Category: US/Texas CRE News

What to Expect from Commercial Property Insurance in 2022

Posted on by Sarah

Commercial property rates have seen double-digit increases for two straight years and Gary Wells, managing partner at The Liberty Company Insurance Brokers, does not foresee a notable drop any time soon.

Read more: Commercial property challenges – what they mean

The 2022 outlook for this segment is still quite uncertain as severe weather events continue to present challenges for carriers, brokers, and clients.

“We are still going to see increases, but it won’t be as high as we have experienced over the last couple of years,” he stated.

Another challenge Wells mentioned was the lack of capacity in the industry, especially for property-driven accounts.

“During the pandemic, there were many people who couldn’t pay rent as they were receiving less revenue,” he noted. “Couple that with shortages on labor and materials, and insurance carriers requesting major increases on insurable values – those three things combined are really affecting commercial real estate clients.”

Wells deals with multifamily properties and explained that properties in states like Texas and Florida have been particularly hard to handle as carriers are pulling back the amount of capacity they are willing to have in those areas based on weather-related exposures. Click to read more at www.insurancebusinessmag.com.

Freedom Solar Partners with Westminster to Install First Solar Energy Array at a Texas Senior Living Community

Posted on by Sarah

Freedom Solar Markets Entrance into the Senior Living Industry with a Large Installation at WestminsterPromising Significant Long-Term Savings and a Kinder Environmental Impact

AUSTIN, TEXAS—March 28, 2022. Austin-based Freedom Solar, one of the leading turnkey solar energy installers in Texas and nationwide with operations in nine states, today announced its partnership with Westminster senior living community in Austin to install the first senior living solar energy array in the state of Texas.

“We at Freedom Solar are honored to partner with Westminster on this project, which we believe is the first solar installation at a major senior living community in Texas,” said Freedom Solar CEO Bret Biggart. “The people at Westminster are very forward-thinking in terms of sustainability and reducing their carbon footprint. This is the perfect project to mark Freedom’s entrance into the senior living market, which is increasingly turning toward solar nationwide.”

“Westminster is proud to continue our tradition of leadership in the senior living industry by leading the transition to solar,” said Westminster Executive Director Charles “Chuck” Borst. “We will celebrate our55thanniversary in April 2022and have envisioned making this change for several years. Realizing that vision is a great way to add excitement to this milestone year.”

Borst said Westminster chose Freedom Solar as its solar energy partner because it presented the opportunity to work with a local company that is highly regarded in the commercial solar sector. Westminster’s management was heavily motivated by the long-term financial savings solar brings, in addition to adding an exciting, renewable energy technology to the community. When Westminster factored in the $500,000 Austin Energy direct rebate, covering about 51% of the installation cost, leadership decided the time was right to go solar.

“The Westminster community has pursued the Austin Energy Green Building ratings showcasing energy, efficiency, water conservation, indoor environmental quality and efficient material use; and this renewable energy project ties into those efforts,” said Greg Hunteman, AIA, president of Pi Architects, the architecture firm for Westminster.”Increasingly, energy efficiency is a key part of design for senior communities that promote safe, healthy, and comfortable living spaces. We are pleased to work with Westminster on creating beautiful, comfortable, and environmentally-friendly spaces seniors love.”

Located at 4100 Jackson Avenue in the heart of Central Austin, Westminster is an award-winning continuum-of-care retirement community offering an expansive residential lifestyle with an array of Freedom Solar Partners with Westminster Austin to Install the First Solar Energy Array at a Texas Senior Living CommunityPage 2of 3activities, upscale amenities and social opportunities for active neighbors with shared interests. Built in 1967, it is one of Austin’s first and most established retirement communities. Over the years, Westminster has undergone several expansions. With flat rooftops and full sun, the solar installations will blend in seamlessly with the design of the community.

The Westminster installation will be accomplished in two phases. In Phase 1, Freedom Solar will install solar panels capable of producing 56.1 kilowatts (kW) of solar energy on the roof of the existing Preston Building and panels with a 252.78 kW capacity on the existing Windsor Building. Construction will likely start during the second quarter of 2022. Phase 2 of the project is set to begin in late 2022 and will include the installation of 160.4kW-capacity solar panels on the Carlisle Building, currently under construction.

Once the project is complete, Westminster will realize up to $50,000 in annual savings, and reduced impacts of rising energy costs, carrying on its five-and-a-half-decade legacy as a progressive community leader.

As solar energy becomes more affordable and accessible, senior living communities across the country are actively moving toward reducing their carbon footprint, both in infrastructure and practice. Solar energy provides more reliable energy for their residents, while also increasing owners’ and operators’ net operating income. It is a powerful marketing tool, as seniors are welcoming solar’s introduction. Some studies have even pointed to the introduction of green initiatives providing seniors with greater fulfillment, a higher sense of purpose, and improved mental health.

