Category: News & Market Reports

Tanglewood Developer Plans $300 Million, 33-Story Tower

Posted on by Sarah

The family of the founder of Houston’s prestigious Tanglewood neighborhood plans to build a $300 million, 33-story condominium tower on the community’s southern edge.

The 1.3-acre site, at the northeast corner of Tanglewood Boulevard at San Felipe, currently houses the headquarters of Tanglewood Corp., a third-generation, family-run real estate venture founded by Tanglewood developer William G. Farrington. The ranch-style office building, which opened in 1949, the same year as the neighborhood, would be torn down to make way for the tower.

“We’ve been incubating this wonderful corner for approximately 70 years,” said Kendall Miller, Farrington’s grandson, who lives in the house his grandfather built nearby. “The plan has evolved over the years, but has always been the new commercial idea of the moment.” Click to read more at www.houstonchronicle.com.

San Antonio Office Monthly Market Snapshot August 2021

Posted on by Sarah

San Antonio Office absorption at highest January through July aggregate total since 2017.

Market Highlights

VACANCY RATE INCREASES TO 11.1%
The overall vacancy rate in the San Antonio office market is at 11.1%, up 60 basis points from this time last year at 10.5%. The vacancy rate for Class A properties is at 14.1%, up from 13.0% in the prior period. Net absorption (move-ins minus move-outs) of positive 290,000 sq. ft. was up from negative 85,000 sq. ft. at this time in 2020. In addition, six properties with a combined total of 619,000 sq. ft. of new supply has been delivered to the market so far in 2021, with an occupancy rate of 54%. Year-to-date through July, the office market has recorded 1.2 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—down 60% from one year ago.

PROPOSED MIXED-USE THAT COULD INCLUDE OFFICE SPACE
Members of the Black family, which operate Terry Black’s Barbecue in Austin and Dallas, have purchased a mostly vacant 1.4-acre site—roughly a city block of land, a few blocks north of the successful Pearl development. The property is located at 2110 Broadway and will possibly be developed into a combination of San Antonio office space, multifamily, a hotel and restaurant. It is a prime spot near downtown business, the Alamo Heights neighborhood, and proximity to the Pearl.

SAN ANTONIO LABOR MARKET
The metro’s unemployment rate dropped in June to 5.5%, the lowest since March 2020. The state’s jobless rate fell slightly to 6.5%, and the nation’s rate ticked up to 5.9%. Net payrolls grew in the second quarter, with leisure and hospitality leading growth (15.1%, or 4,190 jobs) followed by government (8.8%, or 3,650 jobs). In March and April 2020 combined, 130,511 jobs were lost due to the pandemic. As of June 2021, 83.3% of those jobs had been recovered. Click to read more at www.naipartners.com.

AECOM Moves Headquarters from Los Angeles to Dallas

Posted on by Sarah

Industrial giant AECOM is moving its headquarters from Los Angeles to Dallas. The firm’s CEO Troy Rudd and select corporate leaders will move into the company’s existing Dallas office at 13355 Noel Road, where more than 1,200 AECOM professionals work. The engineering firm has 47,000 employees worldwide, and its professional services business had revenue of $13.2 billion in 2020. AECOM is the sixth Fortune 500 company to relocate its headquarters to DFW in the past six years.

The engineering firm already has several projects in DFW. It has been selected by Trinity Metro to conduct the environmental assessment and preliminary engineering for the TEXRail extension project in Fort Worth. It also will provide program management services for the first phase of the $3.5 billion Dallas Independent School District 2020 Bond Program. AECOM also worked on the environmental impact statement for the proposed 240-mile high-speed rail project that will run between Dallas and Houston

INDUSTRIAL
Productiv leased 213,392 square feet at DFW Trade Center V in DFW Airport. Jeremy Kelly and Sarah Ozanne with Stream Realty Partners represented the landlord, JP Morgan Asset Management. Ryan Boozer and Sarah Ozanne with Stream Realty Partners represented the tenant.

K&M Tire renewed 201,600 square feet at Arlington Tech Center in Arlington. Matt Dornak, Ryan Boozer, Luke Davis, and Lena Pierce with Stream Realty Partners represented the landlord and the tenant.

Fidelity Paper and Supply signed a new 107,082-square-foot lease at 310 SW 14th St. within Heller Industrial Park in Grand Prairie. Transwestern’s John Brewer and Riley Maxwell represented the landlord. Cameron Rogers with Rubicon Representation represented the tenant. Click to read more at www.dmagazine.com.

Tops in Texas: What to Watch for in the State’s Industrial Markets

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Even to those who’ve worked in the industrial real estate market for decades, the figures generated over the past year are staggering. “It’s as red-hot and active as I’ve seen it in my career,” says Reid Goetz, Senior Vice President at Hillwood. “That’s both on the demand side and the construction and capital market side.”

