The office sector, now entering its seventh year of declining vacancies, has favored Central Business Districts through much of this growth cycle, but suburban locations are showing increased demand, according to Marcus & Millichap. The key markets in Texas, Dallas-Fort Worth and Austin, are hitting on all cylinders, with Houston in third place, showing moderate activity levels overall.—Lisa Brown
BY THE NUMBERS
AUSTIN, TX—Austin's available office sublease space grew to 1.3 million square feet in first quarter 2017. Sublease availability increased from 1.9% to 2.7% of the total office market from third quarter 2016 to the present quarter. This is not necessarily a troubling trend, says CBRE Research. Tech firms located in the Northwest, Southwest and CBD submarkets are behind the majority of space on the sublease market. Occupiers are marketing subleases due to space contraction but also because of growth.
NEWS AND NOTABLES
DALLAS—Tom Lynn has been promoted to chairman of NAI Robert Lynn. In addition to his role as president of the office division, Lynn will collaborate with the board and executive team to set company strategy and evaluate ways to better serve clients.
DENVER—United Properties has hired industry veteran Ray Oborn as its new president of Cherrywood Pointe Investment, responsible for expanding the firm's Cherrywood Pointe Senior Living communities. In his new role, Oborn is a member of United Properties' executive team and reports to co-presidents Bill Katter and Eva Stevens. Though he is based in Denver, he has offices in both Denver and Minneapolis.
DEAL TRACKER
BOULDER, CO—Lionstone Investments, Goldman Sachs Asset Management Private Real Estate and Crescent Real Estate LLC announce the acquisition of a portfolio of 21 buildings and a development site in Flatiron Park, located in east Boulder. Crescent Real Estate will continue its commitment to Boulder as the general partner in the ownership entity.
FORT WORTH—Dallas-based national retailer, Tuesday Morning, has signed a lease expansion adding 5,434 square feet to its store at Hulen Fashion Center, bringing it to a new size of 14,069 square feet. Tuesday Morning will begin a full renovation of the store, located at 5200 South Hulen St. Easley Waggoner Jr. and Amanda Throckmorton of Venture Commercial represented Hulen Fashion Center in lease negotiations. Jeremy Zidell with The Retail Connection represented Tuesday Morning Inc.
FORT WORTH—1600 West 7th, formerly the home of Cash America, is now the corporate headquarters for First Cash. 1600 West 7th is a nine-story class-A office building totaling 155,000 rentable square feet located in the prime West 7th Street corridor. Originally constructed in 1985, the building was completely renovated in 2001 after suffering extensive damage from the 2001 tornado. HLC's Matt Carthey and Geoff Shelton will be responsible for leasing the space.
HOUSTON—NAI Partners represented Gary B. Maddox, trustee, in the sale of 17.25 acres of land located at Rankin Road and Northborough Drive. Michael Keegan and Travis Land of NAI Partners represented the seller, Maddox, in the negotiations, while Erfan Khavarmanesh with Realm Real Estate Professionals represented the buyer, 2017 Partners LLC.
HOUSTON—NAI Partners represented Cadaas Re-Distribution Center in leasing 19,200 square feet of industrial space located at 7818 Kempwood Dr. Cadaas Re-Distribution Center is a distributor of food grade containers. Jake Wilkinson of NAI Partners represented the tenant, Cadaas Re-Distribution Center during lease negotiations, while Jeremy Lumbreras of Stream Realty represented the landlord, G&I VII Blankenship.
WILLIS, TX—NAI Partners represented Henry Lee in leasing 9,100 square feet of industrial warehouse on 3.2 acres to Weston Solutions located at 12600 Moon Rd. The space will be utilized as a sales office for Weston Solutions. Jake Wilkinson of NAI Partners represented the landlord, Henry Lee, in the lease negotiations, while Sue Rogers of Cresa represented the tenant, Weston Solutions.
LAKEWOOD, CO—West Line Village offers some housing relief for the region with a 134-unit rowhome transit-oriented development in Lakewood near the Sheridan Station light rail station called West Line Village.
PLANO, TX—Terra Mediterranean has leased 6,200 square feet at The Shops at Willow Bend Restaurant District, 6121 W. Park Blvd., for its fourth location, including Ali Baba Mediterranean Grill in Richardson. Terra is one of three new restaurants at Willow Bend's expanding restaurant district which is part of a $125 million renovation and expansion at the mall, according to CBRE.
SAN ANTONIO—The top deal of the week and in all of Texas comes from a purchase of a retirement home. Scott Higgs of Mainstreet Health Investments purchased the piece of commercial property at 10910 Town Center Dr. The financing institution on this $300 million deal was KeyBank NA, according to Enriched Data.
