You pull into a strip mall nearby looking for the new gift shop you have read about. Your eyes scan the landscape of various storefronts. There is a dry cleaner, veterinarian, bakery, dentist and a sandwich shop. There it is – you see a new gift shop in an old space where there once was a clothing boutique. What do all of these different businesses have in common? They all operate through a landlord-tenant relationship. Now you probably see “Retail Space for Lease” signs all over the place. We can confirm that Houston, Texas has a large amount of them, but what does it mean? This is a lease which transfers the right of possession of property from the landlord, referred to as the lessor, to the tenant, referred to as the lessee. The lessor gives the lessee the right to use the space and/or property but still retains ownership. In doing so, the lessor receives rent as compensation from the lessee. What do all of these different businesses have in common? They all operate through a landlord-tenant relationship. This is a lease which transfers the right of possession of property from the landlord, referred to as the lessor, to the […]
Land, as far back as anyone can remember, has been considered a most valuable commodity – an idea Mark Twain captured in his simple quote, “Buy land, they aren’t making it anymore.” Here in North Harris County, Montgomery County, and most of the Greater Houston area, real estate participants are embracing Twain’s philosophy and buying land at a substantial pace. The amount of land sale activity is no surprise considering local market conditions. The area’s rapid employment growth, pro business environment, and the quality of life for Houston residents all influence the real estate market and work to create desirable land opportunities. Major developments in the area, like the new ExxonMobil corporate campus, will continue to fuel demand for commercial land in the foreseeable future. Why this land site and how is it valued? Land owners, commercial real estate investors, and property developers always ask the question, “What can my site be used for and what is it worth?” The Highest and Best Use is determined by what land use will generate the greatest cash flow and value for that property. Highest and Best Use is influenced by the basic concept of supply and demand. Supply represents how much the market […]
A commercial real estate (CRE) investment differs considerably from more traditional instruments such as stocks and bonds. There are significant barriers to entry into CRE investments, including more restrictive bank lending requirements, the need for ongoing asset management, the illiquidity of your invested capital, and the significant time and effort required to find a CRE asset suitable for your specific needs. CRE Options in the Immediate Market A typical commercial real estate purchase for investment in greater Houston, including Downtown Houston, The Woodlands, Katy, Sugar Land and all surrounding areas, the commercial real estate market usually range from $2 million and $10 million. Options in this price range can be existing office or medical buildings, retail centers, industrial spaces, multi-tenant warehouses or flex facilities, and in some cases, commercial land for development. Given current financing available, investors typically need to fund 50-75 percent of the total purchase price. What’s It Worth? Arriving at the proper valuation for a potential purchase is critically important and will usually involve in-depth discussions between the buyer, seller, their representatives, attorneys, and partners, if applicable. Investors often evaluate commercial real estate investments based an overall capitalization rate, or “CAP” rate. This is the ratio of […]
(November 28, 2016) The J. Beard Real Estate Company has recently launched a newly designed, innovative website for its commercial real estate firm. The new site at www.jbeardcompany.com features digital media optimization for enhanced responsiveness, strong SEO results, and a brand refresh. The project was developed and designed by The Wright Agency. “We are very excited about our re-designed website as it effectively showcases our comprehensive services in commercial real estate,” said Jeff Beard, CCIM, president of The J. Beard Real Estate Company. “Furthermore, the innovative design makes it easy for our clients to search and view featured properties on digital devices such as smart phone and tablets. The overall contemporary concept coordinates well with our new company brochure and other marketing initiatives, which underscores our strong brand image.” Richard Wright, president of The Wright Agency, added, “We enjoyed partnering with The J. Beard Real Estate Company to plan, design, develop and deliver a customized web site. Our team conducted a competitive analysis and evaluated their multiple service offerings in order to generate rich content. New, more striking and appealing visuals were created to position the company as a leader in commercial real estate. Additionally, an integrated property search tool […]
As the commercial real estate industry continues to grow in The Woodlands, South Montgomery and North Harris Counties, it’s a great time to own a business, given the variety of commercial real estate properties available for lease and sale. However, it can also be frustrating for entrepreneurs who may not have experience in the pros and cons of leasing versus buying. And even for those business owners who do realize the advantages of Owner-Occupied Commercial Real Estate (OOCRE), they may lack the rental market knowledge or research time needed to decide if it’s the right choice for them. Is OOCRE the Right Choice? To help you determine if OOCRE is the right choice for your business, ask yourself the following questions: Do our short-term goals include rapid expansion? Is my current commercial property lease coming up for renewal within the next three years? Is it important for our company to be in control of future occupancy costs, expansion and parking rights? As an investment, could the real estate return on capital enhance or exceed your business return on capital? Easier to Finance Because there is less risk perceived in OOCRE, commercial lenders are generally more willing to approve loans. There are several […]
(November 4, 2016) Neal King of The J. Beard Real Estate Company has represented the buyer, Larry Elliott, in the recent acquisition of a 7,590 square-foot office/warehouse condominium complex at 32315 Tamina Road in Magnolia, Texas. The seller, Patrival North America, LLC, was represented by The Woodlands Realty Professionals. According to King, the property is 100% occupied with multiple-year leases. Elliott completed the transaction as part of a 1031 exchange.
Increasingly, today’s landlords look to professional commercial real estate companies to handle their leasing and commercial property management. The primary reason landlords hire an expert to represent them is simple – it is not always easy to find financially capable tenants who will add value to their property just by occupying it. Finding the right tenant is an intensive and complex process in good times. Given a downturn, this tenant vetting process becomes even more difficult. Current Database Information Is Essential Prospecting is the number one activity all commercial real estate brokers do to find and acquire new tenants, so an up-to-date database is essential. By carefully cataloging all contact and prospect information, the database maintains valuable information about a tenant’s first contact, phone numbers, addresses, most recent conversations, and anything else of value. The database also can deliver leasing reports that help keep landlords apprised of the latest activity at their commercial property. The J. Beard Real Estate Company has market information for the Greater Houston area that goes back decades and is an invaluable part of our landlord services. Not All Commercial Real Estate Websites Are Created Equal Whether you are leasing space in an office building, an […]
On April 23, The J. Beard Real Estate Company sponsored and attended the annual Habit for Humanity for Montgomery County gala, themed “Licensed to Build” at The Woodlands Waterway Marriott Hotel & Convention Center.
Along the Kuykendahl Rd corridor, between Hufsmith, to just south of W. Rayford Rd, The J. Beard Real Estate Company: has sold 8 development tracts and a 36-acre parcel; is marketing additional development tracts; is property manager and leasing broker for Saddlebrook Retail Plaza; and is leasing broker for a proposed 9,100 SF office building.
As we embark upon our 12th anniversary of pointing clients in the right direction, the recent months have been interesting to say the least, with the volatility of the energy and oil marketplace, and in particular, oil’s impact on the commercial real estate industry. We are reminding our clients that in Texas and other markets dependent on energy employment, the current state of the oil industry and its lower than normal prices has generally been considered a good thing nationally for commercial real estate. While the long-term future of oil prices remains a mystery, the larger U.S. economy and retailers will still be able to ride this wave for the time being. Closer to home, the fact that oil prices have remained relatively low and are expected to remain steady or even decline in the foreseeable future has created a positive impact in the retail sector. With reduced gas prices, transportation costs are down and discretionary income is more available, which results in additional retail spending. However, while this climate might be a parade for retailers and shopping center owners, it’s not always good for office markets such as ours in the greater Houston area, where demand for office space […]