commercial-industrial-properties

Off-Market Land Deals in Texas: How Investors Actually Find Them

Fri, 10 Apr 2026 16:26:02 GMT

Off-Market Land Deals in Texas

Quick Summary Before You Read

Off-market land deals = Properties not listed on the MLS, LoopNet, or Lands of Texas.
The Texas Advantage = Texas is a non-disclosure state, making off-market data harder to find but more valuable.
The Strategy = Success relies on direct-to-owner outreach and "pocket listings" from specialized land brokers.

What Is an Off-Market Land Deal?

An off-market deal is a property sale that occurs without public advertising. In the industry, these are often called "pocket listings" or "quiet deals."

In Texas, these deals are common in high-growth corridors (like the I-35 Austin-San Antonio stretch or the Collin County suburbs) where sellers prefer privacy to avoid a circus of unqualified buyers.

These deals are typically:

Marketed to a "short list" of proven buyers.
Sourced through skip-tracing and cold outreach.
Sold via "Wholesaling" or "Double Closing."

Why Investors Focus on Off-Market Deals in Texas

Texas presents a unique environment for land investors. Because Texas is one of the few non-disclosure states , sales prices are not public record. This makes the "open market" harder to navigate and gives off-market seekers a massive edge.

Key Advantages:

Lower Acquisition Costs: You avoid the 6%–10% commission fees often baked into listed land prices.
Privacy: Sellers often want to avoid neighbors or competitors knowing they are liquidating assets.
Fewer Bidding Wars: You aren't competing with 50 other developers on a "Hot" Zillow listing.

How Investors Actually Find Off-Market Land Deals in Texas

1. Direct-to-Owner (DTO) Marketing

Direct-to-owner (DTO) marketing allows investors to bypass traditional listings by using data tools to identify owners with high equity or long-term ownership, particularly in rural Texas, for private sales. Proactive techniques include:

Blind Offers: These are "ready-to-sign" purchase agreements mailed directly to the owner. They include a specific cash price based on price-per-acre data. This works well in Texas for owners looking for a "hassle-free" exit without agent fees.
Letters of Intent (LOIs): These are less aggressive than blind offers. An LOI expresses interest and outlines a price range or terms, inviting the owner to a conversation. This is the preferred method for larger, more complex Texas ranch or development parcels.
Neutral Texas Branding: Many investors use "neutral" mailers that emphasize a fast close and the buyer paying for the Texas title policy and survey costs , which are significant incentives for rural landowners.

Locating the Decision Makers

Skip tracing enables investors to bypass LLC structures and family trusts to identify the specific Managing Members or Trustees controlling Texas land, often utilizing credit header data and public records to find ownership details. This approach focuses on out-of-state "absentee" owners who are statistically more motivated to sell due to lack of local connection and the burden of property taxes, with multi-channel follow-ups like ringless voicemail and text campaigns ensuring direct contact with the decision-maker.

2. Leveraging Texas County Records

Texas Appraisal Districts (CADs) provide a goldmine of data. Investors look for:

Delinquent Taxes & Tax Sales: In Texas, property taxes are among the highest in the nation because there is no state income tax. When owners fall behind, the county can initiate a tax foreclosure . Investors monitor "delinquent tax rolls" provided by the County Tax Assessor-Collector to find owners who are motivated to sell quickly to equity-rich buyers before their land hits the Sheriff’s Sale (usually held the first Tuesday of every month).

Probate & Heirship Issues: When a landowner passes away without a clear will ( intestate ), the property often sits vacant while the family decides what to do. Investors search County Clerk probate records for "Letters Testamentary" or "Affidavits of Heirship." Often, heirs living in cities like Dallas or Houston have no desire to manage a rural family tract and are open to off-market cash offers to settle the estate.

Source: Primary data is found through individual Central Appraisal Districts (CADs) or the T exas Comptroller’s Property Tax Assistance Division , which oversees the state's property tax system and provides a directory of all 254 Texas counties.

3. "Driving for Dollars"

In Texas, this means looking for physical signs of neglect or "For Sale By Owner" (FSBO) signs on rural roads.

Visual Indicators of Motivation: In Texas, land that isn't being "worked" is often a sign of an owner who has checked out. Investors look for overgrown mesquite or cedar brush , which can quickly devalue grazing land if not managed. Dilapidated perimeter fencing is another major tell; in a state where livestock containment is a legal and cultural priority, failing fences often signal that the owner no longer has the capital or interest to maintain the property’s Ag-Exemption status . Abandoned agricultural equipment —like rusted tractors or old round balers left in a field—suggests the transition from an active family farm to a stagnant asset ready for a buyout.

Mobile Mapping and Ownership Tools: Modern "driving for dollars" is powered by GPS-integrated apps like LandId (formerly MapRight) or Regrid . These tools allow investors to stand at a fence line and instantly pull up a digital "parcel card" that shows exact property boundaries , the owner’s mailing address , and the legal description . Because many Texas tracts are irregularly shaped ("metes and bounds"), these apps are essential for identifying whether a vacant strip of land is its own parcel or part of a larger ranch, allowing for immediate, on-site skip tracing and outreach.

4. Pocket Listings from Land Brokers

In the Texas land market, many high-value transactions never appear on public sites like Land.com or Zillow. This is where specialized land brokers and "pocket listings" become essential.

The Accredited Land Consultant (ALC) Edge: Not all real estate agents understand the complexities of rural land, such as mineral rights, water access, or soil types. Investors look for brokers with the ALC designation from the REALTORS® Land Institute . These professionals are part of an elite network where high-quality tracts are often traded privately among trusted colleagues before they ever hit the open market.
The "Quiet Sale" Motivation: Many Texas landowners—especially multi-generational ranching families—value privacy above all else. They may instruct their broker to find a buyer quietly to avoid local gossip, keep their asking price confidential, or prevent a "parade of looky-loos" from driving onto their property. These sellers often prioritize a discreet, professional closing over the highest possible bid from an unknown public buyer.
The "Buyer's List" Advantage: Specialized land brokers maintain "pocket lists" of vetted investors. When a new property comes across their desk, they call these buyers first. To get on these lists, you must demonstrate you are a "performer"—meaning you have the proof of funds or the specialized land financing (such as through a Farm Credit bank) ready to go.

What Makes Texas Unique for Off-Market Deals?

Right-to-Farm & Open Space: Texas has favorable Ag-Exemptions (1-d-1 appraisals) . Investors look for land that is losing its exemption status, as the sudden tax hike often forces a sale.
Mineral Rights: In Texas, the "severance" of mineral rights is common. An off-market deal might involve buying the surface rights while the seller retains the minerals.
No Zoning in Unincorporated Areas: Unlike other states, much of Texas land (outside city limits) has no zoning. This makes off-market "raw land" highly flexible for developers.

Common Mistakes to Avoid

Neglecting Due Diligence: Off-market doesn't mean "no rules." Always check for floodplains (via FEMA maps) and easements .
Ignoring Title Insurance: Never buy land "on a handshake." Always use a Texas title company to ensure the title is "marketable."
Valuation Errors: Since Texas is a non-disclosure state, finding "comps" (comparable sales) is hard. Use a professional land appraisal or a broker's opinion of value (BPO).

Final Thoughts

The best land deals in the Lone Star State are earned, not found on a search engine. By combining data-driven outreach with local networking, you can secure acreage at prices the general public will never see.

Finding these hidden gems requires more than just a laptop; it requires an experienced partner who understands the nuances of the Texas market—from unlisted "pocket" tracts to complex industrial site selections.

Don't wait for the best deals to hit the open market. Partner with a team that has the local relationships and technical expertise to secure off-market assets before your competitors even know they exist.

Get Expert Guidance: Work with the specialists at Commercial Industrial Properties (CIP) to navigate the buying process.
Identify Target Sites: Leverage CIP’s Land Advisory Services to find high-growth parcels in Austin, Central Texas, and beyond.
Move with Confidence: From due diligence to closing, partnering with CIP ensures you have a guide through the wild world of Texas real estate.

Writing Contributor:

Evan Bole - CCIM

Creative Financing Options for Commercial Purchases in Texas

Tue, 31 Mar 2026 20:43:17 GMT

Creative Financing Options for Commercial Purchases in Texas

A Practical Guide for Owner-Users and Investors

Financing is often the biggest hurdle in commercial real estate — not finding the property.

In Texas, buyers have several strong options beyond the traditional bank loan. Whether you're an owner-user purchasing your first building or an investor acquiring income-producing property, understanding your financing structure can dramatically impact cash flow, risk, and long-term returns.

Below is a clear comparison of the most common and most effective financing options for commercial purchases in Texas — including SBA 504 loans, conventional bank financing, bridge loans, and alternative lending structures.

Quick Comparison: Commercial Financing Options in Texas

Now let’s break each one down.

1. SBA 504 Loans

Best for Owner-Users Purchasing Their Own Building

The SBA 504 loan program is one of the most powerful financing tools available to Texas business owners.

How It Works:

50% financed by a bank
40% financed by a Certified Development Company (CDC)
10% down payment (sometimes 15–20% for special-use properties)

Key Benefits:

Lower down payment than traditional loans
Long-term fixed rate on CDC portion (20–25 years)
Predictable payments
Ideal for long-term occupancy

Requirements:

Business must occupy at least 51% of the property
Strong financials and business history
Personal guarantees required

Best Use Case:

A growing Texas business that wants to stop leasing and start building equity in its own property.

2. Traditional Commercial Mortgages

Best for Investors and Stable Owner-Users

Conventional commercial loans from Texas banks are the most common form of CRE financing.

Typical Terms:

20–30% down payment
5–10 year loan term
20–25 year amortization
Balloon payment at maturity
Fixed or variable rates

Advantages:

Widely available
Competitive rates for strong borrowers
Suitable for stabilized income-producing properties

Considerations:

Larger down payment required
Rate resets at maturity
Debt service coverage ratio (DSCR) requirements

Best Use Case:

Investors buying stabilized retail, office, or industrial properties with predictable cash flow.

3. Bridge Loans

Best for Value-Add or Time-Sensitive Opportunities

4. Alternative & Private Financing

Best for Unique, Complex, or Creative Deals

Not every deal fits inside a bank’s box.

Alternative financing in Texas may include:

Private lenders
Hard money loans
Seller financing
Equity partners
Family offices

Why Investors Use It:

Faster approvals
Flexible underwriting
Creative structures
Useful when banks decline deals

Tradeoff:

Higher interest rates and fees.

Best Use Case:

Land purchases , transitional properties, or projects needing nontraditional structuring.

Owner-User vs Investor Financing Strategy

Understanding your role changes everything.

If You Are an Owner-User:

SBA 504 is often the most capital-efficient option
Focus on long-term stability
Preserve cash for business growth

If You Are an Investor:

Traditional bank financing for stabilized properties
Bridge loans for repositioning strategies
Private capital for speed or complexity

Key Factors That Affect Your Loan Approval in Texas

Regardless of loan type, lenders evaluate:

Creditworthiness
Liquidity
Net worth
Debt service coverage ratio (DSCR)
Property cash flow
Market conditions
Experience level

Texas remains one of the most active commercial real estate markets in the country, but underwriting standards still matter.

How to Choose the Right Financing Option

Ask yourself:

1. Is this a long-term hold or short-term reposition?

Your timeline drives your financing. Long-term holds favor stable, lower-rate loans, while short-term value-add deals may require flexible, short-term financing like bridge loans.

2. How much capital do I want to keep liquid?

Higher down payments can lower risk and payments, but tying up too much cash may limit your ability to handle surprises or pursue other opportunities.

3. Do I need speed or stability?

If timing is critical (competitive deal, distressed asset), faster financing may matter more than rate. If not, slower, more stable financing often provides better long-term terms.

4. Is the property stabilized?

Stabilized properties (with consistent income) qualify for traditional loans. Properties with vacancy or issues may require bridge or alternative financing first.

5. What is my exit strategy?

Are you planning to refinance, lease-up, or sell? Your loan should align with that plan — especially if you’re using short-term financing.

The right loan should align with your investment timeline — not just offer the lowest rate.

Final Thoughts

There is no single “best” financing option for commercial real estate in Texas — only the one that best aligns with your strategy.

SBA 504 loans help business owners build equity with less cash down.
Traditional mortgages offer stability for investors.
Bridge loans create speed and flexibility.
Alternative financing unlocks complex opportunities.

Understanding these tools gives you leverage — not just in negotiations, but in long-term wealth building.

If you're evaluating a commercial purchase in Texas and want guidance on structuring financing that supports your investment goals, working with experienced commercial real estate professionals can help you move forward with clarity and confidence.

PROS AND CONS OF INVESTING IN MIXED-USE PROPERTIES

Wed, 18 Mar 2026 20:42:07 GMT

In recent years, cities across the state of Texas are striving to create more sustainable communities to support rapid growth. One way that they are doing this is through mixed-use developments. These projects offer a fusion of modern living and business opportunities to provide residents with the utmost convenience. Texas showcases an impressive array of mixed-use properties with more on the way.

You might be asking yourself, though… Is it worth it to incorporate mixed-use development into your portfolio? Like with any investment, there are potential challenges and successes that you need to weigh. We are going to dig into what to expect when you get into the mixed-use property game.

TYPES OF MIXED-USE PROPERTIES

The term “mixed-use properties” refers to a wide range of community real estate development projects. Across the state of Texas, they vary in shape, size, and scale depending on a development’s needs. A mixed-use development may combine commercial, industrial , recreational, medical, and housing spaces.

Vertical Mixed-Use Developments

Vertical mixed-use developments are typically high-rise buildings. These buildings offer a diverse range of services and activities, coexisting in a compact urban setting. More public uses can be found on the lower floor (such as restaurants or retail shops), while the upper floors are for more private uses (such as residential units or office spaces). The vertical nature of these mixed-use properties optimizes land use, allowing for the efficient use of space in areas with limited availability.

Horizontal Mixed-Use Developments

Opposite to their vertical counterpart, horizontal mixed-use developments are able to disperse various functions across a larger area. They are designed to be an interconnected environment that is easily walkable. Within a given development project, different buildings or parcels of land are allocated for different uses. Similar to vertical mixed-use developments, these uses may include both commercial and residential. Horizontal mixed-use properties also often feature a focal point known as a town square, which serves community activities.

Main Street

Another type of walkable development, main street mixed-use properties support locally-owned businesses and create a sense of place. This model features businesses on the ground floor, and apartments and condos on the higher floors. Main street developments contribute to the revitalization of cities. They attract customers and residents in order to foster a thriving local economy, the growth of small businesses, and a more lively atmosphere. Because main street areas also typically have historic significance, mixed-use properties help preserve their unique character.

Shopping Mall Conversion

Also known as department conversions, shopping mall conversions are similarly executed to have multiple different types of uses on the same property. Where this mixed-use property differs is its intended push-back against the rise of e-commerce. With traditional shopping malls going obsolete in the modern day, this development offers a way to gain the most out of the location . Texas has overseen the conversion of many vacated shopping malls in favor of a property that can compete with e-commerce giants like Amazon.

ADVANTAGES OF MIXED-USE PROPERTIES

Although the idea of mixed-use properties is far from new, they are being adopted more and more in recent years, throughout the nation. Instead of designing and building independent systems, we are able to consolidate infrastructure and operations. That is precisely why expert Texas brokers recognize these benefits:

��Diversified Revenue Streams

Because mixed-use properties combine different uses within a single development, they represent multiple potential revenue sources. This includes rent from commercial spaces and residential units. From a commercial perspective, some specific examples might be office spaces, fitness facilities, and retail stores. On the other hand, regarding retail, a mixed-use development may have apartments, condominiums, or townhomes. As an investor, you won’t have to worry about the risks that come with relying solely on one type of tenant .

��Sense of Community

Physical proximity encourages the formation of social connections. Therefore, with mixed-use properties, residents, employees, and visitors who are sharing common spaces have a greater opportunity for encounters. Having common gathering areas for community events or shared amenities also helps with this. Ultimately, diverse individuals are able to come together throughout the day to engage in numerous activities.

��Sustainable Real Estate

Having a walkable development is a great way to make things more convenient. People living in or around the development are able to easily access amenities, services, and employment opportunities. This reduces our vehicular dependency because so many things are right around the corner. That translates into a reduction in traffic congestion, along with an improvement in air quality. If a mixed-use development was constructed with energy efficiency in mind, that sustainability increases tenfold.

��Maximizing Land Use

Given that mixed-use properties combine multiple functions within a single development, they enable higher density. They also optimize land use by sharing common areas and parking facilities. In urban areas that already have limited land availability, this is especially impactful. That is why you will find so many multi-story buildings when you go to a downtown area.

DISADVANTAGES OF MIXED-USE PROPERTIES

Of course, mixed-use properties might not be the right fit for everyone. The development could be hampered by a multitude of barriers, including municipal zoning rules. But outside of local statutes that can take a long time to change, here are some areas where mixed-use properties are lacking:

��Costs and Financing

If you were to construct your own mixed-use development, know that there is a lot of complex planning and design that goes into it, compared to single-use developments. And when it comes to the investment of these properties , a higher upfront cost is to be expected. This means that mixed-use properties are more challenging to finance.

��️Limited Adaptability

It is challenging to modify a mixed-use property once it has been developed. The design of the property limits flexibility, so you will need to find tenants that meet the exact specifications of the space. Adapting a mixed-use development is a costly endeavor because it could involve substantial investments in renovations. How financially feasible these renovations are depends on market conditions.

��Market Fluctuations

Real estate is already a volatile market. But with mixed-used properties, in particular, there is exposure to market fluctuations in multiple sectors. The property’s performance can be impacted by shifts in consumer preferences and economic conditions. With that in mind, investors must carefully assess market conditions to determine who the best tenants will be. By diversifying your tenant mix, you put yourself at reduced risk.

⌛Complexity of Management

Because you will be handling a diverse range of tenants, you need to be able to meet their respective needs. With different lease agreements and operational considerations, there is a lot for you to keep up with. Compared to single-use properties, investing in mixed-use properties is time-consuming. It is a great idea to hire a professional real estate broker to ensure that everything is in check.

You need someone by your side who understands your budget and business needs. For decades, Commercial Industrial Properties has been an integral part of Texas’s growth, working with businesses to locate property options priced within a target investment range. Whether you are in need of tenant services or asset management, our professional commercial brokers can be your guiding hand. We are well-versed, in particular, in mixed-use properties. Contact us today to learn more about what CIP can do for you.

Land Development Timeline: What to Expect from Contract to Construction in Texas

Tue, 17 Mar 2026 20:34:34 GMT

Land Development Timelines

Buying land is exciting. Turning it into a finished, income-producing property? That’s where patience, planning, and the right team matter most.

In Texas, land development can move faster than many other states — but it still involves multiple phases, approvals, and coordination points. Whether you're developing industrial, retail, office, or mixed-use property, understanding the full timeline helps you avoid surprises and budget properly.

Below is a realistic look at what to expect from contract to construction.

Phase 1: Contract & Feasibility (30–90 Days)

Once a land purchase contract is signed, the real work begins.

This is your due diligence window — and it’s critical.

Title commitment review
Survey review
Zoning verification
Utility availability confirmation
Environmental studies (Phase I, sometimes Phase II)
Floodplain analysis
Access and easement review
Preliminary site layout or concept planning

This is also when investors confirm:

Is the site usable for the intended project?
Are there hidden costs (detention, offsite improvements, impact fees)?
Will the timeline align with financing?

Planning Tip:

Budget for consultants early — civil engineers, environmental firms, surveyors, and land-use attorneys. Rushing this phase often creates expensive problems later.

Phase 2: Entitlements & Permitting (3–9+ Months)

Typical Steps:

Zoning or rezoning (if needed)

Confirm the property allows your intended use. If rezoning or a special permit is required, expect staff review and possible public hearings.

Site plan submission

Submit detailed plans showing building layout, parking, access, landscaping, and compliance with city development standards. Revisions are common.

Platting (preliminary and final)

If the land must be subdivided or reconfigured, plats must be approved and recorded before permits can be issued.

Traffic impact analysis (if required)

Larger projects may need a traffic study to determine roadway impact and required improvements.

Drainage and detention review

Engineers must prove the project meets stormwater regulations and does not increase downstream flooding.

Utility approval

Confirm water, sewer, electric, and other utility capacity before construction begins.

Public hearings (if applicable)

Rezoning or variances may require planning commission and city council approval.

This phase is often the longest and most unpredictable part of the process.

Planning Tip:

Engage local professionals who understand the specific city or county requirements. Local knowledge saves months.

Phase 3: Engineering & Construction Drawings (2–4 Months)

While entitlements are underway (or once approved), civil engineers prepare detailed plans for:

Grading
Drainage
Utilities
Roads and access
Stormwater management
Detention ponds
Erosion control

These plans must meet municipal standards and are typically reviewed by city engineers before construction permits are issued.

Planning Tip:

Engineering costs are higher than many first-time developers expect. Build this into your upfront capital stack.

Phase 4: Financing & Contractor Bidding (1–3 Months)

During or after permitting:

Finalize construction financing
Issue drawings to general contractors
Review bids
Negotiate contracts
Lock in timelines

Material pricing, labor availability, and supply chain conditions can affect construction start dates.

Planning Tip:

Have financing lined up early. Delays between permitting and funding can stall momentum.

Phase 5: Site Work & Construction (4–12+ Months)

Now the visible progress begins.

Site Work Includes:

Clearing and grubbing
Earthwork
Utility installation
Road construction
Detention pond construction

Once vertical construction begins, timelines vary depending on property type:

Industrial warehouse : 6–9 months
Retail strip center : 6–10 months
Office building : 8–12 months
Build-to-suit : Depends on tenant requirements

Weather, inspections, and change orders can extend timelines.

Total Timeline Overview

From contract to completion, most Texas land development projects take:

9 to 18 months , depending on:

Zoning complexity

If the property is already properly zoned, timelines move faster. Rezoning, special use permits, or variances can add months due to staff review and public hearings.

Municipality

Each Texas city has its own review process, staffing levels, and development standards. Some move quickly and predictably; others require multiple review cycles.

Infrastructure needs

Projects requiring new roads, utility extensions, detention ponds, or off-site improvements typically take longer than sites with existing infrastructure in place.

Property type

Industrial buildings may move faster than retail or mixed-use projects, which often face additional design, parking, or traffic requirements.

Financing structure

Straightforward financing can keep momentum steady. Complex capital stacks, lender requirements, or funding delays can slow progress.

Highly complex or rezoning-heavy projects may extend beyond 18 months.

Common Delays to Plan For

Even in Texas, which is generally development-friendly, delays happen:

Utility capacity issues
Drainage or detention redesign
Rezoning opposition
Title complications
Environmental findings
Contractor availability
Material lead times

The key is not eliminating delays — it's planning for them.

How to Plan for Each Phase Successfully

Start with a clear end goal.
Know your exit strategy — lease, hold, or sell.
Build a strong development team early.
Broker, civil engineer, land-use attorney, lender, contractor.
Pad your timeline.
If you need 12 months, plan for 15.
Carry contingency reserves.
Development always costs more than initial projections.
Communicate regularly with municipalities.
Proactive communication speeds approvals.

Final Thoughts

Land development in Texas offers tremendous opportunity. Population growth, business-friendly policies, and strong demand across industrial and retail sectors make it an attractive environment for investors and owner-users alike.

But success comes down to understanding the process.

When you know what happens between contract and construction, you can make better decisions, protect your capital, and move confidently through each stage of development.

If you’re evaluating land or planning a project, working with experienced commercial real estate professionals can help streamline the process and avoid costly missteps.

The right preparation makes all the difference. Contact CIP to get started on the right path today!

Writing Contributor:

Evan Bole, CCIM

Texas Business Personal Property (BPP) Rendition: What to Prep Now (April 15 Deadline)

Mon, 23 Feb 2026 19:30:01 GMT

Texas Business Personal Property (BPP) Rendition

If you own or run a business in Texas and you have tangible assets (equipment, furniture, computers, inventory, etc.), there’s a good chance you’re expected to file a Business Personal Property (BPP) rendition with your local county appraisal district.

The standard deadline is April 15 , and February is the perfect time to get organized so this doesn’t turn into a last-minute scramble.

What is a BPP rendition?

A rendition is a yearly report you file with the county appraisal district to disclose the business personal property you own (or control) in that county and, in many cases, provide a good-faith estimate of value.

*Important detail: you’re reporting what your business owned/used as of January 1 of the tax year.

What counts as Business Personal Property (BPP)?

In plain terms: tangible personal property used to produce income.

Common examples:

Furniture, fixtures, shelving, display cases
Computers, POS systems, phones, printers
Tools, machinery, shop equipment
Signs, security systems, cameras
Inventory (in many cases—varies by business and local process)
Supplies used in operations

Common non-examples (typically not taxable BPP):

Intangibles like cash, stocks, accounts receivable

Who Should File?

Generally, anyone who owns tangible personal property used for the production of income in the county should file. This can include:

The business that owns the assets
The business that controls/manages the assets in certain fiduciary situations

Also: the business responsible for BPP taxes may not be the building owner (tenants often have their own BPP accounts).

If you operate in multiple locations, have a growing equipment list, or want fewer surprises when tax season hits, it helps to treat BPP like part of your broader asset management plan—not a once-a-year scramble. That means tracking where assets live, when they move, what gets disposed, and how those changes affect filings and budgeting.

Deadline, Extensions, and How They Work

Standard deadline

File after January 1 and no later than April 15 .

Extension options (get this in writing)

If you request it in writing on or before April 15, the chief appraiser must extend the deadline to May 15.

You may be able to get an additional 15 days if you request it in writing and show good cause.

Penalties for Missing or Messing Up the Rendition

Texas Comptroller guidance notes that filing late, incomplete, or not at all can trigger penalties—commonly described as 10% to 50% depending on the situation.

Many appraisal districts also reference a 10% penalty for failure to file or late filing under Texas Tax Code provisions .

Bottom line: even if you don’t love the process, it’s usually cheaper to file cleanly than to ignore it.

What to Prep Now (so April 15 is easy)

1) Confirm where you must file

BPP renditions are filed with the county appraisal district where the property is located/situs. If you have assets in multiple counties, you may have multiple filings.

2) Build your asset list as of January 1

Create (or export) a simple schedule that includes:

Asset description (type + use)
Location (address/county)
Acquisition date
Original cost (and/or current estimate)
Disposals (what you no longer have)

Many districts accept a good-faith estimate of value or cost-based reporting depending on how you track assets.

3) Gather the core documents

Here’s the shortlist that usually makes this painless:

Fixed asset ledger (from your accountant/bookkeeper or accounting system)
Year-end depreciation schedule (even if you don’t file it with the rendition, it helps support values)
Equipment invoices / big-ticket receipts
Inventory snapshots (if applicable)
Leases for equipment you use but don’t own (helps clarify ownership and responsibility)

4) Sort assets into “buckets” (faster + clearer)

Typical buckets:

Furniture/fixtures
Computers/IT
Tools/equipment/machinery
Leasehold improvements (note: treatment varies—don’t guess; follow local guidance)
Inventory
Supplies

5) If you need an extension, plan it now

If February is already chaos, decide now whether you’ll file by April 15 or request the extension to May 15 (request must be made by the deadline).

Common Pitfalls (and How to Avoid Them)

1) Using December 31 numbers instead of January 1

For BPP renditions, what matters is what you owned/used as of January 1. A December 31 asset list can be close, but it’s not the same—equipment bought, sold, scrapped, or moved in early January can change what should be reported.

Fix: Pull a “snapshot” list for January 1 (or reconcile your ledger from year-end through January 1) and make sure your schedule reflects that date.

2) Missing locations/counties (multi-location businesses)

If you have multiple offices, job yards, warehouses, or retail locations, you may have assets in more than one county—and the filing is typically tied to where the property is located/used (“situs”). Missing a county can mean you never receive the right account notice until it’s already a problem.

Fix: Create a simple location list (address → county → appraisal district) and assign each major asset group to a location.

3) Confusing owned vs. leased equipment responsibility

A common headache is reporting equipment you don’t actually own—or failing to report equipment you do own because it’s financed or paid through a lease-like arrangement. Some leased items are reported by the owner/lessor, but in other setups the business using the equipment may still need to disclose it depending on how it’s structured locally.

Fix: Make two buckets: Owned/Financed and Leased/Rented . Keep copies of lease schedules and include clear notes on who owns what and where it sits.

4) Waiting until April and trying to recreate the year from memory

This is how small errors become expensive: missing invoices, forgetting disposals, guessing at values, and mixing in personal items or non-business assets. It also increases the chance you miss the deadline (or miss the window to request an extension).

Fix: In February, pull your fixed asset ledger + big-ticket invoices and do a quick cleanup: add missing assets, mark disposals, and confirm locations. You’ll turn a stressful April project into a 60–90 minute review.

Wrap-up

If you want April 15 to be uneventful, now is the time to get organized: confirm which counties you need to file in, build a clean asset list as of January 1, and pull the supporting docs (fixed asset ledger, major invoices, leases, and any inventory snapshots). If you’re unsure what counts as BPP, have multiple locations, or want to avoid penalties and rework, CIP Texas can help you think through the real estate and operational side—where assets sit, how locations tie to counties, and how to get your ducks in a row early so your property tax strategy stays predictable.

