Middle Market Digest: This Week in the South and Mountain Regions

BY THE NUMBERS

SHREVEPORT, LA—The average asking rental rate per square foot per year for office properties as of midyear was $13.01. This represents an increase of 1.5% compared to the prior three months, with an increase of 1.5% year-over-year. Countywide average rental rates are 1.3% higher at $12.93 per square  foot per year for office properties currently for lease, according to LoopNet.

ALBUQUERQUE—According to the CBRE third quarter office report, school relocations and closures left approximately 117,000 square feet vacant during the past quarter. The overall vacancy rate continued to increase to 23.8%, up 78 basis points from last quarter and 151 basis points year-over-year. Changes are expected in the coming quarters. The first phase of positive activity will take place within the downtown submarket, contributing to bringing the vacancy rate down to the low 30% range. Improvements are expected to continue into early 2017 as some large tenants enter the market. A speculative construction project–unseen in the market since 2009–and the first build-to-suit general office building project are expected to start next quarter.

NEWS AND NOTABLES

BATON ROUGE, LA—As the USA readies for a new president and the global economy adjusts to lower commodity prices and falling capital flows from emerging markets, how will the economy perform in the upcoming year during these volatile times? What will be the impact on industrial plant spending? Industrial Info's Industrial Market Outlook and Networking Event being held tomorrow will seek the answers to these and other questions, such as how much investment is slated for the Gulf Coast Region in 2017? As the first wave of petrochemical mega-projects wind down, will there be a second phase of development that will keep spending levels high during the next couple of years? Will US refiners continue to process sweet crude and will refining margins hold through 2017? What are the opportunities in targeted sectors such as terminals and gas pipelines?

DENVER—CBRE has released its annual Tech-Thirty report detailing the top 30 US tech office markets, and once again, Denver was identified as a top tech market. According to the report, the tech industry is having a significant positive impact on the Denver office market. Denver lands at number 24 on the overall list with an overall tech-job growth rate of 10.1% (from 2013-15), just slightly down from last year's 10.4% (from 2012-2014). From 2013-15, Denver added 5,361 net new tech jobs, which accounted for more than 20% of all new office jobs in the metro area. Denver was 14th overall in office market rental rate growth, making it a much more cost-effective market when compared to markets such as San Francisco, Silicon Valley, Dallas and Austin. This follows CBRE's Tech Talent Scorecard report from this summer, which saw Denver in the top 20 for tech talent markets in North America.

HOUSTON—Savills Studley executive vice president and co-branch manager Steve Biegel along with the entire Houston office staff are raising awareness for Covenant House Texas's fifth annual Sleep Out: Executive Edition on November 17. Since 2012, the Covenant House charity has raised nearly $1 million to provide young Houstonians safe shelter and wrap-around social services including education and job training so they can move forward to adulthood free of violence, poverty and the threat of homelessness. Nine other cities across the country will be participating in similar events on Thursday.

HOUSTON—Warren Savery, a commercial real estate professional in Houston with 35 years of leasing experience, has joined the CBRE advisory and transaction services investor leasing team as senior vice president from Cousins Properties. He will represent building owners and institutional investors throughout the Houston area and will be responsible for marketing and leasing a range of office buildings.

HOUSTON—Rob W. Bridges has been appointed to lead Transwestern's national management services operations as executive managing director. In this role, he will develop strategic direction and implement best practices that enhance the company's client-focused approach to property management.

DEAL TRACKER

PLANO, TX—Venture Commercial Real Estate's David Schnitzer represented the firm of R. E. Lopez and Associates LP in the acquisition of a 16,000-square-foot building for a relocation and expansion of its law offices. The two-story building, named “The 550,” is located at 550 E. 15th St. at the southeast quadrant of 15th Street and North Central Expressway. Lopez will occupy the top floor and will lease out the bottom floor of the building.  

AUSTIN, TX—Capital Factory renewed its 56,703-square-foot lease and expanded into an additional 1,944 square feet at Austin Centre. AQUILA Commercial represented the tenant and Stream Realty represented the landlord in the transaction.

IRVING, TX—CiCi Enterprises LP leased 17,410 square feet at Plaza 5601 at 5601 Executive Dr. Nathan Durham with Transwestern represented the landlord, CRE 5601 LLC. Tim Terrell and Tyler Maner with Stream Realty Partners represented the tenant.  

IRVING, TX—Diebold Incorporated leased 13,282 square feet at Freeport Office Center III, 8700 Freeport Pky. Matt Wieser and Tim Terrell with Stream Realty Partners represented the landlord, Principal Life Insurance Company. Cushman & Wakefield represented the tenant. 

OKLAHOMA CITY—Precision Parts and Re-manufacturing Co. leased 40,225 square feet of industrial space at Oklahoma Warehouse Center (East), located at 5201 W Reno Ave. Kris Davis and Brett Price with Newmark Grubb Levy Strange Beffort–Oklahoma City represented the landlord in the transaction.

BUILDING BLOCKS

LITTLE ROCK, AR—Fiber installation for the Little Rock Tech Park project is underway with trench work taking place in the alley behind the Main Street properties. The primary feed is coming from the south across Capitol Avenue and a secondary redundant feed is coming from the north across 4th Street.

