Arden Logistics Parks selects Stream Realty Partners for North Park 34 leasing assignment in Houston

Philadelphia-based Arden Logistics Parks (ALP), Arden Group’s national logistics real estate operating platform, has awarded Stream Realty Partners a new leasing assignment for a 34-building business park located in Houston.

Stream, a national commercial real estate firm offering an integrated platform of services, will now oversee leasing activities for the recently rebranded North Park 34, an 865,000-square-foot industrial business park located on the northwest corner of the Beltway 8 and Hardy Toll Road intersection. Stream Houston Senior Vice President Boone Smith, Senior Associate Abraham Richardson, and Associate Meg Zschappel will serve as leasing agents. Analyst Jax Rawlinson will provide leasing support.

North Park 34 provides expedited access to Interstate 45, Interstate 69, and George Bush Intercontinental Airport. The business park offers an abundance of space layouts and configurations, with made-ready suites available for immediate occupancy. Suites at North Park 34 range in size from 1,500 square feet to 40,000 square feet. Grade level, semi-dock and dock-high loading configurations are available. The business park features on-site property management and is equipped with ample surface parking.

ALP acquired the asset in November 2021 and immediately began implementing institutional-quality capital upgrades to the building exteriors and tenant suites. Such improvements include a more traditional office/warehouse configuration, exterior painting of all 34 buildings, interior/exterior lighting package upgrades to energy-efficient LED fixtures, installation of drought tolerate landscaping to reduce water consumption, and full interior renovations to 21 vacant suites. The market response to these value-add improvements has resulted in the execution of 92 leases totaling 436,000 square feet in less than 24 months.

Houston-MSA neighborhood retail center trades to DML Capital

JLL Capital Markets announced today that it has closed the sale of The Shoppes at Kingsgate, a 156,343-square-foot, grocery-anchored neighborhood retail center located in the Kingwood master-planned community within the Houston MSA.

JLL represented the buyer, DML Capital. Chestnut Ridge Associates, LLC was the seller.

Built in 1980 and renovated from 2015 to 2017, the 95.2% occupied The Shoppes at Kingsgate is anchored by ALDI, a market leader in the grocery sector and one of America’s fastest-growing retailers. Additional tenants include Painted Tree Boutiques, Five Below and Dollar Tree. The property features a WALT of 6.6 years. Situated in the Kingwood submarket, the asset is on one of the most highly trafficked streets in the area, with 41,000 vehicles per day along Kingwood Drive. The property is at below-market vacancy, with the Kingwood submarket at an average vacancy rate of 9%.

Located 27 miles north of Downtown Houston, Kingwood is a highly sought-after, master-planned development in the Houston MSA. Spanning 14,000 acres of lush woodlands, this well-established community features over 500 acres of private parks and nature preserves, as well as 75 miles of scenic greenbelt. Renowned for its picturesque forests and excellent quality of life, the area offers top-notch schools and a wide range of outdoor and water-based recreational activities near the expansive 11,854-acre Lake Houston. With a diverse residential population of approximately 65,000, Kingwood has emerged as a vibrant commercial hub with an abundance of retail and dining opportunities.

The JLL Capital Markets Investment Advisory team was led by Senior Director John Indelli and Senior Managing Director Ryan West. Additionally, a JLL Debt Advisory team, led by Managing Director Michael Johnson and Director Michael King, sourced the financing for the buyer. JLL was able to rate lock at competitive market terms via life company financing.

Khaadi signs lease for second U.S. store at Houston Galleria

Cushman & Wakefield announced that the firm represented global retailer Khaadi in leasing 4,700 square feet at The Houston Galleria in Houston, Texas.

Cushman & Wakefield’s Eric Lestin and Michael Burgower represented Khaadi in the transaction with landlord Simon Properties Group. Lestin represents Khaadi across North America.

Tysons Corner Center in Tysons Corner, Virginia, marks Khaadi’s first U.S. location, The Galleria in Uptown Houston will be Khaadi’s second. Khaadi plans to occupy its new space in Tysons Corner by year end and its Houston location in the first quarter of 2024, with plans to open further stores in U.S. and Canada.

Lee & Associates Houston earns prestigious REDNews award

Lee & Associates – Houston Senior Property Manager Lizette Negrin has been honored with the 2023 REDnews Property Manager of the Year award. This esteemed accolade is a testament to Lizette’s exceptional skills, dedication, and outstanding contributions to the Houston real estate industry.

“As a senior property manager at Lee & Associates – Houston, Negrin has demonstrated exceptional leadership and a deep understanding of the industry,” said Senior Managing Director Shawn Harvey. “Her ability to effectively manage complex projects, resolve issues, and foster strong relationships with clients and tenants has been instrumental in her success.”

“I am truly honored to receive the 2023 REDnews Property Manager of the Year award,” said Negrin. “This recognition calls out the hard work and dedication of our entire team at Lee & Associates – Houston. I am grateful for the opportunity to work with such talented professionals and for the trust our clients have placed in us.”

