Welcome to the Tenavox Weekly News Roundup!
We're sending out a weekly collection of great articles and newsworthy content in the commercial real estate industry with a special-tilt towards businesses and tenants.
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Houston Office Market Begins its Road to Recovery
For the Houston office market, the road to recovery will be slower than many hoped. Right now, Houston has a sky-high 19.4% office vacancy rate, which isn’t expected to improve much over the coming months. However, some experts are predicting that the market will reach a healthier status by 2020. This high vacancy rate gives Houston tenants a leg up in lease negotiations, so experts suggest that now is the ideal time to lock in rental rates for the next five to seven years.
Industrial Development in Northeast Tarrant County is Booming
A new report from costar says that the northeast Tarrant County submarket, which includes North Fort Worth and master-planned community AllianceTexas, is blowing away the pipelines of major markets across the country. The submarket has 9.6M SF of industrial space under construction, which dwarfs the under construction space for New York (5.1M SF), Los Angeles (5.4M SF), and Philadelphia (7.6M SF). Even with the jump in new development, industrial vacancy rates in the northeast Tarrant County submarket still remain stable at 9%, because major firms like Stanley Black & Decker and Callaway Golf have leased leased facilities that are about 1M SF.
Latest Development News
This week, Virgata Property Co. announced their plans for Virgata Commons, a mixed-use project in Friendswood, near Houston. Phase 1 features 20K SF of retail space with three pad sites, while phase 2 will include 30K SF of retail and office space. In other news, a revitalization project at the Houston Farmers Market broke ground on August 6. The existing 17.67-acre site previously had about 180,000 sq. ft. of retail space, and new plans will add around 50,000 sq. ft. of functional space, which will help support five to six new restaurants and space for six to 10 new counter-service concepts. Meanwhile, rapid commercial development comes to Allen in the DFW area, as more than 13M sq. ft. of space is expected as 3 big developments are set to change the city.
Latest Leases Signed
This week, some big leases inked in Houston. Arroyo Energy Investors announced plans to relocate to CityPlace 1 in Spring, while tech giant Amazon signed a 25K SF lease in CityCentre 5. In Katy, Kelsey-Seybold, a center for health care research and a large clinic system providing health care for NASA, officially leased 3.77 acres to develop a clinic at the Grand Morton Town Center.
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Why Hiring a Tenant Rep Matters
In an article from our blog, we speak with Ted Rohan, a Senior Associate with Avison Young. Read about how hiring a tenant rep can help you during lease negotiations, especially in the high-demand Austin office market.