In today’s commercial real estate environment, it can be difficult to determine what is actually happening with assets in our community. With declining energy prices ruling the headlines and office vacancy on the rise, coupled with booming retail development and medical office expansions, owners and investors are likely baffled by these mixed signals. Therefore, it’s important to align yourself with an experienced professional who can guide you through today’s challenging market. The J. Beard Real Estate Co. prepared for the coming increases in office supply in early 2014 and put plans in place for clients focusing on tenant retention, encouraging occupancy, and protecting owners’ cash flow. Over the past 12 months, vacancy rates in the office markets have increased over 55% while subleases across the sector continue to apply downward pressure on rental rates and occupancy levels. For those owners who were ready, incomes have been steady and our clients were prepared for this rotation after years of increasing rental rates and slimming office availabilities in the market for tenants. Of course, there is another side to this coin. For our clients searching for office space, we have preached patience as often as practical and this year many new opportunities […]
by: John Ernst and Jeff Tinsley The value of your commercial properties can vary widely based upon market conditions, cost of capital, and asset performance. It is critical for investors who own assets to keep these factors in mind as they have a significant impact upon value and return on investment (ROI). When considering a purchase, an investor’s primary concern is typically protection of their capital investment, quickly followed by their ROI or total return on the invested capital. With real property investments, the ROI is heavily weighted with the sale or residual value which usually includes the return of most of the invested capital. Value of real property is directly impacted by supply and demand. If tenants and owners demand space which is not readily available, that demand will drive pricing higher. As a property owner, you must be able to identify the current stage in the market. The graph below illustrates the market cycle in times of optimism and excitement as an owner. This is considered to be the ideal time to maximize your investment dollars on a sell of your property. Of course, there is a flip side to this market cycle. These are times when industry impacts […]
Spring has sprung with full force, and as we roll off the first quarter of the year, we continue to monitor the current condition of Houston’s energy sector and its effect on the commercial real estate marketplace. Given falling oil prices, there has been a slowdown of growth and a number of fundamental business changes, particularly in the office market. The recent changes in the business environment, including deferred capital commitments, shorter term leases, and more space availability, reflect the general decrease in demand for commercial real estate and industry projects. Additional changes to note include enhanced lending requirements or at least added scrutiny for the loan underwriting process. Investment criteria is also changing as a direct result of investor confidence, perception of values and those related risk/reward decisions. We are fortunate that Houston and its surrounding areas have outperformed the rest of the nation in the last few years, and despite the changing market conditions, remains a relatively healthy market at present. We will stay in tune with the current market conditions and proactively work to adapt and adjust marketing strategies in advance for our clients. This approach will ensure we continue to achieve maximum value on their behalf. […]
If you are a commercial investor or owner, you may want to take advantage of the current market conditions by adding value to existing lease properties. A core objective for most investors is to increase the return on their investment by adding value. One of the most important factors affecting overall budget is rental income. If a property is not 100% leased, the first priority will likely be to fill any vacancies. If a property is fully leased, the opportunity may be available to replace poor performing tenants or tenants paying under-market rents. Most landlords in today’s competitive market look to professional real estate companies to handle this task. Experienced brokers are constantly working to develop and maintain relationships and knowledge about the ever-changing market. Filling a property with credit-worthy and capable tenants is not always an easy undertaking. A broker will be able to help by focusing efforts on marketing the property to the best users, allowing Landlords to concentrate on growing their business. Making physical changes to buildings or structures that enhance visual appeal and efficiency is another way to increase the value of a property. These improvements can be minor, for example, painting, parking lot repairs, or […]
With rising rents and operating expenses, small business owners are searching for ways to reduce costs and invest in their own bottom line. Investing in commercial real estate through office ownership, such as office condominiums, can be a savvy strategy. Historically low interest rates, favorable tax advantages and the unique characteristics of professional office condominiums have made them extremely popular with small businesses. This new category of office space offers many low cost options that were previously unavailable with traditional office buildings. Professional office condos are commonly built out in sizes ranging from approximately 1,250 to 12,500 square-foot suites. This is a good size for a small business office. Business owners have the ability to customize their space to fit their needs and corporate image. Typical suites can feature private entrances, private restrooms, and kitchens with high end finishes selections such as granite, wood flooring, tile and decorator color schemes. Some businesses may purchase contiguous condos or entire buildings as an investment. This provides rental income and the room for future expansion as their business grows. As with residential condos, professional office condos are managed by a community association. The hassles of the day-to-day management of common areas are handled […]
Several team members attended the International Council of Shopping Centers (ICSC) Texas Conference in Dallas last November. Pictured from left are Zach Armstrong, Jeff Beard, Diana Gaines, Jeff Tinsley, Lindsey McKean and John Ernst.
Pictured left to right are Linda Crumley, Tim Maczko, and Lisa Hughes at The Woodlands Area Chamber of Commerce’s 30th Annual Economic Outlook Conference, themed “Grounded In Our Roots – Branching To The Future” held in February at The Woodlands Waterway Marriott Hotel & Convention Center. The J. Beard Real Estate Company served as a Platinum Sponsor and featured an informational booth.
We sponsored Bisnow’s 5th Annual “Future of The Woodlands/Springwoods Village: Growing Through The Downturn” symposium on May 11 held at Three Hughes Landing. The symposium featured a networking lunch followed by a panel discussion from area industry leaders. Josh Fienberg participated on the panel and spoke about commercial real estate.
The J. Beard Real Estate Company was honored to sponsor the March of Dimes, Texas Chapter, Houston Division’s “March for Babies” this year held April 23. Pictured from left are Julie Colwell and Rosa Dye.
We enjoyed playing Bingo For Babies, hosted by Woodlands Preemies to benefit March of Dimes. The J. Beard Real Estate Co. is a corporate sponsor. Pictured from left are Karyn Jackson Stephens, Lauren Crenshaw (Woodlands Preemies team member), Lisa Hughes, Julie Colwell and Liz Grimm (marketing vendor).