NAI Partners Blog


Thursday, August 17, 2017

NAI Partners Austin's Tim Laine featured in Community Impact

NAI Partners Austin' Tim Laine was recently featured in Austin-based Community Impact, in an article entitled "Local mom and pop businesses have a harder time surviving today, experts say." [Read more]


Tuesday, August 15, 2017

NAI Partners’ fundraising efforts provide new backpacks and school supplies just in time for the school year

NAI Partners recently held an internal fundraising event at its Houston office on behalf of Child Advocates in which school supplies to support 175 elementary school-aged children were donated for the upcoming school year. [Read more]


Tuesday, August 15, 2017

Houston’s East End rebrands itself as hub for entrepreneurs

Houston’s East End is rebranding itself as a hub for entrepreneurs, technology start-ups and Millennial professionals, and part of the strategy is attracting more small companies that operate in the technology sector. [Read more]


Monday, August 14, 2017

The people behind San Antonio's street names

While there are some pretty common names for some of San Antonio’s streets, such as Broadway and Main, others are named after people or families particular to the Alamo City’s history and culture. [Read more]


Monday, August 14, 2017

Is Whole Foods expanding in Austin?

Whole Foods Market Inc. appears to be taking steps to expand its downtown Austin corporate headquarters to a development under construction across the street. [Read more]


Friday, August 11, 2017

NAI Partners' Q2 Austin Industrial report featured in Austin Business Journal

Our Q2 Austin Industrial report was recently featured in the Austin Business Journal. Per the story,

Several huge industrial projects are under construction in Austin, but the type of buildings being delivered likely won’t help users with smaller needs.

That’s the conclusion of Troy Martin, an associate with NAI Partners in Austin.

[Read more]


Wednesday, August 9, 2017

Jim Tainter named Mentor for NAI Global's First Annual Young Professionals Network Mentoring Program

Congratulations to our own Jim Tainter, who was recently named a mentor for NAI Global's First Annual Young Professionals Network Mentoring Program!


Monday, July 24, 2017

Coverage of NAI Partners' Q2 2017 Press Breakfast

The Houston media was all over our Q2 Press Breakfast last week. See what our top professionals and LOB leaders had to say in the following publications:

Houston brokerage under contract for medically oriented building [Houston Business Journal]
The Good, Bad and Ugly of Houston Real Estate: The Midyear Assessment by NAI Partners [Realty News Report]
NAI Partners’ Press Breakfast: A Houston Overview [Connect Media]
Office deal activity doubles in Q2, but don't celebrate yet [Houston Business Journal]


Monday, July 24, 2017

Don't delay, act now

by Joe Bright
Associate Broker

Like most other Houstonians, I am all -too familiar with the peaks and valleys the energy industry creates in our city. I thought I was living the high life as a landman while oil was making its ascent from the low $50s in early 2007 to $145 in the summer of 2008. When it came crashing back down in late 2008/early 2009, I was fortunate enough to be enrolled in law school. However, many friends and former colleagues weren’t so lucky and found themselves scrambling for work. [Read More]


Wednesday, July 19, 2017

Who could be the new owner of the Houston Rockets?

Some local business leaders are expressing interest in buying the Rockets now that longtime owner Les Alexander is selling the franchise. The Rockets are positioned to stay in Houston but the asking price won’t be cheap. The Rockets franchise could go for about $2 billion.  [Read more]


Thursday, July 13, 2017

Boyles featured in the Houston Chronicle

"After 10 consecutive quarters of rising vacancy, more than a fifth of Houston's office space is sitting unused. In a quarterly report, real estate service firm NAI Partners called that the highest vacancy rate since the firm began tracking data in 1999." [Read more]


Friday, July 7, 2017

3 things to know about sale of 156-acre 3M campus in Northwest Austin

3M Co. has agreed to sell its 156-acre campus in far Northwest Austin to a local real estate investor and now plans to shift hundreds of employees to a new site about 15 miles away. [Read more]


Friday, July 7, 2017

Retailers strive to be near Houston's most affluent residents

The Inner Loop and Near West submarkets had two of the five lowest retail vacancy rates — 3.7 percent and 4.9 percent, respectively — in Houston in the second quarter. [Read more]


Tuesday, July 4, 2017

Happy July 4th!

The Fourth of July commemorates the adoption of the Declaration of Independence on July 4, 1776, which declared that the 13 American colonies regarded themselves as a new nation, the United States of America. Independence Day is commonly associated with fireworks, parades, barbecues and many other leisure-time activities. Pictured is America Tower, the 19th-tallest building in Houston. Its rooftop American flag is thought to be among the highest up of its kind in the country.


Friday, June 30, 2017

Where Austin's money lives

Pound for pound, there is more money floating around the Rainey Street Historic District than any other neighborhood in the Austin area. [Read more]


Friday, June 30, 2017

San Antonio's 2017 Fast Track Companies

The San Antonio Business Journal announces the 50 companies that made the 2017 Fast Track list, which recognizes the city's fastest-growing companies — as determined by computing percent revenue growth from 2014 through 2016. [Read more


Thursday, June 29, 2017

These are the top 10 highest-paid CFOs at Houston public companies

Houston executives at public companies generally made more money in 2016 than in 2015, and CFOs were no exception to that trend. Not counting those who left or joined their companies in 2016, the CFOs of Houston's largest public companies were paid on average 18 percent more than they were paid in 2015, according to a Houston Business Journal study of data released in filings to the Securities and Exchange Commission. [Read more]


Sunday, June 18, 2017

Happy Father's Day!

Happy Father's Day to all the dads out there, from all of us at NAI Partners.


Friday, June 16, 2017

Client Testimonial: Texas Document Solutions' Jesse Mendez on NAI Partners' Clare Flesher


Friday, June 16, 2017

Amazon agrees to buy Whole Foods for $13.7B

Whole Foods Market Inc. is being bought by Amazon.com Inc. in a major shake-up for both the homegrown Austin organic grocery chain and the Seattle-based e-commerce giant. [Read More]


Thursday, June 15, 2017

NAI Partners' VP of Marketing Koestler featured in The New #CREcosystem Refresh

NAI Partners' VP of Marketing Larry Koestler is one of 16 featured influencers in RealMassive and Rethink's The New #CREcosystem Refresh. Click here to read the full report. As only a portion of responses were used, click here for the full transcript of Larry's answers.


