A RETAIL PERSPECTIVE
Brokers throughout Texas talk shop about the current market.
Texas Real Estate Business
By Jon Ross
It seems like it’s been forever since there was solidly good commercial real estate news anywhere in the country. The recession has taken a toll on retailers everywhere, and tenants have been put off by the uncertainty of the economic environment. In Texas, however, a few rays of sunshine are coming through, and brokers in key markets around the state have been encouraged by the level of activity they’re seeing.
“The retail real estate market in Texas is the strongest in the nation. The shopping centers in Texas and the malls in Texas in particular were the least affected during the economic downturn,” says John Bemis of Jones Lang LaSalle. “Our 11 malls throughout Texas have continued to ... Click here to read more
Showing posts with label Texas Real Estate Business. Show all posts
Showing posts with label Texas Real Estate Business. Show all posts
Wednesday, May 19, 2010
MAXIMIZING RETURN ON LAND INVESTMENT
MAXIMIZING RETURN ON LAND INVESTMENT
Texas Real Estate Business
By Stephen Schattner
When considering a land investment, the investor is faced with imperfect information. Interested parties must compare the attributes of a targeted property to all other land investment opportunities in the area and be able to quantify and relate this data to measurements such as price and size.
The evaluation of these attributes on a comparative basis impacts the prediction of current price. A proportion of variability in the data will measure how likely future outcomes are by not only the quality and quantity of the data, but also by what data is selected in the evaluation of the pricing model. This gives the investor a true gauge of market value. This is accomplished by evaluating thousands of properties and then conducting non-linear regression analysis to determine the validity of the data.
Once the data is deemed valid, an investor can project forward the demographic growth models of an area. This helps determine the development cycle. It also forecasts the inflation-adjusted price for improvement and disposition value for a multitude of land investment opportunities. The outcome will yield the best land investment opportunity that maximizes the ... Click here to read more
Texas Real Estate Business
By Stephen Schattner
When considering a land investment, the investor is faced with imperfect information. Interested parties must compare the attributes of a targeted property to all other land investment opportunities in the area and be able to quantify and relate this data to measurements such as price and size.
The evaluation of these attributes on a comparative basis impacts the prediction of current price. A proportion of variability in the data will measure how likely future outcomes are by not only the quality and quantity of the data, but also by what data is selected in the evaluation of the pricing model. This gives the investor a true gauge of market value. This is accomplished by evaluating thousands of properties and then conducting non-linear regression analysis to determine the validity of the data.
Once the data is deemed valid, an investor can project forward the demographic growth models of an area. This helps determine the development cycle. It also forecasts the inflation-adjusted price for improvement and disposition value for a multitude of land investment opportunities. The outcome will yield the best land investment opportunity that maximizes the ... Click here to read more
Tuesday, October 27, 2009
Texas Retail Roundtable with NAI Rio Grande Valley's Mike Blum: Cover Story for Texas Real Estate Business Oct. 2009 Issue
TEXAS RETAIL ROUNDTABLE WITH NAI RIO GRANDE VALLEY'S MIKE BLUM
Texas Real Estate Business
Cover Story October 2009
Compiled by Lindsey W. Marcec
Picture: Mike Blum partner and managing broker with NAI Rio Grande Valley
Retail real estate professionals from across the state discuss the industry’s performance this year and what they foresee for 2010 and 2011. Full Article
West Texas and the Rio Grande Valley
From Amarillo, El Paso, Lubbock and McAllen, respectively, the following professionals participated in the roundtable discussion: J. Gaut, president, J. Gaut & Associates; Bob Ayoub, president of MIMCO, Inc.; Wesley Hallmark, senior investment advisor for Sperry Van Ness
Hallmark & Assoc., Inc.; and Michael Blum, partner and managing broker with NAI Rio Grande Valley.
TREB: What is the current state of retail activity in your market?
Blum: New leasing has slowed considerably in the Rio Grande Valley since the economic downturn. Access to capital for tenant finish-out has created a huge impediment to entry. Landlords with pre-existing facilities did not have funds in their budgets to cover unanticipated TI costs not covered by lenders.