Writing Contributor:

Robby Eaves, CCIM

Buying Commercial Property in Texas with an SBA 504 Loan (Owner-Occupied)

Wed, 11 Feb 2026 21:22:46 GMT

Quick Summary Before You Read.....

Question: How can Texas business owners use an SBA 504 loan to buy an owner-occupied commercial property with better terms and less cash out of pocket?

Answer: An SBA 504 loan is designed for owner-users who want to buy (or build) the building their business operates from—often with a lower down payment and longer-term financing than many conventional CRE loans. To qualify, you generally need to meet owner-occupancy rules , operate as an eligible business, and use the funds for fixed assets like real estate or long-life equipment. The biggest deal-killers are occupancy math that doesn’t meet SBA requirements , trying to structure it like an investment property , and underestimating the timeline and documentation needed to close smoothly.

For a more detailed exploration, you can read the full article below ⬇️

SBA 504 Loan Owner-Occupied Requirements

If you run a business and you’re tired of paying rent forever, an SBA 504 loan can be one of the most practical ways to buy an owner-occupied building in Texas.

It’s built for business owners who want to own the real estate their company operates from—think contractors, medical practices, manufacturers, logistics companies, auto/service businesses, and many retail operators.

Below is the plain-English guide: who qualifies, why 504 is popular, the key rules, and the pitfalls that blow up deals.

What is an SBA 504 loan?

The SBA 504 program provides long-term financing for major fixed assets (like commercial real estate) through Certified Development Companies (CDCs)—nonprofit SBA partners that help fund economic development projects.

A few key realities:

It’s designed for fixed assets (buildings, land improvements, long-life equipment)—not working capital.

The SBA portion (the CDC debenture) has a published cap (commonly referenced as up to $5.5M depending on project type).

Why it’s Popular for Owner-Users

Owner-users love SBA 504 because it often means:

Lower down payment than many conventional CRE deals (often around 10% in standard scenarios)

Long amortization (commonly 20–25 years on real estate) which can help cash flow

A structure built specifically for buying/renovating/constructing facilities your business will occupy

The Basic 504 Structure (How the Money Usually Stacks)

Most 504 projects are structured as:

Bank / lender: typically first lien (often ~50%)

CDC/SBA debenture: typically second lien (often up to ~40%)

Borrower injection: commonly ~10%

That “50 / 40 / 10” structure is widely described in industry materials and federal banking guidance.

Who Qualifies (High Level)

1) It must be a for-profit operating business (not a passive real estate play)

The program is not meant for buying investment property where you’re mainly collecting rent.

2) You must be an owner-occupant (occupancy rules matter)

Common occupancy requirements:

Existing building: business must occupy at least 51%

New construction: business must occupy at least 60% initially (with expectations to grow into more space over time)

These thresholds are commonly stated in federal banking guidance and CDC/504 occupancy summaries.

3) Business size / “small business” financial thresholds apply

A commonly cited benchmark is tangible net worth and net income limits (often referenced as $15M net worth and $5M average net income), though these thresholds can change over time and the SBA also uses industry size standards.

4) Economic development purpose

The 504 program is designed to promote economic development—job creation/retention and/or public policy goals are part of how projects are justified and tracked.

What You Can Use a 504 Loan For

Typical eligible uses include:

Purchase of existing commercial buildings

Purchase of land and land improvements (parking lots, utilities, grading)

Construction of new facilities

Renovation/modernization of existing facilities

Purchase of long-life equipment (often 10+ year useful life)

This is consistent with SBA’s “fixed assets” focus and how CDCs describe eligible projects.

Refinancing can also be possible under specific conditions (rules get detailed fast), and it’s governed by SBA regulations .

Common Pitfalls (Where Deals Go Sideways)

Pitfall #1: Trying to use 504 for an “investment property”

If the property is primarily a rental/investment play, you’re likely outside the program’s intent. There are structures like an Eligible Passive Company that can own the real estate, but the project still needs to be fundamentally owner-occupied and structured correctly.

Pitfall #2: Occupancy math that doesn’t work

If you can’t meet the 51% / 60% occupancy rules based on your real space plan, the deal can stall late in the process.

Pitfall #3: “We’ll just rent out the extra space and use that income to qualify”

Some lenders will underwrite the business expecting it can service debt from operations without relying heavily on third-party rent (especially if you’re close to the minimum occupancy). This is a frequent friction point in 504 underwriting .

Pitfall #4: Underestimating timeline and documentation

504 is a two-lender structure (bank + CDC/SBA debenture), and it’s paperwork-heavy. If you need a 10-day close, this probably isn’t your tool.

Pitfall #5: Special-purpose buildings and startups = higher cash in

Many 504 deals are around 10% down, but certain situations (newer businesses, special-purpose properties) can require more borrower injection.

A Simple “Should I Consider 504?” Checklist

You’re a strong fit for SBA 504 if:

You’re buying a building your company will operate from
You can meet the occupancy requirement (51% existing / 60% new)
You want longer-term stability vs. renewing leases every 3–5 years
You’re okay with a more involved closing process in exchange for structure and terms

Texas-specific note (how this works locally)

The rules are federal, but the execution is local: Texas has SBA-certified CDCs that can help coordinate the SBA debenture side, and the SBA maintains a public directory of CDCs.

Wrap-up

An SBA 504 loan is one of the most common “graduation moves” for growing Texas businesses: buy the building, stabilize occupancy costs, and build equity while you operate.

If you’re exploring options, the two biggest “make-or-break” items are:

Owner-occupancy math, and
Making sure the deal is truly an operating business real estate purchase, not an investment purchase.

If you’re considering a purchase this year, CIP Texas can help you evaluate properties for 504 fit, sanity-check the occupancy plan, and coordinate the deal team (lender, CDC, title, and due diligence) so you don’t lose time—or the building—mid-process. Reach out to CIP to talk through your target area, budget, and space needs.

Writing Contributor:

Phil Morris - Director of Retail

CAM Reconciliation & NNN True-Ups: A January Checklist for Landlords + Tenants Part 2

Mon, 26 Jan 2026 17:00:02 GMT

CAM Reconciliation & NNN True-Ups Continued.....

In Part 1 , we shared a tenant-side checklist for reviewing CAM reconciliations and NNN true-ups—what to audit, where mistakes hide, and how to spot red flags before paying.

This post is the other half of the equation.

If you’re a landlord or property manager , the CAM reconciliation is one of the highest-leverage moments of the year. Done well, it builds trust, speeds up collections, and reduces the time you spend defending charges. Done poorly, it creates disputes, delayed payments, and a lease relationship that stays tense all year.

Here’s a January checklist to make your CAM reconciliation / NNN reconciliation clean, supportable, and easy to understand.

What is a “true-up” (from the landlord side)?

During the year, tenants typically pay estimated monthly CAM/NNN charges. After year-end, you compare:

what was billed ( estimates )
vs.
what was actually incurred ( actuals )

The difference is the true-up—either a tenant owes more, or receives a credit.

Landlord January Checklist: What to Document to Avoid Disputes

1) Deliver a reconciliation package—not just a number

A good package includes:

A one-page summary (estimated vs actual vs true-up)
Expense detail by category
Pro-rata share calculation (and building RSF/GLA used)
Notes on major variances (what changed and why)

This “clarity-first” approach is consistently emphasized in CAM training and best-practice discussions.

2) Track recoverable vs non-recoverable from day one

Many conflicts happen because accounting categories don’t match the lease. Separate:

recoverable CAM
non-recoverable expenses
capital vs operating
tenant-specific vs shared expenses

If you sort it at reconciliation time, you’ll miss things and create gray areas.

3) Prepare backup for the categories that matter

You don’t need to send every invoice automatically, but you should have support ready for:

the largest categories
unusual increases
one-time items
contracts that renewed mid-year

4) Treat capital items carefully (and explain the method)

If a cost is capital in nature:

confirm the lease allows recovery
amortize when required (and show the schedule)
document useful life assumptions
show any interest/financing only if allowed

Capital handled casually is the #1 way to trigger a dispute.

5) Document gross-up assumptions clearly

If you gross-up variable expenses:

state the occupancy rate used
list which expenses were grossed up
show the calculation method
keep it consistent with lease language

Gross-up is often valid. Unexplained gross-up looks like manipulation.

6) Explain big swings before someone asks

If insurance rose sharply or snow removal doubled, include a short note like:

market premium increases
claims history
unusual winter events
vendor pricing changes
deferred maintenance finally completed

One paragraph here saves ten emails later.

7) Make the pro-rata share calculation unambiguous

Include:

tenant RSF/GLA
total building RSF/GLA
resulting percentage
whether the calculation includes vacant space, and how

When tenants question the math, it’s usually because the math isn’t shown.

8) Use a consistent annual timeline

Set expectations early:

when reconciliations are delivered
when true-ups are due
how disputes are handled
who the point of contact is

Consistency reduces conflict even with tough tenants.

9) Have a simple, written dispute workflow

A clean process:

Confirm the lease clause
Confirm if the cost is recoverable
Provide backup for that category
If it’s a gray area, document the resolution for next year

This keeps disputes factual, not emotional.

10) Improve next year’s budget using this year’s friction

If tenants repeatedly dispute a category, it’s usually one of:

unclear lease language
unclear description in your reconciliation
inconsistent accounting
capital/operating confusion

Fix the system—not the argument.

Common CAM/NNN Dispute Triggers (Avoid These)

Wrong RSF/GLA numbers or allocation pool
Capital expenses billed as operating
Unapproved admin/management fees
Vague gross-up
Tenant-specific expenses spread across all tenants
No explanation for big swings
Poor documentation or messy categories

Wrap-up (tying Part 1 + Part 2 together)

The best CAM reconciliations are simple: show the math, match the lease, and support the big numbers. When you do that, tenants can verify charges quickly, questions get answered fast, and true-ups get paid without drama.

And if you’re reading both posts: Part 1 (Tenants) helps tenants review reconciliations intelligently, while Part 2 (Landlords) helps landlords present reconciliations clearly. When both sides follow the same playbook, CAM season becomes a process—not a fight.

Writing Contributor:

Evan Bole, CCIM

CAM Reconciliation & NNN True-Ups: A January Checklist for Landlords + Tenants Part 1

Thu, 15 Jan 2026 17:39:44 GMT

CAM Reconciliation & NNN True-Ups

January is when a lot of “quiet” lease problems get loud.

Your operating expenses are in. Your estimates were… close-ish. Now it’s time for the CAM reconciliation (aka the NNN reconciliation) and the yearly true-up—the moment where the math either confirms the lease is running smoothly… or triggers a dispute that drags on for months.

This guide breaks down:

what a true-up is (in plain English),
what tenants should audit before paying,
what landlords should document to keep things clean and avoid arguments,
and a simple January checklist you can follow every year.

Quick definitions (so we’re speaking the same language)

What is CAM?

CAM = Common Area Maintenance . Think: the costs to operate and maintain shared spaces and building systems (parking lots, landscaping, snow removal, lighting, common area cleaning, etc.).

What is NNN?

NNN = Triple Net. In many NNN leases , tenants pay their share of:

Taxes
Insurance
CAM (operating expenses)

What is a “true-up”?

A true-up is the final “settle up” after the year ends:

Throughout the year, tenants usually pay estimated monthly CAM/NNN charges.
After year-end, the landlord totals the actual expenses and compares them to what tenants already paid.
The difference becomes either:
a bill (tenant underpaid), or
a credit/refund (tenant overpaid).

That final settle-up is the CAM reconciliation / NNN reconciliation.

Why January matters

January is the perfect time to get ahead of this because:

Books are closing for the prior year
Vendors and invoices are coming in
Tenants are reviewing budgets
Landlords are prepping reconciliations
Everyone is setting expectations for the new year

If you handle it cleanly now, you prevent the “wait… what is this charge?” email chain later.

January Checklist for Tenants (what to audit before you pay)

You don’t need to be a CPA to review a reconciliation. You just need a repeatable process.

1) Start with the lease (not the spreadsheet)

Before you look at numbers, find these in the lease:

What counts as CAM / Operating Expenses (definition matters)
What’s excluded (capital items, leasing costs, marketing, etc.)
Any caps (like a 3% CAM cap)
Gross-up rules (how occupancy affects shared costs)
Your pro-rata share method (RSF? USF? GLA? other)
Any audit rights and deadlines to dispute charges

If the lease doesn’t allow it, it doesn’t matter how common the charge is.

2) Confirm the big picture numbers

Total annual CAM/NNN billed (estimated)
Total actual CAM/NNN
Resulting true-up amount (bill or credit)

Then check: does it roughly pass the smell test compared to last year?

3) Verify your pro-rata share and the building math

This is where a lot of mistakes live:

Is your suite square footage correct?
Is the total building rentable area correct?
Is the pro-rata percentage calculated correctly?
If there’s a multi-building campus: are you being allocated correctly?

One wrong denominator = wrong bill.

4) Look for “non-recoverables” hiding in CAM

Common flashpoints:

Capital improvements billed as CAM (should usually be amortized, if allowed at all)
Leasing commissions or tenant improvement costs
Marketing / promotions
Depreciation
Owner overhead beyond what the lease allows
Legal fees (unless specifically allowed)
Fines / penalties
Vacant space costs that shouldn’t be passed through

Some of these might be allowed in your lease—but many aren’t. The lease is the rulebook.

5) Check for admin/management fees and confirm the method

If there’s a management fee:

Is it allowed in the lease?
Is it a % of expenses or a flat fee?
Is it calculated on the correct base?
Is there a cap?

Admin fees aren’t automatically “wrong.” They’re wrong when they don’t match the lease.

6) Verify gross-up (especially if the building wasn’t full)

If occupancy was low, many leases allow “grossing up” certain variable expenses (like utilities/janitorial) to reflect what the building would cost at stabilized occupancy.

But gross-up is also easy to misuse. Confirm:

What expenses are variable vs fixed
What occupancy level is used for gross-up
Whether the lease requires a minimum occupancy threshold

7) Match categories to reality (spot-check the weird stuff)

You don’t need every invoice. You do need clarity on outliers. Look for:

Big year-over-year jumps
New categories that weren’t there before
One-time expenses that feel like projects (not maintenance)
Snow removal, parking lot repairs, HVAC repairs—things that can swing wildly year to year

When something looks off, ask for backup on that category.

8) Confirm you’re getting credits where you should

If you have:

a base year stop (common in modified gross)
an expense cap
negotiated exclusions

…make sure the reconciliation reflects them.

9) Check the timing + dispute window

Many leases require tenants to dispute within a certain window (example: 30–90 days). If you miss it, you may lose leverage even if the charge is questionable.

10) Don’t ignore the forward-looking part

Use the reconciliation to ask one smart question:

“What’s changing in the CAM budget this year, and why?”

That’s how you avoid surprise monthly increases.

Conclusion (and what’s next)

A clean CAM/NNN reconciliation review isn’t about picking a fight—it’s about making sure you’re paying what the lease actually requires, and catching mistakes before they become “accepted.”

In the next post, we’ll flip perspectives and share a January checklist for landlords/property managers : how to build a reconciliation package tenants trust, what documentation prevents disputes, and the fastest way to resolve questions without months of back-and-forth.

Writing Contributor:

Evan Bole, CCIM

HARD COSTS VS SOFT COSTS

Mon, 12 Jan 2026 15:30:09 GMT

HARD COSTS VS SOFT COSTS

When it comes to construction and Tenant Improvements, you may hear people refer to hard costs and soft costs. Since a Tenant Improvement Allowance usually only applies to hard costs, it’s important to know the difference between the two.

Hard costs refer to the costs related to the physical construction of the building. Typically, they are tangible in nature and can be forecasted with accurate pre-construction numbers.

Examples:

Labor
Cost of Materials
Concrete / Cement
Drywall
Doors and Doorframes
HVAC installation or replacement

While Hard Costs are easier to estimate than soft costs, the price of materials, region, and labor supply all play a part in the final numbers.

Soft costs, on the other hand, are any costs that aren’t directly related to construction costs. These costs are typically tied to less tangible things, such as plans, permits, or contracts.

Examples:

Architectural fees
Engineering fees
Legal fees
Permits

Think of it this way: If the cost is tied to something physical that will remain with the property after the Tenant moves out, chances are it is a hard cost. If it isn’t, it’s probably a soft cost.

Want to learn more about other topics? Check out our Education Hub .

All information provided has been obtained from sources deemed reliable. However, neither CIP Austin nor any of its brokers, agents, employees, officers, directors or affiliated companies (collectively, CIP Austin and Related Parties) have made an independent investigation of the Information or the Information sources, and no warranty or representation is made by CIP Austin and Related Parties as to the accuracy of such Information. The Information is submitted subject to the possible errors or omissions, and no person or organization should rely on the Information, unless such person or organization has conducted and independent investigation to confirm the accuracy thereof.

When Should You Sell Your Commercial Property in Texas?

Thu, 18 Dec 2025 22:37:38 GMT

When Should You Sell Your Commercial Property in Texas?

If you own commercial or industrial property in Texas, you’ve probably asked a version of the same question:

“Should I hold this a little longer… or is it time to sell?”

There’s no one-size-fits-all answer. The “right” timing depends on the market, your property’s performance, and your own goals as an owner or investor.

This guide walks through practical, Texas-specific signals that it may be time to sell—and how a firm like CIP Texas helps owners make that call with real data instead of gut feel.

1. Start With the Market: What Is Texas Doing Right Now?

Before you zoom in on your individual asset, zoom out.

Texas is still growing: statewide forecasts for 2025 call for continued population and income growth, with Texas expected to outpace the U.S. in personal income and population gains . That long-term growth story is one reason investors continue to target Austin and other major metros.

But not every sector moves the same way:

Industrial remains a standout in markets like DFW and Austin, with strong demand and limited new supply in many submarkets.
Retail has quietly tightened , with historically low vacancies and selective new construction.
Office is more mixed , with a “flight to quality” and older or poorly located buildings facing more leasing risk

What this means for you:

If you own property in a hot sector or submarket (e.g., well-located industrial, strong grocery-anchored retail), the current environment may be a good window to test pricing while demand is deep. If you own a challenged office asset or a property losing relevance, selling before more vacancy hits the market can preserve value.

2. Property-Level Signals It Might Be Time to Sell

Even in a strong market, your individual property can tell you when it’s time to consider a disposition.

A. Your NOI Has Plateaued (or Is Drifting Down)

If:

Rents are at or near market,
Operating expenses (including property taxes, insurance, and repairs) are climbing, and
You don’t see a clear path to meaningful NOI growth,

you may be approaching the “mature” phase of the hold . At that point, you’re mostly clipping coupons—valuable, but often a sign it’s time to weigh selling and rolling into a higher-growth asset.

Texas’ relatively high property taxes—which help fund local services in a state without an income tax—can also compress NOI when valuations jump. In many triple-net structures you can pass taxes through to tenants, but there’s a limit to how much tenants will tolerate before it affects renewals.

B. Your Leases Are in a “Sweet Spot” for Buyers

From a buyer’s perspective, the best time to buy is often when your leases look the cleanest :

Strong tenants with good credit or performance
High occupancy (90–100%)
Healthy remaining term , often 3–7+ years of weighted average lease term (WALT)
Reasonable, predictable rent increases

Portfolio sales data shows that properties with long-term leases and a stable tenant base tend to sell faster and for better pricing.

If your building is almost full, with recently renewed tenants and minimal short-term rollover, you may be at peak buyer appeal—even if you personally feel like you “just finished” all the hard work.

C. Major Capital Expenditures Are Coming

Another common selling trigger: looming capital projects, such as:

Roof replacement
Parking lot reconstruction
Code-driven upgrades (fire/life safety, accessibility)
Major mechanical (HVAC, elevators, chillers)

If your reserves are thin or you’d prefer not to write a large check, selling before those projects hit can make sense—especially if the buyer pool includes users or value-add investors who plan to reconfigure or redevelop anyway.

D. The Property No Longer Fits Your Strategy

Sometimes the property’s fine—but you’ve changed:

You’re over-weighted in one submarket or asset type.
The property is management-heavy and you want something more passive.
You’re moving from small single-tenant deals to larger multi-tenant or industrial assets.

In those cases, selling isn’t about performance problems; it’s about trading into assets that better fit your current risk profile and time commitment.

3. Personal and Tax Considerations for Texas Owners

Real estate is an investment and a tax strategy. Timing your sale around your own financial picture can be just as important as timing the market.

A. Capital Gains and Holding Period

If you’ve held your property for more than a year, your profit is typically treated as long-term capital gains , taxed at federal rates of 0%, 15%, or 20% depending on your income level.

Because Texas has no state income tax , there’s no additional state income tax on those gains, which can make selling Texas assets relatively attractive compared with high-tax states.

On the other hand, large gains can bump you into higher brackets or trigger the 3.8% Net Investment Income Tax if your income is high enough.

B. 1031 Exchange Timing

If you’re looking to defer capital gains, you may time your sale around a planned 1031 exchange, using the proceeds to buy another “like-kind” property. Done correctly, this lets you roll equity forward without paying tax today.

That means your “sell vs. hold” decision isn’t just about price; it’s also about whether you have a next deal lined up in Texas (or elsewhere) that you’d rather own for the next 5–10 years.

C. Life Events and Liquidity

For many Texas owners, the right time to sell lines up with personal milestones :

Retirement or stepping back from day-to-day management
Buying out a partner or resolving estate issues
Funding a new venture or diversification into other assets

If you know one of these events is 12–24 months away, it’s smart to start talking with your broker now so you can prep the property, address easy value-add items, and bring it to market at the right time rather than selling under pressure.

4. Texas-Specific Market Clues It May Be Time to Sell

Here are a few regional clues that it might be a good window to evaluate your asset:

Your submarket is on investors’ “short list.”
Austin, DFW, and other high-growth corridors continue to attract capital because of strong population and job growth, infrastructure investment, and deep tenant demand.
Interest rates are stabilizing or easing.
Forecasts for late 2025 show policy rates moderating from prior peaks and long-term borrowing costs in a more “normal” range. When financing is more predictable, more buyers come off the sidelines.
Vacancy in your sector is tightening.
Tight retail and industrial availability in many Texas markets gives sellers more leverage on pricing and terms.
You’re ahead of the curve on functional obsolescence.
If you own an older asset that still “works” today but may struggle to meet future expectations (power and clear heights for industrial, parking/loading for retail, amenities for office), selling before obsole scence becomes obvious can preserve value.

5. A Simple Owner Checklist: Is It Time to Talk About Selling?

You don’t have to decide today—but if you can answer “yes” to several of these, it’s probably time to at least get a valuation conversation started:

My property is 90%+ leased with stable tenants and solid remaining term.
Rents are at or near market , and I don’t see major upside without big capital spend.
I see large capex on the horizon (roof, parking lot, systems, code upgrades).
I’m over-concentrated in this asset type or submarket.
I’d seriously consider selling if I could get today’s pricing .
I have an opportunity to trade up via a 1031 exchange or reinvest into a better-fit asset.
A major life or business event is coming in the next 1–2 years and I’ll need liquidity or less management.

If that sounds like your situation, you don’t have to put up a “For Sale” sign tomorrow. But you should have updated market data and a realistic pricing range so you can decide from a position of strength.

6. How CIP Texas Helps Owners Decide When to Sell

CIP Texas is a full-service commercial real estate firm based in Austin, serving investors and owners statewide with Investment Sales and Asset Management , along with leasing, land advisory, and consulting.

When owners come to us asking, “Is now the time to sell?” we help by:

Analyzing current value and buyer demand for your specific asset type and location
Reviewing lease terms, rollover, and NOI trends to see how the property will look to buyers
Identifying low-cost enhancements that could improve pricing or marketability
Mapping possible hold vs. sell scenarios, including 1031 timing and reinvestment options
Designing a disposition strategy if you decide to move forward—target buyer profiles, marketing channels, and realistic timelines

Thinking About Selling a Commercial Property in Texas?

Whether you own a single industrial building, a multi-tenant retail center, or a small portfolio across the I-35 corridor, timing your sale correctly can unlock years of value in one transaction.

If you’d like a confidential, no-pressure conversation about when to sell your commercial property in Texas:

Call CIP Texas at 512-682-1000 , or
Reach out through our website here .

We’ll help you understand what your property is worth today, what it could be worth tomorrow, and how to align your sale timing with your investment strategy.

Writing Contributor:

Robby Eaves, CCIM

LAND DEVELOPMENT: BUILDING YOUR AUSTIN TEAM

Wed, 17 Dec 2025 15:46:37 GMT

BUILDING YOUR AUSTIN TEAM

With the Central Texas land market on fire right now and everyone in the country coming to Austin to buy land to develop, I asked a local real estate attorney I have used to provide an outline of what you need to look for when purchasing land for development. I always encourage all my buyers to put a team together with a local engineer, architect, land planner and a good real estate attorney to handle any issues that can come up before you spend time and money on a deal. One real estate attorney that I have worked with on multiple occasions is Zeca Mazcuri at Breunig & Mazcuri PLLC.

Below is a condensed version of an outline that Zeca has put together for folks to consider when putting land under contract for development in the Austin area.

Potential Deal Concerns or Hurdles

Deed Restrictions – Who helps buyer? title company provides relevant documents and attorney interprets them and offers solutions for problems!
Easements – Who helps buyer? title company provides documents, attorney interprets, and surveyor locates!
Wrong Zoning – Who helps buyer? engineer, land planner or attorney can all advise regarding zoning implications.
Impervious Coverage Requirements – Who helps buyer? Usually your engineer or land planner will be the best and fastest advisor regarding locally applicable requirements and how to deal with them for your intended development!
Insufficient Access – Who helps buyer? engineer, attorney and/or title company! Solving an access problem may require an attorney and probably a surveyor. Your broker may also help with negotiations with third-parties.
Historical Landmark/Historic District – Who helps buyer? engineer, land planner or attorney are all good potential advisors on these issues!
Floodplain – Who helps buyer? Surveyor locates, and engineer or land planner advise as to affect!

Contract Considerations

Purchase Price – based on “total area” (all the land within the perimeter boundaries) or “net usable area” (excludes easements and floodplain, etc.). Who helps buyer? broker or attorney!
Feasibility Period – make sure its long enough to complete all of your due diligence, and maybe certain entitlements (extension rights?) Who helps buyer? broker or attorney!
Closing Contingencies – (Site Development Permit, zoning change, utility upgrades, environmental cleanup, etc.) Who helps buyer? broker or attorney!
Buyer pursuit costs recovery for Seller default (i.e. fees for Architect, Engineering, Legal, etc.) Who helps buyer? broker or attorney!

If you have the right team in place it makes it easier to navigate some of these issues which may save you time and money and get you to the starting line of your development quickly.

If you need help with your land search you may contact me at 512-682-1008 or lee@cipaustin.com , and if you’re looking for a reliable real estate attorney in Austin please reach out to Zeca Mazcuri at 512-595-9380 or zeca@breunigmazcuri.com

Want to learn more about other topics? Check out our Education Hub .

Phase I Environmental Site Assessment Cost in Texas: What Commercial Buyers Should Expect

Mon, 08 Dec 2025 22:16:49 GMT

Phase I Environmental Site Assessment Cost

If you’re buying or refinancing a commercial or industrial property in Texas, you’re going to hear one term early in due diligence: Phase I Environmental Site Assessment (often shortened to “Phase I ESA” or just “Phase I”).

For most lender-financed commercial deals, a Phase I ESA isn’t optional—it’s a standard requirement and a key step in protecting both your balance sheet and your future exit options.

But how much does a Phase I Environmental Site Assessment cost in Texas? And what should you budget for different types of properties?

This guide breaks down typical Phase I ESA costs, the factors that drive pricing up or down, and how CIP Texas helps you plan for environmental due diligence without derailing your timeline.

Quick Summary: What Does a Phase I ESA Cost?

Question: How much does a Phase I Environmental Site Assessment cost in Texas?

Short answer:
Most standard commercial Phase I ESAs today fall roughly in this range (based on recent industry data across the U.S.):

Smaller, lower-risk commercial sites: ~$1,800 – $3,000
Typical single-asset commercial/industrial deals: ~$2,000 – $5,000
Large / complex / high-risk or multi-site portfolios: $5,000+

Actual pricing depends heavily on property type, size, history, and timeline. Environmental consulting firms and recent articles commonly cite average ranges between about $2,000 and $5,000+, sometimes up to ~$6,000 for complex sites .

In other words: budget a few thousand dollars per property—and more for complicated industrial histories—and then refine that with quotes once you know the site details.

1. What Is a Phase I Environmental Site Assessment?

A Phase I Environmental Site Assessment is a standardized, non-intrusive study of a property’s environmental history and current conditions. The goal is to identify Recognized Environmental Conditions (RECs) —red flags that suggest potential contamination or other environmental risks.