Highly specialized industrial real estate professional joins Stream Realty Partners’ Houston team

Stream Realty Partners has recruited industrial real estate professional Thomas (Tommy) Erwin to help accommodate users with heavy manufacturing needs throughout the Houston region. 

Erwin joins Stream, a national commercial real estate firm offering an integrated platform of services, as a vice president in its Houston office, responsible for industrial tenant representation, transaction management, and new client and business pursuits. His background in mineral acquisition and divestiture lends him a unique perspective and skillset in seeking out opportunities of maximum value for clients. Erwin will work closely with Managing Director Tyler Maner to expand the company’s industrial services platform across the Houston metro market, specifically in the port sector.

Erwin comes to Stream from Moody Rambin, where he spent the last four-plus years as a member of their industrial and investment services team, focused on tenant representation, landlord representation, and investment services. While there, he focused on the heavy industrial manufacturing sector covering port cities throughout the Gulf Coast. This specialization encompasses a wide array of services, including facilitating acquisition and disposition of properties on behalf of Fortune 500 companies, locally owned operations, and high net worth family offices. Throughout his career, he has utilized his expertise to provide dedicated solutions across the expansive landscape of Texas’s industrial marketplace.

Erwin was a recipient of NAIOP Houston’s Rising Star award in 2021, which recognizes real estate professionals within the Houston community that exemplify the most outstanding qualities in the commercial real estate industry, including transactional standout, client service, community involvement, and mentoring young professionals. As a seventh generation Houstonian, Erwin is deeply entrenched in the local community, serving as a member of JH Outback Texas’s Executive Committee. 

Navigating the future: Houston office market embraces change

The Houston office market continues to undergo a period of recovery and adaptation in the aftermath of the COVID-19 pandemic. As businesses and employees explore new work models and redefine their office space requirements, the market landscape is experiencing shifts that reflect the changing needs and expectations of tenants. REDnews spoke with industry experts to gain insights into the current state of the Houston office market, emerging trends, the evolving amenities used to attract workers and predictions for the upcoming year.

According to Abby Alford, transaction management director for CBRE, Houston has felt the impact of the current economic conditions, but that does not imply a complete halt in activity.

“While leasing activity slowed overall this quarter, we’re seeing submarkets identified in drive time analysis studies to be a convenient location for employees, such as West Houston, strengthen,” Alford said.

In Q1 2023, Houston posted negative net absorption, but the overall average vacancy rate slightly decreased to 23.1%. It’s worth noting, however, that CBRE analysis found roughly 80% of that vacancy rate can be attributed to 10% of buildings.

Bob Cromwell, managing director of office services for Moody Rambin, noted that large users are contracting their office footprints, leading to negative absorption. However, the amenities-rich environment in areas like Memorial City/CityCentre have fared well with vacancy rates as low as 3%.

“There is no space,” added Cromwell. ”That amenity-rich environment is actually doing quite well.”

COVID-19 significantly reshaped the use and perception of office space. Cromwell emphasized that the dust has yet to settle, as businesses navigate the new normal. He observes that tenants are gravitating toward spec suites, highlighting the need for flexibility and ready-to-use spaces. Furthermore, tenant lounges and recreational areas, incorporating features such as golf simulators, are emerging as new trends.

Alford added that landlords are rethinking traditional amenities and exploring innovative ways to create collaborative environments. The emphasis is on fostering a comfortable and destination-like workspace that encourages employee interaction and engagement. Common areas, break rooms and huddle rooms are receiving increased attention to promote a dynamic and productive environment.

“The important thing for amenities is thinking outside the box and creating collaborative environments,” Alford stressed.

To entice workers back to the office, employers are embracing a live-work-play approach. Amber Carter, CEO and managing broker for Seven Fourteen Realty, highlighted the importance of a supportive atmosphere and company culture.

“Offering healthy snacks that are available throughout the day, fitness centers/ gym memberships, outdoor walking space or trails have been a few of the top amenities that employers have incorporated,” said Carter. “Offering space for childcare and pet care has also reflected positively in attracting workers back to the office. Most families are having to decide whether to have the expense of childcare or have a parent stay at home if a work from home option isn’t available.”

Carter predicts that the office space landscape will not return to pre-pandemic levels, but rather evolve into a new normal. She anticipates that property owners with larger buildings will explore repurposing options, combining housing, entertainment and office or co-working spaces to meet the changing demands.

As far as Houston office development, Cromwell believes it will slow down due to interest rates and how much space is currently available.

“You’re not going to see much in the way of speculative office development in the near term,” Cromwell said.

Looking ahead, experts in the Houston office market tell REDnews it will continue to evolve with property owners exploring creative repurposing options and emphasizing collaborative work environments. By embracing change and meeting the evolving demands of the workforce, Houston’s office market is well-positioned for a successful future.