Eight Shop Owners Firm Up Leases At Three Dallas-Area Centers

DALLAS – With the holiday shopping season about to begin, seven existing tenants and one new shop owner have secured their spaces by finalizing leases for a combined 16,187 sf at three neighborhood centers in Dallas/Fort Worth.

The retail rally was secured by Leigh C. Richter, senior vice president of Dallas-based Bradford Commercial Real Estate Services; her husband, Paul Richter, retail marketing director; and Michael Tran, associate. Bradford’s retail team has delivered medium- to long-term leases, with seven of the eight resulting from direct negotiations with tenants.

The stack includes a 2,123-sf lease for the relocation, renewal and expansion of the Jump Off Spot, a five-year-old urban store with a full line of brand-name shoes, clothing and accessories for men, women and children. Mahran M. Jabbar is gaining 623 sf for his store when he switches spots at Forest Audelia Shopping Center at 9759 Forest Lane in Dallas.

Also at Forest Audelia, ZJES Corp., owner of Shark’s Chicken & Fish, is holding onto 1,850 sf, a long-time location for the franchisee of the Chicago-based chain.

The deal making has inched occupancy to 77% in the 44,183-sf center for Bradford’s client, California-based Mwest Holdings LLC. There are just two suites to fill at Forest Audelia – 4,065 sf on the second floor and 6,088 sf of shell-condition, street-level space 

“We’ve had a couple tire kickers,” says Leigh C. Richter, optimistic that a new deal looms right around the corner.

At Josey Rosemeade Shopping Center in Carrollton, “Sell Your Gold” will debut in 1,404 sf. Shop owner, Imraan Siddiqi, has leased the last available space in the 14,490-sf center at 3720 N. Josey Lane, also owned by Mwest Holdings.

Josey Rosemeade’s renewals came from Physiotherapy Associates, which occupies 4,690 sf, and Edward D. Jones & Co., 1,120 sf.

In Mesquite, special servicer, CWCapital Asset Management LLC, has retained 90.7% occupancy in the 58,093-sf Galloway Crossing at 2110 N. Galloway Ave. Jennifer Pierson of CB Richard Ellis in Dallas is marketing the foreclosed property.

Galloway Crossing’s renewals are Debonair Cleaners, 2,697 sf; Super Smile Dental, 1,244 sf; and Chris & Steve Inc.’s Metro PCS store, 1,059 sf. Representing the dentist’s office was Perren Gasc, vice president of the Weitzman Group in Dallas.

“We have spent a lot of time adding value to the properties,” says Bradford’s senior vice president. “We are retaining tenants, but I don’t see much in the way of expansions. Most people are on hold. They are waiting to see how the holiday season will work for them.”

In a breakdown of the deal flow, the landlords were represented by:

• Forest Audelia – Leigh C. Richter and Tran, closing the Jump Off Spot lease; Paul Richter, securing Shark’s Chicken & Fish;
• Josey Rosemeade – Paul Richter and Tran, signing Sell Your Gold; Leigh C. Richter, inking Physiotherapy Associates; Leigh Richter and Tran, closing the Edward D. Jones & Co. lease;
• Galloway Crossing – Paul Richter and Tran, securing Debonair Cleaners; Paul Richter, signing Super Smile Dental and Metro PCS.

Bradford Reports Three Deals Totaling 30,000-Plus SF

Bradford Commercial Real Estate Services has reported three Dallas-area transactions totaling more than 30,000 square feet.

- Alere Wellology Inc. has renewed 11,508 sf of class A office space in 9400 NCX, 9400 N. Central Expressway, Dallas, with Rosemont Realty. Sharon Friedberg and Melanie Hughes, senior vice presidents with Bradford Commercial Real Estate Services, represented the landlord. Patrick McCaffrey of CRESA Partners represented the tenant.

- State of Texas has renewed 10,500 sf of light-industrial space at 2511 Dalworth St., Grand Prairie, TX. Brian Pafford, senior vice president and managing partner of Bradford represented the landlord, Tarrant County LP, in the direct deal.

- Accurate Research Inc. has renewed 8,400 sf of flex/R&D space in One Paddock Place, 2214 Paddock Way Dr., Grand Prairie, TX. Michael W. Spain, senior vice president and managing partner of Bradford, and Jim Ferris, vice president, represented the landlord, Tarrant County LP, in the direct deal.

Bradford Reports Four Local Leases Totaling 34,000 SF

Bradford Commercial Real Estate Services has reported four local transactions totaling approximately 34,000 square feet:

SS Fuelco Inc. has renewed 11,195 sf of warehouse space in Venture Business Court, 2707 Realty Rd., Carrollton, TX. Brian Pafford, vice president and managing partner of Bradford, represented the landlord, Acquiport DFWIP Inc., in the direct deal.

