HOUSTON – October 13, 2016 – On behalf of SFT Investments, CBRE announces a new mixed-use retail/office development that is currently available for pre-lease in the heart of the Montrose neighborhood in Houston, Texas. Situated as a strategic entryway to Montrose from Midtown, the Fairview District – as it will be called – will be comprised of four buildings, offering boutique office, restaurant and retail space, as well as a five-story parking garage. Construction is slated to begin January 2017.
“Office tenants today are looking for an experience. They want to be inspired in their work space and also have direct access to progressive retail and dining concepts,” CBRE’s Rima Soroka said. “The lines between work and leisure are blurred. By creating a destination where work meets play, the Fairview District is the beginning of a special movement that blends flexibility with choice and provides Houston consumers with the urban experiences that they crave.”
Featuring a highly creative design concept, which includes industrial elements such as glass, brick and steel, as well as exposed 10-foot ceilings, the Fairview District will be an attractive development for office tenants who thrive in collaborative work environments. According to Ms. Soroka, who will lease the office component of the development, the office spaces will be suited for a variety of potential tenants in the TAMI (Technology, Advertising, Media and Information) sector, as well as law firms, financial services, and more. Josh Jacobs and Lacee Jacobs, with EDGE Realty, will take the lead on leasing the retail space on behalf of SFT.
“Montrose has served as the cultural hub of Houston for decades,” EDGE Realty’s Lacee Jacobs said. “The Fairview District will offer a unified retail and restaurant destination with new, unique concepts that reflect the neighborhood and the city’s eclectic and diverse personality.”
Involved in Houston real-estate for four decades, SFT has been an early investor in the Montrose neighborhood, winning a 2012 Good Brick Award for its preservation of a historic commercial building at Fairview and Taft, home today to Cuchara, Houston’s first authentic Mexico-City restaurant and Max’s Wine & Dive. The developers, architects, and community stakeholders have worked together to provide local residents with a thriving pedestrian quarter.
“Fairview District will offer a rare urban experience in Houston: a cultural hub where young professionals and consumers mingle day and night, at work and play,” Fred Sharifi, with SFT Investments, said. “We’re excited to work with industry leading partners such as Gensler to emphasize the pedestrian character of the neighborhood with ample parking to boot.”
HOUSTON – December 7, 2016 – CBRE announces that Matt Berry and Robbie Kilcrease, two seasoned commercial real estate professionals, have joined its Houston office to focus on the market’s retail investment sales practice.
Mr. Berry and Mr. Kilcrease, who will serve as a First Vice President and Senior Associate, respectively, will specialize in the sale, debt and structured finance placement assistance, and recapitalization of retail properties throughout the Houston market. They both join CBRE from HFF.
“We are excited to have Mr. Berry and Mr. Kilcrease join CBRE,” said Mark Taylor, senior managing director, CBRE. “Their combined experience in retail investment sales will help us continue our growth and success in this area of the business. They are an excellent addition to the team.”
With several years of experience in retail investment sales, Mr. Berry has primarily focused on selling retail investment real estate throughout the southwestern U.S. He has been involved in more than $2 billion of real estate sales on behalf of corporate, institutional and entrepreneurial owner. Mr. Kilcrease, who previously served as a Senior Real Estate Analyst at HFF, has been involved in more than $1 billion in retail transactions over his career.
Mr. Berry is a graduate of Stephen F. Austin State University and Mr. Kilcrease is a graduate of Texas Tech University. They will office at CBRE’s Williams Tower office in Houston.
CBRE Report Outlines Trends in E-Commerce, Promotions, Pop-Ups
HOUSTON – October 26, 2016 – Innovation and consumer choice are fueling the most significant trends shaping this holiday shopping season, including a proliferation of “rogue” retailing and the refinement of e-commerce distribution and returns, according to a new report from CBRE Group, Inc.
With most forecasters predicting a healthy but unspectacular increase in holiday sales this season, many storylines are likely to focus on the changes within retailing rather than the season’s volume of sales. To that end, the CBRE report outlines four of this season’s trends centered on improvements in e-commerce logistics as well as shoppers’ demand for new and unique options.
- The mainstreaming of “rogue retailing”: Shopping center owners and retailers are seeking to entice shoppers with unusual concepts that make each visit different. Those include temporary, pop-up stores and more independent, craft stores. Mall owners such as Westfield Group, as well as several established retailers like Nordstrom Inc., are among those embracing the pop-up format.
- Expanded e-commerce: Online sales are again expected to outpace in-store sales this season. But what’s not as well-known is who is driving those clicks: Brick-and-mortar retailers dominate online sales, and they’re investing in their platforms to do more. Additionally, mobile commerce has emerged as the fastest growing sector of online sales.
- Improved logistics beget e-commerce profits: This could be the season in which the technology, analytics, delivery networks and past experience amassed by retailers and shippers coalesce to produce ideal holiday logistics – to the point of making e-commerce profitable. That includes shoring up strategies for minimizing returns of goods bought online and quickly processing those that are sent back.