Thursday, June 15, 2017

Alamo Bowl and city to expand Alamodome makeover budget to $60M

New deal locks the post-season college football game into the downtown stadium through 2030. [Read More]


Wednesday, June 14, 2017

One Houston-based co. makes Inc.’s Best Workplaces 2017

Global Healing Center is the only Houston-based company on Inc. magazine’s second-annual Best Workplaces list. [Read More]


Thursday, June 22, 2017

Here’s how to stay ahead of the commercial real estate game in Austin

Everyone knows Austin is the place to be right now. From “keepin’ it weird,” to the tech-savvy marketplace, Austin is currently among the most sought-after places in the world to live and work. [Read More]


Tuesday, June 13, 2017

Congrats to our NAI Global Top Initiators and Top Closers of Business!

Congrats to our own John Simons and Jason Whittington on ranking among NAI Global’s Top Initiators of Business in Q1, and Nick Peterson and Jason Whttington on ranking among NAI Global’s Top Closers of Business for Q1! [Read More]


Wednesday, June 7, 2017

Another boutique hotel planned amid Austin's hospitality construction rush

Austin's hotel boom shows no sign of slowing. [Read More]


Tuesday, June 6, 2017

NAI Partners' VP of Marketing Koestler featured in The New #CREcosystem Refresh

NAI Partners' VP of Marketing Larry Koestler is one of 16 featured influencers in RealMassive and Rethink's The New #CREcosystem Refresh. Click here to read the full report.


Tuesday, June 6, 2017

Quiz: How well do you know Houston real estate?

Via The Chronicle: If you've been in Houston for a while, you probably remember what Williams Tower used to be called. You might even know who who developed the Galleria, The Woodlands or Greenway Plaza. [Read More]


Monday, June 5, 2017

Space remains elusive in red-hot Austin retail market

Retail real estate in Austin is in short supply with a metro-wide vacancy of just under 4 percent, but another new development will be underway shortly near Southpark Meadows in far South Austin. [Read More]


Thursday, June 1, 2017

8 American cities you should visit before they get too popular

[Read More]


Wednesday, May 31, 2017

Let's have a conversation about your real estate needs


Wednesday, May 31, 2017

Houston's (still) No. 1, at least according to U-Haul

Houston is still the No. 1 destination city in the U.S., according to U-Haul, but the city's appeal slipped a little in 2016. [Read More]


Tuesday, May 30, 2017

How much the Super Bowl brought to Houston

The 2017 Super Bowl brought in $347 million to greater Houston’s economy, according to a new report released May 25 commissioned by the Houston Super Bowl Host Committee. [Read More]


Monday, May 29, 2017

Happy Memorial Day!

Memorial Day Weekend is spent by many in the company of family and friends, attending cookouts and participating in other outdoor activities, and is considered the unofficial start to the summer.


Friday, May 26, 2017

Here's who's in the joint venture selected to run San Antonio's riverboat business

The San Antonio City Council voted 10-1 on Thursday to award a long-term contract to a joint venture involving Houston-based Landry’s Inc. to operate the city's lucrative riverboat business. [Read more].


Thursday, May 25, 2017

The fastest-growing city in America 

According to newly released census data, Conroe grew at a rate of 7.8% from 2015 to 2016, adding more than 13,500 new residents. Three other Texas cities were in the top five. Frisco, McKinney and Georgetown followed Conroe on the list, all recording more than 5% annual growth. [Read More]


Friday, May 26, 2017

Creative new coworking and event space coming to downtown Austin

Downtown Austin is getting a new coworking space. Billed as "Austin's first shared creative studio and event venue," The Refinery is slated to open this October at 612 Brazos St. [Read more


Tuesday, May 23, 2017

It's time for Houston to start marketing itself

For decades, Houston's job creation and growth were fueled by a strong foundation of oil and gas. Now that oil is struggling to sustain $50/barrel, some local leaders think it is time for Houston to show the world what else it has to offer. [Read more


Friday, May 19, 2017

New Panama Canal finally delivers for Houston

The expanded Panama Canal, which allows exceptionally large ships from Asia to reach Houston, has contributed a benefit to the Houston economy – a new 500,000-SF industrial development, partly prompted by the canal expansion. [Read more]


Friday, May 19, 2017

Houston among top 10 most expensive cities in the world for construction

Houston is one of the most expensive cities in the world to build commercial and residential projects, according to a new report. [Read more]


Wednesday, May 17, 2017

Our Spurs infographic was featured in this week's Texas A&M Real Estate Center's Online Newsletter (RECON)


Tuesday, May 16, 2017

San Antonio

NAI Partners Presents NBA Playoffs and Commercial Real Estate

(click to download full-size PDF)

NAI Partners Presents NBA Playoffs and Commercial Real Estate 2017


Monday, May 15, 2017

Houston Industrial Northwest Submarket Update | May 2017


Monday, May 15, 2017

LA Times: How Houston has become the most diverse place in America

"The story of how his city turned from a town of oil industry roughnecks and white blue-collar workers into a major political centrifuge for immigration reform, demographic analysts say, is nothing less than the story of the American city of the future." [Read more]


Sunday, May 14, 2017

Happy Mother's Day!

Happy Mother's Day to all the moms out there, from all of us at NAI Partners.


Friday, May 12, 2017

'Quite a bit of activity' expected at new industrial park near Port

The park should break ground in the next 60 days. [Read more]


Friday, May 12, 2017

Houston home to 72 law firms on The AM Law 200 

Bisnow: As the nation’s most renowned law firms expand and relocate to Texas, Dallas-Fort Worth and Houston compete to host the most. DFW is home to 44 firms on AM Law 200’s list and Houston is home to 72. [Read more]


Wednesday, May 10, 2017

NY Times: Access for All

For almost 80 years, commercial real estate has been an asset class in which the average investor has been unable to participate, as it has been accessible only to wealthy individuals and institutional investors. But now, that's changing. [Read more]


Monday, May 8, 2017

Coworking on the map in Houston

Coworking is on the rise in Houston. Know who the players are, where they're located, and what they're offering tenants with our NAI Partners Houston Coworking Guide.


Friday, May 5, 2017

Happy Cinco de Mayo!

Happy Cinco de Mayo from NAI Partners!


