Tag Archives: allen

Texas – Growth Capital of the USA

Post By : admin 28 May 2015 Leave a comment

According to a recent article on CNN Money, Texas has 3 of the top 5 fastest growing cities in the USA according to U.S. Census Bureau data on population growth between 2013 and 2014. While New York City is number 1, Houston (#2) , Austin (#4) and San Antonio (#5) are in the top 5.

Austin had over 100,000 people move there since 2010, but only 25,600 in the 2013-2014 period  while New York City had 52,700. Los Angeles was number 3 with 30,900.

Other cities in the top 10 include (in order), Phoenix, San Diego, Dallas, Fort Worth and Charlotte. So in the top 10, Texas has 5 spots, California has 2 spots – no other state has more than one city in the top 10.

Other interesting findings from the data: there are now 10 cities in the US with over 1 million people. New Orleans got back into the top 50 largest cities for the first time since Hurricane Katrina.

Texas has seen large layoffs in the energy sector, but remains hot in tech, education and health care. Unemployment is still quite low and is still quite affordable.

For the full article, click here.

This is why it’s getting difficult in some submarkets to find lots of options when companies are looking for office and warehouse space to lease or buy. Historically, we could find lots of options, but not so any more. In some submarkets, it’s easier to find 50,000 square feet (SF) than 5,000 SF.

 

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized

Estoppels: What are they? Why should you care?

Post By : admin 21 May 2015 Leave a comment

Lots of buildings are selling right now. It seems like every day there’s another announcement of a building in the Dallas Fort Worth area trading hands. As part of the sale or refinancing of an office or warehouse building, tenants will be asked by the landlord to sign a document known as an estoppel. In fact, most leases require a tenant to sign an Estoppel and failure to do so can result in a tenant being put in default.

What is an Estoppel?  In the simplest terms, an estoppel is a legal document where a tenant confirms the terms of the lease and makes representations to another party (building purchaser or lender) about the lease.  It has two goals. First, verify the terms of the lease (dates, rent, options, security deposit). Second, prevent the tenant from asserting claims related to the lease at a later time which are not consistent with the representations made in the estoppel.  As part of the due diligence process, a buyer or lender wants to know that the lease information the landlord gave them are, in fact, accurate and that there are no outstanding claims or defaults by either landlord or tenant.

The lease will typically specify that the tenant must sign the estoppel within a given number of days. This is necessary because estoppels are usually the last thing to be done before a sale or loan is closed so there isn’t a lot of time to get them done. Furthermore, most leases will state that if the tenant doesn’t sign the estoppel within the required time, the landlord can sign it on behalf of the tenant and the tenant may then be in default as well.

In negotiating the estoppel provision of a lease, the tenant should be sure to allow enough time to review the document and make comments to it, delete language allowing the landlord to sign the estoppel on the tenant’s behalf, negotiate the estoppel itself and attach it as an exhibit to the lease, and add language allowing the tenant to request an estoppel from the landlord and/or lender.

What should you do when you get an estoppel from your landlord? Most importantly, be careful because it could change the terms of your lease.  Estoppels are often not accurate because they are prepared for all tenants in the building at one time and by people usually not familiar with the building or tenants. Here are some things to keep in mind:

1. Note how much time you have for review.

2. Review the lease including amendments taking special note of the estoppel provision.

3. Verify that the names and addresses of all parties.

4. Verify that the original lease, amendments and other documents related to the lease are properly reference in the definition of “Lease” including the dates of those documents.

5. Confirm facts with personnel in the local office to which the lease applies to be sure there are no operational concerns with the building – HVAC, plumbing, electrical, etc.

6. Be sure that all of tenant’s options to renew, expand, terminate, etc. are noted.

7. Check to be sure of the status of the payment of rent and other charges to be sure the amounts in the estoppel are accurate.

8. Delete any language which adds new obligations on tenant that are not shown in the lease.

Remember, the estoppel is supposed to simply record the facts of the existing lease and not renegotiate it.

 

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

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FAME OR FRIENDSHIP – WHICH DO CLIENTS VALUE THE MOST?

Post By : admin 14 May 2015 Leave a comment

I came across the following quiz and thought it put things in perspective fairly well. I don’t know who the author of this was, but I like it. Your thoughts?

Take the following quiz:

1. Name the 5 wealthiest people in the world
2. Name the last 5 Heisman trophy winners.
3. Name the last 2 winners of the Miss America contest.
4. Name 10 people who have won the Nobel or Pulitzer prize.
5. Name the last 6 Academy Award winners for best actress, best actor or best anything else.
6. Name the last decade’s worth of World Series winners.

How did you do? The point is, none of us remember all the headliners of yesterday. These are no second-rate achievers. They are the best in their fields. But the applause dies. Awards tarnish. Achievements are forgotten. Accolades and certificates are buried with their owners.

Here is another quiz. See how you do on this one:

1. List a few teachers who aided your journey through school.
2. Name 3 friends who have helped you through a difficult time.
3. Name 5 people who have taught you something worthwhile.
4. Think of 3 people who’ve made you feel appreciated or special.
5. Think of 5 people you enjoy spending time with.
6. Name half a dozen heroes whose stories have inspired you.

Easier? The lesson? The people who make a difference in life are not the ones with the most credentials, the most money, or the most awards. They are the ones that care. Which are you to your clients?

As a person and as a Real Estate Advisor & Tenant Advocate, I hope my clients mention me in the second list.

 

Bob Gibbons is a Real Estate Advisor & Tenant Advocate with REATA Commercial Realty, Inc. which is a tenant advisory firm based in Plano, Texas. Bob serves companies in Plano, Frisco, McKinney, Allen, Richardson, Addison, Dallas and the surrounding areas and specializes in companies which lease or buy office and warehouse properties.

Categories: Uncategorized