Since 2020, the federal solar investment tax credit (ITC) has been a big factor in the decisions of many of Freedom’s customers to go solar. As part of a broad initiative to make renewable energy like solar an attractive alternative to traditional electric power, Congress has extended the 26% solar tax credit through 2022; in 2023, it will drop to 22%.

“This is Freedom Solar’s first project in its new Senior Living Division,” said Biggart. “It is our goal to revolutionize the senior living industry with solar energy installations in the same way we are already revolutionizing the automotive industry. We are excited and honored that Westminster is our first partner in this endeavor.”

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About Freedom SolarFounded in 2007, Freedom Solar is an industry leader in turnkey solar installations, providing high-quality, cost-effective, reliable solar solutions for residential and commercial markets nationwide. Headquartered in Austin, Texas, Freedom Solar also has operations in Colorado, Florida, Idaho, Kentucky, Ohio, Michigan, Missouri and West Virginia. Tesla Powerwall Certified Installer and the only SunPower® Master Dealer inTexas, Colorado and Florida. The firm has installed more than 128.8megawatts of solar panels since 2007, ranking as the eleventh-largest solar installer in the U.S and the third largest in Texas. Freedom Solar has completed projects for numerous national and multinational corporate clients, including Whole Foods Market, Shake Shack, Office Depot, Holiday Inn Express, Home2 Suites by Hilton, The University of Texas at Austin and numerous automotive dealerships, such as Alfa Romeo, BMW, Chevrolet, Ford, Maserati, Subaru and Toyota. For more information, visit https://www.freedomsolarpower.com or follow @freedomsolarpwr on Twitter and @freedom_solar_power on Instagram.

U.S. Rent Trends: It’s Still a Landlord’s Market

Posted on by Sarah

Rent is only getting more expensive.

Prices are higher across the board compared to this time last year, and 97% of states have experienced increases in rent prices for both one- and two-bedroom apartments, according to Rent.com’s March Rent Report.

Let’s break it down.

Nationwide rent prices, to start, have increased significantly year-over-year. One-bedroom rents were up 24.4%. Two-bedroom rents rose by nearly 22%.

Illinois, specifically, felt a 26.10% increase from 2020 to 2021 — $1,092 to $1,377, respectively. South Dakota experienced the largest jump in the Midwest at 114.07%, followed by Kansas (3.10%), Illinois, Ohio (17.83%), Michigan (15.71%), Iowa (12.20%), Minnesota (11.90%), Indiana (10.51%), North Dakota (8.78%), Wisconsin (8.85%), Missouri (7.08%) and Nebraska (-2.18%).

But we can look closer.

It was also found that Madison, Wisconsin (-7.4%), Indianapolis, Indiana (-7.1%), Milwaukee, Wisconsin (-5.5%) and Minneapolis, Minnesota (-2.7%) experienced a decrease in one-bedroom rent prices from 2020 to 2021. Interestingly, Madison is the only city with a population of under 300,000. Of the 10 cities that experienced the biggest increases in one-bedroom rent prices year-over-year, more than half have populations of 300,000 or less.

What does this mean? We’ve heard it before. People seem to be leaving bigger cities, causing prices in metropolises to fall and prices in, then, less densely populated areas to steadily rise.

Below are Rent.com’s findings:

1-BR Avg Rent, February 2022

Jersey City, NJ ($3,757)
Boston, MA ($3,664)
San Francisco, CA ($3,503)
Irvine, CA ($3,220)
Oakland, CA ($3,206)
Glendale, CA ($3,144)
Long Beach, CA ($3,051)
San Diego, CA ($3,019)
Los Angeles, CA ($2,928)
Huntington Beach, CA ($2,824)
Less populated cities like Jersey City do appear — in some cases — more expensive than its nearest metropolis. Likewise, Los Angeles (3,979,576 people) is less expensive than the suburbs of Irvine, Glendale and Long Beach.

2-BR Avg Rent, February 2022

Jersey City, NJ ($5,003)
Boston, MA ($4,894)
San Francisco, CA ($4,459)
Glendale, CA ($4,367)
Oakland, CA ($4,139)
Los Angeles, CA ($4,009)
San Diego, CA ($3,906)
Huntington Beach, CA ($3,903)
Irvine, CA ($3,651)
Miami, FL ($3,611)
Chicago is No. 21 on the list for one-bedroom, and No. 15 for two-bedroom, despite being one of the most densely populated cities in the U.S.

Chris Stephens in the Saddle at the Houston Livestock Show & Rodeo

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Chris Stephens of Houston-based SparrowHawk and his wife, Amanda, share a break in his responsibilities on the Breeders Greeters Committee at the Houston Livestock Show & Rodeo.

Chris Stephens has always been a social creature. At the same time, he is deeply committed to giving back to the community.

In his younger days, this combination led him to compete in fun runs, raising money for charity and meeting people along the way. The fun runs evolved into participating on the Rock ‘N Roll circuit across the U.S.

After competing in as many as 25 marathons and a half dozen half marathons, Stephens reset his aspirations becoming a volunteer for one of the oldest and perhaps most successful charitable events in Houston, the Houston Livestock Show & Rodeo (HLS&R).