Hydro Conduit Corp., dba Rinker Materials Concrete Pipe, has leased 10,000 sf of warehouse space at 391 N. Beach St., Fort Worth, from Tarrant County LP. Nick Talley, market director of Bradford Commercial Services, and Karen Simon, executive vice president and managing partner, represented the landlord. NAI Robert Lynn represented the tenant.

Pactrans Air Cargo Inc. has renewed 6,085 sf of warehouse space in DFW Airfreight Center, 1200 Texan Trail, Grapevine, TX. Talley and Simon represented the landlord, Tarrant County LP. NAI Robert Lynn represented the tenant.

CPR Staffing of Texas Inc. has leased 5,838 sf of flex office space in Midway Commons, 2015 Midway Rd., Carrollton, TX, from CFS Midway Chenault LP. Susan Singer, senior vice president and managing partner of Bradford Commercial Real Estate Services, represented the landlord in the direct deal.

2011 Most Powerful & Influential Women

 

The 7th Annual Texas Diversity and Leadership Conference was held, April 6th through April 8th, 2011 at the Hilton Dallas/Rockwall Lakefront, 2055 Summer Lee Drive, Rockwall, Texas.

The criteria for consideration and nomination included the following:
• Provides leadership excellence in the public and/or private sectors
• Sustains a record of accomplishments and/or contributions to field of work throughout scope of her career
• Has clout within her organization in terms of significant impact on
   revenues, profitability, and/or direction of the organization
• Demonstrates leadership and commitment to community well-being and/or high visibility in the community
• Exhibits and demonstrates a commitment to the highest ethical standards and professional excellence

The 2011 awardees that were recognized came from a wide range of industries throughout the state of Texas.  We are proud to announce the well-deserving and prominent 2011 Most Powerful and Influential Women of Texas.

Karen Simon, Executive Vice President

Karen Simon
Executice Vice President
Bradford Commercial Real Estate Services

Industrial Market Snapshot – Dallas/Fort Worth

Industrial Market Snapshot – Dallas/Fort Worth

The Dallas/Fort Worth Industrial vacancy rates are trending down from historical highs despite lingering affects from the recession.  It remains a tenant market in a broad sense, but at the “low and mid-size” end of the spectrum, under 50,000 square feet, incentives are beginning to marginally abate as velocity, leasing and sales from these healthy regional, smaller nationals and large local firms who are survivors, and now require more space.

While some investors seem to be reacting to the recession, lender capital has returned for this mid-size user group, particularly for “user” property acquisitions.  These firms are experiencing inventory growth as the consumer slowly steps up its confidence in spending discretionary dollars.

With vacancies trending down and lenders cautiously re-entering the market, we are also beginning to see several mergers on the horizon which might also be a direct reaction to a recession.  The recent ProLogis and AMB Property Corporation merger has yet to bring to surface what formal operational structure will provide the brokerage community in Dallas/Fort Worth (AMB Property Corporation outsources leasing and management whereas ProLogis performs these duties internally), but what is known is that Prologis has 22,616,079 square feet of industrial projects in the Dallas/Fort Worth Metroplex and adding 4,501,662 square feet of AMB’s product will represent a base inventory of a whopping 27,117,741 square feet.  The grand total of the Dallas/Fort Worth Industrial Base as reported by Costar on 12.31.10 was 665,865,171 sf.  The merged entity will control 4% of theDallas/Fort Worthmarket.

Other planned mergers should affect theDallas/Fort Worthmarketplace – which is one of the top five distribution hubs in the country. When ATT buys T-Mobile, the supply chain shrinks as they combine their warehousing operations.  The economics upstream to the AT&T/T-Mobile merger includes cost savings and operating efficiency. Operational savings for the combined AT&T/T-Mobile firm creates negative leverage at the real estate level, generally putting space back on the market that was previously an income earning asset for a real estate landlord.

The consolidation trend will continue.  DFW having an annual positive absorption growth of over 10,000,000 square feet annually will help absorb some of this excess space, eventually, but when will we return to the norm?  The market absorbed 792,969 square feet in 2010, and had a rare negative absorption year in 2009.

Where are the “Nationals” and Fortune 1000 Users?  They have been an absent commodity since 2007 – 2008.  Are they going to continue to sit on their wallets in 2011?  The bulk warehouse segment in Dallas/Fort Worth is clearly in the dumper, but the national companies are beginning to circle as they see blood in the water (read: inventory needs will force them to add distribution space).  This will be the story of 2011. If not, it will be a long tough year for the national developers.