- The holiday promotions shuffle: A proliferation of landmark shopping days, from Black Friday and Small Business Saturday to Green Monday and Free Shipping Day, is allowing retailers to spread their promotions and shopper traffic across the entire season rather than just a couple of key days. Many thus can better manage their inventory. Shoppers, meanwhile, tend to dwell longer and spend more absent the hectic crowds.
“This holiday shopping season is all about thinking outside the traditional retail box,” said Melina Cordero, CBRE Head of Retail Research, the Americas. “Retailers are innovating their store formats and revamping their e-commerce fulfillment systems. Owners are adding new and intriguing stores to their mix. It will add up to a very different and more efficient holiday shopping season.”
To read the full report, click here.
Andrew Peeples and Jeff Jackson to launch NLPG presence in Houston
HOUSTON – August 31, 2016 – CBRE Group, Inc. announced that Andrew Peeples and Jeff Jackson have joined CBRE Capital Markets’ Net Lease Property Group as senior vice president and senior associate, respectively.
CBRE Capital Markets’ Net Lease Property Group (NLPG) specializes in the sale, purchase and recapitalization of single-tenant net leased properties throughout the nation. Based in Houston, Mr. Peeples and Mr. Jackson will establish the firm’s presence in the single-tenant net lease space in the region.
Mr. Peeples and Mr. Jackson join CBRE from the Stan Johnson Company, a national commercial real estate firm that focuses exclusively on single-tenant net lease transactions.
“We are excited to have Andrew and Jeff join this select team of senior level Capital Markets professionals who are committed to providing quality service to our clients by leveraging CBRE’s national platform,” said Senior Managing Director Mark Taylor.
Mr. Peeples is a high-performing professional with a tenured background in net lease advisory. Since 2011, he has completed over 100 net lease transactions with an aggregate value exceeding $500 million across 22 states and the District of Columbia.
Mr. Jackson is an accomplished broker with an extensive knowledge of the single-tenant net lease market. Over his career, he has completed over $300 million in net lease transactions.
“Jeff and I are excited about establishing the Net Lease Property Group in Houston for CBRE as we believe our services will be accretive and complimentary to CBRE’s other service lines and will allow us to serve our clients in a more holistic manner by leveraging the national CBRE platform,” Mr. Peeples said.
HOUSTON – April 5, 2016 – Varying levels of opportunity still exist within each of Houston’s real estate sectors despite dropping oil prices, according to a new report from CBRE Group Inc.
In the past 18 months the oil industry has seen falling rig counts, lower WTI costs leading to increased speculation that the commercial real estate sector will repeat the downturn that happened in the 1980s. Although Houston is experiencing softness in the office market, other sectors, specifically industrial and retail are benefitting from healthy activity in the downstream sectors as well as population gains.
The report, ‘One Forecast Doesn’t Fit All CRE Sectors: What’s Ahead for Houston in 2016?’ provides an overview of Houston’s CRE sectors. Highlights include:
Port, petrochemical, plastics and activity in the Panama Canal are contributing to positive activity in Houston’s industrial sector. Industrial markets are benefitting from the health of the midstream and downstream sectors, and several energy companies are still seeing Houston and the Gulf Coast as a solid investment. At the end of Q4 2015, industrial vacancy was still 200 basis points lower than the historical average of 6.9 percent. Despite the perception of slowdown, year-end absorption totals remained strong closing the year at 6.3 million sq. ft.
Rapid five-year population gains and an expanding consumer base are driving growth in the retail market. This growth, coupled with extra cash savings at the pump, resulted in Houston’s absorption of 2.5 million sq. ft. at the end of 2015 – the most in ten years. The increase of suburban development, especially around the newly opened Grand Parkway, is also poised to add additional large-scale retail expansion. Although volatile oil prices are hitting the office sector hard, the retail sector is currently considered to be the most secure in Houston.
With Houston energy companies driving most of the demand for commercial real estate, the office market is the most affected by the current downturn. Sublease inventory has spiked 179 percent to 8.5 million sq. ft. Rent concessions, including free rent and tenant improvements increased throughout the year with negotiated face rates on prime space for long-term credit remained stable. While prime, well-leased properties are able to hold asking rents, higher-risk properties with large amounts of vacancy, are more willing to adjust rates in order to secure a tenant. New construction, which is concentrated in the CBD, West Loop/Galleria and west Houston sub-markets, will add another 3.3 million sq. ft. of vacant space with almost 6.8 million sq. ft. of new product delivering this year.
“Since the late-1980s, the Houston region has recorded more than 25 years of consecutive population gains. While growth this year will be slow, new jobs added to the city’s employment base and continued in-migration are forecasted to gain even more steam in 2017 and 2018,” Texas/Oklahoma Director of Research and Analysis Robert Kramp said. “These fundamental demographic patterns will support the region’s expanding gross product and, while each local commercial real estate sector is in a varying cycle, Houston’s outlook remains solid.”
The entire report can be accessed here.