Mega-Buy Launches Foray into Commercial Real Estate
Realty.com recently acquired the entire commercial real estate portfolio of Texas-based Oxley Leasing which includes approximately 1 million square feet of office space in Houston and Dallas.
HOUSTON—Privately held real estate search portal Realty.com recently acquired the entire commercial real estate portfolio of Texas-based Oxley Leasing. The transaction includes approximately 1 million square feet of office space in Houston and Dallas.
The acquisition was led by Realty.com CEO Lance Custen. The purchase price was undisclosed.
The properties are located at 2646 S. Loop West and 8303-8313-8323 Southwest Freeway, both in Houston, 213 W. Southmore Ave. in Pasadena, TX and 5787 S. Hampton Rd. in Dallas. The mega-buy will result in the renovation of all buildings into class-A office spaces with amenities including full-size restaurants, arcades and gyms.
The reasoning for the acquisition is two-fold, says Custen.
“Realty.com Is on a mission to disrupt the real estate market. Up to this point, the primary focus has been in the residential market by providing real estate agents the ability to be the exclusive premium Realty.com agent in their city,” Custen tells GlobeSt.com. “Venturing into the commercial real estate market expands Realty.com’s reach and adds another avenue to provide value for agents and brokers.”
In conjunction, the Houston-based Realty.com will be launching its VIP Office Space program to begin incentivizing brokers with commissions and bonuses for bringing tenants to the company’s buildings for lease. These commissions will range up to 8% on all leases in the first year. Individual co-working suites will initially be offered for $199 per month.
“Realty.com is excited to be taking its next step to expand its brand,” said Custen. “We’re also looking forward to our forthcoming launch of Texas.com to further our residential real estate presence in Texas.”
Office availability has increased, reaching 27.9% in third quarter, the highest peak in at least 16 years, according to a third quarter market report by Savills Houston. Rising availability presents tenants with an abundance of options in both top-tier and lower-cost space while concession offerings among landlords are becoming increasingly competitive.
Availability has decreased in historically underperforming submarkets including Bellaire and North Belt/Greenspoint, while increasing dramatically in high-rent submarkets such as The Woodlands, Katy Freeway/Energy Corridor, Midtown and West Loop/Galleria. Demand has decreased for class-A product and increased for more affordable class-B/C product.
Energy market uncertainty remains as production levels show slight but temporary gains.
Moreover, third-quarter leasing volume totaled 2 million square feet, representing a 47.2% decline compared to third quarter 2019, says the Savills report.