Friday, May 5, 2017

Local leaders lining up to revive UT Houston campus

Bisnow: Earlier this year the University of Texas announced it would scrap its multimillion-dollar investment in a 300-acre Houston campus with a data science institute. Now that deal may be coming back from the dead. [Read more]


Friday, May 5, 2017

NuStar Energy closes on $1.475 billion Permian Basin acquisition

Per the SABJ, San Antonio-based midstream company NuStar Energy LP has closed on a $1.475 billion deal to buy its first assets in the Permian Basin of West Texas. [Read More]


Wednesday, May 3, 2017

Cadre wants to use technology to give more investors access to commercial real estate--and grow their wealth over time

Since launching, Cadre has generated nearly $1 billion worth of deals, raising close to $70 million in funding from high-profile investors. [read more]


Tuesday, May 2, 2017

Ferruzzo, Simons named 2017 HBJ Heavy Hitters

Congratulations to our own John Ferruzzo and John Simons on being named Houston Business Journal 2017 Heavy Hitters! [read more]


Wednesday, May 3, 2017

Houston's Culinary Prominence Continues To Rise With Two James Beard Award Finalists

When celebrity chef and restaurateur David Chang proclaimed Houston as the next global food mecca, many were surprised. Houstonians were not. Though Houston is most commonly known for oil and freeways, locals know one of the nation's most ethnically diverse areas is producing some of its best chefs. Two of them may receive cooking's highest honor. [read more]


Tuesday, May 2, 2017

Same song and dance of tight supply and increasing rents in Austin’s industrial market

By Troy Martin

Austin’s industrial market continues to play the same song and dance of tight supply and increasing rents. [read more]


Friday, April 28, 2017

Another investor pushes Whole Foods to explore strategic alternatives

Add another investment firm to the list of Whole Foods Market Inc. shareholders pushing the Austin-based grocery chain to consider a sale: Neuberger Berman Group LLC. [Read more]


Thursday, April 27, 2017

Realty News Report: Slowly, confidence is returning to Houston office market

Our own Dan Boyles was quoted at length in today's Realty News Report: “Overall, we are seeing a more positive mindset. Hopefully that will lead to more transactions. The theme I’m hearing is that the worst is over. Some oil service companies are busy hiring. A lot of this is concentrated in the Permian Basin, but there’s a more upbeat attitude.”


Wednesday, April 26, 2017

Happy Administrative Professionals' Day!

Celebrating our administrative professionals, today and every day.


Wednesday, April 26, 2017

Congratulations to NAI Partners' CoStar Power Brokers

Congratulations to our own John Ferruzzo and John Simons on being named CoStar Power Brokers!


Tuesday, April 25, 2017

San Antonio Magazine on cans vs. bottles in the world of craft beer

The debate over beer in bottles versus cans is as old as the introduction of the first canned beer 82 years ago. Most San Antonio–area breweries started out as draft-only, but as each adds packaged brews to the lineup, brewers are asking themselves the same question. [Read more]


Tuesday, April 25, 2017

San Antonio

NAI Partners Presents Fiesta and San Antonio Commercial Real Estate

(click to download full-size PDF)

NAI Partners Presents Fiesta and San Antonio Commercial Real Estate Facts 2017


Monday, April 24, 2017

Site work begins on massive Amazon project, says growth hunter Chris Caudill 

Chris Caudill on Amazon, the CRE business, life lessons, and more [Read more]


Friday, April 21, 2017

Private equity firm bites into Torchy's Tacos with 'significant' minority investment

Torchy's Tacos, which Michael Rypka started in a food trailer more than a decade ago as a refuge from his previous gig as a corporate chef, is poised to rev up growth with a new financial backer. [Read more]


Friday, April 21, 2017

Zillow ranks cities where people want to live or want to leave — including San Antonio

Residents of Washington, D.C., Miami, Detroit, Houston and Chicago want out – and not many house-hunters want in. Meanwhile, Seattle, Tampa and Portland are popular targets for homebuyers who live elsewhere as well as residents who already live in those cities. [Read more]


Thursday, April 20, 2017

Whitestone REIT to buy Uptown's BLVD Place

A Houston real estate investment trust is making a mammoth acquisition of two Texas properties, including BLVD Place, the Whole Foods-anchored shopping and office complex on Post Oak Boulevard. [Read more]


Thursday, April 20, 2017

Retail real estate sector shows signs of downshift

Our own Chris Caudilll, Jason Gaines and Alex Taghi were quoted at length in today's Houston Chronicle. [Read more]


Thursday, April 20, 2017

Sure, Houston Has Sprawl. But Some Areas Have East Coast Levels of Density

Houston and Harris County have well-deserved reputations for built environments that are spread out and low density. The region’s sprawling suburban, single-family subdivisions support this image and numbers bear this out –single-family detached homes make up 61 percent of all housing stock in the county. However, digging deeper into the county’s residential building stock complicates the notion that its built environment should be defined solely by its low-density housing. [Read more]


Wednesday, April 19, 2017

Demand for warehouses rises, fueled by population growth, online shopping

Our own Travis Land was quoted in the Houston Chronicle's story on warehouse demand in the industrial segment. [Read more]


Wednesday, April 19, 2017

NAI Partners' Notable Transactions for Q1 2017


Wednesday, April 19, 2017

The Trend In Office Real Estate That's 'About To Explode'

It was not long ago that co-working began taking the office sector by storm and baffling traditional office providers with its rapid rise in popularity, but there is a new disruptor in town: third-party non-core real estate providers. [Read more at Bisnow]


Tuesday, April 18, 2017

Access To Fresh Beef, Not Demand, Driving In-N-Out Expansion Strategy

In-N-Out, the beloved California burger chain, has been slow to expand, despite die-hard fans loudly clamoring for more across the country. But that is because In-N-Out's new store openings are dictated by quality control rather than demand and demographics. What does that mean as it starts to build out in Texas? [Read more at Bisnow]


Monday, April 17, 2017

Bisnow: Why Skanska Is Building Spec Despite 21% Market Vacancy

Amid millions of square feet of vacancy and oil prices struggling to gain momentum, Skanska is kicking off a 735K SF tower in Downtown Houston. With Bank of America signed on as an anchor tenant, the project is the biggest sign in months of Houston's long-term strength. [Read more at Bisnow]


Thursday, April 13, 2017

HBJ: NAI Partners' report shows slight improvement in Houston office market

HBJ: NAI Partners' Q1 2017 Houston Office Quarterly Report shows slight improvement in Houston office market.


Monday, April 10, 2017

20 Cool Office Spaces

Here are ZDNet.com's 20 coolest office spaces.


Monday, April 10, 2017

Sam Zell: Commercial Real Estate Is Overpriced

It is hard to justify going out and buying U.S. commercial real estate these days, according to billionaire chairman of Equity Group Investments Sam Zell. [Bisnow]


Friday, April 7, 2017

What's being built in Austin? ABJ Introduces Crane Watch

With construction booming across the Austin region, Austin Business Journal has launched Crane Watch, a new tool to keep track of major developments underway in the area. [Austin Business Journal]


Friday, April 7, 2017

San Antonio among 11 proposed Hyperloop routes in the U.S.