There are currently 66 Class A buildings that have 250,000 square feet of vacant space or more on the market. We need an “All Star” year upwards of 10,000,000 square feet in absorption. Even at this projected absorption level, rents will continue to level off at historically low numbers for these Class A buildings until we absorb some of this massive overhang of available bulk buildings.  2011 should be a recovery year and rents should solidify in 2012.

The question is — will the recession have any long-term effect on how the market is developed?  Lenders would agree that “Developments” are three “four letter words”.  With that being said, there are several major projects that will affect the pipeline. Whirlpool and Dallas Intermodal, with 1,000,000 square feet between them, is great reading but no net absorption (they moved out of about the same amount of space).

So, one might ask what needs to be done to encourage activity in the market?  If you were to survey the industrial brokerage community, on a scale of 1 to 10, the first quarter of 2011 would rank a solid 7 while the first quarter of 2010 was only a 4. It looks good on paper, but now we need to convert activity into deals instead of just talking about them. Also, we need the return of the Bulk User. If it happens, that would be 2011’s major commercial real estate news story.

By Kevin J Santaularia, CEO & President of BradfordReal Estate Services/CORFAC International

Industrial Rebound Could Absorb 200 Million SF in 2011

Industrial Rebound Could Absorb 200 Million SF in 2011

March 2, 2011
By Paul Rosta, Senior Editor, Commercial Property Executive

If positive economic trends continue throughout 2011, absorption in the U.S. industrial market could hit 200 million square feet for the year, according to projections by Colliers International.

That total would represent a remarkable turnaround for the sector, which recorded 160.7 million square feet of negative absorption only two years ago. Colliers chief economist Ross Moore based the projections in part on a strong fourth quarter. The industrial market finished the year by absorbing 28.6 million square feet, according to Colliers’ analysis of the 55 biggest U.S. industrial markets. That strong finish more than offset the 5 million square feet of inventory that had returned to the market through September. Moore expects momentum to continue building, pushing absorption to as much as 50 million square feet per quarter in 2011.

Behind the uptick are multiple economic factors, including a surge in global trade, growing consumer spending and general economic improvement, Moore pointed out. And although it may be less of a force, he added, “Manufacturing is coming back with a vengeance.”  He is also monitoring some early but encouraging data suggesting that “small businesses are getting on the recovery bandwagon.” While their influence is sometimes overlooked, smaller and emerging companies can create a steady stream of demand for blocks of space in the range of 20,000 to 25,000 square feet, Moore explained.

Industrial markets to watch closely this year include Chicago, Dallas, Los Angeles/Long Beach and New Jersey—four of what Moore refers to as the “big five.” Those are integral links in the global supply chain. The fifth member of the club, Atlanta, is more problematical. The Southeastern powerhouse endured an undistinguished year in 2010, and it is difficult to determine whether Atlanta’s sluggish industrial performance stems from problems with its housing market, regional economic issues or other problems. Other promising industrial markets this year range from Memphis, Cincinnati and Kansas City to Phoenix and Seattle. Such locations often have special niches that give them what Moore describes as an important supporting role to the giant markets. Memphis, for example, is the main U.S. hub for UPS and FedEx.

Despite a generally upbeat outlook, Moore tempered the projections with several notes of caution. “If you look at occupied space, the industrial market did not shrink or contract as much as it should have” during the recession, he noted. End users that did not reduce their space may be sitting on excess capacity, and may be able to fill out that existing inventory rather than expanding into new space. Another as-yet unknown variable is whether the recession changed the economic lag time that affects demand in all categories of commercial real estate, he added.

Reposted from Commercial Property Executive
http://www.cpexecutive.com/property-types/industrial/industrial-rebound-could-absorb-200-million-sf-in-2011-colliers/

20,965-SF Deal Leases Up Jupiter 190 Business Park

20,965-SF Deal Leases Up Jupiter 190 Business Park

PLANO, Texas – RREEF North America has filled the last opening in Jupiter 190 Business Park, leasing 20,965 sf to Neo Tech Wireless Inc.

Dave Anderson, executive vice president for CB Richard Ellis in Dallas, represented Neo Tech, a Samsung vendor poised to replace sublease space with a long-term address in Jupiter 190 Business Park’s Building I.

Key to the deal’s signing was the availability of a spec suite and the landlord’s aggressive lease-up strategy, according to Chris Stout, market director for Dallas-based Bradford Commercial Real Estate Services. Neo Tech, planning a move-in as quickly as possible, is in the process of upgrading power lines, installing equipment and retrofitting the warehouse component of 2805 Plano Parkway.