Under the current ASTM E1527-21 standard (recognized by the EPA as consistent with “All Appropriate Inquiries” under CERCLA), a Phase I ESA typically includes:

Historical research – old aerials, fire insurance maps, city directories, topographic maps, and other historical sources for the site and neighboring properties.
Regulatory database review – federal, state, and local environmental records in a search radius around the property.
Site reconnaissance – a physical site visit by an environmental professional.
Interviews – with current/past owners, operators, or others familiar with the site.
Report & conclusions – a written report summarizing findings and stating whether RECs are present and whether further investigation (Phase II) is recommended.

No soil, groundwater, or vapor sampling happens at Phase I—that’s Phase II territory if the Phase I uncovers potential issues.

2. Why Do Lenders and Buyers Require Phase I ESAs in Texas?

There are two big reasons:

Liability protection under CERCLA (Superfund).
Federal rules allow buyers to limit future environmental liability if they perform proper environmental due diligence—known as All Appropriate Inquiries (AAI) —before acquiring the property. ASTMs Phase I ESA standard is one accepted way to meet AAI.

Risk management for lenders and investors.
Most banks and institutional lenders want a clean, current Phase I ESA on any collateralized commercial or industrial property. A strong report helps prevent surprises like underground tanks, dry-cleaner plumes, historic landfills, or floodplain issues from destroying value later.

In practice, that means if you’re buying Texas commercial real estate with financing, you should plan on ordering a Phase I ESA as part of your standard due diligence.

3. Typical Phase I Environmental Site Assessment Cost Ranges

While no two sites are identical, recent industry guidance across multiple environmental firms lands Phase I ESA pricing in similar bands:

Several 2024–2025 consulting sources describe “typical” Phase I ESA costs between about $2,000 and $5,000+ , depending on property size, complexity, and risk.

Some specifically cite roughly $1,800 – $3,500 for smaller commercial properties, with larger industrial sites moving toward or above the $3,500+ mark.

Putting that into a Texas-oriented rule of thumb:

Small office / retail condo / simple flex bay:
Plan: ~$2,000 – $3,000
Typical single-tenant or multi-tenant commercial building, or modest industrial facility:
Plan: ~$2,500 – $4,500
Large industrial facilities, older sites with heavy industrial history, or multi-parcel tracts:
Plan: ~$4,000 – $6,000+

Again, these are ballpark ranges , not quotes—actual proposals will move up or down based on the factors below.

4. What Drives Phase I ESA Cost Up or Down?

Here are the main levers that affect Phase I Environmental Site Assessment cost in Texas:

4.1 Property Type & Risk Profile

Some uses are simply higher risk:

Older gas stations and truck stops
Properties with underground storage tanks
Historic dry cleaners
Heavy industrial or manufacturing sites

These typically require deeper historical research and more regulatory review, which adds time and cost. A newer single-tenant office in a platted business park is usually much more straightforward.

4.2 Size and Number of Parcels

A 2,000 SF office condo on a single platted lot is very different from 200 acres of industrial land with multiple tracts. More acreage, buildings, and parcels mean more historical sources to review, more adjoining properties to evaluate, and more site area to inspect—all of which increase cost.

4.3 Location & Data Availability

In major Texas metros (Austin, DFW, Houston, San Antonio), there’s a lot of historical and regulatory data—great for diligence, but it can take longer to review. In rural areas, thinner records can require extra legwork. Remote sites or those with difficult access can also add travel time to the bill.

4.4 Historical Complexity

If a property has decades of prior uses—multiple tenants, expansions, fueling, or heavy industry—the consultant has more records to track down and analyze. Under ASTM E1527-21, there’s also greater emphasis on using specific historical sources (aerials, fire insurance maps, directories, topo maps), which improves quality but can increase cost.

4.5 Timeline (Standard vs. Rush)

Most Phase I ESAs take about 2–4 weeks from notice-to-proceed to delivery. If you need the report in 10 business days or less , expect a rush premium so the consultant can prioritize your project and dedicate extra staff.

4.6 Scope Add-Ons

Buyers and lenders sometimes add services on top of the basic Phase I, such as:

Limited asbestos or lead-based paint screening
Radon screening
Wetland or floodplain evaluations
Limited regulatory compliance reviews

These are outside the core ASTM Phase I scope and will increase total cost, especially for older industrial or institutional properties.

5. When Should You Order a Phase I ESA in a Texas Deal?

Timing matters, both for deal risk and for regulatory validity.

Under ASTM E1527-21 and EPA’s All Appropriate Inquiries rules:

Key components of the ESA—interviews, records review, site visit, and environmental professional’s declaration—must be completed within 180 days before closing to fully qualify for liability protections.

In practical Texas deal terms:

Too early: If you order a Phase I very early and the closing drifts past six months, you may need an update or a new report.
Too late: If you wait until the end of your feasibility/option period, you risk a bad surprise with no time to respond (renegotiate, extend, or walk).

Most sophisticated buyers in Texas try to:

Order the Phase I soon after PSA execution , early in the feasibility/inspection period.
Coordinate the ESA timeline with loan approval milestones so lenders have what they need.

CIP’s brokers regularly help clients map out that due diligence calendar so environmental, survey, appraisal, and zoning work all stay aligned.

6. Who Typically Pays for the Phase I ESA?

From a market-norm perspective:

Buyer / borrower – In most Texas commercial transactions, the buyer (or tenant on a ground lease) pays for Phase I as part of their due diligence budget.
Seller-ordered Phase I – Occasionally, sellers commission a Phase I up front to de-risk marketing, but many lenders still prefer a buyer-specific report.

Ultimately, payment is negotiable in the PSA or lease, but you should assume you’ll be covering it unless your deal structure says otherwise.

7. Why the Cheapest Phase I Can Be the Most Expensive Mistake

In a competitive environment, you’ll see “discount Phase I” offers—sometimes under $2,000—even on larger or more complex sites. That can be tempting, especially on tight underwriting. But industry commentary is consistent: extremely cheap and fast Phase I reports often cut corners.

Common risks with low-ball Phase I pricing:

Data gaps – Missing historical sources, incomplete regulatory reviews, or skipped interviews.
Non-compliance with ASTM / AAI – Which can jeopardize liability protections and lender comfort.
Overly conservative conclusions – A thin report may flag more RECs simply because the consultant doesn’t have enough data, pushing you toward a Phase II (much more expensive) to resolve uncertainty.

In other words, paying a little more for a thorough, lender-ready Phase I is usually cheaper than paying for a rushed, incomplete report that triggers unnecessary follow-up work—or fails to catch a real problem.

8. How to Budget Phase I ESA Costs into Your Texas Due Diligence

For buyers, developers, and investors in Texas, here’s a pragmatic budgeting approach:

Start with a baseline per property.

Simple commercial: budget ~$2,500–$3,500 .
Larger or industrial: budget ~$3,500–$5,000+

Adjust for risk profile.

Gas stations, terminals, old industrial uses, or sites with known environmental issues → assume the upper end or above.

Account for timelines.

If your feasibility period is short or your lender needs a fast turnaround, add room for rush fees.

Layer into your broader Texas due diligence budget.

Alongside survey, appraisal, zoning/entitlements, third-party inspections, and legal review.
Make sure Phase I timing lines up with the feasibility deadline and loan commitment dates.

9. How CIP Texas Helps You Navigate Environmental Due Diligence

CIP Texas is not an environmental consulting firm—we don’t write Phase I ESA reports ourselves. But we work with them constantly as part of Texas commercial and industrial transactions.

On the broker and advisory side, we help clients:

Scope the need.
Identify which properties clearly warrant a Phase I (most financed acquisitions) and where additional studies might be wise based on history and use.
Coordinate with environmental professionals.
Make introductions to reputable Phase I providers active in Central Texas and across the state.
Interpret the findings in business terms.
Translate Phase I conclusions—especially RECs and recommended Phase II work—into deal decisions: renegotiate, remediate, re-entitle, or walk.
Keep the deal on schedule.
Integrate Phase I timing with your contract milestones so you don’t run out of feasibility period before you have clear answers.

Thinking About a Texas Acquisition and Wondering What Your Phase I ESA Will Cost?

Whether you’re buying your first industrial building, assembling land for development, or refinancing a portfolio, CIP Texas can help you map out the full due diligence picture—including environmental, zoning, infrastructure, and market risk—before you commit.

Call us at 512-682-1000

We’ll help you understand the likely Phase I Environmental Site Assessment cost , connect you with qualified professionals, and keep your Texas deal moving forward with confidence.

Writing Contributor:

Robby Eaves, CCIM

1031 EXCHANGE IN HOUSTON: DELAWARE STATUTORY TRUSTS

Fri, 05 Dec 2025 20:42:20 GMT

Taxes are just part of the deal when you invest in real estate. As property prices rise, so do property taxes. Already, Texas is known for having some of the highest property tax rates in the United States. This is because, in order to support economic and population growth, the state requires more tax revenue. But if you choose to diversify your investments with real estate using a 1031 exchange in Houston, you are able to defer capital gains taxes. This happens when exchanging properties that are like-kind in the eyes of the IRS. Let’s think about what 1031 exchange opportunities are available to investors, including Delaware Statutory Trusts.

MAIN TYPES OF 1031 EXCHANGES

Coming from Section 1031, Title 26 of the Internal Revenue Code, a 1031 exchange allows taxpayers to exchange real estate assets held for investment. It is a useful tool for those who want to reinvest the proceeds into like-kind assets. You will be moving from one investment property to another while deferring tax liability on your capital gains. Here are the four ways to complete a 1031 exchange in Houston, depending on your circumstances as a taxpayer.

Delayed Exchange

In this type of 1031 exchange in Houston, real estate investors sell their original property, which is known as relinquished property. Then, they direct the proceeds to an experienced qualified intermediary. A qualified intermediary may also be referred to as a facilitator or accommodator. They are an entity that facilitates Section 1031 of the Internal Revenue Code. Funds are held in escrow while a replacement property is located. There is an aggressive timeline that comes from a delayed exchange, so investors must search for replacement properties prior to the relinquished property’s close. The taxpayer has options to choose from, which they should discuss with their professional broker .

Reverse Exchange

Say that you, as a real estate investor, do acquire a desirable property prior to selling your original property. A reverse exchange may be the right fit for you. With this type of 1031 exchange in Houston, you must not purchase your new property directly. The reason for this is that you cannot own both properties at once. Instead, your qualified intermediary will temporarily hold your new property’s title as a buyer is located for the relinquished property. Much like with a delayed exchange, a reverse exchange will fail if the relinquished property is not sold in a predetermined amount of time.

Simultaneous Exchange

The oldest type of 1031 exchange in Houston is a simultaneous exchange. Here, you can see the unusual case scenario of buyers and sellers completing same-day transactions in a direct swap. There is no need for a qualified intermediary. However, real estate investors still do have the option to involve a qualified intermediary, should they find that it is difficult to find another party who wants to swap. A qualified intermediary will prepare the simultaneous exchange agreement, along with any other necessary documents, to insulate the taxpayer from constructive receipt issues. The replacement property must be valued at the same or higher price than the relinquished property.

Improvement Exchange

With an improvement exchange, a real estate investor must improve the replacement property prior to taking possession of it. This 1031 exchange in Houston involves completing the improvements while the qualified intermediary holds it. The qualified intermediary may even say for those improvements. They do this by using proceeds from the relinquished property’s sale. For this type of exchange to be successful, the replacement property must have work done within 180 days following the sale. It must also be of equal or greater value than the relinquished property.

WHAT IS A DST 1031 EXCHANGE?

A Delaware Statutory Trust is a legal entity that is growing in popularity among real estate investors across the country. It is a real estate ownership structure in which multiple investors are involved. Following the identification and acquisition of real estate assets, a professional real estate company establishes a trust. Each investor holds an undivided fractional (or beneficial) interest in a trust’s holdings. This interest entitles the investors to their pro-rata share or income and appreciation in the assets.

The purpose of a Delaware Statutory Trust is to defer capital gains when selling an investment property. This can be any type of commercial property, ranging from retail spaces to office buildings to industrial parks. An expert commercial real estate brokerage can easily help you through this 1031 exchange in Houston.

PROS OF DELAWARE STATUTORY TRUSTS

A major benefit of Delaware Statutory Trusts is that they offer real estate investors access to triplet net leased (NNN) properties. A triple let lease is an agreement between a tenant and a property owner where the tenant pays all expenses of a property. This includes property taxes, maintenance upkeep, and insurance premiums. Depending on the particular investment, Delaware Statutory Trust investments can offer access to triple net leased properties from five to 20 years.

You will also benefit from a DST 1031 exchange in Houston because of its potential for a passive income stream. This is popular among investors who are transitioning away from an active real estate management role. An investor is able to utilize this exchange to acquire a professionally managed asset without worrying about the time-consuming occupation of real estate management on their own end.

CONS OF DELAWARE STATUTORY TRUSTS

When you use a DST 1031 exchange in Houston, be mindful of the risks associated with it. For instance, there are material risks. A commercial real estate brokerage should set you on the right track with their knowledge of general market conditions. However, these conditions, paired with interest rate risks and unforeseen vacancies, could spell trouble for your investment.

Another point of hesitation is that this exchange requires time for due diligence. Unlike other liquid investments, which are able to be bought and sold fairly easily, Delaware Statutory Trust interests cannot be sold in a day. Because there are multiple parties and financial institutions involved, these illiquid investments should be held for the full investment cycle. This cycle could be several years.

Commercial Industrial Properties is a full-service real estate firm. We offer land advisory, asset management, tenant representation, and so much more. With an average tenure of 20-plus years amongst our team, our clients have peace of mind every time they make an investment. If you are considering a 1031 exchange in Houston, contact us to find out more about what we can do for you.

7 TIPS FOR SUCCESSFUL COMMERCIAL PROPERTY MANAGEMENT IN AUSTIN

Tue, 02 Dec 2025 20:28:00 GMT

7 TIPS FOR SUCCESSFUL COMMERCIAL PROPERTY MANAGEMENT IN AUSTIN

When done correctly, managing commercial properties can be a profitable venture. But in order to reap the rewards, you are expected to put in the time to plan and build a deeper understanding of the industry. Explore the best practices and strategies that have come from property managers before you so that you can excel for your tenants.

Commercial real estate is complex, so you cannot jump in blindly. Instead, if you want to attract and retain high-quality tenants, you will need to educate yourself on the wide range of skills you are expected to have. Check out the top tips of commercial property management experts in Austin to get you started on this career path.

MAKE SURE TO SCREEN YOUR TENANTS

You are going to need to do your due diligence when a potential tenant applies for your commercial property. This means more than just ensuring that they are able to pay rent. It means that they will pass a trustworthy background check. You might find that they aren’t necessarily a good fit for you as the property manager.

With that in mind, understand that it is completely okay to be picky about your tenants. In order to be successful with commercial property management in Austin, there has to be a level of mutual respect between you and your tenants. Otherwise, they won’t care as much about your rules and you won’t feel as motivated to resolve their conflicts.

MAINTAIN COMMUNICATION WITH TENANTS

Once you have established a relationship with your tenants , you cannot simply drop off the face of the Earth. You should position yourself as a friendly face in the rental community. This is what is going to make people have more faith in you as a property manager. They want to know that they have someone by their side who genuinely cares about fulfilling their needs, and when you do that, it increases tenant satisfaction.

A good idea for commercial property managers in Austin is to send surveys to your tenants. Ask them about their expectations for the building and your level of service. This will help you gauge how much more you should be doing. It also makes it clear to your tenants that you want to increase their lifetime value.

STAY INFORMED ABOUT THE MARKET

Being highly knowledgeable about your industry and relevant real estate spaces is necessary as a commercial property manager in Austin. This allows you to maximize investment returns for property owners and tenants. You are able to identify potential risks and opportunities that could impact a property’s value, along with its performance. Staying in the know about the market essentially allows you, as the property manager, to take more appropriate actions.

A big part of these actions includes mitigating risk. You should know how to adjust lease terms and develop contingency plans, among other things. By demonstrating your expertise in the market, you establish credibility . This translates into earning more business opportunities in the future and stronger relationships with those you represent.

USE TECHNOLOGY TO ENHANCE THE EXPERIENCE

We live in a world that is full of technology, and we can utilize it in a variety of ways to streamline our workflows. A critical part of commercial property management in Austin is technology-backed analytics. With analytics, you have insights that empower you to offer better services. You can discover patterns and establish complex connections by measuring tenant behavior and forecasting revenue.

Technology helps to automate, and ultimately simplify, your company’s tasks, as well. It will take less than no time to collect rent, respond to tenant inquiries, and schedule maintenance. This gives you more time to focus on building your client relationships, on top of reducing the likelihood of errors.

Did you know that you can even use smart building systems to optimize energy usage? By 2026, approximately 90% of smart building spending will be going toward non-residential properties!

ALWAYS MAINTAIN ACCURATE RECORDS

You will find that property management involves a considerable amount of paperwork. There is business documentation, vendor information, resident information, and so much more. With modern software programs, it is easy to access, read, and sign documents. It is also easy to track, manage, and store those documents. You can seamlessly organize files according to the tenant and what they relate to. For example, you can keep all things related to a specific property’s maintenance together.

By maintaining your records, your operations as a commercial property management professional in Austin run more efficiently. It is also a way to manage risk. Given how common legal disputes are in property management, you want to have all of your documentation on hand. Pay attention to local laws so that you can be especially prepared.

PERFORM REGULAR PROPERTY INSPECTIONS

One of the biggest priorities of commercial property management in Austin is maintenance. But you cannot simply be reactive, meaning responding to problems as tenants make you aware of them. Instead, you should be proactive. By taking a proactive approach to maintenance, you reduce the amount of time that will be spent dealing with significantly bigger problems down the line. This will protect both you and your tenants from things like:

Faulty equipment
Electrical issues
Fire hazards
Slips, trips, and falls
Plumbing issues
Poor indoor air quality

CONTINUE TO UPGRADE OVER TIME

Now, it may sound expensive to make regular upgrades to your property. But the truth of the matter is that your bottom line is sure to be positively impacted. If you want to stay competitive in the ever-evolving market, you need to make updates. Along the way, you should be keeping track of these updates in your property maintenance plan.

That isn’t to say that you have to do full-scale remodels every few months, just that you should be making effective changes. This could be as simple as getting new light fixtures, smoke detectors, and printers. With each upgrade you make, the goal should be to improve the experience for tenants. Keeping them happy in the little ways will make a big difference.

Are you ready to kick off your journey with commercial property management in Austin? Commercial Industrial Properties has you covered! Our team has several decades of experience in the field of commercial real estate. We are more than capable of helping you identify potential opportunities and designing an effective strategy. If you want to facilitate a seamless closing, know that there is no one more committed to your success than CIP. Send us a message so that we can discuss your hopes for diversifying your portfolio.

THE ESSENTIALS OF COMMERCIAL PROPERTY MANAGEMENT IN AUSTIN

Fri, 28 Nov 2025 16:54:41 GMT

Austin’s commercial real estate market is rapidly growing. Is your property being properly managed with increasing local demands? Commercial property management in Austin is more than rent collection and building maintenance. It’s the foundation for profitable real estate investments and increased cash flow.

Learn more about the essentials of successful property management so you can maximize business profits in Austin.

OVERVIEW OF COMMERCIAL PROPERTY MANAGEMENT IN AUSTIN

Managing commercial properties in Austin is unique since Texas has no rent control laws . That’s why investing in property managers who understand local tenant and landlord rights is crucial. From written eligibility notices for applicants to licensure requirements, professionals can help you navigate these regulations to ensure compliance.

Here’s what you should know about the commercial real estate industry in Austin and how property managers can help your business succeed.

Austin’s Commercial Real Estate Market

Did you know that Austin ranked #1 for build-to-rent properties last year? Austin has a thriving commercial real estate rental market due to its strong job and population growth recently.

Manufacturing and technology business sectors are booming in Austin due to global tech brands relocating to the city. Tesla, for example, moved its headquarters to Austin with a 2,500-acre facility and tripled its local workforce in 2022.

Current trends for commercial real estate in Austin include:

High demands for office buildings and retail rental spaces
Warehouse manufacturing facilities with modern sustainable amenities , like smart thermostats and leak detectors
Mixed-use rental properties in downtown Austin for local workers and business owners
Site and land developments in metropolitan Austin neighborhoods

Property managers can capitalize on Austin’s profitable commercial real estate sectors since it’s a hotspot for working professionals and businesses. With projections of a continuously growing economy, it’s key to have professional property management to meet the needs of rising demands in Austin.

Navigating Regulatory Compliance in Austin

Businesses must understand Texas compliance requirements for commercial property management in Austin. Understanding these government standards assures you adhere to them and reduce the risks of illegal property management practices.

Property management laws in Texas include:

Brokers must provide a monthly accounting of trust money if there’s any account activity from property management activities.
Security deposits must be deposited in a trust, escrow, or separate account. It’s illegal to withdraw or charge for any reason other than proper disbursement.
Property managers must be licensed for showing, leasing, and accepting security deposits from single-family rental property tenants on behalf of the property owner.

Professional property management services can ensure your business always meets these regulations.

Benefits of Professional Property Management for Businesses

Commercial property managers offer many advantages because they help increase your investment sales.

Benefits of business property management include:

Using data-driven technology to measure tenant behavior and forecast revenue
Staying informed on the market to mitigate risks with contingency plans, like lease term adjustments
Maintaining accurate records, including vendor, business, and resident documentation for streamlined operations
Improving asset management with effective upgrades to meet tenant satisfaction and increase property value

Austin has an evolving commercial real estate market, so it’s imperative you have professionals who can easily adapt and innovate on your behalf.

Choosing the Right Commercial Property Management Partner

Now that you know why commercial property management in Austin is beneficial to the bottom line, the next step is choosing the right partner. Look for local firms with specialized knowledge of Austin’s various neighborhoods and a proven track record with similar commercial properties.

Confirm they have experience managing commercial real estate in your specific sector so you can find the most suitable company. Ask about their approach to designing effective strategies for identifying potential cash flow opportunities and improving property management . This way you have both short-term plans and an established vision for long-term business goals.

Questions to Ask When Viewing a Commercial Property: A Practical Guide from CIP Texas

Wed, 26 Nov 2025 18:21:42 GMT

Questions to Ask When Viewing a Commercial Property: A Practical Guide from CIP Texas

When you’re standing inside a potential commercial property—whether it’s an office, industrial facility, retail space, or development site—the questions you ask on that tour can make or break the deal.

At CIP Texas, our team has been part of Texas’ commercial and industrial growth for decades, advising buyers, tenants, landlords, and investors on space decisions across Central Texas and beyond. We regularly walk clients through property tours, helping them spot opportunities, risks, and hidden costs before they commit.

This guide walks you through the most important questions to ask when viewing a commercial property , organized by topic so you can use it as a checklist on your next tour.

Quick Summary Before You Tour…

Question: What are the most important questions to ask when viewing a commercial property?

Answer: Focus on five pillars:

Location & market fit – Is this the right trade area and zoning for your use and growth plan?
Building condition & systems – Are there near-term capital expenses hiding in the roof, HVAC, or electrical?
Layout & operations – Can the space actually support your workflow, parking needs, and employee/customer experience?
Financial structure – How do rent, NNNs, taxes, and TI costs affect your total occupancy cost over time?
Risk, compliance & future flexibility – Are zoning, environmental, and lease terms aligned with your long-term strategy?

Let’s break those down into clear, tour-ready questions.

1. Big-Picture Questions to Ask Before (or Early in) the Tour

Before you fall in love with the lobby or the warehouse clear height, make sure the fundamentals check out.

Key questions:

How does this location perform for my use?

What is the typical customer base, labor pool, or traffic pattern in this submarket?
How does this area compare to other Texas markets like Austin, DFW, San Antonio, or Houston for my type of operation?

Is the zoning appropriate—and flexible enough—for my business?

What is the current zoning designation?
Are my intended uses explicitly allowed, or would I need a special use permit or variance?
Are there restrictions on hours, noise, or truck traffic that could limit operations?

What’s the long-term plan for the surrounding area?

Are there planned infrastructure projects, new developments, or roadway changes that could impact access or visibility?
Is the area trending toward more industrial, office, retail, or mixed-use?

How does this option compare to other properties you’ve shown?

Ask your broker for an honest comparison on pricing, quality, and risk.
Have they seen issues with appraisal, lease-up, or exit values for similar assets?

CIP perspective: Our team tracks submarkets across Central Texas on a daily basis—industrial parks, office corridors, retail nodes, and emerging land plays—so we can benchmark any property you tour against comparable options in Austin and surrounding markets.

2. Building Condition & Systems: “What Will I Have to Fix or Replace?”

One of the most important sets of questions to ask when viewing a commercial property involves the building itself. Deferred maintenance can quickly erase “good” pricing.

Ask about:

Age and major capital items

How old are the roof, HVAC units, and main electrical panels ?
When were they last replaced or significantly repaired?
Are there any active leaks, hot/cold spots, or electrical capacity issues?

Structural integrity & envelope

Are there visible cracks in walls, slab, or parking areas?
Any signs of water intrusion, settlement, or previous structural repairs?
For industrial: What is the clear height, column spacing, and floor load rating?

Building systems

Does the building have sprinklers , fire alarms, and proper life-safety systems?
How is the building currently heated/cooled (package units, rooftop units, split systems, evaporative)?
Is there enough power for your equipment today—and for growth?

Code, accessibility & compliance

Does the property comply with current ADA , fire, and building codes for its use?
Are there any open code violations or outstanding permits?

Environmental & site conditions

Has there been a recent Phase I or Phase II Environmental Site Assessment ?
Is the property in a floodplain or an area with known environmental concerns?
Any history of underground storage tanks, dry cleaner operations, or other risk uses?

Tip: On older buildings or sites with a complicated history, CIP often recommends bringing in third-party inspectors and environmental consultants early in the process. It’s usually far cheaper than discovering a major issue during or after closing.

3. Layout, Operations & Employee Experience

Even if the building is in good condition, the layout has to work for your business.

Operational flow

Ask questions like:

Can we move people, products, and vehicles efficiently here?

Where will employees enter? Customers? Vendors?
Are loading docks or grade-level doors in the right place?
Is there enough truck circulation and turning radius?

Does the floor plan support our operations?

For office: Is there the right mix of open space vs. private offices, conference rooms, and collaboration zones?
For industrial: Is the warehouse layout efficient for racking, equipment, and staging areas?
For retail: Is the storefront visible, with logical customer flow from entry to checkout?

Parking, access & visibility

How many parking spaces are available, and does the parking ratio match your use (office vs. medical vs. retail vs. industrial)?
How easy is it to access the site from key highways or arterials?
Is signage allowed on the building, monument, or pylon, and what are the sign restrictions?

Employee and customer experience

What amenities are nearby—restaurants, banking, childcare, fitness, etc.—that matter to your team or customers?
Is the area perceived as safe and convenient at night or early mornings?
Is there room to improve the facade, landscaping, or common areas to enhance experience and branding?

4. Financial Questions to Ask When Viewing a Commercial Property

Two spaces with the same base rent can have very different total occupancy costs . This is where detailed financial questions matter.

For tenants (leasing)

Ask:

What is the lease structure?

Is this a NNN , modified gross , or full-service lease?
What exactly is included (or excluded) in operating expenses?

What are the estimated NNNs / operating expenses?

What were NNNs or operating expenses (taxes, insurance, CAM) over the last 3 years?
Have there been recent spikes from property tax reassessments —a key factor in Texas?

How is square footage measured?

Are you paying rent on Gross Leasable Area (GLA) , rentable square feet (RSF), or usable square feet (USF)?
Does that align with how much space you can actually use?

Tenant improvement (TI) and build-out

What TI allowance is the landlord offering?
Who pays for code-required upgrades (ADA, sprinklers, egress changes)?
What is the expected timeline and who manages construction?

Future escalations & options

How do rent escalations work—fixed bumps, CPI, or market resets?
Are there renewal options , expansion rights, or early termination options?

For buyers (acquisitions)

Ask:

What is the in-place and pro forma NOI?

How much income is the property generating today, and what’s realistic post-stabilization?
How do current rents compare to market in this submarket?

What capital expenditures are anticipated?

Are there known upcoming costs (roof replacement, parking lot resurfacing, HVAC)?
Are these accounted for in the pricing and underwriting?

How does this deal compare from a cap rate and IRR standpoint?

How does the projected cap rate compare to similar assets CIP is seeing across Texas markets?

CIP perspective: Our Investment Sales and Tenant/Corporate Services teams routinely model total occupancy cost over the full term—not just the first year—so clients can compare buildings apples-to-apples before they sign a lease or purchase agreement.

5. Legal, Zoning & Risk Questions

A property can look perfect on tour but fail at the legal/entitlement level. Don’t skip these questions:

Is the current use legal and conforming under today’s code?
Are there any grandfathered conditions that could be lost if you renovate or expand?
Have there been any prior zoning disputes, neighbor issues, or conditional approvals?
Are there recorded easements, restrictions, or shared access agreements that affect how you can use the site?
What approvals would be required if you add square footage, change use, or add drive-throughs, outdoor storage, or yard space?