Hyperloop One unveiled 11 potential projects during meetings with policy makers in Washington, D.C., on April 6. The company also announced that it has finalized tube installation on its 1,650-foot-long DevLoop in the Las Vegas desert. [San Antonio Business Journal]


Friday, April 7, 2017

Peak Millennial? Cities Can’t Assume a Continued Boost From the Young

Over the past decade, many American cities have been transformed by young professionals of the millennial generation, with downtowns turning into bustling neighborhoods full of new apartments and pricey coffee bars. But soon, cities may start running out of millennials.


Tuesday, April 4, 2017

NAI Marketing Madness | A Champion is Crowned

(click JPEG to enlarge)

With UNC's Monday night victory, NAI Robert Lynn Fort Worth Investment Sales is the winner of our 1st Annual NAI Marketing Madness tournament!


Tuesday, April 4, 2017

San Antonio Grows Tech Jobs by 20% in 2016

The number of tech jobs added in the San Antonio market grew by 20 percent from 2015 to 2016, according to data compiled by the Computing Technology Industry Association, known as CompTIA. The nonprofit trade organization reported that the San Antonio metro area added 843 new tech jobs during 2016, while Austin added 974. Dallas companies, meanwhile, hired 2,978 workers in the tech sector. [San Antonio Business Journal]


Monday, April 3, 2017

Opening Day 2017

According to Baseball Prospectus' forecasting system, PECOTA, your hometown 2017 Houston Astros are projected to have the best record in the American League. Here's to another great season, and let's go 'Stros!


Monday, April 3, 2017

NAI Marketing Madness | Monday, April 3 Update

(click JPEG to enlarge)

Tonight will determine the winner of the 1st Annual NAI Marketing Madness tournament!

(1) NAI Robert Lynn Fort Worth Investment Sales / UNC vs.
(1) NAI Partners Houston Industrial / Gonzaga


Monday, April 3, 2017

Here's where Houston's retail boom is gaining the most traction

Our latest Houston Retail Market Insight was featured in the Houston Business Journal.


Friday, March 31, 2017

Lured by $225K in incentives, two companies select Austin suburb for regional HQs

More than 100 jobs and $8.8 million in capital investment are headed to Pflugerville after officials approved incentive agreements to lure two regional headquarters to the suburban city just north of Austin... [Austin Business Journal]


Friday, March 31, 2017

Frost Tower breaks ground and prepares to shatter ceilings in downtown San Antonio

Plans for downtown San Antonio's future high-rise office building started four years ago at a conference table, and will end three years from now with a 23-story tower...[San Antonio Business Journal]


Friday, March 31, 2017

How Spontaneous Order Keeps Houston Affordable

The Foundation for Economic Education has published a comprehensive essay detailing how Houston has continued to grow in ways that seem counter to several of the expansion of the country's other most populous cities.


Tuesday, March 28, 2017

Houston’s Construction Industry Tackles Labor Shortage

Some construction groups are coordinating an effort to get more workers into what can be a high-paid career. [Houston Public Media]


Tuesday, March 28, 2017

NAI Partners in Chronicle Retail Roundup

Per the Houston Chronicle, Pure Organic Nails has leased 2,000 square feet at 11609 W. Broadway in Pearland. Jason Gaines and Hannah Kaplan of NAI Partners represented the landlord, SSS Pearland Property. Kevin Duc Nguyen of Absolute Realty represented the tenant.


Monday, March 27, 2017

NAI Marketing Madness | Monday, March 27 Update

(click JPEG to enlarge)

Following another wild weekend, NAI Marketing Madness' Final Four is now set. Here are your matchups for this Saturday, April 1.


Monday, March 27, 2017

Harris County No Longer Leads Country in Population Growth

After an eight-year run as the county with the biggest population gains in the U.S., Harris County, home to Houston, has relinquished the top spot to Maricopa County, home to Phoenix. [via The Urban Edge]


Friday, March 24, 2017

NAI Marketing Madness | Friday, March 24 Update

(click JPEG to enlarge)

Four more games were decided last night! [click here]


Tuesday, March 21, 2017

Austin

NAI Partners Presents SXSW and Austin Commercial Real Estate

NAI Partners Presents SXSW and Austin Commercial Real Estate Facts 2017

(click on JPEG to download PDF)


Tuesday, March 21, 2017

Report: Harris County ranks No. 1 in Texas for tourism economic impact

Per the Houston Business Journal, Harris County brought in more than $23 billion in gross product related to its tourism industry in 2016, ranking it No. 1 among all other Texas counties, according to a new report.


Monday, March 20, 2017

Koestler: At its Core, All Marketing is Storytelling

NAI Partners' Vice President of Marketing Larry Koestler shares some of his thoughts on Digital Marketing with RealMassive in The New #CREcosystem.


Monday, March 20, 2017

NAI Marketing Madness | Monday, March 20 Update

(click JPEG to enlarge)

The first two rounds are in the books, and we now have our Sweet Sixteen matchups. [click here]


Friday, March 17, 2017

Happy St. Patrick's Day!

Slainte!


Friday, March 17, 2017

Taghi: Data Says We Have Reached the Market Bottom

Our own Alex Taghi offered his Houston office market commentary in the most recent issue of the Houston Business Journal.


Friday, March 17, 2017

NAI Marketing Madness | Friday, March 17 Update

(click JPEG to enlarge)

Thursday was a wild first day of Marketing Madness action, with 16 games now in the books. Here are the results.


Thursday, March 16, 2017

NAI Marketing Madness!

(click JPEG to enlarge)

Welcome to our first annual Marketing Madness, a 64-team tournament comprised of 4 NAI offices -- NAI Partners, NAI Mobile, NAI Miami and NAI Robert Lynn -- fielding 16 teams apiece, each randomly seeded and attached to a corresponding actual seed in the NCAA March Madness Tournament.

Click here to read more


Thursday, March 16, 2017

Houston Has the Highest Office Vacancy in the Country

Per the Houston Chronicle, Houston has the highest office vacancy rate in the nation, pushing the metro area lower in a ranking of 46 major markets based on forward-looking economic factors. [read more]


Tuesday, March 14, 2017

San Antonio: City on the Rise

by Mitchell Lyons

2016 was a year that moved the San Antonio commercial real estate market in the right direction. The office market recorded net absorption of more than 1.1 million sq. ft., and also produced positive absorption in every quarter of the year. The vacancy rate dropped to 13.9% and the average asking rent came in at $21.00 per sq. ft.  [read more]


Thursday, March 9, 2017

Houston

NAI Partners Presents The Rodeo and Houston Commercial Real Estate

NAI Partners Presents The Rodeo and Houston Commercial Real Estate Facts 2017

(click on JPEG to download PDF)


Wednesday, March 8, 2017

NAI Partners arranges new HQ lease for Houston's Fastest-Growing Tech Company



Houston-based Poetic Systems Inc. expects to move into its new headquarters in the coming weeks and the company plans to hire at least 15 people by year end. [read more]


Wednesday, March 8, 2017

NAI Partners' Boyles a Top 10 Global Producer



Congratulations to our own Dan Boyles, who ranked among NAI's Top 10 Global Producers in 2016!


