Tag Archives: tenant advocate

Another One Bites the Dust

Post By : admin 1 July 2018 Leave a comment

The Houston Chronicle reported on Friday that yet another tenant-rep-only firm has sold to a full-service firm. Jackson & Cooksey has been a commercial real estate firm solely focused on representing users (tenants & buyers) of commercial real estate since 1982. They have agreed to be purchased by Newmark Grubb Knight Frank (NGKF) with a full-service firm which has gobbled up many firms over the last several years.

Why should you care? It’s just another step in the consolidation of the commercial real estate industry. Bigger-is-better seems to be the belief. The problem is that these giant conglomerations (CBRE, Cushman & Wakefield, Colliers, JLL, Transwestern, NGKF) try to represent all sides of a transactions.

Many of them have entities which own buildings, others that finance the purchase, another that manages the buildings, another to lease the building, another to appraise the building, another to sell the building…AND yet another to represent the tenants that lease in those buildings.

Does this sound reasonable?

Law firms know that the same firm can’t represent both sides to a transaction. So what’s different about commercial real estate firms? How can they do it?

The giants will tell you that they have walls internally that protect clients and won’t allow the different divisions to share information. But I can tell you from personal experience, that’s not always true. When I was an asset manager for a large property owner, some of these giants made proposals to me to lease my buildings and offered to put a tenant rep on the team. One of those giants, was a competitor in raising capital from college endowment funds, and yet their leasing division was pitching me to lease my buildings and were offended when I suggested that might create a conflict of interest!

Bottom line: giant companies look like a good solution to giant clients because they have a single point of contact. But the more everything goes to one party, the more risk that creates and the less trust you can have that your interests are truly being protected.

If you lease or buy buildings for your company or non-profit to occupy, use an advisor that ONLY represents the user. If they represent any landlords or own any buildings, do not consider them any further.

REATA is a member of the Alliance of Tenant Representatives. To be a member of this international group of commercial real estate companies, each member must pledge to never represent landlords.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) 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

Wal-Mart – IT??

Post By : admin 5 April 2018 Leave a comment

Do you think of IT when you hear Wal-Mart? Most people don’t, but Wal-Mart has an emerging technologies office which makes sense when you consider that Amazon and other online retailers are likely taking a chunk out of its sales. Wal-Mart already has 2,000 technologists on staff in Silicon Valley, but it’s opening a new office in Plano, Texas, April 5 in a Common Desk coworking space in Granite Park.

Wal-Mart has already opened an office on the campus of the University of Texas at Dallas to provide an atmosphere for engineering students and companies to work together. Wal-Mart feels this to be a treasure trove of scoping new talent.

The purpose of these techno offices is to use technology to improve store experience. Problems can be detected earlier with these new systems Wal-Mart wishes to put in place.

To read the article in its entirety, please click here.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) 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

US Office Vacancy Lowest in 10 Years

Post By : admin 23 March 2018 Leave a comment

According to a report produced by Transwestern, office vacancies in the US as a whole are at their lowest in 10 years. That’s pretty amazing when you consider that they also report that 70.7 million square feet (SF) of new construction has been started during that same period. But office demand follows job creation so with unemployment at 4.1%, the lowest since late 2000, this makes sense.

The top 10 markets for net absorption (the net change in the total SF of office space occupied) were lead by Dallas/Fort Worth with over 5 million SF absorbed, followed by San Jose/Silicon Valley with about half that, then Settle, Northern Virginia, Austin, Phoenix, Detroit, Las Vegas, St. Louis and Baltimore.

Notwithstanding the top absorption markets, the top 10 markets for rent growth looked different: Boston at 15%, followed by San Francisco, Charlotte, Orlando, Raleigh/Durham, Oklahoma City, East Bay/Oakland, Phoenix, Los Angeles and Portland. Some of those intuitively make sense because they are land-constrained cities with a huge tech presence. Others were a surprise.

The cities with the most new space under construction are New York with over 16 million SF underway, Dallas/Fort Worth with over 8 million SF coming, Washington, DC at 7.6 million SF, San Francisco at 6 million SF, and Denver at 5 million SF.

The future looks bright for the national office market so long as jobs hold up. If there is a downturn in the economy and companies stop hiring and start laying workers off, things will change.

For the rest of the report, click here.

Bob Gibbons is a Real Estate Advisor & Tenant Advocate (also known as a tenant rep) 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