Partners Real Estate Company—the holding company of NAI Partners, Partners Capital, and Partners Development—has announced that Brett Chiles, a veteran private equity professional, has joined Partners Development as a Director. Mr. Chiles will be responsible for growing capital and sourcing debt for Partners Development’s ground-up retail and other development and investment opportunities. In addition, he will be responsible for other aspects of development projects including legal, entity organization, project management and other activities. Mr. Chiles has over two decades of experience in the investment space, and comes to Partners Real Estate Company from KA Investments, a Houston-based private equity firm where he was a Principal. Prior to that, he spent time at Equus Total Return, Inc., and Murphree Venture Partners. Mr. Chiles has an MBA from Rice University, and a Bachelor’s Degree in Business from Texas Christian University.
The Houston metro area has a long way to go until its office market fully recovers. Houston led the nation in overall office vacancies at the new year at a staggering rate of 24%, but there is one bright spot in the market: medical leasing. It’s perhaps no surprise that there’s increased demand and growth in the healthcare and medical field across the nation during the pandemic, and the trend is likely to continue in the coming years. While traditional corporate offices sent their workers home throughout the worst months of the pandemic, medical businesses maintained a presence in the workplace as an essential service.
According to recent numbers from brokerage NAI Partners, a number of key metrics in the medical market in Houston reveal some optimistic signs. First, and perhaps most important, is the overall vacancy level of 16.8% from this past February was slightly lower than 17% from the same period a year prior. Additionally, gross average asking rent has increased slightly from $25.02 per square foot in February 2020 to $25.86 this last February.
However, there’s still a lot of space to fill and even more on the way. Overall medical office available increased from 18.5% to 21.1% year-over-year, and net absorption is way down, from nearly 157,000 square feet to -65,278 over the last year. There were no new deliveries to the market in February, but there remains nearly 864,000 square feet of office space currently under construction.
Leases of note mentioned in the report include a deal for a 35,000-square-foot space in the Bissonnet Medical Plaza in suburban Bellaire, a 20,000-square-foot lease at the Texas Medical Center near downtown Houston, and a 14,000-square-foot deal at the River Oaks Medical Center in Greenway Plaza.
Texans displaced by freezing temperatures and outages pushed the state’s occupancy to a 50-week high, according to an analysis by STR. During the week of 14-20 February, Texas hotel occupancy reached 56.3%. That 50-week high in the metric contributed 0.9 percentage points of the 3-point gain in overall U.S. occupancy (48.1%) for the week. Texas’ occupancy level grew 9.4 percentage points over the previous week, which is the largest week-over-week occupancy increase for the state in the last year. Average daily rate (ADR) rose 5.8% week over week, which was Texas’ largest gain in the metric since the week of New Year’s. “Texas hotels are no stranger to housing displaced guests during a pandemic,” said Isaac Collazo, STR’s VP of analytics. “Similar to what we saw with Hurricane Laura, there was increased hotel demand for most markets because there wasn’t a great deal of business to lose ahead of the storm. We would have likely seen higher hotel performance across the state had hotels not experienced similar power and water loss as homes, in addition to the limited number of rooms available in some hotels due to reduced staffing as a result of the pandemic.” Click to read more at www.hotelnewsresource.com.
Montgomery, Texas (January 21, 2021) Construction is now complete on phase one of the new Woodforest Professional Plaza in Montgomery, Texas, located at 750 Fish Creek Thoroughfare. Woodforest Professional Plaza will be comprised of three buildings totaling 100,000 square feet of professional office and medical space. Phase one – Woodforest Medical Plaza 1 – is a 50,481-square-foot, two-story medical and professional office building situated on more than four acres of land. The building was developed by CMK Properties, LLC. According to the leasing team of Lisa Hughes and Pamela Sprouse of The J. Beard Real Estate Company, leasing is off to a strong start as three tenants have been signed. Anchor tenant Sterling Ridge Orthopaedics and Sports Medicine will occupy the first floor of the building by February 2021. Two other tenants, Revive Aesthetics and Regenerative Medicine and Alliance MRI Woodforest, are in the process of building out their space and will open soon. Phase two will be a 10,000 square foot build-to-suit building and phase three will be a 42,000 square foot medical and professional office building. The J. Beard Real Estate Company, LP, headquartered in The Woodlands, Texas, is one of the largest full-service commercial real estate firms in the Greater Houston area. Services offered encompass leasing, brokerage, property sales & disposition, buyer & site acquisition, landlord/tenant representation services, commercial property management, and development & consulting services. To learn more about The J. Beard Real Estate Company, visit www.jbeardcompany.com.
This past year, industries across Houston and beyond have been significantly impacted. With the COVID-19 pandemic and the election, the uncertainty of the future created hesitation for many to move forward with business, while others found new opportunities for growth and expansion. While all sectors of the commercial real estate industry were affected, today we explore the state of the industrial sector as we head towards the end of the year. Houston, We Need More Space. One of the biggest shifts we have seen during COVID-19 has been the need for larger warehouse spaces in order to meet the immediate needs of the consumer. Since many customers and businesses switched to e-commerce during the pandemic, the demand for space has increased. As a result, one of the trends we are seeing is an increase in space capacity caused by the demand from national retailers and e-commerce giants like Amazon. Developers and landlords are now having to deliver additional features and amenities such as added trailer parking space, suitable loading docks and extra storage space to accommodate these tenant demands. It is a trend that the industry has been talking about for the last three years and it’s something we can expect to continue to see for the foreseeable future. Click to read more at www.lee-associates.com.
NewQuest Properties will soon break ground on additional multi-tenant space in the Grand at Aliana after landing the award-winning First Watch as its newest tenant in the 56-acre regional development in Fort Bend County, Texas. The popular breakfast, brunch and lunch eatery has leased a 4,060-square-foot end cap in a soon-to-start 10,900-square-foot building. A second multi-tenant project, totaling 9,490 square feet, will begin to rise in early Q1. Both structures will be prominently positioned at the main entrance of the Grand at Aliana and front the Grand Parkway/TX 99. “The Grand at Aliana is one of the few large shopping centers that has delivered in 2020 in the region and has stores that are opening,” said Josh Friedlander, vice president of NewQuest Properties. He and David Meyers, leasing director, lease the project for the Houston-based development and brokerage firm. NewQuest will deliver the first multi-tenant building in May. Otwell Construction Inc. of Magnolia, Texas, is the general contractor. If all goes as planned, First Watch will open in September. The Grand at Aliana is First Watch’s 16th location in Greater Houston for franchisee Mac Haik Enterprises. Ron Marshall, president of Mac Haik Realty LLC, served as tenant representative in the negotiations. Opening in the past month were Burlington, Five Below and Petco. In early Q1, Michaels, Ross Dress for Less and Ulta will come online. At build-out, the Grand at Aliana will add nearly 400,000 square feet of class A retail and restaurant space to the Grand Parkway-West Airport Boulevard intersection. “First Watch is the first in its category to land at that intersection. The Aliana neighborhood has been asking for a wider selection of restaurants, which we are trying to provide,” Friedlander said. Aliana is one of Fort Bend County’s newest communities. It is master planned for 4,423 homes and its neighbor, Harvest Green, will have 2,626 at completion. NewQuest’s regional development’s trade area boasts 42,339 households with an average annual income of nearly $100,000. “The area as a whole is experiencing extraordinary growth,” Friedlander said. “As a result, our leasing activity is strong for inline space and pads. I have another dozen deals under negotiation.”