Tuesday, March 7, 2017

Bisnow: Houston’s Net Absorption Still Negative, But Pipeline Is Emptying



Our brand new Monthly Market Snapshot was recently featured in Bisnow:

[Read more]


Tuesday, March 7, 2017

Getting in While the Getting's Good



As a follow up to our recent Timing is Everything piece, three recent news articles further underscore the strength of the commercial real estate market in Houston for office tenants...[read more]


Monday, March 6, 2017

Houston Industrial Submarket Update: North and Northwest

(click on thumbnails to download PDFs)

Highlights include:

  • There are about 4,725 industrial buildings in the Northwest submarket and the vacancy rate is at 5.1%, making things tight for tenants looking to relocate or expand in the northwest submarket.
  • The north Houston submarket will continue to have the highest industrial vacancy rate in the city (for distribution buildings) for the foreseeable future, as demand for space still lags well behind supply.

Friday, March 3, 2017

NAI Global named #4 Most-Recognized Brand in Commercial Real Estate


NAI Global has been named the #4 most-recognized Commercial Real Estate Brand in the world, trailing only CBRE, JLL and Cushman & Wakefield, per the Lipsey Co.'s annual survey.


Thursday, March 2, 2017

Happy Texas Independence Day

Texas Independence Day is the celebration of the adoption of the Texas Declaration of Independence on March 2, 1836. With this document signed by 59 delegates, settlers in Mexican Texas officially declared independence from Mexico and created the Republic of Texas.


Thursday, March 2, 2017

San Antonio

NAI Partners Perspectives on San Antonio

Austin No.1 City To Live In and Other Things Austin is Tops In


Wednesday, March 1, 2017

Austin

Other things Austin is tops in

Austin No.1 City To Live In and Other Things Austin is Tops In


Monday, February 27, 2017

Houston

Not a Matter of If, but When

The Houston office market is cyclical. Based on...[read more]


Thursday, February 23, 2017

Congratulations Jake Wilkinson!


NAI Partners' Jake Wilkinson is the winner of NAIOP’s 2016 Industrial Rising Star Award. NAIOP Rising Stars are chosen based on their production and their community service, and candidates must have five years or less experience in the industry. Jake joins previous NAI Partners winners Nick Peterson (2013), Michael Keegan (2012), and Travis Land (2006, 2007).


Monday, February 20, 2017

Happy Presidents' Day

Presidents’ Day is a federal holiday celebrated on the third Monday of February honoring all persons who have served as president. It was originally established in 1885 in recognition of President George Washington, and is still officially called “Washington’s Birthday” by the federal government. Prior to joining the United States in 1845, Texas had three men serve as president of the republic, the first of which was Sam Houston. 


Friday, February 17, 2017

5 Things You Need to Know This Week


Thursday, February 16, 2017

A Taste of ATX Comes to H-Town

Austin-based Hopdoddy Burger Bar will open its second Houston location on March 6 in Rice Village. [Read more]


Friday, February 10, 2017

5 Things You Need to Know This Week


Thursday, February 9, 2017

We're Evolving with the Market

Business is moving faster than ever before. At NAI Partners, we're evolving with the market. Are you? 

Click here to connect with one of our sales professionals to learn more.


Wednesday, February 9, 2017

Houston Retail

The Houston 2017 Retail Outlook

by Shaffer Braun

The Houston retail market ended 2016 on a positive note and doesn’t appear to be slowing down in 2017. With significant growth in homes and suburban expansions, retail developers throughout the city have been playing catch-up [read more]


Tuesday, February 7, 2017

Austin

NAI Partners' David Dawkins on the Austin Office Market

David Dawkins offers the Broker Perspective on the Austin Office Market in NAI Partners' Q4 2016 report.


Monday, February 6, 2017

Houston Office

Timing is Everything

The Houston commercial real estate market historically opeates in 7-8 year cycles...[read more]


Monday, February 6, 2017

Houston

NAI Partners Proudly Donates to Child Advocates

NAI Partners is proud to have helped brighten the holiday season for Houston children through its donations to Child Advocates, a private, non-profit organization in Houston dedicated to breaking the cycle of child abuse through the court appointed special advocate system.


Friday, February 3, 2017

Houston Industrial

NAI Partners' Holden Rushing on the Houston Industrial Market

Holden Rushing offers the Broker Perspective on the Houston Industrial Market in NAI Partners' Q4 2016 report.


Wednesday, February 1, 2017

Houston

NAI Partners Presents The Big Game and Houston Commercial Real Estate

NAI Partners Presents The Big Game and Houston Commercial Real Estate Facts 2017

Since Houston last hosted the Big Game in 2004, the average asking rent for office space is up more than $3.50 per sq. ft; full-year 2016 absorption for industrial space is nearly three times as high; and the office vacancy rate is identical [read more]


Monday, January 30, 2017

Houston

NAI Partners remains 7th-Largest Commercial Real Estate Services Firm in Houston; #1 in Sq. Ft. Moved

NAI Partners remains the 7th-largest commercial real estate services firm in Houston per the Houston Business Journal, and was #1 in most square feet moved in the entire city, with 16.2 million sq. ft.


Friday, January 27, 2017

Newsletter

5 Things You Need to Know This Week

Click here to read all of our latest Quarterly Reports.


Wednesday, January 25, 2017

Houston

NAI Partners' Rail-Served Research Featured in GlobeSt.com


Tuesday, January 24, 2017

Houston

NAI Partners' Alex Taghi on the Houston Office Market

Alex Taghi offers the Broker Perspective on the Houston Office Market in NAI Partners' Q4 2016 report.

 


Thursday, January 19, 2017

San Antonio

Industrial development wave in San Antonio gives space users much-needed options

Our own Brett Lum and Clare Flesher recently contributed to Texas Real Estate Business' January 2017 issue, sharing their insights on the San Antonio industrial market.


Wednesday, January 18, 2017

Houston

Westchase District Hopes to Encourage Commuters to do things differently

From Houston Public Media: A Neighborhood In West Houston Hopes To Encourage Commuters To Do Things Differently


Monday, January 16, 2017

Austin

The Austin Office Broker's Perspective on the CRE Market

NAI Partners' Ryan Clark shares his thoughts on the current state of the Austin commercial real estate market.