For industrial or “ mission-critical ” users (data centers, manufacturing, logistics, etc.), also ask:

Is there sufficient power, water, fiber, and redundancy for your operations?
What are the utility upgrade timelines and who bears the cost?

6. Questions About Future Flexibility & Exit Strategy

Whether you’re a tenant or an owner, your needs will evolve. Use the tour to understand how the property can adapt.

Ask:

Can I expand within the building or project if I outgrow this space?
Are there neighboring suites, pad sites, or land that could be added later?
How easy would it be to sublease or re-tenant this space if our strategy changes?
Is this asset type and location likely to stay liquid (easy to sell or lease) in 5–10 years?

At CIP, we don’t just look at the initial fit; we look at your long-term plan—growth, consolidation, or eventual exit—and help you choose assets that align with that trajectory.

7. How to Use This Checklist on Your Next Property Tour

Here’s a simple way to apply these questions to ask when viewing a commercial property:

Before the tour:

Clarify your must-haves (location, size, budget, timing).
Ask your broker to walk you through zoning, basic financials, and potential red flags in advance.

During the tour:

Use the categories above (location, condition, operations, financials, risk) as a note-taking framework.
Take photos and short videos to capture details you’ll compare later.

After the tour:

Review your notes with your broker.
Have them benchmark the property against others in the market, stress-test the numbers, and outline any due diligence items.

Partner with CIP Texas on Your Next Commercial Property Tour

CIP Texas is a full-service commercial real estate firm based in Austin, serving investors, owners, tenants, and developers across Texas with Investment Sales, Land Advisory, Project Leasing, Tenant/Corporate Services, Asset Management, and Expert Consulting.

Whether you’re touring your first building or evaluating a portfolio of industrial, office, retail, or land assets, our brokers bring decades of local market experience and data-driven insight to every site visit.

Ready to schedule a property tour or build a shortlist?

Call us at 512-682-1000
Or contact us through the Property Search and Education Hub on CIPTexas.com

We’ll help you ask the right questions when viewing a commercial property—so you can move forward with confidence.

Writing Contributor:

Robby Eaves, CCIM

I-35 Capital Express Central Project: What Austin Lane Closures Mean for Retail, Flex, and Last-Mile

Tue, 18 Nov 2025 20:57:48 GMT

I -35 capital express project

Timeline, disruptions, mitigation—and why the project can be a long-term win

If you own or invest in Austin retail, flex, or last-mile space along the I-35 spine, you’re probably feeling the Capital Express rebuild. Below is the no-drama version of what’s closing when, where the pain shows up, how to protect access and revenue, and why this project should increase asset value when the dust settles.

Here is a quick timeline read:

Three linked projects: North, Central, and South . Each is phasing construction with recurring nightly/mainlane closures and frontage-road lane reductions. Bookmark TxDOT’s MyMobility35 lane-closure map for weekly planning.
CapEx North: Expect periodic one-lane frontage roads between SH-45N and Grand Ave Pkwy as widening continues through 2026 .
CapEx Central (downtown stretch): Ongoing bridge work (e.g., MLK Blvd segment) means overnight lane switches and a temporary pattern— two EB lanes, one WB lane + sidewalk —extended into late 2025 .
CapEx South: Rolling overnight mainlane closures (e.g., Ben White → Stassney) tied to elevated-lane work; weekend full shut periods pop up as milestones hit.

How this impacts your operations

Retail & QSR: frontage-road bottlenecks means fewer impulse stops and tougher right-in/right-out turns; delivery-app drivers can be misrouted on detours.

Destination/showroom: higher no-shows when lane shifts obscure the “easy” approach.

Flex/last-mile: missed carrier cutoffs when U-turns/driveways are coned or narrowed; staging conflicts on one-lane frontages near downtown and UT segments.

Medical/services: late arrivals cascade schedules during nightly mainlane shifts.

Your mitigation playbook

1) Keep access obvious

Temporary approach signage: “Open During Construction / Use Next Entrance” with arrows for both directions; refresh after each traffic switch.

Google Business Profile updates: Post Access Alerts (“Use NB frontage; turn at 53rd”) and adjust hours for closure nights.

QR site map for drivers/vendors: One-pager showing current turn-ins, back-of-house routes, and staging; keep it synced to TxDOT’s weekly lane-closure map (linked above).

2) Retime deliveries & staffing

Shift receiving away from the typical overnight closure windows; test mid-day or early afternoon drops when frontage volumes stabilize.

Split loads: use smaller vans where tight curb radii or coned driveways make tractors inefficient.

3) Reduce customer friction

Curbside/pick-up bays: cone-controlled, time-boxed slots on private drives.
Appointment automation: add 10–15 minutes grace and auto-text detour directions 90 minutes before arrival on closure nights.

4) Coordinate center-wide

Cross-access + shared signage MOUs between co-tenants/landlord for temporary drive use and wayfinding on common areas.
Dock calendar: stagger box trucks when frontage is one lane to avoid gridlock.

5) Paper the risk now

For renewals/LOIs during construction, tighten signage rights, delivery windows, co-tenancy cures, and ensure public-works closures fit force-majeure language. Add a small, time-boxed “construction marketing” CAM to maintain traffic.

The upside: why this can be great for your asset

We get it—construction is disruptive. But Capital Express isn’t just orange cones; it’s a structural upgrade to mobility and street life that can expand trade areas and tenant demand:

More capacity + reliability: Added managed/HOV capacity and rebuilt frontage roads reduce choke points and smooth access patterns—good for last-mile cutoffs and customer catchments. ( North adds an HOV each way ; South builds elevated managed lanes; Central rebuilds main lanes.)

Downtown reconnection via “Cap and Stitch”: Lowered main lanes and caps/stitches reconnect east–west streets, add bike/ped links, and enable new civic/green space—think higher foot traffic and better visibility for ground-floor retail. The City has advanced funding to future-proof these caps.

Safer operations + drainage upgrades: Central includes drainage tunnel/pump work ; fewer flood-related closures and a safer frontage experience help logistics consistency and insurance narratives.

Marketing narrative on exit: “Construction risk is behind us; improved access + urban stitching” often translates to lower concessions, stronger retention, and rent upside in the first post-delivery leasing cycle. (We’ve seen this pattern on other Texas freeway modernizations.)

At the end of the day, the Capital Express work is a season—a disruptive season, yes, but manageable and ultimately accretive. Stay visible with simple access cues and live GBP updates, retime deliveries and staffing around closure windows, smooth the customer experience with easy pickup options and pre-arrival directions, and coordinate centerwide so docks and driveways don’t gridlock. Paper your leases for temporary construction realities, then keep your eye on the prize: added managed/HOV capacity and rebuilt frontage roads that expand trade areas, a re-stitched downtown via cap-and-stitch that boosts foot traffic and visibility, and safer, better-drained approaches that make last-mile more reliable. When cones come up, the market narrative flips to “access improved, risk behind us,” which tends to compress concessions and lift retention. If you want a plan tailored to your site geometry, tenant mix, and delivery schedule, CIP Texas is ready to build it with you now—so you protect revenue during construction and are first in line to capture the upside when it delivers.

Writing Contributor:

Josh Hubka, CCIM

DFW vs. Austin vs. San Antonio vs. Houston: Which Texas Market Fits Your Commercial/Industrial Project?

Wed, 29 Oct 2025 18:28:06 GMT

dallas vs AUSTIN VS san antonio VS HOUSTON

Picking a Texas market isn’t about “which city is hottest”—it’s about which one fits your operations, timeline, and budget. Use this simple, straight-talk guide to narrow it fast.

Quick Take: Who’s the best fit?

DFW – Speed & reach. Deep inventory, fast TI, central U.S. access.
Austin – Talent & tech . Engineering-heavy operations, advanced manufacturing, R&D.
San Antonio – Value & expansion . Lower land/construction costs, predictable delivery.
Houston – Ports & heavy industry. Import/export , energy/process, large-utility sites.

What Matters Most

Labor : Availability and wage fit for your shifts and skill mix.
Logistics : Highway, rail, air cargo, or port access —what your service model needs.
Cost : Land/rent, build-out, taxes, transport, and labor all-in.
Utilities : Electric, gas, water/wastewater capacity for your process.
Timing : Entitlements, permitting, and long-lead equipment.

Market-by-Market

Dallas–Fort Worth (DFW)

Best for: Regional/national distribution, 3PLs, e-commerce, light manufacturing, multi-site HQs.
Why it works: Largest industrial inventory in Texas, strong intermodal/air cargo, broad labor pool.
Watch-outs: Competition in prime submarkets; lock long-lead items early. Recent reports show active leasing with vacancy drifting as new product delivers—timing matters.

Austin

Best for: Advanced manufacturing, R&D/flex, semis-adjacent suppliers, robotics, med-tech.
Why it works: Dense engineering and tech talent; high-spec supplier network.
Watch-outs: Pricing premiums and tighter supply—plan utilities and entitlements early. The region’s overall tech workforce topped ~200k by end-2023 , underscoring the talent depth.
Playbook: Keep labs/prototype in Austin; place volume production in DFW or San Antonio.

San Antonio

Best for: Cost-controlled build-to-suit, campus expansion, Texas-wide distribution.
Why it works: Lower land/construction costs and straightforward approvals in many corridors.
Watch-outs: Align shift schedules with labor draw; validate utility upsizing for future phases.

Houston

Best for: Port-driven distribution, energy/chemical/process industries, heavy-utility or specialized yard/tank sites.
Why it works: Ports of Houston/Freeport, pipelines, process utilities, deep industrial base.
Watch-outs: Drainage, floodplain, and storm hardening—budget and design for them from day one.

Simple Fit Matrix

Fastest delivery & most options: DFW
Deepest engineering/tech bench: Austin
Lowest total delivered cost for large BTS: San Antonio
Best for port access & process utilities: Houston

10-Point Decision Checklist

Customer radius & service levels
Labor availability by shift/skill
Highway/rail/air cargo/port requirements
Electric/gas/water/wastewater profile
Facility specs (clear height, floor loads, docks, yard)
Entitlements path and timeline
Site risks (drainage, soils, floodplain, easements)
TI scope , contractor capacity, long-lead items
Total occupancy cost (rent/land + taxes + transport + labor)
Expansion options (contiguous land or multi-building plan)

Bottom Line

Pick DFW when you need lots of options fast and easy shipping. Choose Austin if your work is tech-heavy and needs engineers. Go with San Antonio for lower costs and room to grow in stages. Select Houston for port access and big, power-hungry or chemical/energy operations. Can’t decide? Pair cities —for example, do R&D in Austin and build at scale in San Antonio, or run a national warehouse in DFW with an import hub in Houston.

Ready to pick the right Texas market?

Get a power-ready shortlist from CIP Texas—fast. In 2 weeks, we’ll hand you 2–3 sites with validated utilities, timeline, costs, and incentives so you can move with confidence.

Side-by-side: DFW vs Austin vs San Antonio vs Houston
Verified: power, water, network, zoning, schedule
Clear next steps: budget guardrails, incentives, field tours

Writing Contributor:

Bob Springer , SIOR, CCIM

Mission-Critical Construction in Texas: A Site-Selection Playbook for Power-Hungry Uses

Fri, 10 Oct 2025 20:26:41 GMT

If you’re planning a data center, AI/compute campus, cleanroom, or any other always-on operation in Texas, the site you pick will make or break your speed-to-market and total cost of ownership (TCO). This "playbook" focuses on the decisions that matter most: power, cooling/water, network, land/entitlements, and incentives. We've put this together so owners, operators, and investors can move fast without stepping on a landmine. Throughout, we will highlight how mission critical construction considerations shape each choice.

1) Start Where The Megawatts Are (and Where They’ll Be)

Texas demand is surging—driven by AI, industrial electrification, and population growth —so grid headroom and interconnect timing matter more than ever.

Two practical takeaways:

Favor metros with proven capacity and pipelines. DFW remains a national leader by absorption and projects under construction, but long lead times for equipment and grid connections are already pushing some deliveries post-2026.
Expect long queues and plan redundancy. ERCOT is tracking thousands of interconnection requests and billions in proposed transmission improvements—good news, but it underscores the need to validate substation paths and timelines early.

Pro move: If the power company can’t hook you up fast enough, start with a temporary mix of your own power—like natural-gas generators, batteries, and maybe some solar. You can also pick sites near energy sources (for example, in the Permian ) to run off-grid at first. Go live on that, then switch over to the main grid when the connection is ready. Plan your construction in phases to match this so delays don’t wreck your schedule.

2) Power Diligence: Questions To Ask On Day One

Available capacity & upgrade path:

How many megawatts can you give us right now?
What has to be upgraded to get that power?
Who pays for those upgrades and how long will they take?

Interconnect & schedule

What step are we on, and what’s the target power-on date?
What are the next three milestones with dates?
What could delay this?

Reliability

In the last 3 years, how often has this line gone out?
Do you expect any summer shutoffs/curtailments?
Is there a backup feed if something fails?

On-site generation

Can we put X MW of generators here without a big permit?
Do we have enough gas/fuel on site?
Will noise or emissions be a problem?

ERCOT contracting strategy

For a 24/7 load, should we go fixed, block+index, or something else and why?
How much can our usage swing without penalties, and what fees pass through?
Can we earn money for demand response, and what collateral do you need?

3) Cooling & Water in Texas Heat

Cooling is your second-largest line item after power—and it’s where Texas’ climate bites. Traditional air-cooled systems are simple but power-intensive; water-cooled systems can be efficient but trigger water rights, discharge, and public-perception questions. The current consensus for hot, water-sensitive locales: closed-loop liquid cooling with air chillers for heat rejection to minimize water draw while handling high-density racks.

Local context : Local officials in Texas now closely review data-center water use. Verify steady water supply, plan for reuse, and confirm wastewater/discharge permits while you plan power.

Checklist

Confirm year-round water availability.
Model WUE/PUE scenarios for each cooling approach.
Validate wastewater capacity and any pretreatment needs.
Consider heat reuse (district loops/proce ss loads) for ESG gains.

4) Fiber, Latency, and Network Resilience

Downtime isn’t an option, so treat network like power: assume a failure and design past it.

Carrier diversity : Look for proximity to carrier hotels like 2323 Bryan Street in Dallas—an internet gateway used by 60+ carriers—then secure physically diverse routes (separate ducts/bridges/conduits) to the site. Digital Realty
Backhaul diligence : Verify last-mile ownership, splice points, and restoration SLAs.
Latency targets : For AI training/edge workloads, map acceptable round-trip latency to your user base and inter-region replication strategy.

5) Land, Zoning, and Speed-to-Market

Texas is generally friendly to industrial and mission-critical uses, but local rules can still slow you down. Land-development guidance puts typical dirt-to-delivery at 12–24 months depending on utilities and entitlements—plan your power schedule around that, not after it.

What to validate early:

Zoning/land-use for power-dense or high-security uses; noise and height (screens, stacks, penthouses).
Utility corridors & easements (electric, water/sewer, fiber).
Floodplain/drainage and soil capacity (slab design, vibration).
Security envelope (standoff, fencing, CPTED).
Environmental : air permits if adding on-site gen via TCEQ standard permits

6) Incentives & Abatements That Move The Needle

Texas offers two big tools to cut your property taxes on large, capital-heavy projects:

JETI (House Bill 5)

What it is: A state program run by the Texas Comptroller.
What it does: Limits (caps) the school-district portion of your property taxes for qualified projects.
How it’s sized: Requirements scale with the county (population), your investment, and jobs.
Think of it as: The modern replacement for the old “ Chapter 313 ” program.

Chapter 312 (Local Abatements)

What it is: A deal with a city, county, or special district.
What it does: Reduces or exempts part of the increase in your property’s taxable value—often for up to 10 years.
Key point: It’s negotiated locally and timing matters (you need site control and a clear schedule).

7) Budgeting The Build: What Really Drives TCO

Power

What you pay = grid hookup work (interconnect) + electricity price + demand charges.
Action: run best/worst-case price scenarios using ERCOT forecasts and pick contracts that let you adjust load without big penalties.

Cooling

Don’t buy just on sticker price. Match the system to rack density and Texas heat.
Action: model lifetime costs (energy + water) for each option before choosing.

Land & civil

Surprises here get expensive.
Action: do geotech early, size drainage, and price any off-site utility extensions before you commit.

Schedule risk

Delays = money. Transformers and switchgear have long lead times.
Action: align contractor awards and cash flow with utility milestones and equipment delivery dates.

Why CIP Texas for Mission-Critical Construction Projects?

We live in the details—power screens, network redundancy, cooling/water reality checks, and incentive sequencing—so you can make bankable decisions. Explore our Mission Critical focus and recent education pieces, then fold us into your early feasibility call.

Writing Contributor:

Bob Springer , SIOR, CCIM

HOW TO IDENTIFY PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Fri, 10 Oct 2025 15:44:31 GMT

HOW TO IDENTIFY PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Commercial real estate investment in Austin has various industries, so finding profitable sectors is critical to maximizing returns. From hospitality tourism to big tech giants like Tesla, Austin has diverse businesses with many factors impacting which commercial properties are ideal for investment.

Below is a complete guide to identifying successful commercial real estate in Austin before deploying capital in a new market.

HOW TO FIND PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

To capitalize on the best opportunities for commercial real estate investment in Austin, your investment strategy should include more than following local market trends. In addition to monitoring current market data, investors should conduct a deeper market analysis to determine which sectors have the highest profitability.

Through comprehensive industry assessments, investors can find which verticals are thriving so they can invest in the commercial property required to drive the highest returns.

Evaluate the following data during your commercial real estate market analysis:

Popular Asset Classes: Determine the building type and quality in demand.
Local Dominating Industries: Analyze which sectors are contributing most to the local economy.
Population and Job Growth: Calculate resident and job growth rates for cash flow projections.
Average Income and Buying Power: Ensure local tenants can afford to rent or buy the services/products the commercial property offers.

Investors should also consider consulting commercial real estate brokers to minimize financial risks. Brokerage firms not only have expertise in commercial market analysis, but they also have exclusive access to off-market deals and extensive local property data.

Here is how to execute an in-depth market analysis to find profitable industries for commercial real estate in Austin and how brokers can help maximize your investment sales.

Conduct a Market Analysis to Identify Popular Asset Classes

The first step to analyzing potential markets to invest in for Austin commercial real estate is identifying the top-performing asset classes. This data provides insight into which sectors are contributing most to the local economy so you can uncover profitable investment opportunities.

The three asset classes of commercial real estate include:

Class A: New construction or top-quality buildings built within the last 15 years. Offers investors the opportunity to preserve capital due to minimal property risks and attracting high-income earning tenants.
Class B: Fewer luxury amenities and older compared to Class A. Typically easier to find a profitable deal for immediate cash flow.
Class C: Buildings over 20 years old with possible maintenance issues. Not highly profitable and requires renovation to increase asset value. Ideal for investors looking to flip commercial properties.

For example, there is a current industrial real estate boom in Austin for computer manufacturing, warehouse offices, and data centers. Last year alone, 83 million square feet of industrial leases were recorded in Austin, with projections to keep increasing.

From ground leases for Class A manufacturing facilities to renovating Class C buildings for hospitality tourism in metropolitan areas, understanding the asset value of commercial real estate is crucial. Identifying assets that are generating the highest revenue is key to investing in the most profitable commercial real estate markets.

Research Population and Job Growth Data to Determine Profitability

Population and job growth data provide insights into strong sectors for commercial real estate investment in Austin through a data-driven approach. The capital city of Texas currently has a thriving high-tech economy that is driving a younger workforce due to its increasing career opportunities.

Big tech companies, like Dell, employ more than 13,000 local Austin residents, and Tesla has around 12,000 regional staff. Electronics R&D and manufacturing also represent 65% of manufacturing employment within the Austin region.

In addition to job and population growth, analyze Austin’s unemployment rate compared to the national rate. This information determines if commercial tenants can afford rent or generate cash flow sustainably. If the unemployment rate is high or rising, job creation decreases, and the risk of office vacancies increases. Employment opportunities profoundly impact which business sectors and areas of commercial real estate are the most profitable.

According to the Austin Chamber of Commerce , the fastest job sector growth in the last year was hospitality at 11.7%. Wholesale trade industries fell closely behind at 6.5%. They also stated that Austin is the 7th best-performing metro out of the top 50 regarding job growth in the last 12 months.

If the population and jobs are growing within a specific industry and area, these are signs of successful sectors to invest in locally. Analyzing this data ensures that the local supply and demand are there and provides insights into the current market performance.

Analyze Local Market Landscapes to Discover Dominating Industries

As mentioned above, Austin has a significant influx of new residents who are young working professionals (specifically millennials) in computer manufacturing technology. The Austin Journal states that Austin ranked #1 in the U.S. for millennial population growth in 2021 and continues to attract more similar resident demographics.

Due to the city’s booming tech and manufacturing industries increasing local job creation, Austin has become a “millennial magnet.” Since millennials are currently at the height of their working age, they are seeking career opportunities in a successful local economy, and many are becoming first-time homebuyers.

Consider Austin commercial properties with close access to the Capital Metro line, street parking, and downtown Austin to accommodate employees traveling to work. By discovering dominating industries influencing job and population growth, you can better determine local commercial real estate worth investing in.

Additionally, look for hyper-local and cultural trends in submarkets this population brings to capitalize on new demands and cash flow opportunities. For example, Austin is known as the “Live Music Capital of the World” due to its vibrant art culture. Dining restaurants and music venues can be profitable sectors for commercial real estate investment in Austin due to its growing young population contributing to these submarkets.

Learn the Local Average Income and Buying Power Before Deploying Capital

There are also socio-economic factors impacting whether it is worth deploying capital in a commercial market. When conducting a local market analysis, look at resident and business median salaries to determine if the real estate you want to invest in is affordable for that area. These insights will provide the local average income and buying power to calculate if it has potential profitability and affordability for nearby businesses and tenants.

To determine the profitability of commercial real estate investment in Austin, ensure that local tenants can afford rent or become a target customer. If the data shows that the local economy cannot afford to rent or buy what the business is selling, it is not advisable to purchase that property. Before you invest in commercial real estate, ensure there is capital market access with local supply and demand for the type of property you are interested in.

Validate Potential Profitability for Commercial Real Estate with Local Competitors

Did you know that Austin investors were awarded nearly 4,400 patents last year? According to the Austin Chamber, the city ranks 11th for total patents awarded out of the 366 U.S. metros. If your competitors are investing in specific commercial property niches within the area, this is a sign of sector profitability.

In contrast, if there are commercial properties with similar demographics to the ones you are considering and have high vacancy rates, this is an indicator of poor market performance. Analyzing your competition is an effective way to validate if a commercial real estate sector lacks profitability potential.

Work with a Commercial Real Estate Broker to Access Off-Market Deals

One of the most effective strategies for finding commercial real estate industries worth investing in is working with brokers for off-market deals. Local brokerage firms can help you navigate unlisted commercial properties with the most profitable potential through their exclusive data and network. It not only gives you a competitive advantage, but it also discovers return opportunities based on capital improvements and restricted market data.

Some multiple listing service (MLS) platforms restrict access to agent use only. For this reason, you may miss a potential investment opportunity if there is an industry demand for a particular commercial property that is unlisted. Brokers have access to unlisted property performance data for off-market deals.

Additionally, brokers have exclusive relationships within their professional network. These privileges provide commercial real estate investors with opportunities to cash in Austin’s growing economy and diverse markets.

Benefits of utilizing brokers for off-market deals in Austin commercial real estate include:

Early access to off-market listings
No paid subscription is required for a multiple listing service (MLS)
Streamlined access to professional MLS— instead of lengthier processes through the local county’s public tax office or tax records
Privilege of exclusive broker relationships for unlisted property access
Strong selling experience with off-market property owners
Simpler sales process due to no required negotiations and no red tape involved
Potential for reduced pricing for convenience or from strong broker relationships

Texas commercial real estate brokers can optimize your off-market searches based on target sectors, investment budgets, and exclusive deals, which you can often not easily access on your own. Through their local real estate assessments, they can help you better project future cash flow based on property data and expertise in off-market industry trends.

DISCOVER PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Identifying the best commercial real estate markets to invest in is a comprehensive and analytical process. The capital city of Austin offers various sectors that can diversify investment portfolios and revenue streams. However, finding submarkets that are driving the highest returns is the foundation of profitability.

At CIP Texas, our local Austin brokers can help you identify potential real estate opportunities based on in-depth market assessments and past property performance. Through data-driven strategies and in-depth industry analysis, we can help you refine future cash flow projections before deploying capital.

Do you want to maximize your investment sales for commercial real estate in Austin?

Contact us to capitalize on the opportunities of Austin’s growing economy today.

Writing Contributor:

Bob Springer , SIOR, CCIM

Asset Management Essentials: Preparing Properties for Year-End Reviews

Tue, 30 Sep 2025 14:46:42 GMT

Let’s be honest—year-end reviews can feel like a chore. But here’s the thing: if you own or manage commercial property in Texas, the end of the year is one of the best opportunities you’ll get to really understand how your asset is performing.

Think of it like a health check-up for your property. You wouldn’t ignore your own yearly physical, right? Same idea here. By the time January rolls around, you want to know: Did my property hit its financial goals? Are my tenants happy? Am I ahead of the competition, or just coasting? That’s where our asset management team at CIP Texas steps in—we make that process a lot less painful and a lot more productive.

Why Year-End Reviews Matter

A year-end review is more than paperwork—it’s about seeing the full picture of how your property is doing. Financial performance is part of it, of course, but so is operational efficiency. Are your costs creeping up? Are your tenants satisfied and likely to renew? Are there capital improvements that need to be planned for? And how does your property stack up against others in the market?

This isn’t just about closing the books—it’s about making smart, informed decisions that will carry you into 2026 with confidence.

Let’s Start With the Numbers

First, we always dig into leases and income. Are your tenants current on rent? Do you have any big renewals coming up? Are your lease rates still competitive with the property down the street?

These are the questions we help answer. And we don’t just pull the numbers—we compare them to what’s happening in the market right now, so you can see exactly where you stand and what opportunities you might be leaving on the table.

Expenses: Where the Leaks Happen

Here’s something most landlords don’t like to admit: expenses creep up quietly. Vendor contracts that haven’t been renegotiated in years, maintenance that’s reactive instead of proactive, utilities that cost more than they should—it all eats into NOI.

During a year-end review, we comb through those expenses with a fine-tooth comb. The goal isn’t just cutting costs, it’s about making smart adjustments so you’re not losing money where you don’t need to.

Looking Beyond the Numbers

Numbers matter, but so does the actual condition of your asset. A spreadsheet won’t tell you if the roof is starting to leak or if the HVAC unit is running on borrowed time. Year-end is the perfect time to physically walk the property and ask: What’s working? What’s not?

Did you know that deferred maintenance costs commercial property owners an estimated three to four times more when issues are left unresolved? A small roof leak caught now might cost a few thousand dollars to patch, but wait until it causes interior damage and you’re suddenly staring at a six-figure repair bill.

The same goes for building systems. HVAC units, for example, typically last 15 to 20 years , but efficiency drops dramatically in the final stretch—meaning you could be overpaying on utilities without realizing it. And studies show that proactive maintenance programs can cut emergency repair costs by up to 70% while extending equipment life.

At CIP Texas, part of our year-end asset management review includes creating capital plans so you’re not blindsided by these big-ticket items in 2026. We’d rather help you plan for a controlled upgrade now than scramble when something breaks at the worst possible time. It’s about staying ahead of the curve and protecting the long-term value of your property.

The Tenant Side of the Equation

At the end of the day, vacancy is your biggest enemy. Happy tenants renew, unhappy tenants leave—and turnover gets expensive fast. That’s why part of our year-end process is looking at tenant relationships.

We’ll talk about which tenants are coming up for renewal, which ones might need a little extra attention, and how you can invest in the right improvements or services to keep them around. Sometimes it’s as simple as adding a small amenity or tweaking a lease term to give them flexibility.

Looking Ahead, Not Just Looking Back

A real year-end review isn’t just about closing the books on 2025. It’s about planning for 2026. We’ll look at submarket trends, new developments, and forecast where rental rates and demand are heading. From there, we’ll help you decide whether it’s time to hold, reposition, or maybe even sell.

This is where asset management goes beyond bookkeeping—it’s about strategy. And it’s where a lot of landlords find the most value in having a partner like CIP Texas.

Why Work With Us

Here’s the bottom line: you don’t need another report that just tells you what you already know. What you need is clarity, strategy, and someone who can connect the dots between leasing, expenses, tenants, and long-term value.

That’s exactly what we do. We simplify the review process, highlight opportunities, and give you a plan to move forward with confidence.

So, as 2025 wraps up, ask yourself: is your property just surviving… or is it set up to thrive in 2026? If you’re not sure, let’s talk . That’s what we’re here for.

Writing Contributor:

Josh Hubka , CCIM

Tenant Services That Work: Leasing Tactics That Win in Fall 2025

Mon, 08 Sep 2025 21:49:42 GMT

Quick Summary Before You Read.....

Question: How can tenants and landlords use smart tenant services and leasing tactics this fall to maximize value and stability?