BY THE NUMBERS

SHREVEPORT, LA—The average asking rental rate per square foot per year for office properties as of midyear was $13.01. This represents an increase of 1.5% compared to the prior three months, with an increase of 1.5% year-over-year. Countywide average rental rates are 1.3% higher at $12.93 per square  foot per year for office properties currently for lease, according to LoopNet.

ALBUQUERQUE—According to the CBRE third quarter office report, school relocations and closures left approximately 117,000 square feet vacant during the past quarter. The overall vacancy rate continued to increase to 23.8%, up 78 basis points from last quarter and 151 basis points year-over-year. Changes are expected in the coming quarters. The first phase of positive activity will take place within the downtown submarket, contributing to bringing the vacancy rate down to the low 30% range. Improvements are expected to continue into early 2017 as some large tenants enter the market. A speculative construction project–unseen in the market since 2009–and the first build-to-suit general office building project are expected to start next quarter.

NEWS AND NOTABLES

BATON ROUGE, LA—As the USA readies for a new president and the global economy adjusts to lower commodity prices and falling capital flows from emerging markets, how will the economy perform in the upcoming year during these volatile times? What will be the impact on industrial plant spending? Industrial Info's Industrial Market Outlook and Networking Event being held tomorrow will seek the answers to these and other questions, such as how much investment is slated for the Gulf Coast Region in 2017? As the first wave of petrochemical mega-projects wind down, will there be a second phase of development that will keep spending levels high during the next couple of years? Will US refiners continue to process sweet crude and will refining margins hold through 2017? What are the opportunities in targeted sectors such as terminals and gas pipelines?

DENVER—CBRE has released its annual Tech-Thirty report detailing the top 30 US tech office markets, and once again, Denver was identified as a top tech market. According to the report, the tech industry is having a significant positive impact on the Denver office market. Denver lands at number 24 on the overall list with an overall tech-job growth rate of 10.1% (from 2013-15), just slightly down from last year's 10.4% (from 2012-2014). From 2013-15, Denver added 5,361 net new tech jobs, which accounted for more than 20% of all new office jobs in the metro area. Denver was 14th overall in office market rental rate growth, making it a much more cost-effective market when compared to markets such as San Francisco, Silicon Valley, Dallas and Austin. This follows CBRE's Tech Talent Scorecard report from this summer, which saw Denver in the top 20 for tech talent markets in North America.

HOUSTON—Savills Studley executive vice president and co-branch manager Steve Biegel along with the entire Houston office staff are raising awareness for Covenant House Texas's fifth annual Sleep Out: Executive Edition on November 17. Since 2012, the Covenant House charity has raised nearly $1 million to provide young Houstonians safe shelter and wrap-around social services including education and job training so they can move forward to adulthood free of violence, poverty and the threat of homelessness. Nine other cities across the country will be participating in similar events on Thursday.

HOUSTON—Warren Savery, a commercial real estate professional in Houston with 35 years of leasing experience, has joined the CBRE advisory and transaction services investor leasing team as senior vice president from Cousins Properties. He will represent building owners and institutional investors throughout the Houston area and will be responsible for marketing and leasing a range of office buildings.

HOUSTON—Rob W. Bridges has been appointed to lead Transwestern's national management services operations as executive managing director. In this role, he will develop strategic direction and implement best practices that enhance the company's client-focused approach to property management.

DEAL TRACKER

PLANO, TX—Venture Commercial Real Estate's David Schnitzer represented the firm of R. E. Lopez and Associates LP in the acquisition of a 16,000-square-foot building for a relocation and expansion of its law offices. The two-story building, named “The 550,” is located at 550 E. 15th St. at the southeast quadrant of 15th Street and North Central Expressway. Lopez will occupy the top floor and will lease out the bottom floor of the building.  

AUSTIN, TX—Capital Factory renewed its 56,703-square-foot lease and expanded into an additional 1,944 square feet at Austin Centre. AQUILA Commercial represented the tenant and Stream Realty represented the landlord in the transaction.

IRVING, TX—CiCi Enterprises LP leased 17,410 square feet at Plaza 5601 at 5601 Executive Dr. Nathan Durham with Transwestern represented the landlord, CRE 5601 LLC. Tim Terrell and Tyler Maner with Stream Realty Partners represented the tenant.  

IRVING, TX—Diebold Incorporated leased 13,282 square feet at Freeport Office Center III, 8700 Freeport Pky. Matt Wieser and Tim Terrell with Stream Realty Partners represented the landlord, Principal Life Insurance Company. Cushman & Wakefield represented the tenant. 

OKLAHOMA CITY—Precision Parts and Re-manufacturing Co. leased 40,225 square feet of industrial space at Oklahoma Warehouse Center (East), located at 5201 W Reno Ave. Kris Davis and Brett Price with Newmark Grubb Levy Strange Beffort–Oklahoma City represented the landlord in the transaction.

BUILDING BLOCKS

LITTLE ROCK, AR—Fiber installation for the Little Rock Tech Park project is underway with trench work taking place in the alley behind the Main Street properties. The primary feed is coming from the south across Capitol Avenue and a secondary redundant feed is coming from the north across 4th Street.