Burlington Coat Factory plans to open new Live Oak store
HPI Real Estate Services — a company with a knack for drawing in big-name tenants to its retail developments — has landed a new Burlington Coat Factory.
Positive Steps for San Antonio
The San Antonio market continues to move in a positive direction bucking the national trend of economic downturn. Approximately 1.7 million square feet of retail space has been added to the market since the first quarter of 2007. Michael Jersin, HPI’s retail Project Partner, states "San Antonio continues to enjoy quality retail expansion and we are confident that while development may be slow in other parts of the country, we will continue to move in a positive direction."
HPI is pleased to present San Clemente at Davenport, the premiere office park development on Capital of Texas Highway. San Clemente, uniquely situated within Davenport Ranch, located in the heart of Austin’s Technology Corridor, is surrounded by executive level homes and the Cliffs of Lake Austin. Situated on a 49-acre site, San Clemente is located at the northwest and southwest corners of Loop 360 and Westlake Drive. The site is centrally located between two of the largest Austin suburban office markets: the Northwest and Southwest sectors.
The Changing Market – How do Tenants Benefit
Austin’s commercial real estate market has more closely resembled a Six Flags thrill ride over the last twenty years than a cyclical business market. It has veered from the astronomical highs of the mid-eighties, to the lowest depths of the country’s worst market in the early nineties, back on top by 2000, only to crash shortly thereafter with the tech wreck, and then to climb back up once again. Just when it seems there might be some smooth sailing with a reasonable growth curve, the national economy throws a wrench in the gears. So, how do tenants position themselves to benefit from these changing times? If one is a realist, there is no doubt that, with the national economy sputtering and some submarkets dramatically overbuilt, there are going to be some great opportunities for tenants. During the next 12 months, a stable business plan and good credit will provide tenants the best chance to lock in low rental rates, the lowest that we may see for the next decade.
Tenant Satisfaction = Tenant Retention
As I read the market reports from my fellow professionals at HPI, one thing becomes clear: When the velocity of the market is slowing down, it becomes all the more important to retain your existing tenants. When I think of taking good care of our tenants, I am reminded of a maxim that I learned long ago from a marriage class in college. The professor asked the class the following question, “When should you tell your spouse that you love them?” The answer, “Before somebody else does!” I believe that this translates well to the landlord-tenant relationship. While this has always been a focus at HPI, we are taking a fresh look at how we can better serve the tenants in the properties we manage. By retaining our tenants, we are reducing downtime, tenant improvement costs and lease commissions with a resultant increase in returns.
The Austin office market wrapped up the 1st quarter of 2008 with an overall vacancy of about 12.5%. Q1 saw about 358,000 sf of net absorption, and of that 71,000 sf was in Class A properties leaving the Class A market at roughly 15% vacant.
As of mid-year, the industrial market has held its own despite the surge of rapid development and unfavorable news from local manufacturers. Unlike the previous slowdown of 2001, most of our tenants are doing quite well. In fact, several projects have tenants currently in expansion mode. HPI has been fortunate enough to secure and complete several new deals this year, and we would like to thank those brokers and tenants who helped us post a solid first half of the year.
Third Quarter 2008
State of the Central Texas Real Estate Market
The Central Texas real estate market is performing very well in the face of an especially uncertain economic, housing and capital market across the nation. With such issues facing the US, Central Texas is performing contrary to these concerns, as an environment of relative security for overall investment, and more specifically, real estate investment. Job growth, an active lender and investor market and commercial and residential value stabilization are all positive aspects of the Central Texas economy. In spite of the recent slowdown across product types, HPI Real Estate Services and Investments, Inc. foresees, that, through the right investment partner with a proven track record of execution, Central Texas is a relative safe haven for both capital preservation and real estate appreciation for owners, investors, and lenders.
HPI Ranks High in the Austin Business Journal’s “2008 Book of Lists”
HPI Real Estate Services & Investments’ successful principles of honesty, integrity and exceptional customer service continue to build lasting relationships…one square foot at a time!
