Offices for Techies and Creative Types

In this blog post on Globe St, Tony LoPinto (their recruiting expert) discusses recent decisions by Google and Twitter to locate their employees in city locations.  He notes that this a new trend, different from days past where technology companies choose offices in suburban locations.  Google's purchase of 111 Eight Ave at the end of last year was the largest purchase of commercial real estate by a tenant in US history.  Sorry Chevron.  

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Commercial Real Estate and Accounting Mix Like Oil and Vinegar

As a CPA, tech, and CRE geek (I am the life of the party...), I found the recent article on Globe Street pertaining to the new commercial real estate leases accounting rules particularly interesting. The article points out the uncertainty surrounding when the new lease accounting rules will come into place. Having experience in the accounting world, uncertainty and drafts constantly changing is nothing new. What is interesting is the type of personalities at play between folks in the commercial real estate in Houston world versus the accounting world. From dealing with both sides, I will let you guess who would be more fun to converse with in a social setting...

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The Block[s Of Office Space] Are Hot

I've now seen two separate articles in the last several days about how available large blocks of Texas office space are decreasing.  Our friend Coy Davidson was commenting on the Houston market over the weekend (does he ever sleep?!?) noting how the increased leasing velocity in the city has led to fewer options for tenants needing large spaces.  This lovely graph shows the decreasing availability quarter-over-quarter for the last 3 quarters.  In all three buckets, the number of available spaces has decreased by about 20%.  This is great news for the landlords but it leaves fewer options for tenants looking for Texas office space

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Commercial Leasing Definitions - Lease Holdover

In commercial real estate in Texas, Lease Holdover (aka Tenancy at Sufferance) occurs when a tenant remains in the property after the expiration of the lease.  The tenant can legally continue to occupy the space as long as the landlord continues to accept rent payments.  If the landlord ceases to accept rent payments from the holdover tenant, it is considered trespassing and the landlord can then evict the tenant and force the tenant to vacate the property at any time, and without notice.

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Downtown Commercial Real Estate In Houston - Chevron's Play

Of course the huge news is the buzz around commercial real estate in downtown Houston this week is Chevron’s acquisition of 1400 Louisiana to go along with 1500 Louisiana, which it already owns.  The deal is believed to be one of the richest of it’s kind for a Houston office building in terms of price per square foot.  This news is interesting in light of Exxon's move of its corporate headquarters relocation to The Woodlands, which is completely counter to Chevron's decision to focus on the downtown Houston area.

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Why a Tenant Broker Won't Go The Way of The Stock Broker

At TheSquareFoot, we have been discussing our launch with many members of the commercial real estate agentcommunity. Most importantly, since our first product will be geared towards commercial real estate industry in Houston, their feedback is of paramount importance. You should already know based on our posts, we believe the smartest way for a tenant to find space is to use qualified commercial real estate brokers in Houston.

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Office Leasing Service Providers: We Felt Your Pain

After checking out the 2011 Q1 Houston office leasing outlook a while back, we knew tenants were gaining confidence as more business owners were willing to lease and renew office space in Houston.   While the numbers certainly don’t lie, I wanted to see where some other positive signs were coming from and found this article pertaining to the office furniture industry as well as other service providers, and how they have adjusted during the really tough times.  One can imagine how they too took a huge hit when leasing and expansion activity came to a halt across the U.S.

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Commercial Real Estate Lease Legalese - Submitting a LOI and RFP

Written By: a Houston based associate of an international law firm representing clients in a broad range of developments, financings, dispositions and acquisitions of a variety of commercial projects, including the sale, acquisition, leasing, financing and development of mixed-use, office, retail, industrial and energy facilities.

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Austin For Sale

With our second TheSquareFoot family trip to Austin just mere hours away, I figured it was time to write a little something on the Austin commercial real estate market again.  This time, I'll leave out the Torchy's references (after this one), but suffice it to say we did get both breakfast and lunch there during our last trip to town.