Goetz is responsible for the industrial development and leasing within AllianceTexas, a 27,000-acre, master-planned and mixed-use development in North Texas that produced 53 million square feet of commercial development to date. “We have land holdings that will allow us to develop another 36 million square feet of industrial,” Goetz shares.

Since AllianceTexas got its start more than 30 years ago, it had a leg up on some of the new developments hoping to capitalize on the industrial boom, many of which are now running into supply chain issues with materials, including steel. Click to read more at www.rednews.com. Click to read more at www.rednews.com.

Hartman Earns Excellence in NPS Survey from Tenants

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August 10, 2021 (Houston, TX)—Hartman Income REIT Management Inc., a leading owner and operator of 60 commercial real estate assets in Texas, announces that it has earned the high-ranking Net Promoter Score (NPS) of 60 from its surveyed tenants. The score is considered excellent based on global NPS standards.

NPS is a market research tool used to gauge the loyalty of a company’s customers. Hartman tenants are prompted to complete a voluntary survey that asks respondents to rate their likelihood of recommending the company.

For the sixth consecutive survey since Q3 2018, the Hartman Management Team has increased its NPS score. A positive upswing in Hartman’s NPS score firmly reflects the company’s commitment to upholding its core values. Hartman’s tenant mix includes thousands of small businesses and some of the nation’s most recognized brands, including Oracle, Gulf Interstate, Chase Bank, Chuck E. Cheese, Aldi, and Floor and Décor.

“We are thrilled to receive such high NPS scores from our tenants. The accolade is a testament to how hard our Property Management Team works to deliver top-notch customer service and how sincerely we care about the experience our tenants have in our buildings. At Hartman we strive for nothing but the gold standard,” commented Angel Gonzales, Hartman’s VP of Property Management.

According to ClearlyRated.com, compared to other top commercial real estate firms, Hartman’s NPS results rank Hartman in the top 6% of all commercial real estate companies participating in the survey, and benchmarked the firm significantly higher than the average commercial real estate firm score of 43. For wider context, Honda, a highly trusted car manufacturer, received a Net Promoter Score of 49. Intel, a tech giant known for reliable computer hardware and software systems, earned a Net Promoter Score of 52.

Describing the firm’s excellent Net Promoter Score, Al Hartman, President and CEO, shared, “Our team here at Hartman takes customer service very seriously. Different from other commercial real estate firms, we are vertically integrated and manage everything in-house. This has allowed us to stay hyper-focused on our tenant’s needs and maintain a superior white-glove service standard.”

Seven of Hartman’s 60 commercial properties received perfect accolades from its tenants. These properties were Hartman’s office buildings 7915 FM 1960, Timbercreek, 1400 Broadfield, Hartman’s retail properties Haute Harwin, One Mason, and Fondren, and one industrial property, Richardson Tech Center. The tenant’s stories highlighted that Hartman has “brought to life” the company’s culture and commitment to white-glove service. One such tenant remarked, “I have had nothing but GREAT experiences since I leased my office! The management goes out of their way to accommodate my needs. They also find plenty of ways to show their appreciation to the tenants,” shared Bridgette Rubin, an office tenant of Hartman’s.
If you are looking to lease office, retail, or industrial space in Houston, Dallas, or San Antonio, please contact a Hartman leasing agent for more information. A leasing representative can be reached by phone at 800-880-2212 or by email at leasing@hi-reit.com.

About Hartman:

Hartman is a premier property management company in the Houston, Dallas and San Antonio markets with more than 59 properties totaling over eight million square feet. Hartman has owned and operated commercial office properties since 1983, offering premium office space at attractive rates. With more than 38 years of commercial leasing expertise in Houston, San Antonio, and Dallas, Hartman knows exactly what their customers require. For more information, visit www.hi-reit.com.

Contact: Anthony Trollope
Marketing Director
Hartman Income REIT Management, Inc.
713.467-2222

Here’s Why The Leverage That We Can’t Track Matters

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Despite all we hear about asset classes increasing in value across the board and the unprecedented strength of the U.S. economy, as a real estate entrepreneur and former professional trader, here’s what keeps me up at night: I believe we only know part of the story and that the piece we’re missing — our current inability to account for “invisible” or “hidden” leverage can have significant implications for our country’s economic health.

The hitch? We likely won’t know until it’s too late.

In a nutshell, “leverage” is the term for funds that are borrowed (outright or against an asset) with a goal of using those funds for further financial gain. Applied wisely, leverage has fueled wealth and economic growth for centuries; however, as with any debt, when things go south, borrowers can find themselves underwater, financially speaking. This is simply the reality of our economic system.

The risk is amplified when investors leverage assets that are inherently more difficult to track — such as cryptocurrencies, fine art, collectible cars and wine collections — and that are likely used far more often than our economic data shows. Trickier still, this kind of borrowing masks the multiplier effects of risk and debt, and it tends to be prevalent during times like these when we’re feeling optimistic and asset valuations “seem” to be on a never-ending upward trajectory. Click to read more at www.forbes.com.