TREB: What leasing or development trends have surfaced during the downturn?
Blum: Overall, the trend is not much leasing. It seems the most interest in retail leasing is in the food business. Both locals and chains are still looking for quality sites. This has been a very strong market for restaurants and we expect this trend to continue.
TREB: Have any major developments come on line this year?
Blum: No new projects have surfaced and not much is planned for the balance of 2009. Most major developments are in a holding pattern.
TREB: Which types of retail product are doing the best?
Blum: Neighborhood is doing best.
TREB: Have any major retailers entered or exited your market?
Blum: The third Best Buy opened this year at Palms Crossing. Ashley Furniture opened its first Valley store this year, and Rooms To Go and Pappadeaux Seafood Kitchen are both under construction with their first Valley stores. Buffalo Wild Wings is under construction with its second McAllen store. Several CVS/pharmacy stores have opened this year. Mervyns, Circuit City, Linens ‘n Things have closed their doors. Other retail is very slow.
TREB: What is vacancy like? Are rental rates holding steady?
Blum: We don’t have a current update; however, we are seeing more vacancy in well-leased strip centers and slow to no growth in existing centers with shell space. Rental rates range from $12 to $21, depending on the location.
TREB: How is the second half of the year performing compared to the first half?
Blum: For the Rio Grande Valley, the second half has been worse.
TREB: Do you believe things will turn around in your market in 2010?
Blum: Unless the financial markets ease up, tenants are going to struggle trying to find dollars for their improvements. Landlords are going to have a tough time leasing space unless they have funds to finance TIs.
Click Here to View Full Article
Texas Real Estate Business
Cover Story October 2009
Compiled by Lindsey W. Marcec
Retail real estate professionals from across the state discuss the industry’s performance this year and what they foresee for 2010 and 2011. Full Article
West Texas and the Rio Grande Valley
From Amarillo, El Paso, Lubbock and McAllen, respectively, the following professionals participated in the roundtable discussion: J. Gaut, president, J. Gaut & Associates; Bob Ayoub, president of MIMCO, Inc.; Wesley Hallmark, senior investment advisor for Sperry Van Ness
Hallmark & Assoc., Inc.; and Michael Blum, partner and managing broker with NAI Rio Grande Valley.
TREB: What is the current state of retail activity in your market?
Blum: New leasing has slowed considerably in the Rio Grande Valley since the economic downturn. Access to capital for tenant finish-out has created a huge impediment to entry. Landlords with pre-existing facilities did not have funds in their budgets to cover unanticipated TI costs not covered by lenders.
TREB: What leasing or development trends have surfaced during the downturn?
Blum: Overall, the trend is not much leasing. It seems the most interest in retail leasing is in the food business. Both locals and chains are still looking for quality sites. This has been a very strong market for restaurants and we expect this trend to continue.
TREB: Have any major developments come on line this year?
Blum: No new projects have surfaced and not much is planned for the balance of 2009. Most major developments are in a holding pattern.
TREB: Which types of retail product are doing the best?
Blum: Neighborhood is doing best.
TREB: Have any major retailers entered or exited your market?
Blum: The third Best Buy opened this year at Palms Crossing. Ashley Furniture opened its first Valley store this year, and Rooms To Go and Pappadeaux Seafood Kitchen are both under construction with their first Valley stores. Buffalo Wild Wings is under construction with its second McAllen store. Several CVS/pharmacy stores have opened this year. Mervyns, Circuit City, Linens ‘n Things have closed their doors. Other retail is very slow.
TREB: What is vacancy like? Are rental rates holding steady?
Blum: We don’t have a current update; however, we are seeing more vacancy in well-leased strip centers and slow to no growth in existing centers with shell space. Rental rates range from $12 to $21, depending on the location.
TREB: How is the second half of the year performing compared to the first half?
Blum: For the Rio Grande Valley, the second half has been worse.
TREB: Do you believe things will turn around in your market in 2010?
Blum: Unless the financial markets ease up, tenants are going to struggle trying to find dollars for their improvements. Landlords are going to have a tough time leasing space unless they have funds to finance TIs.
Click Here to View Full Article
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