SAN ANTONIO—Institutional Property Advisors, a division of Marcus & Millichap specializing in serving institutional and major private real estate investors, facilitated the sale of Alcove at Alamo Heights, a 107-unit boutique apartment community.
The office sector, now entering its seventh year of declining vacancies, has favored Central Business Districts through much of this growth cycle, but suburban locations are showing increased demand, according to Marcus & Millichap. The key markets in Texas, Dallas-Fort Worth and Austin, are hitting on all cylinders, with Houston in third place, showing moderate activity levels overall.—Lisa Brown
BY THE NUMBERS
AUSTIN, TX—Austin's available office sublease space grew to 1.3 million square feet in first quarter 2017. Sublease availability increased from 1.9% to 2.7% of the total office market from third quarter 2016 to the present quarter. This is not necessarily a troubling trend, says CBRE Research. Tech firms located in the Northwest, Southwest and CBD submarkets are behind the majority of space on the sublease market. Occupiers are marketing subleases due to space contraction but also because of growth.
NEWS AND NOTABLES
DALLAS—Tom Lynn has been promoted to chairman of NAI Robert Lynn. In addition to his role as president of the office division, Lynn will collaborate with the board and executive team to set company strategy and evaluate ways to better serve clients.
DENVER—United Properties has hired industry veteran Ray Oborn as its new president of Cherrywood Pointe Investment, responsible for expanding the firm's Cherrywood Pointe Senior Living communities. In his new role, Oborn is a member of United Properties' executive team and reports to co-presidents Bill Katter and Eva Stevens. Though he is based in Denver, he has offices in both Denver and Minneapolis.
DEAL TRACKER
BOULDER, CO—Lionstone Investments,
FORT WORTH—Dallas-based national retailer, Tuesday Morning, has signed a lease expansion adding 5,434 square feet to its store at Hulen Fashion Center, bringing it to a new size of 14,069 square feet. Tuesday Morning will begin a full renovation of the store, located at 5200 South Hulen St. Easley Waggoner Jr. and Amanda Throckmorton of Venture Commercial represented Hulen Fashion Center in lease negotiations. Jeremy Zidell with The Retail Connection represented Tuesday Morning Inc.
FORT WORTH—1600 West 7th, formerly the home of Cash America, is now the corporate headquarters for First Cash. 1600 West 7th is a nine-story class-A office building totaling 155,000 rentable square feet located in the prime West 7th Street corridor. Originally constructed in 1985, the building was completely renovated in 2001 after suffering extensive damage from the 2001 tornado. HLC's Matt Carthey and Geoff Shelton will be responsible for leasing the space.
HOUSTON—NAI Partners represented Gary B. Maddox, trustee, in the sale of 17.25 acres of land located at Rankin Road and Northborough Drive. Michael Keegan and Travis Land of NAI Partners represented the seller, Maddox, in the negotiations, while Erfan Khavarmanesh with Realm Real Estate Professionals represented the buyer, 2017 Partners LLC.
HOUSTON—NAI Partners represented Cadaas Re-Distribution Center in leasing 19,200 square feet of industrial space located at 7818 Kempwood Dr. Cadaas Re-Distribution Center is a distributor of food grade containers. Jake Wilkinson of NAI Partners represented the tenant, Cadaas Re-Distribution Center during lease negotiations, while Jeremy Lumbreras of Stream Realty represented the landlord, G&I VII Blankenship.
WILLIS, TX—NAI Partners represented Henry Lee in leasing 9,100 square feet of industrial warehouse on 3.2 acres to Weston Solutions located at 12600
LAKEWOOD, CO—West Line Village offers some housing relief for the region with a 134-unit rowhome transit-oriented development in Lakewood near the Sheridan Station light rail station called West Line Village.
PLANO, TX—Terra Mediterranean has leased 6,200 square feet at The Shops at Willow Bend Restaurant District, 6121 W. Park Blvd., for its fourth location, including Ali Baba Mediterranean Grill in Richardson. Terra is one of three new restaurants at Willow Bend's expanding restaurant district which is part of a $125 million renovation and expansion at the mall, according to CBRE.
SAN ANTONIO—The top deal of the week and in all of Texas comes from a purchase of a retirement home. Scott Higgs of Mainstreet Health Investments purchased the piece of commercial property at 10910 Town Center Dr. The financing institution on this $300 million deal was KeyBank NA, according to Enriched Data.
SAN ANTONIO—Institutional Property Advisors, a division of Marcus & Millichap specializing in serving institutional and major private real estate investors, facilitated the sale of Alcove at Alamo Heights, a 107-unit boutique apartment community.
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