Thursday, January 12, 2017

Houston

NAI Partners' Jason Gaines speaks at CREN Luncheon

NAI Partners' Retail Services leader Jason Gaines recently spoke at the Commercial Real Estate Network (CREN) Luncheon on Friday, January 6, 2017, to the topic "2017: A Good Year for Houston Real Estate?"


Wednesday, January 11, 2017

Austin

College Football: Beer Sales Are Bigger in Texas

According to a story in The Wall Street Journal, The University of Texas had the highest booze-per-capita in the country during its six home games in Austin -- $5.26 in alcohol for every fan in attendance -- according to a Wall Street Journal audit of beer sales in college football. 

Read more


Monday, January 9, 2017

Austin

Top Lease Negotiation & Site Selection Considerations 

 


Monday, January 9, 2017

Research

Houston Industrial Sublease Digest | January 2017

Find out how December improvements in the oil industry and various economic indicators have affected sublease availability of industrial product types.

Click here for full digest


Wednesday, January 4, 2017

Houston Lifestyle / Culture

In the Age of Streaming, How Houston's Cinemas Keep You Going to the Movies

From The Houston Press via Bisnow:

Nowadays, confronted with streaming entertainment and digital piracy, Houston theaters are finding new best strategies as they try to
hold onto their share of the market and remain relevant...[read more]


Tuesday, November 8, 2016

The key to a successful lease renewal

by Jake Wilkinson, NAI Partners

I speak with companies every day who tell me the following:

They’re not looking to move.

They’ve been in the same space for 20-plus years and do not want to consider looking elsewhere.

They want to see what the economy is going to do before they make any changes.

These instances are all understandable. Outside factors that we cannot control absolutely drive decision-making. However, no matter the reasoning for wanting to renew your lease, there are always ways to create leverage. Leverage is the key to a successful renewal. The more leverage you can create against your landlord, the better off your rental agreement will be for you. The following ideas are just a few ways to help you do just that.

Tour buildings even if you know you are not going to move. More specifically, tour buildings that are also listed by your current landlord’s broker or current landlord’s broker’s company. Brokers always share information. If your landlord hears that you are out shopping other options, then as far as they know, you are open to moving. Your landlord does not know that you do not plan on moving. The idea is to create the appearance that you are more than willing to move if the landlord does not play ball. Yes, this will take up more time than just going straight to your landlord and asking for a renewal proposal, but the time spent could be well worth it.

Be careful not to notify your landlord that you intend to renew too early. This will make it seem like you have already made up your mind and your landlord will know that you have no intention of looking elsewhere. On the other hand, if you wait too long to renew, your landlord could potentially slow play the process and back you into a corner. In the latter scenario, he knows he has the upper hand and will be very difficult to negotiate with. Ideally, you would like to begin looking into a renewal anywhere from six to eight months before your lease expires.

Hire a broker to negotiate on your behalf. When landlords know you are working with a broker, it will instantly create a sense of seriousness and willingness to move should the landlord not present you with a favorable offer. The landlord will know that you are looking into every option. A commercial real estate broker not only knows the real estate market, but they also know what kind of concessions, rates, and other beneficial deals you may not be aware of. The best part about using a broker is that you are already paying for brokerage services regardless of whether you use a broker or not. 95% of the time a broker’s fee is already included in your rental rate. A good broker will still be able to more than pay for himself by doing his job successfully the other 5% of the time that the fee is not included in your rate.

Speak with other tenants in your building or business park. This will give you an idea of what terms and rates your landlord has been offering his other tenants. A little research goes a long way. Landlords do not offer every tenant the same deal. Often times tenants’ contracts will look very different because the landlord is always going to want to get the most out of each deal.

Whether you decide to use these ideas to your benefit or not, the best way to ensure that you obtain the best possible outcome is to create leverage against your landlord. Carrying out these steps may take up a little more of your time, but it will be well worth it in the end.  

Contribution by:

Jake Wilkinson
Senior Associate Broker, NAI Partners

 

 

 


Friday, September 30, 2016

Everything You Wanted to Know About T.I.

by Michael Mannella, NAI Partners

There are many factors to consider when negotiating an office lease, but one of the most important components is the tenant improvement allowance (also known as “T.I.”). T.I. consists of a dollar-per-square-foot amount that the tenant is given by the landlord to build out their new office space, determined in part by the term and size of the lease.

The two different types of build-outs are either the T.I. allowance, or a turn-key approach. The turn-key route is one in which the landlord covers all costs after agreeing to a space plan with the tenant. Typically, for a smaller office tenant who doesn’t require a significant build-out, it can be easier to hand over this responsibility to the landlord. However, it is generally recommended that larger tenants negotiate an allowance, to help maintain control of the construction process with their own contractor and project manager.

Maintaining control of the project is key throughout the process. If a tenant is relocating, and not in control of the built-out process, it is not uncommon to fall behind schedule and incur holdover rent on one’s former space if the new space isn’t ready by the scheduled date. Additionally, it’s also advantageous to be in charge of the process from a budget control standpoint, especially if significant buildout is required.

Overall, sometimes a turn-key approach can be the best option for a tenant. However, when it comes to mid-size and larger tenants, it is frequently beneficial to select the T.I. approach to mitigate costs and maintain control. Doing so requires a firm negotiating hand, but ultimately the tenant will be better off in the end.

Contribution by:

Michael Mannella
Associate Broker, NAI Partners

 

 

 


Monday, August 29, 2016

You Say You Want a (Downtown San Antonio) Revolution

by Cameron Carr, NAI Partners.

While the development of San Antonio has recently experienced significant growth on the north and northwest sides of town, the Alamo City is poised for a reinvigoration of downtown. New construction of office buildings from Stone Oak to the Rim, as well as the proposed multi-use development coming soon to the UTSA area have seemingly replaced the lost attraction of an outdated downtown.

That’s where former San Antonio Mayor Julian Castro’s SA 2020 plan comes into play. In 2011, Castro launched a plan to revitalize downtown San Antonio by 2020, including modernizing the Henry B. Gonzalez Convention Center, Alamo Plaza and the Mission Reach extension of the San Antonio Riverwalk. Recently, the City Council passed a similar plan geared specifically toward the redevelopment of more densely populated areas downtown. As city officials prepare for the growth of an estimated 1.1 million people in Bexar County over the next 25 years, the SA Tomorrow plan will play a vital role in San Antonians returning to downtown. The Hemisfair Park Area Redevelopment Corp. has planned to build a new Hemisfair district that will include retail shops, multi-family housing, and a hotel that will feature a $165 million high-rise development.