Answer: As businesses gear up for Q4, effective tenant services—like strong lease negotiations, strategic TI allowances, and thoughtful tenant mix optimization—can make all the difference. These tools help ensure leases are flexible, fair, and future-proof while creating tenant rosters that strengthen property performance. Fall 2025 is a window of opportunity for making moves that pay off long-term.

For a more detailed exploration, you can read the full article below ⬇️

Tenant Services That Work: Leasing Tactics That Win in Fall 2025

The Texas commercial real estate market never really slows down—but fall has its own rhythm. As businesses settle into the last quarter of the year, decision-makers start looking hard at their space: Do we have the right location? Is our lease structured for flexibility? Are we positioned well for 2026?

That’s where tenant services come in. When done right, they take the guesswork out of leasing and give both landlords and occupiers a clear path forward. At CIP Texas, we see every day how the right tenant strategy can mean the difference between a space that simply “works” and a space that helps a business thrive.

Why Lease Negotiations Matter More Than Ever

Let’s be honest—lease negotiations can feel overwhelming. Between base rent, CAM charges, escalations, and renewal options, there are a lot of moving parts. But here’s the truth: negotiating smart today can save you major headaches (and dollars) down the road.

This fall, we’re seeing three themes pop up in nearly every negotiation:

Flexibility is king. Tenants want shorter commitments, with built-in expansion or renewal options. Landlords who offer flexibility often see faster lease-up and stronger retention.
Transparency builds trust. Nobody wants surprise operating expenses. Clear, upfront language about who pays what creates smoother landlord–tenant relationships.
Market knowledge is leverage. Knowing current comps—what similar spaces are leasing for in your submarket—gives you power at the table.

Our tenant services team helps clients walk into every negotiation prepared, confident, and backed by real data.

Tenant Improvement (TI) Allowances: Not Just a Perk, but a Strategy

A well-structured TI allowance can make or break a deal. Businesses want customized space that fits their brand and operations. Landlords want to invest wisely in improvements that actually drive long-term value.

Here’s what’s working right now:

Customization with purpose. TI dollars should go toward improvements that matter—efficient layouts, branding touches, or technology upgrades that enhance daily operations.
Shared investment = shared success. When both landlord and tenant have skin in the game, it encourages stability and longer-term partnerships.
Timing is everything. Coordinating improvements with move-in schedules keeps downtime (and costs) to a minimum.

At CIP Texas, our tenant services include advising on TI packages that aren’t just generous, but strategic—keeping deals fair while setting both sides up for success.

Optimizing Tenant Mix: More Than Filling Space

One of the most underrated parts of leasing is tenant mix optimization . Filling a building or shopping center with “any tenant who signs” isn’t a strategy—it’s a gamble. The best landlords think about synergy: how tenants can complement one another to create more value than they could alone.

The truth is, the best properties don’t just have tenants—they have synergy. The right mix of tenants supports one another, enhances the overall customer or occupier experience, and ultimately drives stronger property performance. That’s where professional tenant services can make a major impact.

Here are a few ways tenant mix strategy plays out in real life:

Retail synergy. A shopping center anchored by a fitness studio works best when supported by healthy quick-service restaurants, wellness providers, and even lifestyle shops. Customers leaving their workout might grab a smoothie, shop for athleisure gear, or book a massage—all in the same location. That’s no accident—it’s smart planning.
Industrial ecosystems. In industrial parks, diversity matters. Logistics operators bring activity and traffic, but pairing them with light manufacturers, suppliers, and service providers creates a self-sustaining ecosystem. Tenants benefit from proximity to partners, while landlords benefit from increased tenant stability and demand.
Mixed-use developments. Office tenants generate consistent weekday traffic, retail tenants draw shoppers and diners, and service-based tenants (like medical or banking) create stickiness. The result? Foot traffic across different times of the day and week, which helps all tenants thrive.
Avoiding tenant conflicts. Just as important as pairing complementary tenants is avoiding overlap or direct competition. Two similar restaurants side-by-side, or multiple retailers chasing the same demographic, can dilute sales and increase the likelihood of tenant churn.

With the right strategy, tenant mix optimization is about curating a community, not just filling vacancies . When done correctly, tenants reinforce each other’s success, which translates into higher sales, stronger occupancy rates, and long-term value for landlords.

At CIP Texas, our tenant services team helps landlords evaluate their current rosters, identify gaps, and strategically target tenants that enhance—not just fill—the space. We bring market knowledge, leasing expertise, and a big-picture perspective so your property doesn’t just stay full, it performs at its best for years to come.

The CIP Texas Approach to Tenant Services

So, what makes CIP’s Tenant and Corporate Services different? We simplify what can otherwise feel complicated:

We bring clarity. Market data, comps, and custom insights cut through the noise.
We tailor the strategy. Every tenant has unique goals—we don’t believe in cookie-cutter leasing.
We manage the process. From site selection to negotiation, TI oversight to move-in, we act as a partner, not just a broker.

Think of us as your trusted advisor—the one who has your back when the market gets competitive and the details get dense.

Looking Ahead

Fall 2025 isn’t just another season—it’s a window of opportunity. The Texas CRE market is shifting, tenant demand is evolving, and smart leasing strategies today will set the tone for 2026. Whether you’re a landlord trying to attract the right tenants or a business making a big location move, the right tenant services partner can make all the difference.

At CIP Texas , our mission is simple: to help you make the best leasing decisions for your future.

Writing Contributor:

Robby Eaves , CCIM

Back-to-School, Back-to-Business: How Retail CRE Picks Up in the Fall

Thu, 21 Aug 2025 21:12:34 GMT

Quick Summary Before You Read.....

Question: Why does the retail commercial real estate market in Texas often come alive in the fall?

Answer: As summer ends and routines return, foot traffic steadies—parents hit local shops between school runs, after-school activities fuel weekday visits, and businesses start gearing up for the holidays. This seasonal shift opens the door for smart lease moves: tenants want to lock in spaces before Q4, landlords can attract quality long- and short-term tenants, and investors find more predictable returns. Fall’s cooler weather makes tours and build-outs easier too. In short—fall is a strategic sweet spot for retail leasing and investment.

For a more detailed exploration, you can read the full article below ⬇️

Back-to-School, Back-to-Business: How Retail CRE Picks Up in the Fall

Why fall might be the smartest time to sign, shop, or invest in Texas retail property

Summer might be peak vacation season, but once those school bells start ringing across Texas, something interesting happens in the world of retail: people get back into routines—and start spending again.

For anyone in commercial real estate—especially retail— fall can be a sweet spot . Foot traffic stabilizes, businesses prepare for the holidays, and new leasing conversations pick up as business owners look ahead to Q4 and the new year.

At CIP Texas , we’ve seen it year after year: retail leasing activity tends to ramp up in the fall , and smart tenants and investors are the ones making moves before the holiday surge.

Here’s why.

1. People Are Back in Routine—And Shopping Locally Again

After a summer of travel, camps, and chaos, families settle back into predictable schedules in the fall. That means:

Grocery runs are consistent.
Parents are swinging through coffee shops and fitness studios after drop-off.
After-school activities create regular foot traffic.

If your retail business depends on consistency, fall is when you start seeing it again . That’s good news for current tenants—and a great reason for new ones to start scoping out space.

2. Businesses Prep for the Holiday Season

Retailers and service providers don’t wait until November to plan for the holidays—they start in September and October , if not earlier. For CRE investors and brokers, that means:

More inquiries about short-term or pop-up leases.
Tenants looking for better visibility or higher-traffic centers.
Existing tenants renegotiating to secure Q4 advantage.

We often see service businesses—think salons, fitness, health & wellness—gear up for New Year’s too. Fall is when they plan for their January rush.

3. Q4 Budget Cycles Drive Decision-Making

Fall is when many business owners look at the books and either:

�� Spend leftover budget before year-end, or
�� Invest early in next year’s growth

This often triggers:

Lease expansions
Moves to higher-end locations
New openings (especially for franchises or multi-location brands)

If you're an investor or landlord, this is the perfect time to put your available space front and center. These tenants aren’t tire-kickers—they’re looking to move now.

4. The Weather Helps, Too

It may seem small, but Texas heat in the summer can discourage site visits and slow activity. When cooler weather arrives in fall, more tenants are out touring spaces, investors are walking properties, and contractors are finishing up build-outs.

If you’ve been holding off on listing a space, this is when momentum picks up again—and you want to be ready.

5. Secondary Markets See a Bump

We’ve also noticed that suburban and smaller Texas markets get a little fall boost. With families back in school, local shopping centers see more steady traffic during the week, not just weekends.

That’s especially attractive to:

Service businesses (chiropractors, med spas, dentists, etc.)
Education-focused tenants (tutors, daycares, learning centers)
Fitness and boutique wellness concepts

So… What’s the Opportunity?

Final Thought: The Window Is Short

By late November, many businesses shift into holiday survival mode. The window for smart fall leasing is now.

Whether you're a tenant looking for a better location or an owner with a prime space sitting empty, let’s talk. We’ll help you time it right, find the right fit, and move fast—before everyone else comes knocking.

�� Contact CIP Texas
We help retail tenants and investors make confident moves year-round—and fall is one of the best times to do it.

From Raw Land to Revenue: The Texas Land Development Timeline

Tue, 12 Aug 2025 14:24:23 GMT

Quick Summary Before You Read.....

Question: How do you turn a piece of empty Texas land into a money-making property—and what surprises should you be ready for?

Answer: Developing raw land isn’t just about finding dirt—it’s about spotting hidden deal-breakers (like flood zones and access issues), doing your homework (surveys, environmental checks, title work), navigating red tape (zoning, permits, entitlements), and tackling the expensive—but essential—tasks of utility access and road connections. It takes time (typically 12–24 months), patience, and a trusted guide to help you avoid pitfalls—and that’s where CIP’s experience helps turn uncertainty into success.

For a detailed exploration of these trends, you can read the full article below ⬇️

From Raw Land to Revenue: The Texas Land Development Timeline

Let’s be honest—buying land in Texas feels exciting. You find a piece of property that looks promising, your mind starts racing with potential (a distribution center, a strip center, maybe even a multi-tenant flex building), and everything in you wants to jump in and make it happen. But then reality sets in, and you realize:

Developing land is not just about buying dirt.
It’s about navigating red tape, zoning codes, utilities that may or may not exist, and more acronyms than anyone ever asked for.

At CIP, we’ve been down this road many times—with clients ranging from first-time investors to seasoned developers. We know what it feels like to fall in love with a site and what it takes to actually make that site generate income. So whether you're buying your first tract or your fifth, here's a straight-up look at how the land development process works in Texas.

Step 1: Site Selection & Feasibility

Don’t skip the boring stuff—it’ll bite you later.

We once had a client who found what they thought was the perfect site outside Austin. Great price. Flat land. Easy access. But after running it through our checklist, we realized it was in a floodplain and didn’t have legal access to a public road.

That’s the kind of mistake that can cost tens of thousands of dollars—or even tank the whole deal.

So before you get too attached, ask:

Is it zoned for what I want to build?
Are utilities nearby, or do I have to bring them in?
Is there road access? Is it legal and buildable?
Are there any restrictions I’m not seeing?

We do this kind of feasibility review all the time, and trust us—it’s a lot easier to check before you buy than to fix after.

Step 2: Due Diligence & Surveys

“Looks good on paper” doesn’t cut it.

Once the land is under contract, the due diligence clock starts. This is your deep dive into what you're really buying. Here’s what usually happens:

Boundary and topo surveys (You’d be surprised how often fences don’t match actual property lines.)
Environmental studies (No one wants to discover an old gas station was buried under their future parking lot.)
Geotech reports (That perfect-looking soil might be unstable or expensive to build on.)
Title reviews (Old easements and access issues can mess everything up.)

This is the phase where you want detail freaks on your team—people who will catch the tiny things that become massive headaches later.

Step 3: Entitlements, Zoning & Permits

Where patience meets paperwork.

This part is not fun, and it’s where most people get overwhelmed. Zoning changes , site plan approvals, drainage studies, traffic impact analyses—you’ll likely deal with at least a few of these.

I remember a project that should have been a slam dunk. But it sat in permitting purgatory for six months while we waited for feedback from multiple departments. Having a team that’s been through the process (and knows who to call when things stall) saved that deal from falling apart.

Expect this part of the process to take 3–9 months , depending on your city or county. Some are fast. Some... not so much.

Step 4: Infrastructure & Utilities

The hidden costs that separate dreamers from doers.

Here’s the truth: just because utilities are “nearby” doesn’t mean they’re usable.
We’ve seen clients get excited about water or sewer lines across the street, only to discover they need a lift station, or that the city has a moratorium on new connections. That’s a $100,000+ problem, not a quick fix.

We help clients figure out:

What’s on-site vs. what needs to be extended
How much it’ll cost (ballpark, but better than flying blind)
Who to contact for each step (every city is different)

You’ll also need to think about roads, drainage, and stormwater management. It’s a lot—but with the right partners, it’s doable.

Step 5: Build It or Flip It

The fork in the road: go vertical or go to market.

At this point, you’re either:

Ready to start construction, or
Ready to sell the now-entitled, shovel-ready site to another buyer

Some clients come to us with the goal of building a long-term income-producing property. Others just want to take the land through entitlements and then sell for a healthy profit. Both paths can work—you just need to be clear on your goals from the start.

We’ve helped clients build everything from warehouses to retail strips, and we’ve helped others package up the perfect site to sell to national developers. There's no one-size-fits-all answer—just the right path for your strategy.

What’s the Timeline, Really?

Realistically, you’re looking at 12–24 months from start to revenue.
It can be fast er for smaller deals or longer for complex builds. Either way, it pays to plan ahead.

Why We Love This Work (Even When It’s Hard)

Land deals aren’t always glamorous. There’s dust, delays, and days where it feels like nothing is happening. But there’s also something incredibly satisfying about helping someone take a raw piece of Texas land and turn it into something real —a business, a warehouse, a legacy.

We’ve walked this path dozens of times, and we know where the potholes are. Our job is to guide you around them and help you keep momentum, no matter what pops up.

Thinking About Buying Land in Texas?

Whether you’re looking at five acres in Bastrop or 50 acres in Buda, our team would love to walk the property with you, answer your questions, and help you map out a realistic plan.

Reach out for a no-pressure consultation—because smart land deals don’t start with sales pitches, they start with conversations.

Writing Contributor:

Josh Hubka , CCIM

What Is Build-to-Suit and Why It’s a Smart Move in Today’s Market

Tue, 08 Jul 2025 21:17:38 GMT

Quick Summary Before You Read.....

Question: What is build-to-suit and why is it a smart move for businesses in today’s market—especially in places like Austin?

Answer: Build-to-suit (BTS) allows businesses to develop customized facilities designed from the ground up to suit their exact needs. In markets like Austin—with scarce mid-sized industrial inventory, rising competition, and a need for operational efficiency—BTS delivers strategic flexibility, cost control, brand alignment, and long-term financial predictability.

For a detailed exploration of these trends, you can read the full article below ⬇️

What Is Build-to-Suit and Why It’s a Smart Move in Today’s Market

In the fast-moving world of commercial real estate—especially in a dynamic market like Austin—businesses are discovering that flexibility isn’t just a luxury anymore. It’s a competitive advantage. As companies of all sizes look for ways to optimize their operations, reduce long-term costs, and plan strategically for growth, Build to Suit (BTS) development is becoming a go-to solution. At Commercial Industrial Properties (CIP) , we’ve helped countless clients turn raw land into customized, high-performing facilities tailored to their exact needs.

What Is Build to Suit?

Let’s start with the basics. Build to suit is exactly what it sounds like: a real estate development model where the property is designed, constructed, and delivered to match the tenant’s specific operational requirements. Rather than adapting to an off-the-shelf building, businesses get the rare opportunity to shape their facility from the ground up. Everything—from square footage and layout to loading dock locations, HVAC capacity, electrical service, and even aesthetic branding elements—is tailored to fit the user’s needs.

This isn’t just about picking paint colors. It’s about engineering a space that functions as an extension of your business strategy.

Why Build-to-Suit Makes So Much Sense Right Now

A Shrinking Pool of Suitable Space

Austin’s industrial market is booming—but not necessarily for everyone. Most speculative developments in recent years have been aimed at large-scale users—think 100,000+ square feet and up. Meanwhile, the demand from small to mid-sized manufacturers, logistics companies, and service firms (many needing just 5,000 to 20,000 SF) has steadily climbed. The problem? Inventory for that segment is vanishingly scarce . BTS fills that void by allowing users to create their own path rather than compete for ill-fitting leftovers.

Built for How You Actually Work

Off-the-shelf buildings come with compromises. Maybe the dock doors are on the wrong wall. Maybe the ceilings are too low. Or maybe you just need more office space than the standard ratio allows. With BTS, those limitations disappear. From day one, the space works with your operations—not against them. Whether you're a specialty fabricator who needs heavy three-phase power and crane-ready bays, or a food supplier requiring specific cooling zones and USDA-compliant finishes, BTS makes it possible.

Better Branding, Inside and Out

Your building is part of your brand, especially if customers or partners visit regularly. With build to suite, you can create a physical environment that reflects your company’s identity—from the signage and façade to the lobby design and interior finishes. Even beyond aesthetics, BTS allows companies to shape the customer journey in a way that's intuitive and aligned with their values.

More Control, Less Waste

Older buildings often come with hidden costs: inefficiencies, awkward layouts, or the need for expensive retrofits. BTS minimizes those issues by giving you more control over materials, layout, and energy systems. That means fewer surprises, better long-term performance, and lower maintenance costs.

Strategic Site Selection

You’re not limited to the few buildings currently on the market. You get to choose where your next location will be. At CIP, we help clients explore land opportunities in growth markets like Manor , Buda , Kyle , Liberty Hill , and Hutto —areas with strong infrastructure, proximity to major highways, and available workforce. It’s not just about finding land. It’s about finding build to suit land that makes sense for your long-term goals.

Financial Predictability

With BTS, tenants often enter into long-term leases, which can lock in rental rates and provide predictability for years to come. For owner-users, it can mean building equity in a facility that appreciates over time. Either way, the long-term cost structure is often more favorable than jumping from lease to lease.

How CIP Guides You Through the Build-to-Suit Journey

Build to suit may sound complex, but with the right partner, it doesn’t have to be. At CIP, we bring a full-service, start-to-finish approach that demystifies the process and delivers results.

A Hypothetical Build-to-Suit Success Story

Imagine this: A regional manufacturing company based in Central Texas is juggling operations across three outdated warehouse leases. One building handles raw materials, another handles final assembly, and a third—miles away—is used for shipping. The setup is inefficient, costly, and slowing them down. On top of that, their equipment requires specialized electrical capacity, and their racking system barely fits within the ceiling clearance of the existing spaces.

They reach out to CIP looking for a better way. Together, we sketch out a plan for a single, consolidated build-to-suit facility. We locate a parcel of land in a high-growth corridor just outside Austin, close to major transit routes and a reliable labor pool. The site allows them to design a facility with high-clearance racking, redundant power systems, and a dedicated logistics zone—exactly what their operation demands.

Fast-forward to today: They’re up and running in their new space, productivity has increased, delivery times have shortened, and employee satisfaction is up. They’re already eyeing the adjacent pad site for Phase Two.

This isn’t just a feel-good story—it’s a playbook. And it’s exactly what we help clients do every day.

Is Build-to-Suit Right for You?

If you’ve hit the ceiling (literally or figuratively) in your current space, or you’re planning a strategic expansion, build-to-suit could be the solution that unlocks your next chapter. While it may take more upfront planning, the payoff is a facility that’s purpose-built for how your business actually runs. And in a market like Austin, where flexibility and speed-to-market matter more than ever, it’s an edge that’s hard to beat.

Let’s talk. The CIP team is ready to help you take the next step—whether that’s identifying land, connecting with developers, or crafting the lease structure that puts you in control.

Build smarter. Grow stronger. Do it your way.

Writing Contributor:

Bob Springer , SIOR, CCIM

OVERVIEW OF COMMERCIAL REAL ESTATE INVESTMENTS FOR BEGINNERS

Mon, 16 Jun 2025 15:19:36 GMT

OVERVIEW OF COMMERCIAL REAL ESTATE INVESTMENTS FOR BEGINNERS

Investing in commercial real estate interests many people, but it is often riddled with challenges which can overwhelm those without a firm grasp on the subject. Like most investments, there are no guarantees in commercial real estate. However, if you have clear goals, a tolerance for risk, and good team behind you, it can be lucrative.

To oversimplify it, people invest in commercial real estate for a few main reasons:

Cash flow aka “mailbox money”

Equity and appreciation which one can capitalize on while owning the property and at the point of sale

To invest substantial amounts of money for extended periods of time while reaping tax benefits, but without being subjected to the volatility of other investments, such as the stock market

As you move from search to acquisition to management, you will need a strong team in place to help you maneuver through the process. Below are some of the key positions you may need to fill and a brief description of their services.

Broker

They will help you identify properties that match your criteria and analyze them to determine if they will accomplish your goals. When you are ready to acquire a property, they will negotiate on your behalf to get you the best deal possible.

Attorney

In addition to reviewing any purchase/sale contracts, they should also review any leases with your future tenants and a number of other documents that will pop up when you own a commercial property.

Accountant

They can help you understand the tax implications of the deal and how it will impact your profit.

Lender

With good financing, you may be able to generate a better return and maintain more liquidity than if you pay cash.

Property manager

A good property manager will save you time and money by managing payments, maintenance, and various problems and tasks that arise with the property. They are often underestimated, but the services they can provide are often worth every penny.

It is important to identify the types of property that interest you. Many choose to invest in a product type they understand. For example, someone who has worked in offices their entire life may be more inclined to invest in an office property, as opposed to industrial or retail. Having a general knowledge of the product type may prove valuable and help the owner understand the various issues they may have to contend with. These are a few of the main product types:

Office
Industrial
Retail
Multifamily
Medical
Hospitality

It is also important to understand different types of real estate Investment and their corresponding risk. These are several types of real estate investments :

Stabilized Leased Asset

One of the most sought-after Investments due to its relatively minimal risk and stable returns. An example of this would be buying a property with a 10-year NNN Lease tenant in place. This gives the investor stable predictable cashflow and return for the next ten years.

Value Add

In this type of investment, you are seeking a property to buy at a discount due to poor conditions or a problem. In theory you improve the conditions and sell or lease the property at a higher rate. This provides more potential for a higher return yet also increase the risk level.

Development

Arguably the most complex type of real estate investing with the highest risk yet highest potential for return. Development takes extensive analysis and due diligence, a substantial amount of time, and usually copious amounts of money.

While monetary gain is arguably the most important aspect, for some the value of shaping and influencing the development around them is highly rewarding as well.

If you want to learn more about the topics touched on above, discuss finding your first investment property, or need assistance with commercial real estate in any capacity, please contact me, evan@cipaustin.com. I look forward to speaking with you.

Want to learn more about other topics? Check out our Education Hub .

Writing Contributor:

Evan Bole, CCIM

Navigating Lease Renewals: Strategies for Retaining Quality Tenants

Thu, 12 Jun 2025 15:44:29 GMT

Quick Summary Before You Read.....

Question: What are the best strategies for navigating lease renewals and keeping great tenants in Texas commercial real estate?

Answer: Proactively managing lease renewals is essential for maintaining stable cash flow and strong landlord-tenant relationships. In Texas—where markets like Austin, Georgetown, and Hutto are booming—landlords must start early, evaluate tenant value, stay informed on local market trends, and offer competitive incentives. Clear communication and a relationship-first approach are key, especially in Texas' trust-driven business culture.

For a detailed exploration of these trends, you can read the full article here: Navigating Lease Renewals: Strategies for Retaining Quality Tenants

In commercial real estate, retaining high-quality tenants is just as valuable—if not more so—than securing new ones. Lease renewals are a pivotal opportunity to strengthen landlord-tenant relationships, maintain steady income, and avoid costly vacancies. At CIP Texas, we believe successful lease renewals come down to preparation, transparency, and long-term thinking.

In this post, we’ll walk through effective strategies for navigating lease renewals and retaining your most reliable tenants—along with some critical Texas-specific considerations.

Why A Lease Renewal Agreement Matters

Vacancies can cost landlords tens of thousands in lost rent, marketing expenses, downtime, and tenant improvements for a new occupant. Retaining a solid tenant avoids these costs and fosters stability in your property’s income stream. Plus, strong tenants help maintain the integrity and reputation of your commercial property, especially in shared spaces like retail centers and office parks.

Start Early—Way Early

One of the biggest mistakes landlords make is waiting too long to begin lease renewal conversations. Best practice is to begin discussions 6 to 12 months before the lease ends, depending on the lease length and tenant size.

Why it matters:

Gives you time to assess market rates and performance.
Helps tenants plan their budgets and business operations.
Avoids last-minute pressure, which can sour negotiations or push tenants to look elsewhere.

Evaluate the Tenant Relationship

Before you enter renewal talks, take stock of the tenant’s value to your property. Consider:

Payment history : Are they consistent and on time?
Property care : Do they maintain the space well?
Business performance : Are they growing, stable, or downsizing?
Synergy : Do they fit well with other tenants or your long-term property goals?

If they’re a strong tenant, your goal should be to keep them happy and secure a long-term commitment —possibly with incentives or favorable terms.

�� Texas-Specific Considerations for Lease Renewals

Commercial lease dynamics in Texas—especially Central Texas—can be quite different than in other states. The state's rapid population growth, pro-business climate, and low taxes make markets like Austin, Georgetown, and Pflugerville increasingly competitive for tenants and landlords alike.

Local Insight:
In fast-growing areas like Georgetown and Hutto , demand for industrial and flex space is skyrocketing. If you’re leasing in one of these high-growth corridors, your renewal strategy should reflect the tenant’s awareness of their own bargaining power in a tight market. Conversely, in areas with higher office vacancies (like certain sectors of Austin post-pandemic), landlords may need to offer more flexibility and creative incentives.

Understand Market Conditions

Don’t walk into negotiations blind. Run a market analysis to understand:

Current market rates for comparable properties.
Vacancy rates in your area.
Demand for your specific type of property (office, retail, industrial, etc.).
Recent concessions or incentives offered by competing landlords.

�� Texas Tip: With property taxes fluctuating significantly due to reassessments, landlords should communicate early and often about how these increases may affect NNN lease terms . Texas tenants often don’t expect these changes and may appreciate transparency before it hits their monthly costs.

Communicate Openly and Often

Offer Creative Incentives

If your tenant is hesitant or shopping around, a smart incentive package can tip the scales. Some effective renewal perks include:

Tenant improvement allowances for updates to the space.
Rent abatement (e.g., one free month) for a longer-term renewal.
Rate lock for multi-year commitments.
Improved services (like security, cleaning, or HVAC upgrades).
Flexible expansion clauses or right of first refusal on adjacent space.

�� Texas Context: In rapidly developing corridors near I-35 or SH-130 , tenants may want to secure expansion options. Offering a right of first refusal or flexible lease terms can be a key differentiator when they're considering whether to stay or look elsewhere.

Put It in Writing—Clearly

Once terms are agreed upon, formalize them quickly and clearly in writing. Use plain language and ensure both parties understand what’s changing (or staying the same). Even if you're simply extending the original lease, it's best to create a renewal amendment that outlines:

New lease dates and duration.
Rent structure and escalation.
Any updates to maintenance, insurance, or shared costs.
Any additional clauses or negotiated incentives.

�� Relationship-Driven Leasing in Texas

Texas business culture thrives on relationships. Many local landlords and tenants have worked together across multiple properties or even generations. Taking a relationship-first approach during renewals can set you apart from more transactional competitors.

Schedule in-person meetings when possible—Texans value face-to-face time.
Be transparent about your goals and the state of the market.
Acknowledge your tenant’s growth and offer to support them with flexible terms if they need to expand or adapt.

Long-term goodwill goes a long way in the Texas real estate market—and may earn you repeat tenants or referrals.

Stay Connected After Renewal

Don’t disappear once the ink is dry. Maintain an open line of communication and check in regularly. Your attentiveness after the renewal can build trust and pave the way for future renewals or even referrals.

Consider periodic:

Quick check-ins via email or phone.
Annual reviews of property needs.
Surveys to gauge tenant satisfaction.
Invitations to property events or updates.

Final Thoughts

At CIP Texas, we know that strong relationships are the foundation of successful real estate investments . Renewing lease agreements with quality tenants isn’t just about keeping the space filled—it’s about building trust, creating long-term value, and supporting the success of your tenants and your property alike.

If you're a landlord in Central Texas looking for help navigating lease renewals, property management, or tenant strategy, reach out to our team . With deep experience across Texas, we’ll help you keep your best tenants happy—and your investment secure.

Writing Contributor:

Robby Eaves , CCIM

Powering the Future: Texas' Energy Infrastructure and CRE Implications

Thu, 15 May 2025 21:18:56 GMT

Quick Summary Before You Read.....

Question: How are Texas' advancements in nuclear energy and the growth of data centers impacting commercial real estate (CRE)?

