Landscaping commercial real estate plays a very important role in a commercial property's appearance, especially to potential customers and business clients coming in and out of a Houston office space rental or Houston retail space. It's an integral part of the leasing process, so most commercial property owners will spend a considerable amount of time and resources ensuring the building's landscape design is maintained. Building visitors who could potentially be shopping properties in preparation of signing an office lease are certainly aware of how well the grounds are kept.
A small office space in Houston user typically has a need for 3,000 square feet or less. A medium user has a space need between 3,000 square feet and 10,000 square feet, while a large space user needs more than 10,000 square feet.
No office tenant ever fails to consider the amount of rent to be paid or the location of an office space before signing a commercial lease. Most tenants fail to investigate all of the other factors that often make the difference between a satisfactory and unsatisfactory lease.
Rent for commercial real estate in Houston is quoted in terms of rentable, not usable square footage. The rentable area of virtually every Houston office space unit includes a portion of square footage that is used as part of the common area of the office building, for which the tenant is charged rent.
- Location - Your office space or retail space location is a major consideration, for a variety of business and personal reasons. If your clientele comes to you, how far are they willing to drive? Are you accessible? Will the locale be agreeable to your employees? How far is your commute? You’ll want to consider which restaurants and services are nearby, how noisy the area is, what the view is like, and who your neighbors are.
Executive Suites are sets of individual offices typically sublet from a larger suite of office space. The lessee of the designated larger suite of offices is considered the proprietor and he/she rents entire floors and leases the smaller office spaces or workstations to businesses that don't need, or can't afford, standard office spaces. In many cases, a set of executive suites will have common areas, such as conference room or kitchenettes, that each executive suite lessee can utilize at their discretion or on a reserve schedule.
Houston industrial leasing can be a little trickier than typical Houston office leasing or Houston retail space, because it's not just about size, rental rate, and location. Many other factors go into deciding the best industrial / warehouse space to rent, and it's important for industrial businesses to understand them long before they sign a lease.
Commercial property landscaping isn't just about picking the prettiest trees, flowers, and bushes, and having a contractor plant them and call it a day. There are several factors that need to be considered before a landlord decides what kind of landscaping his/her property needs. Depending on the landscaping budget and climate, an office rental property or retail shopping center may be better suited to have plants that can with stand climate changes but may not be as visually appealing. A higher budget may mean more variety and aesthetic beauty, which usually comes with more frequent maintenance.
After reading the post on the principles in choosing office space, I started thinking about how relevant each of these principles were to me with regards to choosing Houston commercial property for lease. I would rank these principles in the following order -
As a commercial real estate professional, I am always looking for the best resources to help me market Houston commercial real estate. I have worked in several cities around the country and one of the better resources is REDnews (which stands for Real Estate Directory News). Plus, they specialize in my favorite state...Texas.
The recession’s hit to Houston retail space has been well documented. In this recent article in the Wall Street Journal, several stats from a survey by Colliers International covering the closures of four prominent big-box retailers over the last couple of years are particularly sobering. Just over half of the surveyed properties are still vacant and the rest of them were re-leased for rents that averages almost 20% less than what the previous tenants were paying. As the article points out, the recent bankruptcies of Blockbuster and Borders will only add to the problems. One positive note is that none of the seven borders locations in Houston were on the initial chopping block so it appears that Houston retail space is holding up better than other national markets.
The term Base Year pertains to tenant property expenses in commercial buildings for lease. Having a base year lease agreement is essentially the combination of a Triple Net Lease, where the tenants are responsible for the property's real estate taxes, insurance, maintenance, repairs, utilities and other items and a Gross Lease, where the property landlord handles those expenses. A landlord likes base year agreements because they act as a safety net, should the property's expenses significantly increase over the course of a given tenant's lease term. In general, a base year is calculated on a calendar year basis or the first 12 months of a tenant's occupancy.