Developers are quickly catching on to the downtown transformation. Weston Urban and GrayStreet Partners have been accumulating properties downtown for the past few years, with the former recently announcing plans for an addition to the downtown skyline. A proposed 23-story, 400,000-sq.-ft. office building with 20,000 sq. ft. of retail space will be the new headquarters for Frost Bank and the first high-rise office building added since the Weston Centre was built in 1989.

The revitalization of downtown San Antonio will greatly benefit the entire city by luring suburban residents back to its historic origins and restoring what was once the core of the city. The substantial economic impact this will have on the real estate market cannot be overstated as more product with higher-quality amenities will continue to be unveiled. The future of downtown looks prosperous and provides opportunities for the city to utilize the successful downtown models of Austin, Dallas and Houston. This is the time for San Antonio to capitalize on the opportunity at hand and plan for generations to come.

Contribution by:

Cameron Carr
Associate Broker, NAI Partners

 

 

 


Tuesday, July 19, 2016

Are Office Tenants Having Their Cake and Eating It Too?

by Lane Morgan, NAI Partners.

The rapid shift we are seeing in the Houston office market hit landlords (and developers) about as fast as Usain Bolt running the 100-meter world record sprint in the 2012 Summer Olympic Games. Bolt metaphorically had his cake and ate it too in 2012, proclaiming himself as “The Greatest Athlete to live.” As referenced in the title of this post, office tenants are doing the same right now while negotiating current lease renewals, expansions, downsizes and relocations. In a matter of two years those of us on the office tenant advisory side have witnessed many landlords leap out ahead in the race to compete during this downturn by offering very generous proposals (years of rental abatements, well-above-market tenant improvement allowances, creative “blend & extend” strategies, etc.) to steal tenants from other projects while other landlords perform about as well as I would in a race with Bolt.

“We are three years into a five-year lease and are too far away to discuss at this time.”

Wait Sir/Ma’am, is it too soon to discuss reducing your occupancy footprint to match this downturn and gain free rent now or extend your term at a below market rate?

The moral of the story is, if you are an office occupier in the Houston market, reach out to your commercial real estate agent (they should be already reaching out to you) and see what opportunities are out there for you to reduce your occupancy costs.

Now before the landlord agents write me down in their little black book, do not think for one minute I will forget 2013 and how hot the market was at that time—the table will soon turn and our metaphorical Usain Bolt will have blown out his ACL.

Contribution by:

Lane Morgan
Associate Broker, NAI Partners

 

 

 


Wednesday, June 29, 2016

Broker Perspective: Tenant Advantages in a Soft Market

by Matt Gaby, NAI Partners.

Commercial real estate markets are effected by many factors which cause them to fluctuate naturally over time, which historically run on a 7-year cycle. As these cycles run their course, the downslope naturally results in lots of questions and fears surrounding our clients’ business, but there are often ways to benefit from uncertain economic times. In this post, we pose the question: How can an office tenant take advantage when economic challenges and the natural flow of real estate create a soft market environment? As we advise our clients in this market, this question has become more and more important, and the following are some factors to consider when deciding if now is the right time for you to take advantage:

Time to make a change? If your office space is too large or too small, or you’re in need of improvements, now could be the perfect time to re-negotiate your lease! In a down market, landlords are interested in ways to improve the value to their shareholders. This can be done by adding term with their current tenants, since there are fewer and fewer new tenants looking for space, many of which are letting their leases expire without renewing. This is called a “blend and extend”: where the tenant will add additional term to their lease, in exchange for a more suitable office space and lease rates/concessions based on the current market conditions. This typically makes the most sense if your lease has 3 years or less remaining on the term. Another way to take advantage is if your location is not ideal or you want to upgrade your office’s image. Tenants in a class B building can look at options in the class A market and usually find enough incentive to make the economics virtually a wash. This is done by getting a very aggressive direct lease deal or by considering the large volume of sublease space on the market. With concession like front loaded rental abatements being offered, it is common in this market to find that you can “buy out” the remaining term on your current lease and still come out ahead on your new lease.

In need of economic relief? Everyone has felt the sting of today’s economy, especially in the energy industry. Companies are now looking for ways to mitigate expenses, at least until the market begins to show signs of improvement. One way to help with this, is to negotiate some rental relief with the landlord. There is no guarantee here, or with any of the other strategies, but it could be a viable option. Very similar to the concept above, however instead of focusing on re-engineering your space and lowering your rents, you focus on a much larger free rent period in exchange for additional term on your lease. There are a multitude of factors to consider here, but for some, it could be a huge help to your bottom line while your industry or business recovers.

Reset your base year. The third way, and a little more complex, is to review your GROSS lease for operating expense base year numbers. If you signed one of the leases several years ago, your base year is likely to be much less than the current operating expense of the building. Now is a great time to re-negotiate your lease and reset your base year to avoid paying those increased costs. This scenario is not for every tenant, but for a large office user that signed a 10 year lease, your base year might be from several years prior. Assuming 20,000 SF of space multiplied by an additional $2/SF, you are paying an additional $40,000 per year above the rent you signed off on in the beginning. The larger your space, the greater the savings here.

Looking for new space? NOW IS THE TIME! Finally, if you are an office user looking for new space in this market, NOW IS THE TIME TO SIGN A DEAL! Landlords are getting very aggressive not only in concessions, but in rental rates as well. Signing a new lease now means you can take advantage of this soft market for years to come, when other users are in the market once it turns back to favor the landlords. You will be at a huge advantage over them, and if the need arises to sublet your space in the future, you are that much better equipped to dispose of that space with minimal losses vs the asking face rates at the time.

Through all economic ups and downs, there is both opportunity and loss. As advisors, it is our responsibility to make sure our clients have the knowledge and access they need to turn any situation, in any market, into an opportunity for their business.

Contribution by:

Matt Gaby
Associate Broker, NAI Partners

 

 


Monday, June 27, 2016

Top 6 Reasons Tenants and Buyers Should Use a Broker for Commercial Real Estate Transactions​

by Jake Wilkinson, NAI Partners.