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Commercial Leasing Definitions - Anchor Tenant

Anchor Tenant typically refers to a large store in a retail shopping center (usually a department store or major retail outfit like HEB or Walmart) which the landlord has strategically rented space to in order to draw in large crowds and funnel them into other stores within the center.  Name recognition and prestige of these large users are the appealing factors that will drive in other tenants and shoppers.  Because of the value that an anchor tenant can provide the landlord as far as appeal to other smaller tenants and heavy traffic draw, discounted rental rates can often be given to these large users.  It's not uncommon for an anchor tenant to reserve the right to approve the selection of a center's other tenants in order to prevent competing (and much smaller) tenants from taking away customers.  That's how much value a well-respected anchor tenant, like an Apple store can bring!

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Germans moving inward...Houstonians next?

This article in yesterday's Wall Street Journal discusses the recent development (forgive the pun) of Germans "moving back into city centers, abandoning outside villages."  In the opening sentence, this is attributed to aging populations and to people putting added value on sustainability and green living.  This is a trend that is sprouting up in the states as well except here we call our "villages", "suburbs" and our "lifts", "elevators."

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How Do I Find a Tenant Broker in Houston

As usual (we don't have fun lives...), I was looking through all the Houston commercial space options. This time, I was trying to find the best way to find a tenant broker in Houston. In turns out this is as difficult as finding commercial space.

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Commercial Leasing Definitions - Americans With Disabilities Act (ADA)

In 1994, the Americans with Disabilities Act was passed to prevent discrimination of the disabled in employment, government services, transportation, public accommodations, and telecommunications.  ADA requires all business and public facilities to be accessible by the handicapped, which meant that at the time of the act, existing physical barriers had to be moved all over and policies and standards had to be changed.

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Austin Calling

In anticipation of our team heading to Austin next week to start development, I figured it was appropriate to inaugurate the Austin section of our website.  Only minor problem...I couldn't figure out how to add an "Austin Blog" tab to the top part of the site and subsequently post there.  I guess it's a good thing we are calling in the big guns.

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Commercial Leasing Definitions - Right Of First Refusal Right Of First Offer

In real estate leasing terms, the Right of First Refusal (ROFR) is a legal option of a tenant to rent property before another party can.  This option is appealing to businesses who are planning ahead for future expansion and want the option to secure additional specified space if and when an outside party shows interest in said space. Landlords will offer this kind of option to prospective (or current) tenants to promote growth of a business within their property.

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Houston Office Leasing Q1 Overview - Get The Deals While They're Hot!

The city of Houston sure had a good beginning to 2011.  Fast Company Magazine named Houston its 2011 City of the Year, which could help the city recruit new businesses and cause a spike in leasing activity.  The NCAA Final Four was held at Reliant Stadium, which gave us two great semi-final games (the Final, not so much).  And, according to Jones Lang LaSalle's Houston Office Leasing Highlights Q1 report,  economic conditions are improving and we're in much better shape than a year ago.

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Commercial Real Estate Lease Legalese - Make Sure You Are Protected

Written By: a Houston based associate of an international law firm representing clients in a broad range of developments, financings, dispositions and acquisitions of a variety of commercial projects, including the sale, acquisition, leasing, financing and development of mixed-use, office, retail, industrial and energy facilities.

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Houston Commercial Development Returns

While the talking heads on CNBC and Bloomberg keep flapping their lips about if the recession is over or if the recovery has begun or “maybe something really cool that I don't even know about,” here in Houston we are starting to see signs pointing to a brighter future. Fresh on the heels of Hines’ completion of BG Group Place they are already preliminary discussions for another downtown office building. As this article points out, we will soon be seeing the first new office building in the Galleria area break ground over the summer.

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Is Houston Commercial Office Space a Commodity?

After reading a very informative post on CRE outsider about the future of CRE data, I began to think about an often-debated question among my friends (we are geeks, what can I say).  This question revolves around if Houston commercial office space (or anywhere for that matter) is just another commodity (like wheat, coffee, airline tickets, etc.) or if this definition oversimplifies the Houston commercial real estate business. A commodity is defined by Webster’s as “a good or service whose wide availability typically leads to smaller profit margins and diminishes the importance of factors other than price “.

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