Tenant Improvement Allowance or credit, is the negotiated sum a landlord is willing to spend to customize the space needs of a particular tenant. Typically found in the Leasehold Improvements or concessions section of a commercial lease, this type of negotiation is often stated in dollars per square feet and is present in standard office leases for commercial real estate in Houston.
Leadership in Energy & Environmental Design or LEED is essentially a building certification system developed by the U.S. Green Building Council. It's primary purpose is to give office space building owners and operators guidelines for achieving efficient energy savings, utility efficiency, CO2 emissions management, and overall improved environmental quality.
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.
Through the magic of twitter, I recently came across a different type of commercial real estate blog, Model For Success by REFM. The REFM blog covers all of real estate financial modeling including Excel tips and tricks, financial modeling education, market insights and career advice. As a CPA and finance major, I find the insights particularly interesting.
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.
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.
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.
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.
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.
Written by: Ben Debayle, a tenant rep broker with The Finial Group specializing in greater Houston.
In the landlord-tenant relationship for an office in Houston, commercial lease default occurs when the tenant fails to pay the proper rent in a timely manner. As a safety net, landlords commonly require a new tenant to pay a security deposit, which may be used to offset defaults in payment of rent and other monetary obligations under the rental agreement. Generally, the landlord is required to give the tenant notice of the default before eviction or the application of the security deposit proceeds to the payment in default. The fixing of a definite default date for payment of rent can be critical if it becomes necessary to evict a tenant for a default in the payment of rent. Houston commercial landlords may often require a background and/or reference check on prospective tenants in an attempt to minimize defaults in rent payments.
After reading, Where Real Estate Listings Fail, we thought we would address how this translates to the search for office space listings online. You would think looking for commercial real estate to lease in Houston would be easy in this technology driven age (I mean I can find the best chinese food within a mile on my iPhone in seconds). This is not for lack of trying... there are hundreds of websites dedicated to listing properties, which include many attributes, including photos, descriptions, and prices. What consumers do not know is that online listings can be dangerous and counter-productive for a few reasons.
With the summer winding down (in calendar days, definitely not the heat...), let's take a look at a mid-year office market update and see how Houston stacks up against some other big markets in the country. According to CoStar U.S. office leasing remained very strong, despite slower than expected job growth. As we alluded to in our 2011 Q1 report, Houston office tenants have been taking advantage of very favorable concessions (i.e. giveaways from landlords) and rental rates and upgrading to nicer facilities offering bargain lease terms. The trend seems to be carrying on.
Condemnation is a term that describes a government entity’s taking property through eminent domain. A commercial lease in Houston may be affected by condemnation through partial taking, in which an adjacent property or part of the property is taken, or it might be affected by total taking, in which the entire property is taken.
Although Houston commercial real estate has softened in recent years due to cyclical reasons (see 2008 - 2011 economy!), many predict Houston office leasing has other new issues to confront, one of which is letting employees work remotely (some call it tele-working). However, in an age where employees feel less and less engaged to their employers (meaning loyalty), is the savings in cost of not having or reducing your office space in Houston worth the potential loss in talent? The below infographic seems to support the the idea that having office space for your employees to connect can provide exponential benefits, including engagement and productivity, which ultimately hit your bottom line.
One of our Houston retail brokers, Lance Gillam of UCR moodyrambin PAGE, was quoted in GlobeSt yesterday talking about current trends in Houston retail space leasing. It is interesting to see the dichotomy between class A retail space--where there can often be a waiting list--and class B and C space where vacancies abound.
Well now it's official. You've known it was coming for years, but you weren't sure who exactly would be looking and through what vehicles the search would be carried out in. Commercial Real Estate is a funny business. For an industry so lucrative with billions of dollars switching hands every year, it seems to be very slow to adapt to change and technology. Most experts (real estate professionals who understand digital marketing and the technology behind online advertising) say that the residential side of real estate adopts changes in technology faster than the commercial side, and is about 3-8 years ahead of commercial when it comes to adopting technology and using it to increase productivity and source prospects.