“Our activity in the Plano market has been good. We have been able to maintain our high levels of occupancy in the portfolio throughout the downturn,” Stout said. “RREEF’s willingness to spend the money on spec suites and get aggressive with good credit tenants has been a big factor in our success.”

Bradford Promotes Pafford, Spain; Hires Market Director

Bradford Commercial Real Estate Services has promoted two veteran brokers to senior vice president and hired a market director for the Stemmons Corridor/DFW Airport submarket.

Promoted were Brian Pafford and Michael W. Spain, who joined the company in 2002 and 2005, respectively. Both professionals are managing partners, each with more than nine years of industry experience. Pafford and Spain were named top producers for marketing excellence in 2010 by Bradford, earning the honor for their fourth consecutive year.

Pafford leads marketing activities and business development of the industrial/flex portfolio in the Stemmons I-35 and Northwest Dallas corridors. Spain’s territory is the Great Southwest Industrial District and Mid-Cities, where he too focuses on marketing industrial/flex properties and business development.

“Our submarket focus continues to gain traction with their leadership,” said Kevin J. Santaularia, Bradford CEO.

Bradford’s newest broker is Shawn Hall, a 17-year veteran who is joining Pafford and Jason Miller, also a market director, in the firm’s Stemmons office at 1445 MacArthur Dr., Carrollton. Hall has been vice president of Coldwell Banker Commercial in Dallas since 1999.

“I wanted to get into a company that has a lot of potential. In my opinion, Bradford was the best option for me,” says Hall, who is the 26th broker to join the firm. “I saw they had a hard-working brokerage team with a consistently high deal volume. I thought I’d fit in well.”

http://dallasrealestate.citybizlist.com/16/2011/1/26/Bradford-Promotes-Pafford-Spain-Hires-Market-Director.aspx

Aviation Firm Keeps North American Hub in Heritage Business Park

A&B Properties Inc. and Dallas Airmotive Inc. have signed a long-term lease for the 134,640-sf Heritage Business Park Building V.

Michael W. Spain, vice president and managing partner of Dallas-based Bradford Commercial Real Estate Services, and Todd Lambeth, senior vice president and managing partner, represented the Honolulu-based landlord in the direct talks with the park’s 10-year tenant.

The office/warehouse at 900 Nolen Dr. in Grapevine’s Heritage Business Park serves as the primary jet repair facility in North America for the tenant’s London-based parent, BBA Aviation plc.

“They certainly had other options and considered looking at the market,” Spain says. “But, it’s a good image park that really represents what they want to project for their company. As long as the economics of the renewal were favorable to what they’d find in the market, then there was probably no reason for them not to renew.” The park’s proximity to Dallas/Fort Worth International Airport also was a chief consideration in the early renewal decision.

Dallas Airmotive Inc. was founded in 1932 at Dallas Love Field and bought in 1997 by BBA Aviation. The division services turbine engines used by business and general aviation, government, military, airline and rotor wing operators worldwide.

The 1.3 million-sf Heritage Business Park is 96% leased.

Spain and Lambeth say they have activity on the two vacancies in the park - 30,000 sf and 20,000 sf.

http://dallasrealestate.citybizlist.com/16/2011/1/11/Aviation-Firm-Keeps-North-American-Hub-in-Heritage-Business-Park.aspx

Texas Leads the Way in Recovery

COLLEGE STATION (Real Estate Center) – The Texas economy continues to outperform the U.S. economy in the current recovery, according to the Real Estate Center’s latest monthly economic review.

The state’s economy gained 194,400 jobs from November 2009 to November 2010, an annual growth rate of 1.9 percent, compared with the nation’s 842,000 jobs, an annual growth rate of 0.6 percent.

Texas’ private sector continues to play a key role in job creation. The state’s private sector posted an annual employment growth rate of 2.2 percent compared with 1 percent for the U.S. private sector from November 2009 to November 2010.

The state’s seasonally adjusted unemployment rate was 8.2 percent in November 2010, the same as in November 2009, while the nation’s rate decreased from 10.0 to 9.3 percent over the same period.

All Texas industries except the trade and information industries had more jobs in November 2010 than in November 2009. The state’s mining and logging industry ranked first in job creation followed by professional and business services, education and health services and manufacturing.

All Texas metro areas had more jobs in November 2010 than in November 2009. McAllen-Edinburg-Mission ranked first in job creation followed by Brownsville-Harlingen and Austin-Round Rock-San Marcos.

The state’s actual unemployment rate in November 2010 was 8.3 percent. Midland had the lowest unemployment rate followed by Amarillo, Lubbock, College Station-Bryan and Abilene.

http://recenter.tamu.edu/default.asp