Texas regions. Click to read more at www.news-journal.com.

Coronavirus Impacts Commercial Real Estate and Related Jobs

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The North Texas real estate market and the jobs that depend on it are one of the many industries impacted by the coronavirus pandemic. How serious the damage will be is not yet clear, but Southern Methodist University business professor Mike Davis said he did not expect a rapid recovery. “We know things are going to be different,” he said. “We’re entering into this horrific recession and recessions this bad, you feel the echoes of that for two or three, maybe even longer, years after that.” The drastic hit to aviation and the hospitality industry could cripple future construction of hotels and airport-related business. Shopping center development that was already hurt by a shift to online shopping may decline further as customers become even more accustom to e-commerce during forced time at home. Employment and job opportunities will be hurt. “We’re going to see a fundamental shift in the way we shop and the way we do business. That may mean fewer people getting on airplanes, which means fewer sales at all those food places and shopping places at the airport,” Davis said. “It could mean more on line sales as more people discover that’s just a good way to do business.” Click to read more at www.nbcdfw.com.

How North Texas small businesses can apply for an economic injury disaster loan

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Late last week, Governor Greg Abbott announced that Texas is now included as part of the U.S. Small Business Administration’s Economic Injury Disaster declaration, allowing qualifying businesses in the state access to the loan program. SBA Public Information Officer for the Office of Disaster Assistance Susheel Kumar, whose district includes Texas, explained in an interview that the program allows for loans up to $2 million with interest rates for small businesses at 3.75 percent, while nonprofits are at 2.75 percent. Repayment plans can be up to 30 years, but the exact terms are decided case-by-case. The first payment for the loan doesn’t start until 12 months have elapsed, Kumar said. “The economic disruption has caused a strain on supply chains nationwide,” Kumar said. Kumar said that the SBA has received “significant volumes” of applications, but did not venture to estimate how many since he does not have the numbers yet. He also said there have been a number of loan approvals, as well. The term “small business” can mean a variety of things. Kumar said that often how the SBA determines which businesses are deemed “small” depends on a variety of factors, including the industry, amount of average annual receipts and number of employees, among other factors. The SBA’s definition for various industries can be found here. Click to read more at www.wfaa.com.

Tenants ask for rent relief as pandemic shuts down business

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Even when business stops, the rent goes on. But with the unprecedented restrictions caused by the coronavirus, building tenants and their landlords are scrambling to deal with the new reality. Retail and commercial building tenants who have been forced to shut down are seeking relief from rent payments that still come due even when their doors are shut. “It’s not just restaurants — there are a lot of businesses that aren’t prepared to go two months without income,” said Tom Lynn, chairman of Dallas commercial property firm NAI Robert Lynn Co. “The companies that haven’t been able to access their properties and run their businesses are calling us to see if they can get some relief.” Even a landlord willing to cut his tenants some slack faces obstacles, Lynn said. His loan agreements may preclude free rent. Plus, some leases in retail buildings can be voided if a large percentage of the tenants in the project close down or pull out. Click to read more at www.dallasnews.com.

Stream Realty brokers Dallas warehouse acquisition on behalf of PrattCo Creekway

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PrattCo Creekway Industrial purchased a 42,420-square-foot industrial warehouse located at 8400 Ambassador Row in Dallas, Texas. The property was 100% occupied to two tenants at the time of sale. Stream Realty Partners’ Jamie Jennings, Jason Moser, and Andrew Rabinovich represented the seller, a Dallas based private partnership in the transaction.