Welcome to the Tenavox Weekly News Roundup!
Trending this Week...
- Sever Weather Increasing Property Insurance Rates, Possibly Impacting Rents
- Refinancing Secured for large 617K SF GreenStreet development in Downtown Houston
- Paint manufacturer signs 238K SF industrial lease in DFW
Severe Weather Pushes Property Insurance Rates Up As Much as Half, Possibly Impacting Rents
Commercial property owners are paying substantially higher insurance premiums today compared to a few years ago. Up until two years ago, commercial property insurance rates went roughly 16 quarters—or 4 years— with consecutive rate drops. But rates started increasing in late 2017, and have gone up 16% on average so far in 2019 for office and industrial properties in the U.S.
This number is even higher for commercial properties in high-hazard communities impacted by severe weather, such as Texa. This is especially true in cities along the coastal areas of the state, such as the Houston MSA. Commercial real estate owners in high-hazard zones are facing an average insurance rate increase of 22% year to date, and the outlook is poorer for CRE property owners in high-risk areas that have already faced weather-related losses in recent years, as rate hikes have varied from about 30% to 50% in just one year. Read the full story here.
What does this mean for tenants? With property insurance rates rising in many areas of Texas, commercial property owners may be forced to raise rents to compensate for their losses. For more information on market trends, rents and more visit our Houston or Austin City Pages.
Latest Development News
The firms behind GreenStreet, a large downtown Houston mixed-use office and retail development, have secured a $140 million refinancing for the project. The 617K SF GreenStreet development will include a three-story office and retail building, an 11-story office building, and 24K SF of additional office space. Rice University has revealed plans for The Ion, where three buildings totaling roughly 102K SF and a 22.5K SF civic plaza will be developed. In Austin, South Lamar Boulevard is set to see a new mixed-use development that will include 138,780 SF of office space.
Latest Leases Signed
This week, a pair of notable leases were inked in the DFW area. In Plano, the Mustang Square development in West Plano signed a 70K SF lease with Fun Movie Grill, a movie theater concept that shows both Hollywood and Bollywood films. Meanwhile, paint manufacturer Benjamin Moore will move its workforce into a 238K SF regional distribution center in Lewisville.
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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. Learn about how hiring a tenant rep can help you during lease negotiations, especially in the high-demand Austin office market.