Answer: Texas' push into advanced nuclear energy and the rapid expansion of data centers are transforming the state's energy infrastructure, leading to significant implications for commercial real estate. These developments are driving increased demand for industrial properties near energy and tech hubs, creating opportunities for investors and developers in the CRE sector.

For a detailed exploration of these trends, you can read the full article here: Texas' Energy Infrastructure and CRE Implications

Texas' Energy Infrastructure and CRE Implications

Texas is entering a new era of energy evolution—one defined not just by oil and gas, but by advanced nuclear technology and the explosive growth of data centers. These two powerful forces are reshaping the state's infrastructure and creating ripple effects across the commercial real estate (CRE) sector. For investors, developers, and asset managers, understanding this transformation is critical to identifying emerging opportunities and mitigating potential risks.

Texas' Nuclear Vision: From Fossil to Fission

In recent years, Texas has taken bold steps toward diversifying its energy portfolio with the aim of becoming a national leader in advanced nuclear energy. In 2023, Governor Greg Abbott launched the Texas Advanced Nuclear Reactor Working Group, signaling the state’s commitment to exploring cutting-edge solutions to meet its future energy needs. This effort culminated in a legislative proposal for the Texas Advanced Nuclear Energy Authority and the establishment of a $2 billion Nuclear Energy Fund.

Several prominent players have already stepped up:

X-energy , a Maryland-based firm, is partnering with Dow to develop a Xe-100 small modular reactor (SMR) in Seadrift, Texas, supplying low-carbon electricity and steam to an industrial facility.
TerraPower , backed by Bill Gates, is exploring co-location of SMRs with data centers, targeting synergy between high energy demand and reliable supply.
Last Energy , a microreactor developer, has announced plans to deploy 30 modular reactors in Haskell County, Texas.

These nuclear developments aren’t just energy projects—they are regional economic catalysts that will require infrastructure , workforce housing, service industries, and long-term support. Each element represents untapped potential for commercial real estate development.

Data Centers Surge: Tech's Demand on Texas' Grid

As the AI revolution accelerates and cloud computing becomes central to global commerce, Texas is emerging as a data center powerhouse. The state’s low energy costs, abundant land, and business-friendly regulations make it an attractive location for tech giants like Microsoft, Amazon, Meta, and emerging players like Rowan Digital Infrastructure.

Highlights include:

Microsoft recently filed to build a multi-phase data center campus outside San Antonio.
Rowan is constructing advanced facilities in Medina County, part of the scenic Texas Hill Country.
ERCOT (Electric Reliability Council of Texas) estimates electricity demand could double by 2030 , with much of the increase driven by large-scale users like data centers.

These tech facilities require vast square footage, reliable power, sophisticated cooling systems—and they often become anchors for new industrial corridors. But they also bring challenges, especially when it comes to resource usage. Data centers consume large quantities of both electricity and water, putting pressure on municipalities and water districts, particularly in drought-sensitive regions.

CRE Investor Implications: Where Energy Meets Opportunity

These rapid developments in both energy production and data consumption are reshaping Texas’ CRE market. Here's how:

1. Industrial Real Estate Booms

With growing demand for grid-adjacent land, cooling infrastructure, and support facilities, industrial property near planned nuclear and data center sites is poised for appreciation. Locations with existing utility easements and access to transmission lines will command a premium.

2. Infrastructure-Led Growth Corridors

Just like highway construction has historically driven suburban sprawl , energy infrastructure will now drive regional CRE growth. Investors should watch areas with new transmission projects, substation expansions, or utility-scale developments.

3. Sustainability & ESG Pressure

Modern investors are increasingly focused on Environmental, Social, and Governance (ESG) factors . While nuclear offers carbon-free energy, concerns about water usage, environmental impact, and long-term sustainability remain. CRE stakeholders who integrate eco-conscious design and resource-efficient operations will have a long-term edge.

4. Mixed-Use and Workforce Housing Opportunities

New developments—especially those in more rural or exurban areas—often require housing, amenities, retail, and schools to support an influx of skilled labor. CRE developers should anticipate these needs and offer solutions ahead of demand

Looking Ahead: Strategic Positioning in a Dynamic Landscape

Texas is no stranger to large-scale energy shifts—but the current blend of digital infrastructure needs and advanced nuclear investment presents a unique opportunity for commercial real estate players.

Whether you're an investor seeking land near future SMR sites , a developer eyeing industrial opportunities near AI “factories ,” or a property manager navigating ESG compliance—the CRE landscape is changing rapidly. Strategic partners like CIP Texas can help you stay ahead.

Want to capitalize on Texas' energy evolution?

Partner with CIP Texas for location intelligence, market analysis, and investment guidance.

�� Explore more at www.ciptexas.com

Writing Contributor:

Robby Eaves , CCIM

The Top 10 Questions to Ask a Property Management Company

Tue, 08 Apr 2025 20:28:55 GMT

Quick Summary Before You Read.....

Question: What are the top questions to ask when evaluating a property management company?

Answer: When selecting a property management company, it's crucial to ask about their range of services, tenant screening processes, fee structures, maintenance and repair protocols, property inspection frequency, rent collection methods, vacancy rates and marketing strategies, legal compliance measures, client references, and communication practices.These questions help ensure that the company aligns with your investment goals and can effectively manage your property.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Questions To Ask a Property Management Company

Choosing the right property management company can make or break your real estate investment. Whether you own a single commercial property or a portfolio of mixed-use assets, entrusting your investment to a professional team requires due diligence. At CIP Texas , we manage properties as if they were our own—strategically, proactively, and with the long-term health of your asset in mind.

To help you make an informed decision, here are the top 10 questions we recommend asking any property management company before you sign on the dotted line.

1. What Services Do You Offer?

Not all property management companies offer the same scope of services. Some only handle tenant communication, while others manage everything from building maintenance to lease negotiations.

Here at CIP Texas , we offer full-spectrum asset management . Our services include:

Tenant relations and lease enforcement
Property inspections and maintenance coordination
Strategic planning and risk mitigation
Financial reporting and budgeting
Value-add improvements and capital project oversight

Our goal is to simplify ownership while maximizing the long-term value of your investment.

2. How Do You Handle Tenant Screening?

Reliable tenants are the cornerstone of a successful property. You’ll want to know how the management company screens for quality tenants and mitigates risk.

CIP uses a meticulous screening process that includes:

Credit and background checks
Employment and income verification
Rental history and references
Legal compliance with Fair Housing laws

We don’t just fill vacancies—we place the right tenants who align with your property’s long-term goals.

3. What Is Your Fee Structure?

Every management company charges differently. Some may offer low monthly fees but tack on hidden costs later. Understanding the full cost structure is key to avoiding unpleasant surprises.

At CIP transparency is a core principle. We provide a straightforward fee schedule that clearly outlines:

Management fees
Leasing or renewal commissions
Maintenance coordination charges
Any performance-based bonuses

You’ll always know what you’re paying for—and why it matters.

4. How Do You Manage Maintenance and Repairs?

Maintenance isn’t just about fixing things when they break; it’s about preserving and enhancing your asset. A solid maintenance plan keeps tenants happy and prevents small problems from becoming expensive headaches.

We take a proactive maintenance approach, coordinating with trusted vendors and inspecting properties regularly. We also provide you with detailed reporting, so you’re always in the loop. From HVAC systems to parking lot repairs, we manage the details so you don’t have to.

5. How Often Do You Inspect the Property?

If you’re not regularly seeing updates on your property’s condition, that’s a red flag. Consistent property assessments are vital for preserving long-term value.

At CIP we conduct scheduled on-site inspections and provide a detailed analysis of each visit. We assess:

Physical condition and deferred maintenance
Code compliance and safety
Tenant adherence to lease terms
Opportunities for improvement and cost savings

This helps us identify and address issues early—before they affect performance or value.

6. How Do You Handle Rent Collection and Late Payments?

A reliable income stream is the backbone of your investment. How a property manager handles rent collection and late payments directly impacts your bottom line.

It is best to use modern systems to streamline rent collection and enforce lease agreements. This process should include:

Automated billing and reminders
Prompt follow-ups for late payments
Coordination of legal action when necessary

This helps reduce delinquencies while maintaining positive tenant relationships.

7. What Is Your Vacancy Rate, and How Do You Market Vacant Properties?

Vacancy rates speak volumes about how effective a management company is at leasing. You’ll also want to know how they market and fill those vacancies.

Our team uses a combination of:

Digital listings on high-traffic commercial platforms
Broker relationships and tenant rep networks
Local advertising and signage
Competitive market analysis to set the right rental rates

Our goal? Keep your property fully occupied with tenants that support your long-term investment strategy.

8. How Do You Ensure Legal Compliance?

Property owners face a minefield of legal obligations—zoning, leasing laws, ADA compliance, and more. Your management company should act as a shield, not a liability.

We stay on top of federal, state, and local regulations to ensure your property remains fully compliant. Our team has deep knowledge of Texas commercial real estate law and works closely with legal professionals when needed to protect your investment.

9. Can You Provide References from Current Clients?

Don’t just take a company’s word for it—ask to hear from their clients. Reviews and referrals provide insight into reliability, responsiveness, and overall performance.

We are proud of our strong relationships with clients who have trusted us to manage millions of square feet across the state. Upon request, we’re happy to connect you with long-term partners who can share their experience.

10. How Will You Communicate With Me?

Communication is often what separates a good management company from a great one. Ask how often you’ll receive updates and who your main point of contact will be.

At CIP Texas , we provide:

Monthly performance reports
On-demand access to financials and leasing activity
A dedicated property manager who knows your property inside and out
Prompt responses to calls and emails

We believe communication should be clear, proactive, and aligned with your preferences—because you're the owner, and you deserve to know what’s happening with your investment.

Final Thoughts

Selecting the right property management partner is one of the most important decisions you'll make as an owner. It impacts your cash flow, your peace of mind, and the long-term value of your asset.

We don’t just manage properties—we protect and grow your investment with the care and strategy it deserves. If you're ready to level up your property management experience, let’s talk .

Writing Contributor:

Robby Eaves , CCIM

The Role of Impact Fees in Texas Commercial Real Estate Development

Wed, 19 Mar 2025 21:22:31 GMT

Quick Summary Before You Read.....

Question: How do impact fees influence commercial real estate development in Texas?

Answer: Impact fees—also known as development, infrastructure, or public improvement fees—are charges imposed by local governments on new commercial developments to fund public infrastructure like roads, utilities, and safety services. In Texas, these fees can significantly affect project budgets and vary by location; for instance, Austin's fees range from $3 to $5 per square foot, while suburban areas may charge around $2 per square foot. Understanding these fees is crucial for developers, as they impact project feasibility and long-term returns. Some municipalities may offer incentives or fee reductions for projects that provide substantial community benefits.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Impact Fees & Commercial Real Estate

When planning a commercial property project in Texas, several expenses require careful attention. A major cost is what many refer to as impact fees—also known as development fees, infrastructure fees, public improvement fees, or exactions. These charges can affect project budgets, feasibility , and long-term returns. For investors and developers, knowing what impact fees are, how they are determined, and the part they play in the Texas market is key. Today, we will break it down for you, let’s go!

So, What Exactly Are Impact Fees?

Think of these fees as contributions new developments make to help cover the cost of expanding and maintaining public infrastructure. That means as new commercial or industrial projects pop up, local governments collect fees to improve roads, utilities, water and sewer systems, and even public safety services. In Texas, this process is regulated under Chapter 395 of the Texas Local Government Code . Essentially, development fees make sure that new growth helps pay for the extra strain on local services, rather than leaving existing taxpayers to foot the bill.

Why Should You Care About Development Fees?

They Affect Your Bottom Line

Impact fees are more than just an extra line item on a budget, they can significantly influence the upfront costs of a project. For example, in cities like Austin, infrastructure fees for commercial projects have been reported to range from $3 to $5 per square foot, while in other areas or suburban regions, you might see fees closer to $2 per square foot. Knowing these figures early on helps developers plan better and avoid unwelcome surprises later.

Better Infrastructure Means Higher Property Value

While it might seem like exactions just add extra expense, they also fund important infrastructure improvements. Better roads, utilities, and services make commercial properties more attractive to businesses and tenants, which can boost property values over time.

Location Matters

Not every Texas city charges the same. Some places have higher fees than others , and this can really influence where you decide to build. Developers need to weigh these costs when choosing a location, as they can impact overall profitability. Plus, some major Texas cities generate substantial revenue from these exactions—sometimes reaching into the tens or even hundreds of millions of dollars annually—which underscores just how significant the fees are to local infrastructure funding.

Room for Negotiation

Believe it or not, there’s sometimes wiggle room with development fees. If your project is going to create jobs or deliver essential services, local governments might offer incentives or even waive some of the fees. It never hurts to have a chat with city planners!

How Are Impact Fees Calculated?

Local governments typically use land-use studies and capital improvement plans to set these fees, ensuring they’re fair and based on actual needs. And if a fee seems too high, developers do have the right to question it.

Real-World Examples from Texas

Let’s look at how impact fees vary around the State:

Austin:

Austin has experienced significant population and business growth over the years. This increase in demand for services and infrastructure has led local authorities to impose higher fees. These charges help pay for new roads, public utilities, and emergency services. Projects in Austin may incur higher initial expenses compared to other parts of the state.

Houston:

Houston follows a different model by imposing fewer direct public improvement fees on new projects. The city frequently partners with private sector entities to support infrastructure improvements. This arrangement reduces the direct fee burden on developers while still providing funding for public services, potentially offering a more favorable fee structure for various developments.

San Antonio & Dallas:

Both San Antonio and Dallas have established fee systems that reflect the needs of their different service areas. In these cities, fees are determined by factors such as project size, the anticipated impact on local services, and other relevant criteria. This consistent framework allows for predictable planning and balanced contributions across different neighborhoods.

How to Handle Impact Fees

Here are some friendly tips for managing infrastructure fees:

Plan Early: Get the lowdown on local fees before you buy land or kick off a project.
Look for Incentives: Some cities offer fee reductions if your project brings extra economic benefits or meets sustainability goals.
Talk It Out: Open a dialogue with local officials. Sometimes a little negotiation can go a long way.
Explore Other Financing Options: Consider public-private partnerships or tax incentives to help manage the upfront costs.

Final Thoughts

Impact fees might seem like just another bureaucratic hurdle, but they’re actually a crucial part of making sure that Texas’s infrastructure can keep up with growth. At CIP Texas, we see firsthand how these fees play a role in shaping the commercial real estate landscape. While they add to the cost at the start, they also help build better, more sustainable communities that benefit everyone in the long run.

If you’re planning a project and want to navigate these waters with a bit more confidence, we’re here to help. Reach out to us , and let’s work together to develop smarter and more profitably in Texas!

Writing Contributor:

Bob Springer , SIOR, CCIM

East Austin: The Next Big Thing for Commercial Investors

Fri, 28 Feb 2025 20:29:38 GMT

Quick Summary Before You Read.....

Question: Why is East Austin emerging as a prime destination for commercial real estate investment?

Answer: East Austin has transformed into a dynamic hub for commercial real estate, driven by a surge in mixed-use developments, innovative office spaces, and a growing industrial sector. The area's appeal lies in its blend of affordability and cultural vibrancy, attracting tech startups, creative agencies, and industrial enterprises. With a youthful, educated population and strategic location near major transportation routes and the airport, East Austin offers diverse opportunities for investors seeking growth in a thriving market.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

East Austin - What's The Big Deal?

For many years, East Austin was developing slowly, while being in the shadow of the growing downtown and the rapid development of the business centers in North Austin. But recently, the East side has become one of the most active areas for commercial development in the area. This part of the city is quickly turning into a go-to region for businesses and investors wanting to benefit from Austin’s economic growth by virtue of the increasing number of mixed-use developments, creative offices, and the growing industrial area.

This recent surge in development is attracting entrepreneurs, developers, and businesses eager to establish a presence in this thriving market. Read on to learn why East Austin, Texas has become one of the most sought-after locations for commercial growth and investment.

A Hub for Mixed-Use Development

Over the past decade, the East side has gone through a remarkable change and is now one of the most wanted areas for development. The focus is currently on mixed-use projects, which combine residential, retail, office, and entertainment uses to meet the needs of the growing population of Austin. Revisions like Springdale General and Plaza Saltillo have changed the face of the area, developing more pedestrian-friendly and community-oriented buildings that are attractive to business and residents.

These mixed-use spaces help businesses by allowing retail, restaurants, and office tenants to work together in vibrant, high-foot-traffic areas. With the live-work-play environment still in high demand, investors can also look forward to long-term value and stability.

The Rise of Creative Office Spaces

One of the biggest draws for companies moving into East Austin is the availability of innovative and flexible office spaces . This neighborhood does not have the high rise corporate towers of downtown but instead offers a mix of renovated warehouses, industrial lofts, and boutique office developments, which suit tech startups, creative agencies and the like, looking for a unique work environment.

New age spaces like ThinkEast and Springdale Green come with state of the art features even in non conventional locations, with open floor plans, natural light, and access to outdoor green. Many businesses are drawn to the area’s cultural and artistic vibe and it is therefore a perfect fit for creative industries seeking to make their mark in Austin’s growing economic landscape.

An Expanding Industrial Market

Even though East Austin Texas has recently become famous for retail and office space, the industrial sector is also growing. As a result of Austin’s increasing need for logistic, manufacturing, and distribution facilities, the East side of Austin’s convenient location near major highways and the Austin Bergstrom International Airport makes it an attractive location for industrial investments.

Recent developments include the rise of industrial parks and warehouse spaces to accommodate businesses that require ease of access to the urban core and transportation means. Due to the area’s accessibility and the increasing e-commerce and manufacturing industries in Austin, it is an excellent location for companies to require space for production, warehousing and fulfillment.

East Austin by the Numbers

Population and Demographics:

Total Population: Approximately 117,622 residents reside in the neighborhood.
Median Age: Around 34.5 years old.
Gender Distribution: 52.28% male, 47.72% female.

Households and Income

Number of Households: Approximately 47,265 households.
Median Household Income: Around $81,986 per year.
Average Individual Income: Roughly $48,592.

Employment:

Employment Sectors: 82.81% white-collar workers, 17.19% blue-collar workers.
Self-Employment Rate: Around 11.16% of the workforce is self-employed.

These numbers reflect the neighborhood’s continued expansion, making it an exciting prospect for commercial real estate investment.

Why Investors Should Pay Attention to East Austin

East Austin is rapidly changing and thus offers a good investment perspective for commercial investors. This area has emerged as a mixed-use development with creative workspaces and a developing industrial sector, therefore, it is a diversified investment opportunity. Where some other parts of the city are more established, East Austin remains relatively affordable and open for development, which makes investing now before prices rise even further attractive.

At Commercial Industrial Properties (CIP Texas) , we specialize in helping investors and businesses find the right opportunities in Austin’s dynamic real estate market. Whether you’re looking for a modern office space, a prime retail location, or an industrial facility to support your operations, East Austin offers endless potential. Contact us today to learn more about available properties and how we can help you take advantage of this exciting market shift.

Writing Contributor:

Bob Springer , SIOR, CCIM

Understanding Gross Leasable Area (GLA) in Commercial Real Estate: A Guide for Investors

Fri, 31 Jan 2025 16:40:51 GMT

Quick Summary Before You Read.....

Question: What is Gross Leasable Area (GLA) and why is it important in commercial real estate?

Answer: Gross Leasable Area (GLA) refers to the total floor space within a commercial property that is designated for tenant occupancy and exclusive use. This metric is crucial for determining rental rates, property valuation, and space planning. GLA includes all usable spaces rented by tenants but excludes common or shared areas such as hallways, lobbies, and mechanical rooms. Understanding GLA helps landlords and tenants negotiate fair lease terms and assess the financial feasibility of a property.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Gross Leasable Area

When it comes to commercial real estate, Gross Leasable Area (GLA) is a term that investors, developers, and tenants encounter frequently. Understanding GLA helps with evaluating property value, setting lease terms, and forecasting investment returns. At CIP Texas , we specialize in helping clients navigate these details, ensuring their investments align with their goals.

What is Gross Leasable Area (GLA)?

Gross Leasable Area refers to the total floor space within a commercial property that is designated for tenant occupancy and exclusive use. This metric plays an important role in leasing agreements , rental rates, property valuation, and space optimization. GLA encompasses all usable spaces rented by tenants but excludes common or shared areas that serve multiple occupants.

For example:

Retail Properties : GLA typically encompasses the store's sales floor, stockrooms, and private offices.
Office Buildings : It includes the tenant’s office suites and any associated storage or private meeting spaces.
Industrial Spaces: Consists of manufacturing areas , distribution zones, loading docks (if leased exclusively), and administrative offices within the facility.
Shopping Centers: For multi-tenant retail properties like strip malls and shopping centers, GLA includes the leased storefronts and any designated backroom or storage space within the unit .

What GLA Does NOT Include:

Common hallways and lobbies
Shared restrooms and stairwells
Mechanical and utility rooms
Elevator shafts and emergency exits

Gross Area vs Net Area

Understanding the differences between gross area and net area is important when evaluating a commercial property.

Gross Area:

This refers to the total square footage of a building, including all enclosed spaces such as walls, common areas, mechanical rooms, and service areas. It is often used for calculating construction costs and property assessments.

Net Area:

This is the portion of the building that is actually usable by tenants, excluding structural elements, corridors, and common facilities. Net area is typically smaller than the gross area, and it provides a clearer picture of the functional space available for occupancy.

For leasing and investment decisions, GLA sits between gross area and net area , as it represents all rentable space while excluding non-usable areas. This distinction helps landlords and tenants understand what portion of the property is generating income versus what is dedicated to building functionality.

Why is GLA Important?

GLA plays a role in several aspects of commercial real estate, including:

GLA vs. Other Measurements

GLA is often confused with other measurements like Gross Floor Area (GFA) and Net Leasable Area (NLA) . Here’s how they differ:

Gross Floor Area (GFA) : Includes all enclosed areas within a building, including shared spaces and mechanical rooms.
Net Leasable Area (NLA) : Similar to GLA but can vary depending on regional definitions and lease agreements.

For investors in Texas, where commercial properties range from sprawling retail centers to mixed-use developments, understanding these distinctions ensures accurate financial planning.

Calculating Gross Leasable Area

Gross Leasable Area is determined by measuring the total usable floor space within a commercial property that a tenant occupies and controls. This includes all areas exclusively leased to the tenant but excludes shared common areas.

Step-by-Step Calculation of GLA:

Measure the Tenant’s Space
Start by measuring the internal dimensions of the tenant’s leased space (length × width).
Include all usable spaces such as retail/showroom areas, office spaces, storage rooms, and private restrooms (if exclusive to the tenant).
Exclude walls shared with common areas, hallways, and other tenants.
Exclude Common Areas
Do NOT include lobbies, shared hallways, stairwells, elevators, mechanical rooms, or restrooms used by multiple tenants.
Only include spaces under the tenant’s exclusive control .
Sum Up the Individual Spaces
If a tenant leases multiple floors or sections within a property, add up the square footage of all leased spaces.

Formula for GLA:

GLA=∑(Length×Width) of all tenant-controlled spaces

Example Calculation:

A retail store in a shopping center leases:

Sales floor: 2,000 sq. ft.
Stockroom: 500 sq. ft.
Private office: 200 sq. ft.

GLA = 2,000 + 500 + 200 = 2,700 sq. ft.

However, the common hallway outside the store leading to public restrooms is not included in the GLA.

By accurately calculating GLA, landlords and tenants can determine rental costs, space efficiency, and lease agreements with clarity.

GLA in Different Property Types

Retail Properties

In retail settings, such as shopping malls and strip centers, GLA directly impacts tenant placement and foot traffic. Anchor tenants like grocery stores often lease larger spaces, while smaller retailers occupy less GLA but benefit from shared customer flow.

Office Buildings

For office properties, GLA affects how tenants utilize the space. Businesses with open-plan offices may need more GLA to accommodate desks, meeting rooms, and collaboration zones.

Industrial and Warehouse Spaces

GLA in industrial properties includes storage, production, and distribution areas. Tenants prioritize ceiling height and accessibility in addition to floor area.

Maximizing GLA Value for Landlords and Tenants

For Landlords:

Optimize Space : Design properties to maximize usable space while minimizing wasted areas.
Competitive Pricing : Research market rates to price your property’s GLA competitively.
Flexible Layouts : Offer customizable spaces to attract a diverse range of tenants.

For Tenants:

Assess Needs : Determine how much GLA your business requires to operate efficiently.
Review Lease Terms : Understand what’s included in the GLA calculation to avoid unexpected costs.
Plan for Growth : Choose properties with the flexibility to expand as your business grows.

Partner with CIP Texas

Whether you’re an investor seeking high-performing properties or a business owner looking for the perfect space, understanding Gross Leasable Area is essential. At CIP Texas , we’re committed to providing expert insights and personalized solutions to help you succeed in the Texas real estate market.

Contact us today to learn more about how we can assist with your commercial property needs. Visit our website at www.ciptexas.com or call us at 512-682-1000 . Let’s build your success, square foot by square foot.

Writing Contributor:

Bob Springer , SIOR, CCIM

AG/WILDLIFE EXEMPTIONS AND ROLLBACK TAXES

Thu, 16 Jan 2025 15:24:52 GMT

AG/WILDLIFE EXEMPTIONS AND ROLLBACK TAXES

When buying a tract of land, there are many considerations that go in to deciding which site is right for you. Whether it be zoning, availability of utilities, impervious cover, trees, floodplain. All play an important role in the developability of a tract of land.

Just as important is understanding if any tax exemptions exist on the property. The most common exemption for commercial land in Austin is the Agricultural Exemption (“Ag”). The term “Ag” is often used interchangeably for two types of exemptions:

Agricultural and Wildlife Management.

Agricultural Uses – the primary use of the land may include:

producing crops
raising or keeping livestock, poultry, or fish
baling hay,
bee keeping
timber production

Wildlife Management – managing the habitat to benefit a native or migratory species of wildlife, such as:

Feed deer
Create habitat for birds
Trap predatory species

If you qualify to have an Ag exemption, your property’s value for tax calculations can be significantly reduced, sometimes as low as 0.1% of the market value. That can have a drastic impact on the annual property taxes, turning a $100,000 tax liability into a $100 burden.

While that can be a very attractive part of holding land as an investment or while you entitle the site for development, upon the change of use, a rollback tax will be triggered. The rollback tax calculation is based on the difference between the Market Value and the reduced Ag Assessed Value of the land, plus a 5% penalty per year for the last three years. Here is an example:

Market Value $1,000,000 The amount the County Appraisal District sets as full value

Ag Assessed Value $1,000 The amount you are paying taxes on (ex: $1,000,000 x 0.1%)

Deferred Tax Value $999,000 The amount you are not paying taxes on while in Ag

Tax Rate 2.5% The tax rate based on the jurisdiction the property is located

To calculate the amount you will pay in rollback taxes for each year:

Step 1: Multiply the $999,000 of Deferred Tax Value by the 2.5% tax rate
Step 2: Multiply the product of Step 1 by the penalty rate (5% for 1st year, 10% for 2nd year, and 15% for the 3rd year)
Step 3: Add the total in Step 1 and Step 2
Step 4: Repeat for other two years
Step 5: Add the total for each year to find the amount of rollback taxes due

Example:
2020 $999,000 x 2.50% = $24,975; $24,975 x 5.00% = $1,248.75; $24,975 + $1,248.75 = $26,193.75
2019 $999,000 x 2.50% = $24,975; $24,975 x 10.00% = $2,497.50; $24,975 + $2,497.50 = $27,472.50
2018 $999,000 x 2.50% = $24,975; $24,975 x 15.00% = $3,746.25; $24,975 + $3,746.25 = $28,721.25
$82,387.50

In this simple example, where property values stayed stagnant for three years, upon the change of use, a rollback tax of $82,387.50 would be triggered.

While lower taxes will never be argued in Texas, do not overlook the potential rollback burden that you may face. Large commercial tracts can easily have a rollback tax liability of hundreds of thousands of dollars, which will impact any project’s success.

Just as every part of a transaction is negotiable, who pays rollbacks is as well. By default, it is generally the party that changes the use, therefore the Buyer post-closing. There are many considerations on how to negotiate the rollback taxes, so consult with your broker. If CIP can be of assistance in your search, call 512-682-1000, or email Josh Hubka, CCIM at josh@cipaustin.com .

Want to learn more about other topics? Check out our Education Hub .

Writing Contributor:

Josh Hubka, CCIM

Commercial Real Estate Investment Strategies: What You Need to Know

Wed, 15 Jan 2025 16:54:14 GMT

Quick Summary Before You Read.....

Question: What are the most effective commercial real estate investment strategies, and why is Texas an ideal market for them?