Earlier this month, as HLS&R celebrated its 90th anniversary, Stephens, Vice President of Leasing & Operations at Houston-based SparrowHawk, celebrated 10 years as a member of the Breeders Greeters Committee.

As a member of that committee, Chris’ volunteer time sometimes seems as grueling as running a marathon. During the three week run of the rodeo, his typical 8-12-hour shifts may begin in the wee hours of the morning (between 2-3:00 am) and afford him an hour or less for a quick clean-up before heading to the office where he directs marketing and leasing efforts for SparrowHawk, a real estate investment and management firm.

Specifically, Chris works with participants who range from middle schoolers to high schoolers. HLSR is the last stop on a state circuit that has stops in Dallas-Ft. Worth, Austin and San Antonio. HLSR is the culmination of a year-long effort by the kids to raise livestock and ultimately compete for prize money—scholarships—through the sale of their animal(s).

“The kids are tough, smart, grounded and focused,” Stephens says. “They have a plan. They aren’t the arcade kids; they are the salt of the earth.”

Stephens and other members of the Breeders Greeters Committee may be the first and last contact. They see the thrill, the excitement and the fatigue. And they are there to encourage them, help them with logistics and make them feel at home.

His commitment is much more extensive and involved than a half dozen or more 8-12 shifts over the course of the three-week event. Events like HLSR don’t just happen, there is careful planning and orchestration that is required throughout the year.

“I love it,” Stephens says. “It is a huge time commitment, but helping the kids, raising money for scholarships and just being part of something this big and impactful is well worth it.”

Some interesting facts about HLS&R include that the event:

· Raises $25-$30 million for scholarships, and has raised more than $550 million over 90 years)
· Attracted more than 2.4 million guests in 2022 with guests coming from more than 70 countries, and
· Draws the support of more than 35,000 volunteers.
· In 2022, the Rodeo committed $22,125,250 to the youth of Texas in 2022, according to the following breakdown:
· 14,186,000 in scholarships to be awarded this summer;
· $5,048,250 to junior show exhibitors;
· $2,418,610 in educational program grants; and
· $472,390 in graduate assistantships.

There are great similarities, Stephens says, to running marathons and being involved in one of the busiest committees at HLS&R. Stephens says both are very involved and time-consuming, provide logistical challenges and require great levels of endurance. While one can be more physically grueling than the other, the reward when crossing the finish line at the conclusion of the event is immeasurable!

Nate Paul’s World Class Sells 64-Property Self-Storage Portfolio Across 10 States for $588 Million

Posted on by Sarah

AUSTIN, Texas, March 23, 2022 /PRNewswire/ — Nate Paul’s World Class Holdings has sold a 64-property self-storage portfolio across 10 states to global real estate investment firm CBRE (NYSE: CBRE) and facility operator William Warren Group/StorQuest for $588 million.

The portfolio comprises over 4.1 million rentable square feet in Texas, Ohio, Illinois, Colorado, Missouri, Mississippi, Tennessee, Indiana, New York, and Nevada. The facilities were previously operated by Great Value Storage, Paul’s operating platform. The sale did not include any of Paul’s facilities in California and any of the firm’s new self-storage developments and conversions nationally.

At nearly $600 million, the acquisition is among the largest-ever private transactions in the burgeoning self-storage sector, which has seen unprecedented growth since the onset of the pandemic.

Nate Paul, founder, chairman and CEO of World Class, began investing in self-storage in 2008, acquiring properties from private independent owners as well as from public REITs such as LifeStorage and Cubesmart. Since 2008, World Class has amassed one of the industry’s largest privately owned self-storage portfolios. Click to read more at www.prnewswire.com.

Well-known Commercial Real Estate Lawyer, Thomas O. Anderson, Jr., Joins Dallas-based Cherry Petersen Landry Albert LLP

Posted on by Sarah

DALLAS, TEXAS, March 22, 2022 (GLOBE NEWSWIRE) — Cherry Petersen Landry Albert LLP is pleased to announce that Thomas O. Anderson, Jr. has joined the firm as Senior Counsel. Anderson’s practice is focused exclusively on commercial real estate transactions.

Anderson has a wide-ranging real estate transaction practice, representing sellers, purchasers, and lenders in commercial real estate throughout Texas and nationwide. He has extensive experience with real property title and survey matters due to his time as a licensed escrow officer. Thomas also regularly represents landlords and tenants in commercial lease negotiations.

“I have thoroughly enjoyed getting to know and providing counsel to the firm’s real estate clients” said Thomas Anderson, Senior Counsel at CPLA. “The firm has a strong and supportive culture and a tremendous team of lawyers, paralegals and staff.”

“I’ve known Thomas Anderson for a long time and I’m delighted to have him join us here at CPLA,” said Kevin Cherry, Partner at the firm. “His experience in real estate acquisitions and commercial leasing provides real value to CPLA’s clients.” Click to read more at www.globenewswire.com.