Top 6 Reasons to Use a Broker for your Commercial Real Estate Transactions

Recently it seems like every time you turn on the television or read a newspaper you hear about another Houston company downsizing and laying off workers. Companies are always trying to figure out ways to cut costs and increase their bottom line, especially in uncertain economic times. Commercial Real Estate can be a substantial investment for businesses in transition that can easily be managed if handled the correct way. We’ve pulled together some ways that you can be sure your company is getting the best deal the current market is offering. Since the most effective way to protect yourself and your commercial real estate investments is to retain an experienced and knowledgeable commercial real estate broker, we wanted to share some of the reasons why:

1. Market uncertainty and inconsistency

Due to the uncertainty in today’s market, now more than ever, there is a growing disconnect in where most think rental rates/sales prices should be and what the rates/prices actually are. As most people who are familiar with the Greater Houston Market know, this is being driven in large part by the downturn in the oil market. Over the past two years there has been a substantial decrease in the price of oil and as we know a large portion of our economy is driven and effected directly by the oil market. This would lead one to believe that quoted rental rates and sales prices should have decreased significantly compared to those seen in 2014, when oil prices were at an all time high. If you take a deeper look at the market, there are multiple factors and effects that contradict this assumption. For instance, if you take a snapshot of the industrial market as a whole, there really hasn’t been a noticeable overall change in pricing. To someone without representation this causes a problem, but a broker who is engaged in the market on a daily basis knows which landlords are willing to negotiate rates and give more concessions and which sellers are needing to get rid of a property while the economy is fluctuating. Each day landlords and sellers are getting more and more aggressive in order to negotiate a transaction, they aren’t however always openly marketing their willingness to get a deal done. A broker who knows the market will be able to provide you with recent comps and market trends in order to guide you towards these deals.

2. Leverage relationships

One of the major benefits to working with a broker, is the relationships and market insight that a broker can offer, chances are your broker has some sort of relationship or has dealt with the landlord/seller and/or the listing broker in the past. Landlords and sellers are going to be much more willing to negotiate with someone they know and trust and who has built a good reputation. On the other hand, Landlords and sellers automatically assume an unbrokered company is inexperienced and  less knowledgeable of the market, which may result in them being far less willing to negotiate and give concessions.

3. They know the business

Doing a little homework on different brokerage firms will ensure you’re getting the help you need. Even though finding available property has been made easier with the use of the internet, it’s still important to have someone in your corner who knows the industry, market, and commercial real estate business. The intricacies of a deal, differentiate a bad deal from a great deal. What percent can you expect to cap your yearly operating expenses? What’s an expense stop? How do you know if you’re being charged the correct amount on your year-end expense reconciliation? What are your responsibilities for the HVAC and MEP systems should they need repair? In addition to these questions, it’s important to have someone on your side who understands the hidden business terms in the commercial real estate language, which are often written to benefit only one side of the transaction. Having a trusted advocate on your side through your commercial real estate journey will give you piece of mind and the assurance that your decisions are sound for the future of your company.

4. Save Money

A broker can advise of options available to you that you may have otherwise not know about  and offer counsel on money-saving methods. Often times there are ways to negotiate better pricing, extend current leases, or negotiate terms.  Maybe your lease isn’t expiring anytime soon, but you know you won’t be looking to lease a new facility and plan to renew when your lease is up… you may think you have limited options and leverage. However, if you are working with the right broker, there may be options you are unaware of. Many times, your broker can find ways of renegotiating your current lease. While not every landlord will consider this, a knowledgeable broker will be able to advise you and determine when landlords would much rather extend your lease and give you some kind of break on your rental rates, rather than potentially have to backfill a vacancy. Keeping a tenant around longer means more money for the landlord in the long-run. If you know you’re going to be leasing a facility for the foreseeable future, you may be able to lock in the current rates or even get them reduced now, before the market increases again.

5. You’re paying for a broker whether you have one on your team or not!

Many companies automatically assume that a broker’s fee will be added onto their rental rate, that if they don’t use a broker, the landlord or seller will just reduce that fee from the price. More often than not, this is not the case. The fee that would have been paid to that company’s broker will usually just be given as a bonus to the landlord’s/seller’s broker. If a seller/landlord does try to add to the price due to your retention of a broker, a good broker will not only negotiate ways to save you that amount AND MORE in other parts of the transaction, but will save you time and focus that should be on building your business.

6. Firm Resources

There is no sole indicator that will accurately predict the future of the commercial real estate market. Many factors go into determining projections and analyzing the current market, which is why top brokerage invest in data analysts, research, marketing, and knowledgeable staff members. When you retain representation you also benefit from the knowledge and resources that support them.

There are many reasons to use a broker in your commercial real estate transactions, but the most important is that it is a broker’s responsibility to advise, contribute and help you achieve your overall business goals.

Contribution by:

Jake Wilkinson
Sr. Associate Broker, NAI Partners

 

 

 


Thursday, June 16, 2016

Broker Insight: Houston’s Sublease Market and What It Means for You

by Taylor J. Floyd, NAI Partners

With approximately 9.7 million sq. ft. of sublease space currently available in Houston, in comparison to the historic average of 3 to 4 million sq. ft., the predominant question in most tenants' minds is: how does this affect me? Moreover, many Houston tenants are curious about how they can take advantage of the abundance of sublease space on the market. The answers to those questions may be quite surprising to many. With 85% of the sublease space in large blocks, the majority located within a handful of submarkets, the influx of sublease space may not benefit smaller tenants, or those looking outside those specific submarkets. In addition, 77% of the space being marketed for sublease is in Class A buildings. For example, Class B tenants with a 5,000-sq.-ft. requirement are currently not experiencing the benefits of a softening market as much as Class A tenants located within the Class A submarkets with large blocks of space being marketed for sublease.

So, what does this mean for you?

3,000 – 10,000-sq.-ft. user

  • Less opportunity  for tenants this size, but what is out there for a user this size will not be reflected in the astounding sublease availabilities that we are experiencing today. 
  • Opportunity to upgrade to a Class A building capitalizing on nicer amenities for Class B rates.
  • The disposal of these spaces might be easier due to the lack of subleases this size or building class on the market.

10,000 – 20,000-sq.-ft. user

  • Generally, there will be more opportunities for a user this size.
    • More exact size requirements
    • More leverage to break up a floor when taking half
    • More challenging to find the “exact fit” space without tenant improvement dollars
    • Tenants this size should expect aggressive deals with generous rental abatement to offset construction and relocation costs

20,000-sq.-ft.+ user

  • “The market is your oyster”
  • Much higher chance to find sublease space that fits your needs and is plug and play
  • Here we have the ability to get the attention of larger blocks of sublease
  • Tenants will see aggressively reduced rates with longer terms available vs. direct space in certain class of buildings.

If you are a tenant and have any questions about how the current sublease conditions effect you and your business, please do not hesitate to contact NAI Partners to answer any of your questions or offer guidance.

Contribution by:

Taylor J. Floyd
Associate Broker, NAI Partners