Answer: Texas offers a dynamic landscape for commercial real estate investors, with strategies ranging from stable, long-term holds to high-risk, high-reward ventures.The most effective approaches include:

Buy-and-Hold: Ideal for investors seeking steady rental income and long-term appreciation.
Value-Add: Focuses on acquiring underperforming properties, making improvements, and increasing value.
Core Investments: Targets high-quality properties in prime locations with reliable tenants for predictable income.
Opportunistic Investments: Involves higher risk projects like redevelopments or distressed properties with potential for significant returns.
REIT Investing: Allows for investment in real estate portfolios without direct property ownership.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Commercial Real Estate Investment Strategies

Let’s face it—commercial real estate can be intimidating if you’re just getting started. But with the right plan, it can also be one of the smartest investments you’ll ever make. Whether you’re aiming for steady cash flow, long-term appreciation, or a mix of both, having a clear strategy is key.

At CIP Texas , we’ve worked with all kinds of investors, from first-timers to seasoned pros. One thing we know for sure? Success in commercial real estate starts with understanding your options and choosing the right approach for your goals.

Let’s break down the most effective commercial real estate investment strategies and why Texas is such a great place to put them into action.

What Is a Commercial Real Estate Investment Strategy?

Think of an investment strategy as your game plan. It’s how you figure out what kind of property to buy, how to manage it, and how you’re going to make money from it.

Not every property—or strategy—is the same. Some investors love the idea of steady rental income, while others thrive on flipping properties or tackling big redevelopment projects.

Before we dive into strategies, here’s a quick reminder of the types of commercial properties out there:

Office Buildings : Perfect for long-term leases with businesses.
Retail Spaces : Think shopping centers, strip malls, or stand-alone stores.
Industrial Properties : Warehouses, logistics hubs, and manufacturing facilities.
Multifamily Properties : Apartment complexes that bring in rental income from multiple tenants.
Mixed-Use Developments : A blend of residential, office, and retail spaces.

The Most Popular Commercial Real Estate Investing Strategies

1. The Buy-and-Hold Strategy

This is probably the easiest and most common strategy out there. You buy a property, rent it out, and hold onto it for years. The goal? Steady income now and property appreciation over time.

Why It’s a Favorite:

Rental income is reliable.
Properties tend to go up in value over the long term.
Tax perks like depreciation help offset costs.

Who It’s For:

Anyone who’s in it for the long haul and likes steady returns with minimal risk. For example, buying a fully leased office building in Austin is a great way to start.

2. The Value-Add Strategy

If you’re someone who loves spotting diamonds in the rough, this strategy is for you. The idea is simple: find a property that isn’t performing as well as it could, improve it, and increase its value.

How It Works:

Buy a property that’s underperforming (low rents, outdated, poorly managed).
Make upgrades like renovations or better tenant management.
Adjust rents or attract higher-paying tenants to boost cash flow.

Why It’s Exciting:

You’re actively improving the property, which means your returns can be much higher than with a buy-and-hold approach. Imagine picking up an older warehouse in Houston, fixing it up, and attracting top-tier tenants.

3. Core Investments

This one’s for investors who want stability and low risk. Core investments are high-quality properties in prime locations, fully leased to reliable tenants.

What You Get:

Predictable income streams.
Minimal management headaches.
Long-term appreciation.

For instance, owning a Class A office space in downtown Dallas might not give you sky-high returns, but it will bring consistent income year after year.

4. Opportunistic Investments

This is where things get interesting—and risky. Opportunistic investing involves taking on properties or projects that need major work, whether it’s a complete redevelopment or a distressed property turnaround.

Why It’s Worth It:

The potential returns are huge.
You can get creative with how you transform a property.
It’s a chance to make a big impact on a property—and your portfolio.

Of course, the risk is higher too. These types of deals often require significant capital, market knowledge, and patience.

5. REIT Investing

Don’t want to deal with buying and managing properties yourself? Real Estate Investment Trusts (REITs) let you invest in commercial real estate without actually owning a building.

Why It’s Popular:

You can start with a smaller investment.
Shares are easy to buy or sell.
It’s a hands-off way to diversify your portfolio.

REITs are a great option if you’re looking for exposure to commercial real estate but don’t want the responsibility of being a landlord.

How to Craft Your Investment Strategy

Not sure where to start? Here are a few tips:

Do Your Homework: Understand the market, property values, and demand. In Texas, cities like Austin, Houston, and Dallas are hot markets with plenty of opportunities.

Work with Experts: The right team can make all the difference. At CIP Texas , we specialize in helping investors find the best opportunities in the Texas market.

Diversify: Spread your investments across different property types and locations. This reduces risk and ensures consistent returns.

Think Long-Term: The best returns often come with time. Whether you’re looking for cash flow, appreciation, or both, patience is key.

Why Texas Is a Commercial Real Estate Goldmine

There’s no denying it—Texas is one of the best places in the country for commercial real estate investing . Between its growing economy, business-friendly policies, and rapid population growth, the opportunities here are endless.

Cities like Houston are booming with industrial developments , Austin continues to thrive as a tech hub , and Dallas offers a mix of office, retail, and multifamily projects. No matter your strategy, Texas has a market that fits.

Let’s Build Your Strategy

Commercial real estate investing doesn’t have to be complicated, especially when you have the right team by your side. At CIP Texas , we’ve helped investors like you find properties, develop strategies, and achieve long-term success.

Whether you’re just starting out or looking to grow your portfolio, we’re here to help. Let’s create a strategy that works for you. Contact us today to get started!

A QUICK GUIDE TO NAVIGATING OFFICE SPACE FOR RENT IN HOUSTON

Thu, 09 Jan 2025 17:01:13 GMT

If you’re looking for office space for rent in Houston, there are many factors to consider. From vacancy rates to convenient locations, these are only some commercial property features to consider before signing a lease. Below is a quick guide to Houston office rentals, the current market landscape, and how to find the best space for your business.

A BRIEF OVERVIEW OF HOUSTON COMMERCIAL REAL ESTATE (CRE)

Recent CRE trends show the Houston office rental market is starting to stabilize, with landlords developing new strategies to attract and retain tenants. While remote work culture has significantly increased vacancy rates for office space for rent in Houston, recent reports show there are still potential opportunities from this market shift.

Cost Analysis and Market Comparisons

Office culture is now adapting and showing more promise in a post-pandemic landscape. New product-built offices are only 12.2% vacant compared to older office buildings constructed 20 to 50 years ago at nearly 79% vacant.

These trends for higher quality and renovated office rentals still show demand from commercial tenants. According to Avison Young, trophy and class A assets are currently outperforming vintage office buildings by 83% of leasing activity. Their report shows the average cost of rent for Houston offices ranges from $16.64 to $42.38 per square foot, depending on location.

Additional findings compared Houston to other major office submarkets in Texas, with Austin having the highest rental rates at nearly $50 per square foot. Dallas had the most inventory at 229 million square feet of office space available. El Paso also had the lowest office vacancy rate at 10%, while Houston was 23%.

With Houston’s less competitive office market, landlord financial incentives, and stabilizing trends, this city shows more value and opportunities for tenants than other Texas metros.

Key Districts for Office Space for Rent in Houston

Did you know that Houston is the fourth largest city in the nation? As a major U.S. metro, it’s crucial you know which key districts in Houston show the most promise for office rentals.

Current office market insights for Houston neighborhoods include:

West Houston: Engineering and engineering sectors remain the highest in signed office leases.
Montgomery County: This area has the most retail rental spaces and developments, along with Far Katy North and Far South.
Central Business District: This district has the largest office submarkets, including Suburban, Energy Corridor, and Galleria/Uptown.

Tenants should also understand the type of amenities and business environment to look for in each property to make better-informed decisions. Consider your needs, such as open desks or cubicles, location, strong internet connection, storage space requirements, and valued aesthetics for client meetings.

Knowing which property features you want to prioritize helps ensure the office is equipped to support your daily operations.

Lease Negotiation Tips and Strategies

Now more than ever, tenants can negotiate favorable lease terms as commercial landlords are looking to prevent long-term vacancies. Avison Young reported that in Q4 2023, tenant improvement (TI) allowances and average free rent reached a record high for class-A properties in Houston—up to $65 per square foot and 14 months rent-free!

Commercial landlords are creating incentives for tenants to resolve the high office vacancies with competitive concession packages, general rental abatement, and TI allowances. These incentives lowered net effective rents as a result to become more appealing to tenants.

Consider the following lease negotiation tips to save on office rental costs:

Consider Longer Lease Terms: Discuss with the landlord if they’re willing to lower base rent or increase TI if you sign for a longer term. They may be flexible to reduce vacancies.
Negotiate for Larger Escalations at the End of Lease Terms: If you’re relocating offices, you may benefit from lower base rent at the beginning of your lease terms and higher escalations toward the end to reduce upfront costs.
Hire a CRE Broker: Tenants should always use commercial brokers because they have stronger negotiation power to back up favorable terms with market insights and expertise. They may also discover unfavorable lease terms in complicated agreements you may not have realized.

When you understand what landlords look for in potential office tenants, you can maximize your negotiation opportunities for the best deal possible.

Houston CRE Success Stories from Business Owners

While it may seem daunting for business owners to find an office space for rent in Houston in today’s market, there have been numerous success stories. Houston business sectors still benefited from office rentals, contributing to their business growth. They reduced office vacancies by 25% by accommodating hybrid work schedules and offering better amenities.

These property features included relocating buildings where it’s more accessible for public transportation, offering four-day work weeks, and designing modern collaborative workspaces that influenced staff to return to the office.

According to the Houston Chronicle, companies with the highest lease transactions included oil and gas company EOG Resources, which renewed nearly 370,000 square feet in downtown Heritage Plaza. Additionally, Perry Homes leased 77,200 square feet in a larger and newer office for Houston-based homebuilder’s employees.

As a commercial tenant, it’s important to understand the office market landscape in Houston to ensure you find the best property possible for your business.

Breaking Down Capitalization Rate in Real Estate: What Austin Investors Need to Know

Tue, 17 Dec 2024 16:50:57 GMT

Quick Summary Before You Read.....

Question: What is a capitalization rate and why does it matter in Texas real estate?

Answer: A cap rate measures a property's return based on income vs. value. In Texas markets like Austin, it helps investors compare deals, assess risk, and understand market trends. Lower cap rates mean lower risk and steady returns; higher rates often mean higher risk but more reward.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Capitalization Rate in Real Estate

If you’re diving into commercial real estate investment, you’ve probably heard about capitalization rates , or cap rates for short. This simple formula is one of the most useful tools for evaluating a property’s performance and comparing different opportunities.

As an Austin-based brokerage specializing in commercial, industrial, retail, and land properties , we work with investors every day to help them make sense of cap rates and what they mean for their portfolios. So, let’s break it down in a straightforward, no-nonsense way.

What’s a Cap Rate, Anyway?

Think of the capitalization rate as a quick way to gauge a property’s return on investment (ROI). It’s the percentage you’d earn annually if you paid cash for the property.

The formula is pretty simple:

Net Operating Income (NOI) : How much money the property makes after expenses like maintenance and management are deducted.

Property Value: What the property is worth or the price you paid for it.

For example, if a property generates $100,000 in NOI and costs $1,000,000, the cap rate is 10%.

Why Cap Rates Matter in Austin Real Estate

How Capitalization Rates Vary by Property Type

Different types of properties in Austin come with different rates. Here’s a snapshot:

Commercial Office Spaces:
Downtown Austin: Lower cap rates (4–6%) because of the high demand.
Suburban offices: Slightly higher (6–8%) but still solid investments.

Industrial Properties:
Austin’s logistics and warehouse spaces are hot right now, with cap rates between 5–7% .

Retail Spaces:
Retail properties in growing neighborhoods usually fall in the 6–8% range. Prime locations, like near major tech campuses, tend to be on the lower end.

Land Investments:
Land can have higher cap rates ( 7–10% ) since there’s more risk and longer development timelines involved.

What Affects Cap Rates?

Capitalization rates in real estate aren’t just about math—they’re influenced by a lot of factors, like:

Using Rates the Smart Way

Here’s the deal: Cap rates are helpful, but they’re not the whole story . We always tell our clients to use them as part of a bigger picture.

Here's how:

Compare Like Properties: Look at similar properties in similar locations.
Study the Trends: Is the neighborhood growing? Are cap rates shifting?
Think Long-Term: Lower rates often mean the property is more stable and likely to appreciate over time

Austin vs. Other Texas Cities

Austin’s cap rates are generally lower compared to other Texas cities, which reflects the high demand here. For example:

Dallas-Fort Worth : Higher cap rates because of a bigger and more spread-out market.

San Antonio : Offers higher cap rates for industrial and retail properties—less competitive than Austin.

Houston : More volatile cap rates tied to the ups and downs of the energy industry.

How We Help Investors Make Sense of Cap Rates

The Bottom Line on Capitalization Rates in Real Estate

Cap rates are one of the most important tools in real estate investing, especially in a booming market like Austin. They help you figure out the balance between risk and reward, so you can make smarter decisions.

If you’re ready to explore commercial real estate in Austin—or just want to learn more—our team is here to help. Let’s find the investment that’s right for you.

Want to dive deeper? Contact us today , and we’ll guide you through the ins and outs of Austin’s real estate market.

Purchasing Commercial Property in Texas: 10 Must-Know Tips for Smart Investments

Thu, 21 Nov 2024 15:53:11 GMT

Quick Summary Before You Read.....

Question: What should investors know before purchasing commercial property in Texas?

Answer: Buying commercial real estate in Texas involves smart planning and due diligence. Key factors include market research, zoning laws, financing, inspections, and understanding local economic trends. With the right strategy and expert support, Texas offers strong investment opportunities.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Purchasing Commercial Property

Buying commercial real estate in Texas can be exciting, but let’s be real—it can also feel overwhelming. With so many opportunities in this fast-growing state, there are a lot of factors to think about before making your move. Whether you’re new to the game or have experience in the market, a strategic approach is key. Here’s a breakdown of what you need to know to make a smart investment in the Lone Star State.

1. Know the Market Before You Dive In

Texas is booming, no question about it. Cities like Austin, Dallas-Fort Worth, Houston, and San Antonio are hot spots for commercial real estate, but don’t overlook smaller cities and rural areas—they often come with hidden gems. The big drivers here are:

Population Growth : Texas keeps growing, and more people means more businesses. That’s a win for commercial property owners.

Industry Hotspots : The state is home to industries like tech, oil and gas, healthcare, and logistics. Knowing which industries thrive in your area can help you zero in on the best investment opportunities.

Take some time to dig into market trends and talk to local real estate pros who can clue you in on which areas are up-and-coming.

2. Location, Location, Location—And Zoning

Doing your homework here can save you a ton of headaches later.

3. Don’t Sleep on Financing Options and Perks

Purchasing commercial property isn’t like buying a house—it’s a whole different ballgame when it comes to financing. The good news? Texas is all about supporting businesses, and there are plenty of options to explore:

Local Banks : Texas-based lenders often offer terms that reflect the local market.

Government Incentives : Programs like the Texas Enterprise Fund (TEF) or tax breaks in Opportunity Zones can give you a financial boost.

SBA Loans : Small Business Administration loans are a solid option if you qualify.

Work with a financial advisor who knows the Texas market to get the most bang for your buck.

4. Do Your Homework (a.k.a. Due Diligence)

Once you’ve found a commercial property you like, take a step back and really investigate. Here’s where you should focus:

Inspections : Hire someone to check the building from top to bottom—foundation, plumbing, roofing, all of it. Texas weather can be tough on buildings, so don’t skip this step.

Environmental Issues : Some properties, especially industrial ones, might come with hidden surprises like soil contamination. Get an environmental assessment done to avoid costly surprises.

Legal Stuff : Make sure the title is clean—no liens, no disputes. A good real estate attorney can help with this.

Taking your time here can save you from future headaches and unexpected costs.

5. Watch the Economy and Local Trends

6. Know Your Property Taxes and Insurance Costs

Texas has no state income tax, but property taxes can be steep. Make sure you’re factoring this into your budget.

Property Taxes : Rates vary depending on the county and city, so check before you buy.

Insurance : Depending on where the property is, you might need extra coverage for risks like flooding or hurricanes, especially in coastal areas. Don’t skimp—insurance is your safety net.

7. Keep an Eye on Infrastructure Projects

Texas is always building something new—highways, airports, you name it. These projects can boost property values, so stay in the loop:

Future Growth : Look at where roads or public transit are expanding. Areas with planned developments often become hot markets.

Special Tax Zones : Be aware that some areas might have higher taxes to fund infrastructure improvements. It’s usually worth it in the long run, but it’s good to know upfront.

8. Don’t Forget Environmental Factors

9. Work With People Who Know Their Stuff

This isn’t something you should go at alone. A good team of local experts can make all the difference:

Real Estate Agents : Texas is massive, and each market has its own quirks. A local agent can guide you to the right areas and help you avoid overpaying.

Attorneys and Accountants : From zoning laws to taxes, Texas has plenty of regulations to navigate. Professional advice is worth the cost.

10. Have a Game Plan

What’s your goal? Are you looking for rental income, a property to flip, or something to hold onto long-term? Knowing this upfront will shape your entire strategy:

Buy-and-Hold : Focus on areas with steady growth and good tenant demand.

Fix-and-Flip : Look for properties with value-add potential, but don’t underestimate renovation costs.

Development : If you’re starting from scratch, make sure there’s demand for what you’re building.

Also, think about your exit strategy—whether that’s selling, leasing, or something else—before you buy.

Wrapping It Up

Purchasing commercial property in Texas can be a game-changer for your portfolio, but it’s all about making smart, informed decisions. Take the time to do your homework, surround yourself with the right team, and avoid rushing into deals. With the right approach, you’ll find a property that not only meets your needs but sets you up for long-term success.

At CIP Texas , we specialize in helping investors navigate the complexities of the Texas market. Whether you’re looking for guidance, expert advice, or a partner to help you find the perfect property, we’re here to make the process easier. Texas is full of opportunities—let CIP Texas help you find the one that’s right for you !

Asset Management in Commercial Real Estate: Key Considerations for Maximizing Profitability

Fri, 08 Nov 2024 17:35:04 GMT

Quick Summary Before You Read.....

Question: How does effective asset management enhance profitability in commercial real estate (CRE)?

Answer: Effective asset management in CRE is pivotal for maximizing profitability.It involves strategic oversight of property operations, financial planning, and market analysis to ensure properties are maintained efficiently, tenant satisfaction is high, and investments are aligned with market trends. By focusing on these areas, asset managers can increase property value, reduce vacancies, and improve overall return on investment.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Asset Management CRE

If you’re in commercial real estate (CRE), you know that managing assets well is key to building lasting value. At Commercial Industrial Properties (CIP), we look at asset management as much more than simply overseeing properties. It’s about building value over time by ensuring every decision—whether related to daily operations or long-term improvements—aligns with your investment goals.

Let’s walk through the basics of asset management in CRE, explore why it matters, and dive into how our approach at CIP can help investors like you maximize returns and minimize risks.

Why Asset Management Matters in CRE

For anyone with CRE holdings, asset management is like having a strategic playbook . It’s about keeping properties in top shape, making smart financial moves, and staying ahead of market changes. Effective asset management CRE helps you:

Keep Operations Efficient – Managing daily operations and maintenance efficiently means lower costs and higher tenant satisfaction.

Maximize Revenue Potential – The goal is to keep occupancy high and rents competitive so your properties generate as much income as possible.

Grow Property Value – By investing in smart upgrades and staying responsive to market trends, you’re not only maintaining value but actively increasing it.

TX Office Market

CIP approaches commercial real estate asset management with all of this in mind, and we believe each property can reach its full potential with the right strategy.

Key Elements of CIP’s CRE Asset Management Approach

2. Planning for the Unexpected

Every property investment comes with some risk, whether it’s tenant turnover, market shifts, or unexpected repairs. At CIP, our asset management approach includes evaluating these risks and creating strategies to manage them. We emphasize preventive maintenance and financial planning to reduce surprises. When something unexpected does come up, we’re prepared, keeping both you and your tenants protected.

3. Focused Tenant Management

Retaining tenants is crucial to minimizing vacancies and keeping cash flow steady. For CIP, tenant management is a priority. We believe that good communication and prompt service build trust, and happy tenants are more likely to renew their leases. From responding to maintenance requests quickly to regularly checking in, we focus on creating a positive environment that encourages long-term relationships.

4. Value-Driven Property Improvements

Enhancing property value isn’t just about curb appeal; it’s about smart upgrades that pay off. We focus on improvements that make a difference, such as energy-efficient lighting, upgraded common areas, and tech-friendly features. These upgrades often reduce operating costs and attract tenants, making your properties more competitive and appealing.

Investment Trends:

5. Balancing Your Portfolio

For investors with multiple properties, having a balanced, cohesive portfolio strategy is essential. CIP looks at each property not only individually but also as part of a larger investment strategy. This allows us to suggest moves like acquisitions, sales, or repositioning assets to make sure your portfolio is working efficiently toward your financial goals.

Why Texas Property Owners Choose CIP for Asset Management

Final Thoughts

Asset management in CRE is a long game, but with CIP on your team, you have experts who understand the big picture. We’re committed to helping you build a strong, resilient portfolio that thrives over time.

If you’re ready to hand off the headaches and have a team dedicated to getting the best results for your property, CIP is here for you. Get in touch today, and let’s talk about how we can make a difference for your investment.

Requirements for Leasing a Commercial Space: What Every Business Owner Needs to Know

Fri, 25 Oct 2024 17:56:08 GMT

Quick Summary Before You Read.....

Question: What are the essential requirements for leasing a commercial space in Texas that every business owner should know?

Answer: Leasing a commercial space in Texas involves several critical considerations:

Location Fit: Determine whether your business thrives better in a bustling downtown area or a quieter suburban setting.
Financial Preparedness: Landlords will assess your creditworthiness, profit and loss statements, and business formation documents to ensure financial stability.
Lease Terms Understanding: Texas commercial leases are highly negotiable. It's vital to comprehend responsibilities, maintenance obligations, and potential rent escalation clauses.
Upfront Costs: Be prepared for security deposits, first and last month's rent, and possible renovation or build-out expenses.
Zoning Compliance: Ensure the property is zoned appropriately for your intended business use to avoid legal complications.
Negotiation Flexibility: Negotiate terms that allow for future growth, such as renewal options or expansion clauses.
Legal Review: Having a real estate attorney review the lease can help avoid misunderstandings and protect your interests.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Requirements for Leasing a Commercial Space

Leasing a commercial space can feel a bit like starting a relationship. There’s the initial excitement, followed by a deep dive into whether it’s the right fit, and finally, navigating the long-term commitment. Much like that easy-going friend who always has your back, a great commercial space can be a game changer for your business. But, like any solid partnership, it comes with its own set of rules and requirements. So, is your potential lease a simple arrangement, or is there more under the surface? Let’s find out…

The Space: Your Business’s New Best Friend

Finances: The Trust Factor

Every strong relationship is built on trust, and leasing a commercial space is no different. To win over your future landlord, you need to show them you're financially solid. They’ll likely want to see your business’s credit score and review your financial statements, like how you might check a friend’s reliability before lending them your favorite book.

Your creditworthiness, profit and loss statements, and even your business’s formation documents help establish that trust. Landlords want to know you’re in it for the long haul and can meet the financial demands that come with running a business. So think of it as showing your true colors—honesty and transparency are your best allies here.

Lease Terms: Defining the Relationship

Now that you’ve found your match, it’s time to define the relationship. A commercial lease is more than just a piece of paper—it’s an agreement that outlines the expectations of both parties. Just like you wouldn’t enter into a friendship without understanding the boundaries, you shouldn't sign a lease without fully grasping the terms.

What are your responsibilities versus your landlord’s? Will you be responsible for keeping the space spick-and-span, or does that fall under the landlord’s care? What about repairs and upgrades—who foots the bill if something breaks down? These are the kinds of details that make or break the relationship between you and your space.

In Texas, there is no "standard" lease for commercial properties. Lease terms are generally negotiated between the landlord and the tenant, which allows for a lot of flexibility. Both parties are free to create agreements that suit their needs, but this also means careful review is crucial before signing.

Rent Increases and Escalation Clauses

Upfront Costs: The Price of Admission

Leasing a space is a bit like prepping for a big night out—you’ve got to budget for more than just the main event. Sure, the monthly rent is the headliner, but let’s not forget the supporting acts. First up: the security deposit. Think of it as the cover charge, a little extra upfront to reassure the landlord that you’ll treat their space with care. Depending on the terms, you might also be asked to pay the first and last month’s rent—kind of like prepaying for that Uber ride home before the party even starts.

But what if the space you’re leasing doesn’t quite fit your vibe from the get-go? Much like tailoring an outfit for that perfect fit, there may be renovation or build-out costs to factor in. Whether you need to knock down a wall, add some custom features, or simply give the place a fresh coat of paint, these are the investments that help make the space truly yours. It's all part of making sure the relationship with your new space kicks off on the right foot—comfortable, functional, and perfectly suited to your business style.

Improvements and Build-Outs

Zoning Laws: Staying Within the Lines

Negotiation: Finding the Balance

Every relationship requires a little give-and-take, and negotiating a lease is no different. At CIP Texas, we believe in making sure you get a deal that works for your business. A commercial lease can be as flexible or as rigid as you make it—whether you're discussing rent increases over time, who handles property maintenance, or your right to renew the lease at the end of the term, it's all part of finding that perfect balance.

Think of it like sitting down with a good friend to hash things out—you want to walk away with both sides feeling good about the agreement. So take your time and don’t be afraid to ask for terms that will set your business up for success.

Renewal and Option Terms

Legal Review: Avoiding Misunderstandings

Before signing anything, it’s always a good idea to have a third party—like a lawyer—take a look. Just as you wouldn’t jump into a partnership without some careful thought, you shouldn't enter into a lease without knowing exactly what you’re agreeing to. A quick review can help avoid any legal misunderstandings down the road, ensuring that both you and your space are on the same page from day one.

Permitted Use Clause

Planning for the Future: Growing Together

Just like a long-lasting friendship, you want a lease that allows room for growth. Whether that means renewing your lease under favorable conditions or expanding into an adjacent space, it’s important to think about the long term. Does the lease offer flexibility if your business grows? Can you move to a bigger space in the same building or add on square footage as needed?

A good commercial lease can grow with your business, offering the support you need as your company evolves. At CIP, we work with clients to ensure they have the flexibility to scale up when the time comes.

Final Thoughts: More Than Just a Lease

Leasing a commercial space isn’t just a transaction—it’s the start of a meaningful relationship between your business and its new home. Much like a friend who helps you through thick and thin, the right space can be a steadfast partner, helping your business thrive.

At CIP, we’re here to guide you through the process, ensuring you find the perfect space and lease terms that align with your business goals. So, whether you’re a growing startup or an established business looking for a new headquarters, let us help you find the space that will be your business’s new best friend.

Buying Land in Texas: A Complete Guide for Investors, Buyers, and Developers

Fri, 20 Sep 2024 14:39:08 GMT

Quick Summary Before You Read.....

Question: What makes buying land in Texas a smart move for investors and developers?

Answer: Texas offers a compelling mix of rapid population growth, a business-friendly environment, and a strong, diversified economy—all of which drive demand for land across commercial, industrial, and residential sectors. However, success hinges on understanding key factors like zoning laws, infrastructure access, and location-specific challenges. Whether you're eyeing a metro-area parcel or rural acreage, strategic planning is essential to maximize returns.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Buying Land in Texas...

Buying land in Texas? Now that's a power move. Whether you're looking to kick off a commercial project or expand into industrial ventures, Texas is like the ultimate blank canvas. With its vast size, booming economy, and a population that's only getting bigger, the Lone Star State offers some of the hottest land opportunities around. But before you start picturing wide-open spaces and big possibilities, know that buying land here takes a bit of savvy. You’ll need to plan ahead, understand the market, and know exactly what you’re getting into. It’s a big deal—and it can pay off in even bigger ways.

In this guide, we will explore why buying land in Texas is an excellent choice and break down the steps involved in the buying process, while highlighting the critical factors to consider along the way.

Why Texas? The Benefits of Buying Land in the Lone Star State

Texas land isn’t just dirt. It’s opportunity—big, bold, and as varied as the landscape itself. Here's why you should consider adding a plot of Texas to your portfolio:

Growth is Everywhere

Picture this: Texas cities are booming. Think Austin’s tech scene, Houston’s energy hub, and Dallas’ unstoppable commercial growth. The Lone Star State is expanding faster than your to-do list, and that means one thing: land values are climbing. Whether you're looking for a piece of the action in these buzzing metros or prefer the quiet charm of rural Texas, there’s something for everyone—and you’re buying into a state that shows no signs of slowing down .

Business-Friendly Environment

Texas isn’t just big on space; it’s big on business. With no state income tax and plenty of incentives for entrepreneurs, developers, and investors, Texas rolls out the welcome mat for business like few other places. Plus, let’s not forget property taxes are reasonable, making land investment a win-win.

Strong Economy

The Texas economy is diverse and resilient, making it an attractive place to invest. Industries like energy, healthcare, technology, and agriculture are booming, which drives demand for land for both commercial and residential development.

Strategic Location

Texas' central location provides easy access to national and international markets which makes it a great spot for industrial and logistics operations. Major cities are well connected by highways, railroads, and airports, facilitating a smooth transportation of goods.

