JLL Capital Markets has closed the sale of and arranged acquisition financing for a 72,980-square-foot portfolio comprising three net-leased industrial properties in markets in and around Houston, Texas.

JLL marketed the portfolio for the seller, Finial Group. Houston-based NDP Interests, LLC, acquired the asset. Additionally, JLL worked on behalf of the new owner to secure a 10-year, fixed-rate acquisition loan with First Community Credit Union.

The portfolio includes buildings located at 9841 Windmill Park Lane in Houston, 20404 Whitewood Drive in Spring and 1114 Seaco Ave. in Deer Park. The single-tenant buildings are fully leased to Global Drilling Support; Forge Systems, Inc. and Intertek USA, Inc. and offer strategic locations in some of the most in-demand and high-growth submarkets within Houston’s Grand Parkway. These mission-critical positions serve major population centers that include about 7.15 million residents within the Houston MSA.

The JLL Capital Markets Investment Sales and Advisory team representing the seller included Senior Managing Director Trent Agnew and Director Charles Strauss.

The JLL Capital Markets Debt Advisory team representing the borrower was led by Managing Director Michael Johnson.

If there’s one thing to take away from Brandi Sikes’ analysis of the Houston office market, it’s that recovery may be slow, but the market is recovering.

“Based on what we know today, the worst is behind us,” says the Principal & Senior Advisor for SVN J. Beard Real Estate – Greater Houston, who merged Limestone Commercial Real Estate in November 2021.

Negative absorption peaked in Q3 2020 and leasing activity began to increase in Q2 2021, Sikes adds, noting Houston just posted its first quarter of positive absorption.

“Houston has one of the highest vacancy rates in the nation – 25 percent,” says Sikes. “Class A availability is closer to 30 percent, but the flight-to-quality offices with abundant amenities will help mitigate this vacancy over time.”

The demand for quality by prospective tenants almost assuredly requires buildings to offer amenities to remain competitive, she says.

“Tenants have high expectations when it comes to incentives but learn quickly that not all buildings are created equal,” Sikes points out. Stabilized assets can hold out for better deals in better days while the less fortunate are opting to ‘buy’ tenants on a short-term lease in hope of making it up on the renewal.” Click to read more at www.rednews.com.

Retail construction in the Houston region is set to rebound in 2022 as retailers such as H-E-B, Target and Burlington plan expansions, according to commercial real estate firm Weitzman. Retail projects completed in 2021 dropped by 11 percent over the year to 615,000 square feet, according to the company, which tracks projects with at least 25,000 square feet.

Target plans a 135,000-square-foot store at Valley Ranch Town Center at 11985 Grand Parkway N. in New Caney and a 145,000-square-foot store at 22165 FM 529 near the Elyson community the north Katy area. Fort Bend Town Center II in Missouri City will bring a Cinemark theater and Burlington, among other tenants. H-E-B plans stores in Magnolia, Manvel Town Center and the Market at Willis. Life Time Fitness is building a 140,000-square-foot location at 9000 Six Pines Drive in Shenandoah.

Houston retail occupancy returned to its pre-pandemic level of 95 percent at the end of 2021 as fewer stores closed and restaurants and other retailers filled in vacant spaces, according to Weitzman. The occupancy rate was up from 93 percent in 2020. Among the restaurants expanding are Halal Guys at The Crossing at 288 in Pearland, Southern Yankee Crafthouse in the former Good Dog Houston space at 1312 W. Alabama in Montrose, and Willie’s Grill & Icehouse in Pearland. Click to read more at www.houstonchronicle.com.

Houston-based commercial real estate firm Moody Rambin announced leases that bring its 253,714-square-foot Town Centre One office building at 750 Town & Country Blvd. to full occupancy. JFE Shoji America, represented by Robert Ritschel of The Saywitz Group Co., leased 1,566 square feet. USP Houston, represented by Nelson Udstuen of CBRE, leased 4,049. Axis Communications, represented by Michael Massaro of Mohr Partners, leased 5,863 square feet. Constellation Real Estate Partners, represented by Russell Hodges of CBRE, leased 3,722 square feet. Completed in 2015, the building is part of Town and Country Village, a 41-acre mixed-use development owned and managed by Moody Rambin. The company is seeking tenants for Town Centre Two, an eight-story, 167,141-square-foot office building planned next door.

Los Angeles-based BH Properties acquired Mason Creek II, a vacant three-story office building at 21700 Merchants Way in Katy. Originally designed for a single occupant, the 127,955-square-foot building will be repositioned as a multi-tenant building with amenities such as a tenant lounge and conference center, according to Scott Henry, BH Properties managing director of acquisitions. Jeff Hollinden of JLL Capital Markets represented the seller. Bob Cromwell and Kevin Nolan of Moody Rambin will handle leasing. Click to read more at www.houstonchronicle.com.

A report released by the Dallas-based real estate group Weitzman predicted Houston’s commercial real estate market would return to pre-pandemic levels of occupancy in 2022.

Weitzman reached its conclusion after reviewing Houston’s inventory of 163.1 million square feet in multi-tenant retail projects with 25,000 square feet or more.

Retailers leasing in existing space was one of the factors leading to the market’s resurgence, according to the report.

The report cited the high demand for space from restaurants as another factor, using examples such as Willie’s Ice House and The Halal Guys in Pearland.

According to data from the Greater Houston Partnership, restaurants in Texas saw operating capacity returning close to 100% throughout 2021 and into 2022, despite COVID-19 surges from the delta and omicron variants. Click to read more at www.communityimpact.com.