Ready to Buy? Here’s What You Need to Know First

Before you throw on your cowboy boots and head to the Texas frontier, there are a few things you’ll want to keep in mind. Buying land in Texas might seem like a “just sign and it’s yours” deal, but trust us, there’s more to it than meets the eye.

1. Location, Location, Location

Everyone knows the golden rule of real estate, and it’s especially true here. Where you buy land in Texas can make or break your investment. Want to be close to a major city? Prices will be higher, but so will your potential returns. Looking for more land at a lower price? Rural Texas is your playground. But here’s the catch: rural might mean you’ll need to create your own roadways, utilities, and access points. So think carefully about how far off the grid you’re willing to go.

2. Zoning is Your Friend (and Sometimes Your Foe)

In Texas, zoning laws are king . They dictate what you can and can’t do with your new land. Residential? Commercial? Agricultural? Get cozy with the local zoning regulations, or better yet, let us help you navigate the legal landscape to make sure your big plans won’t hit a zoning brick wall.

3. Infrastructure : More Important Than You Think

You found the perfect plot of land with stunning views and endless potential, but wait—does it have water? Electricity? Roads? Land without utilities is like a car without wheels—looks great but doesn't get you anywhere. Do your homework (or let us do it for you) and make sure the basics are covered.

4. Environmental Concerns and Topography

Texas may be big, but it's not all wide-open plains and desert sunsets. The state is home to a wild mix of ecosystems, and with that comes a set of environmental rules you’ll need to keep in mind. If the land you’re eyeing happens to be near wetlands, rivers, or along the coast, you might run into a few extra hurdles. Think flood risks, wildlife protection, or other environmental safeguards that could impact how you use the land. So, before you break ground, it’s key to have an environmental assessment done to make sure everything checks out.

And then there’s the land itself. Not all dirt is created equal! While flat land might seem like the easiest option for building, hilly or rocky terrain could add some serious prep work (and costs) to your project. Whether it's leveling the ground or navigating tricky spots, the land’s topography plays a huge role in what you can and can’t do. But don’t worry—CIP is here to help make sure the land you choose is ready for whatever big plans you’ve got in mind.

5. Financing Your TX Land Purchase

Buying Texas land isn’t quite the same as snagging a ready-to-go building. When it comes to financing, lenders tend to play it a little differently. You’ll likely need to cough up a bigger down payment, and don’t be surprised if the interest rates are a bit higher—lenders see undeveloped land as a riskier bet. But here’s the deal: finding the right lender can make all the difference. You’ll want someone who knows the ins and outs of Texas land loans and isn’t afraid of a little dirt.

How To Buy Land in Texas: Step-by-Step

Buying land in Texas? It's not just about picking a plot and calling it a day. There’s a whole process involved, and making sure each step goes smoothly is key to getting the most out of your purchase. So, how do you go from browsing land listings to holding the keys (or shovel) to your new property? Let’s break it down:

1. Get Yourself a Pro

First things first—you’re going to want some expert backup. Partnering with a real estate agency like CIP is a game-changer. Our team knows Texas land like the back of their hand. We help you find the right property, nail down the best terms, and handle all the heavy lifting along the way. It’s like having a guide through the wild world of Texas real estate.

2. Do Your Homework (AKA Due Diligence)

This is where you roll up your sleeves and dig into the details. Due diligence means getting into the nitty-gritty of the property, making sure everything checks out. We’re talking:

Title searches (no hidden surprises, like someone else claiming your land).
Boundary surveys (to know exactly where your land begins and ends).
Environmental assessments (so you’re not breaking any laws).
Soil and drainage tests (especially if you plan to build).

Don’t worry, CIP’s got your back on all of this. We make sure every box is checked before you move forward.

3. Time to Talk Terms

Once you’ve found the perfect spot, it’s time to get down to business and negotiate. But it’s not just about price—you’ll also want to hammer out details like inspections, financing contingencies, and timelines for closing.

4. Lock Down the Money

Remember when we said financing land is a bit different? This is where that comes into play. Land loans usually mean higher down payments and varying terms depending on how you plan to use the property.

5. Seal the Deal

You’ve done the research, you’ve got the financing, and now it’s time to close. This is the final stretch where all the paperwork gets signed, and the land officially becomes yours. CIP makes sure everything goes off without a hitch, managing last-minute details and guiding you through the finish line.

And just like that, you’re the proud owner of Texas land—time to start planning what’s next!

Why Team Up with Commercial Industrial Properties?

So, why should you choose CIP? Simple: we’re more than just a real estate agency—we’re your go-to partner for making your Texas land dreams a reality. Whether you’re eyeing land for industrial development, a big commercial project, or as a long-term investment , our team is right there with you, making sure every detail is covered and every step is seamless.

We know the Texas market like no one else, and we’re all about helping you reach your goals, no matter how big or small. From scouting the perfect plot to closing the deal, we offer a full range of services that make the whole process smoother, easier, and way more exciting.

Ready to get started? Reach out to us today , and let’s turn your land-buying journey into a Texas-sized success story!

The Impact of Texas Infrastructure Projects on Commercial Real Estate

Thu, 22 Aug 2024 20:54:40 GMT

Quick Summary Before You Read.....

Question: How are Texas' infrastructure projects influencing the commercial real estate (CRE) landscape?

Answer: Texas' ambitious infrastructure initiatives—including major highway expansions and significant port upgrades—are reshaping the state's commercial real estate market. Enhancements to transportation networks like Interstates 35 and 45, along with developments at key ports such as Houston, Galveston, and Corpus Christi, are improving connectivity and accessibility. These improvements are driving up property values and spurring demand for industrial, retail, and logistics spaces, especially along transportation corridors and near upgraded facilities. For CRE investors and developers, these projects present substantial opportunities in emerging and rapidly developing markets across Texas.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

The Impact of Texas Infrastructure Projects on Commercial Real Estate

Infrastructure development plays a crucial role in driving economic growth and expanding cities, and Texas is a prime example of this. As one of the fastest-growing states in the U.S., Texas is leading the way with major infrastructure projects aimed at improving transportation, connectivity, and accessibility. From highway expansions to port upgrades, these initiatives are making a significant impact on the commercial real estate market across the state. In this blog, we'll get into how these infrastructure projects are affecting property values and creating new opportunities for investors and businesses in Texas.

The Role of Infrastructure in Commercial Real Estate

Infrastructure is a key factor in the growth of commercial real estate. Good transportation networks, like highways, ports and rail systems make areas more accessible, they cut down on transportation costs and they help attract businesses. For commercial real estate investors, infrastructure improvements often lead to higher property values, greater demand for space, and new opportunities in emerging markets.

In Texas – a state with a lot of land and a booming economy – infrastructure projects are especially important. As cities grow and new areas develop, strong infrastructure is needed to support that expansion. Whether it’s reducing traffic, improving the movement of goods, or connecting major economic hubs -- these projects are essential for driving commercial real estate development in Texas .

Major Texas Infrastructure Projects

Several important infrastructure projects in Texas are either in progress or have recently finished. These projects are changing the commercial real estate scene across the state, opening up new opportunities for both businesses and investors.

1. Highway Expansions

Texas has always been known for its highways. Texas highways connect its major cities and support its economy. The state's ongoing efforts to expand and improve these roads continue to play a big role in the growth of commercial real estate.

Interstate 35 Expansion : One of the most important highway projects in Texas is the expansion of Interstate 35 . This interstate runs from the Mexican border at Laredo through San Antonio, Austin and Dallas-Fort Worth. This particular highway is crucial for trade, both within the U.S. and internationally. Expanding I-35 is expected to ease traffic and improve the movement of goods, leading to higher demand and rising property values along the corridor.

Interstate 45 Expansion : Another key project is the expansion of Interstate 45 , which connects Houston and Dallas. This project is aimed at handling the growing population and economic activity between these two major cities. The improved connection between Houston and Dallas is likely to encourage commercial development along the I-45 corridor, especially in the logistics and distribution industries.

Highway 183 North Mobility Project : In Austin, the Highway 183 North Mobility Project is improving one of the city's main routes. This project is making the area more attractive for commercial real estate investment by reducing travel times and improving access to Austin's northern suburbs.

2. Port Developments

Texas is home to some of the busiest ports in the U.S., like the Port of Houston, the Port of Galveston, and the Port of Corpus Christi. These ports play an important role in the state's economy by moving goods across the country and around the world. As these ports continue to grow and improve, they’re set to make a big difference in the commercial real estate around them.

Port of Houston Expansion : The Port of Houston is getting a big upgrade to handle larger ships and more cargo. This is great news for the local economy, as it will likely lead to more demand for industrial and warehouse space nearby. Investors will probably find good opportunities in building logistics and distribution centers to keep up with the increased flow of goods.

Port of Houston Expansion : The Port of Houston is getting a big upgrade to handle larger ships and more cargo. This is great news for the local economy, as it will likely lead to more demand for industrial and warehouse space nearby. Investors will probably find good opportunities in building logistics and distribution centers to keep up with the increased flow of goods.

Port of Corpus Christi Expansion : The Port of Corpus Christi is a key spot for energy exports, and has been recently expanding its facilities . As the port grows, we can expect more commercial real estate activity in the area, especially in the energy and manufacturing sectors. New infrastructure to support this growth will open up additional opportunities for real estate investment.

Port of Galveston Improvements : The Port of Galveston is known for its cruise operations and is also seeing major improvements. With the expansion of its capacity and infrastructure, the surrounding commercial real estate market is expected to benefit. This will likely lead to higher demand for retail, hospitality and service-related properties.

3. Rail and Public Transit Projects

Rail and public transit infrastructure play a big role in Texas's transportation system. With the state's ongoing growth, investing in rail and transit projects is becoming more important to help support urban development and ease traffic congestion.

DART Silver Line : The DART Silver Line is a new commuter rail project connecting several key Texas cities; like Plano, Richardson,Carrollton and others – with the final connection at the Dallas-Fort Worth Airport.

Texas Central High-Speed Rail : The Texas Central High-Speed Rail project could be a big deal for Texas. “Could” being the operative word there. It plans to connect Dallas and Houston with a fast train. The goal would be to cut down on travel time between the two cities. Unfortunately, this project has had a lot of setbacks (financial, legal, leadership), but there still might be hope for this project yet!

The Impact on Commercial Real Estate Values

Infrastructure projects can directly affect commercial real estate values. When areas become more accessible and transportation costs go down the properties near new or improved infrastructure often see a boost in value. Here's a look at how these infrastructure projects might influence commercial real estate values in Texas:

Opportunities for Investors and Developers

Infrastructure projects in Texas bring a wealth of opportunities for both commercial real estate investors and developers. In order to capitalize on these, it's essential to spot emerging markets that are likely to benefit from upcoming projects. These areas can offer attractive entry points for investment, with the potential for significant value increases once the projects are completed. Focusing on logistics and industrial properties is another smart move. Highway expansions and port developments often drive up demand for these types of properties. By targeting strategic locations with easy access to transportation networks, investors can position themselves for success.

Mixed-use developments are also worth considering. As new infrastructure creates commercial hubs, there may be opportunities to combine retail, office and residential spaces. These types of developments cater to the growing demand for live-work-play environments and offer diversified income streams. Finally, staying informed about policy changes and funding sources is crucial. Infrastructure projects often involve complex funding mechanisms and regulatory approvals, so understanding the timeline and scope of these projects can help investors make better decisions and stay ahead of the competition.

Conclusion

As we have learned, infrastructure projects are playing a big role in shaping Texas's commercial real estate market. By improving transportation, connecting key areas and supporting the state's growing population, these projects are opening up new opportunities for investors, businesses and the communities. As Texas keeps investing in its infrastructure, we'll see rising property values, new commercial centers popping up, and a more competitive market overall.

For expert guidance on how Texas infrastructure projects impact commercial real estate, reach out to our experts at CIP . We specialize in helping clients navigate these opportunities.

HOW TO STRUCTURE A FULLY DEFERRED 1031 EXCHANGE IN AUSTIN

Mon, 12 Aug 2024 14:36:58 GMT

Are you a real estate investor interested in a 1031 exchange in Austin but are concerned about how much it will cost in capital gains tax? Financial factors impact real estate assets held for investment to structure a fully deferred 1031 exchange.

Below are three financial requirements for a 1031 exchange in Austin, with advice from Texas real estate brokers on minimizing capital gains.

APPROPRIATE STRUCTURE EXCHANGE TO OFFSET CAPITAL GAINS TAX

Choosing the best exchange method is vital to offset capital gains and structure a fully deferred 1031 exchange in Austin.

Using the appropriate 1031 exchange method allows real estate investors to:

Increase buying power
Generate replacement property cash flow
Gain access to premium assets they would not be able to afford before
Diversify holdings for a more robust real estate investment portfolio

Utilizing capital losses to offset capital gains starts with selecting the most profitable 1031 exchange based on your financial investment.

There are four types of 1031 exchanges to consider:

Delayed exchange– investors must find a replacement property before the relinquished property’s closing through an intermediary
Reverse exchange– requires an intermediary and ideal if you acquired a desirable property before selling your original property
Simultaneous exchange– same-day exchange and transactions with no intermediary required
Improvement exchange– also known as a like-kind exchange , investors must improve the original property at equal or more value before possession through an intermediary

Regardless if the 1031 exchange method you choose does not require an intermediary, we always recommend hiring one for the best outcome possible. From constructive receipt issues to overseeing exchange documentation, employing a qualified intermediary can mediate and prevent exchange disqualifications.

EQUAL OR HIGHER INVESTMENT PROPERTY VALUE AND ASSETS TO BUILD EQUITY

One of the first steps real estate investors should take for a 1031 exchange in Austin is understanding their relinquished and replacement property’s value and assets. By gaining insight into your original property’s value, you can create actionable strategies to build equity at an equal or higher value for a fully deferred 1031 exchange of replacement property.

There are four capital improvement techniques to build equity for relinquished properties:

Improvements– enhancing property value, new room additions, roofs, appliances, fencing
Betterments– fixing pre-existing conditions, expanding properties, increasing capacity
Restoration– replacing substantial property structures, repairing damages from casualty loss like underground storage tank leaks, rebuilding to newer conditions
Adaptation– property alterations different from the original intended use, such as manufacturing buildings turned into retail showrooms

If you’re considering trading down relinquished property that’s lower in value or equity than the replacement property, it may not qualify as a fully deferred 1031 exchange in Austin. Depending on how much tax you will owe in the transaction, it may not be a worthy investment to do an exchange.

EXCHANGE EXPENSE BUDGETS TO REDUCE REPLACEMENT PROPERTY INVESTMENTS AT CLOSING

To structure a fully deferred 1031 exchange in Austin, real estate investors must reinvest all net sale proceeds from the relinquished property’s sale into the replacement property. To prevent invalidating an exchange (debt boots) and paying capital gains, do not use exchange funds to pay expenses unrelated to the exchange.

Exchange expenses for a 1031 exchange during closing typically include:

Closing or escrow fees
Brokerage commissions
Legal fees
Title insurance premiums
Transfer taxes and Notary fees

Some exchange expenses may be deducted without resulting in capital gains tax consequences. According to the IRS, brokerage commissions and transactional costs can be deducted from exchange proceeds if paid within connection to the exchange. There are also non-exchange expenses to consider at closing that cannot be deducted from proceeds.

Non-exchange expenses for a 1031 exchange during closing typically include:

Property taxes
Prorated mortgage insurance
Mortgage points and assumption fees
Loan and application costs
Utility charges

It is important to note that using net sale proceeds on non-exchange expenses, such as loan-related costs, should be avoided due to statutory limitations. Loan costs are typically capitalized, recovered over the loan term, and not usually included in replacement property costs.

Carefully reviewing closing cost statements is critical to preventing taxable boots, recognizing capital gains, and invalidating 1031 exchanges.

1031 Exchange Expenses for Partial Tax Deferrals

A common misconception about a 1031 exchange in Austin is that they are all-or-nothing agreements. Partial 1031 exchanges are also an option to avoid capital gain recognition. Exchangers can sell a portion of their relinquished property’s equity (at equal value or greater) to purchase a replacement property.

As long as the portion of the replacement property sold has equal or greater financing as it was for the relinquished, investors can have a fully deferred tax exchange without being subject to debt boot liability. A partial exchange allows taxpayers to defer some capital gains by using the proceeds to invest in new higher-yielding properties and increase cash flow.

Partial 1031 exchange requirements include:

Replacement property has an equal or greater value than the relinquished property’s net selling price
Replacement property financing must be an equal or greater value than the original property’s debt
Relinquished property equity is equal or greater value to the replacement property’s equity

If investors choose partial tax exchanges, they must pay a portion of the capital gains taxes from the cash they receive. The IRS considers the remaining cash as boots, so any earned capital gains will be taxed.

Partial tax exchanges are practical for investors who need cash sooner, cannot fully defer 1031 exchanges, or are unable to find a replacement property within time constraints of equal or greater value.

GET HELP DEFERRING YOUR 1031 EXCHANGE IN AUSTIN WITH CIP TEXAS

Are you considering a 1031 exchange in Austin but concerned about the process of finding the perfect replacement property? Contact Commercial Industrial Properties for qualified Austin real estate brokers. Our full-service real estate firm offers investment sales and expert consulting when exchanging an investment property.

Commercial vs Industrial: Navigating Texas Real Estate Laws

Thu, 18 Jul 2024 19:45:26 GMT

Quick Summary Before You Read.....

Question: What are the key legal and regulatory differences between commercial and industrial real estate in Texas?

Answer: While both commercial and industrial real estate in Texas are governed by zoning laws, environmental regulations, and compliance requirements, they differ significantly in their specific applications. Commercial properties, such as retail stores and office spaces, typically have more flexible zoning ordinances but must adhere to strict accessibility and building codes. Industrial properties, including manufacturing plants and warehouses, face more restrictive zoning due to factors like noise, emissions, and hazardous materials handling. Additionally, industrial developments often require more rigorous environmental assessments and compliance with both state and federal regulations.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Commercial vs Industrial: Navigating Texas Real Estate Laws

Investing in commercial and industrial real estate in Texas offers significant opportunities, driven by the state's robust economy and business-friendly environment. However, navigating the legal and regulatory landscape is crucial to establish compliance and mitigate risks. While both commercial & industrial real estate share some regulatory considerations, there are distinct differences in their zoning laws, environmental regulations and compliance requirements. This comprehensive guide provides insights into these key legal and regulatory considerations governing industrial and commercial real estate in Texas.

Commercial vs Industrial Zoning Laws

Zoning laws form the foundation of real estate development and usage, defining how land can be utilized and setting parameters for building specifications and operational constraints. Let’s take a look at the difference between industrial vs commercial zoning…

Commercial vs Industrial Environmental Regulations

Environmental regulations establish sustainable development and protect public health. Both a commercial & industrial property must comply with these regulations, though the specifics can vary significantly.

Commercial Real Estate:

Environmental Site Assessments (ESAs) : Conducting Phase I ESA s is standard practice for commercial properties to identify potential environmental liabilities. Retail centers and office buildings typically have fewer environmental concerns but still require thorough assessments, especially if located on previously industrial sites.
Indoor Air Quality : Commercial properties, particularly office buildings must comply with indoor air quality standards to guarantee a healthy environment for employees and customers. This includes proper ventilation and the management of any hazardous materials used in the building.
Water Management : Commercial developments must manage stormwater runoff and adhere to regulations preventing contamination of local water supplies. Compliance with local water management regulations is critical for obtaining the necessary permits.

Industrial Real Estate:

Environmental Site Assessments (ESAs) : For industrial properties, Phase I and Phase II ESAs are important due to the higher risk of soil and groundwater contamination from previous industrial activities. These assessments identify any hazardous materials that need remediation before development.
Texas Commission on Environmental Quality (TCEQ) : Industrial facilities must comply with TCEQ regulations regarding air quality, water discharge, waste management and hazardous materials. Regular inspections and permits are necessary to maintain compliance and to avoid legal penalties.
Federal Environmental Laws : Industrial properties must adhere to federal regulations, such as the Clean Air Act and the Resource Conservation and Recovery Act (RCRA ). These laws have set the standards for emissions, hazardous waste handling, and remediation efforts – which are important for industrial operations.

Commercial vs Industrial Compliance Requirements

Being compliant with various legal and regulatory requirements is essential for the successful development and operation of commercial and industrial real estate . The requirements can differ significantly between these two sectors.

Commercial Real Estate:

Building Codes and Safety Standards : Commercial buildings need to follow state and local building codes. These rules cover construction, electrical systems, plumbing, and fire safety. They make sure the buildings are safe for people to use and occupy.
Occupational Safety and Health Administration (OSHA) : Commercial properties must follow OSHA rules , but these are usually less strict than those for industrial buildings. The main focus is on general workplace safety and making the building accessible to everyone.
Accessibility Standards : The Americans with Disabilities Act (ADA) requires commercial buildings to be accessible to people with disabilities. This means having entrances, restrooms, and parking facilities that can be used by everyone. This is really important for businesses that serve the public..
Lease Agreements and Tenant Compliance : Landlords of commercial properties need to write detailed lease agreements. These agreements should clearly state the rights and responsibilities of both the landlord and the tenant. Making sure tenants follow these agreements and local laws helps keep the property legally compliant.

Industrial Real Estate:

Building Codes and Safety Standards : Industrial properties must follow stricter building codes and safety standards because of their activities. This means they have to meet specific requirements for the building's strength, fire prevention, and handling hazardous materials.
Occupational Safety and Health Administration (OSHA) : OSHA rules for industrial properties are tough, focusing on the safety of machinery, handling dangerous materials, and protecting the workers. Regular safety checks and following OSHA standards are imperative to prevent workplace accidents.
Accessibility Standards : Industrial properties must also meet ADA standards , but the focus is more on making things accessible for employees rather than the public. Ensuring pathways and facilities are accessible for workers is important.
Operational Permits and Inspections : Industrial operations need various permits, like environmental permits, zoning permits, and safety inspections. Keeping up with these permits and passing regular inspections is vital for legal operation.
Insurance Requirements : Industrial properties need thorough insurance coverage, including general liability, property insurance, workers' compensation, and environmental liability insurance. Understanding the specific risks and getting the right coverage is essential.

Final Thoughts

Navigating the legal and regulatory landscape of commercial and industrial real estate in Texas means understanding the different zoning laws, environmental rules, and compliance needs for each type of property. While both types of real estate have some similar regulations, the details can be very different. Staying informed and working with legal experts can help reduce risks and make sure properties are developed and run successfully. As Texas grows as a center for industrial and commercial activities, knowing these rules will be important to take advantage of the opportunities in this market. By addressing these legal and regulatory issues ahead of time, investors and developers can set themselves up for long-term success in Texas real estate .

RSF in Real Estate: The Role of Rentable Square Footage

Fri, 14 Jun 2024 21:53:06 GMT

Quick Summary Before You Read.....

Question: What is Rentable Square Footage (RSF) in commercial real estate, and why does it matter for tenants and investors?

Answer: Rentable Square Footage (RSF) represents the total space a tenant pays for, encompassing both the usable area they occupy and a proportionate share of common areas like lobbies and hallways. Understanding RSF is crucial because it directly influences rental costs and lease negotiations. By grasping how RSF is calculated and its components, tenants and investors can make informed decisions, ensuring fair pricing and optimal use of space.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

RSF in Real Estate: The Role of Rentable Square Footage

Rentable Square Footage (RSF) is an important idea in commercial real estate that everyone involved should know about, whether you're a tenant, landlord, or investor. Understanding how RSF is calculated and how it affects lease agreements can really influence your real estate choices. In this blog, we will explain what RSF is, its components, why it's important for leasing, and more.

What is RSF in Real Estate?

Rentable Square Footage (RSF) is the total space you pay for in a building. It includes your own space, like an office or shop, plus a portion of the shared areas such as hallways and lobbies.

The Common Area Factor, or load factor, helps figure out how much of these shared spaces you pay for. It’s calculated by dividing the total common area by the total usable area of the building. This factor is added to your usable space to get your RSF, giving a clearer picture of the true cost.

Usable Square Footage (USF) is just the space you occupy. RSF includes both your space and a share of the common areas, showing the full cost of renting.

KNOWLEDGE CHECK: RSF VS USF

RSF : This is the total space a tenant pays rent for. It includes both the space the tenant actually uses and a portion of the building's shared spaces like lobbies, hallways, and restrooms.
USF : This is just the space that a tenant occupies and uses, such as their office or shop area. It does not include any shared spaces.

In short, RSF = USF + a share of the common areas.

Components of Rentable Square Footage

RSF consists of the following components:

Common Areas : These include lobbies, restrooms, hallways, and other shared spaces.
Shared Amenities : Spaces like conference rooms, fitness centers, and break rooms.
Mechanical Rooms : Areas housing building systems such as HVAC, electrical, and plumbing.

Understanding these components helps tenants recognize what they're paying for beyond their immediate office or retail space.

Importance of RSF in Leasing

Rentable square footage directly affects how much you pay in rent and how you negotiate your lease . Since tenants pay for both their own space and a share of the common areas, a higher RSF means higher rent. That’s why it’s really important for tenants to understand RSF to get better lease terms and make sure they aren’t overpaying.

For example, if you know how much of the RSF includes common areas, you can figure out if the rent is fair compared to other buildings. If two buildings offer the same office space but one has a much higher RSF because of large common areas, you’ll end up paying more in that building. By understanding RSF, you can decide if those common areas are worth the extra money.

Also, during lease negotiations, knowing about RSF helps you ask smart questions. You can ask about how the building is laid out, the size of the common areas, and whether these spaces are useful to you. This knowledge can help you negotiate for a lower rent or other benefits, like improvements to the common areas or extra amenities.

In the end, understanding RSF helps tenants make better decisions. It ensures you’re getting good value for your money and not surprised by extra costs related to the rented space. It’s key to making sure you pay a fair price for everything included in your lease.

How to Calculate Rentable Square Feet

Calculating RSF in real estate involves:

Measuring Usable Square Footage: Measure the actual space the tenant will occupy.
Allocating Common Areas: Determine the tenant’s share of the building’s common areas.
Summing the Areas: Add the USF and the tenant’s share of common areas to get the RSF.

Example: If a tenant occupies 2,000 USF and their share of the common areas is 500 square feet, the RSF is 2,500 square feet.

Tools and resources like building plans and industry-standard measurement guidelines can assist in accurate calculations.

Rentable Square Footage and Building Efficiency

Efficiency Ratios: Building efficiency ratios, like the load factor, compare RSF to USF. A higher load factor means there's more shared space compared to the space you actually use, which can affect how much you pay.

Comparing Buildings: Tenants can use RSF to compare different properties and make smart leasing choices. Buildings with lower load factors are often more efficient and may offer better value because you’re paying less for shared spaces.

Impact on Tenant Satisfaction: Efficient use of space can make tenants happier by providing the necessary amenities without making them pay too much for shared spaces. This means you get what you need without extra costs for areas you don’t use much.

RSF in Different Types of Real Estate

Office Spaces: Typically have higher common area allocations, including lobbies and meeting rooms.
Retail Properties: Often have fewer common areas but may include shared restrooms and walkways.
Industrial Properties : Generally have minimal common areas, focusing on warehouse and manufacturing space.
Mixed-Use Developments : Combine elements of all property types, making RSF calculations more complex but crucial.

Legal and Financial Implications

RSF significantly affects lease agreements and operating expenses:

Lease Agreements: Ensure RSF clauses are clearly defined to avoid disputes.
Operating Expenses: RSF influences common area maintenance (CAM) charges, affecting overall tenant costs.
Regulatory Considerations: Be aware of local regulations and industry standards impacting RSF calculations.

Case Studies

Example 1: A tech company leased an office with a high RSF due to extensive shared amenities, increasing their rental costs but providing valuable facilities.

Example 2: A retail tenant negotiated a lower RSF by excluding certain common areas from their lease, reducing their rent.

These real-world examples highlight the importance of understanding and negotiating RSF in leasing decisions.

Conclusion

Understanding RSF in real estate is essential for making informed leasing decisions. By knowing how RSF is calculated and its impact on rental rates, tenants can better negotiate leases and manage costs. Always consult with real estate professionals to ensure accurate RSF assessments and favorable lease terms.

Additional Resources:

CIP Helps Business Displaced by I-35 Expansion

Fri, 31 May 2024 17:38:51 GMT

CIP is proud to have had Robby Eaves, CCIM and Phil Morris represent Escuelita del Alma in securing their new location amidst the challenges posed by the I-35 expansion project. This Spanish immersion daycare and preschool, a cornerstone of our community, has faced displacement not once but twice due to urban development.

Escuelita del Alma's dedication to providing a nurturing and culturally rich environment for our children is truly inspiring. Despite the upheaval, their commitment to preserving the heritage and language of their students remains steadfast.

The I-35 expansion impacts over 100 properties, including many in environmentally sensitive areas. Navigating this complex relocation process has highlighted the resilience of the Escuelita community. Parents, staff, and supporters have rallied together, ensuring that the school continues to thrive.

As Austin grows, it's crucial that we balance development with the preservation of our cultural institutions. I look forward to seeing Escuelita del Alma flourish in its new home on Bluestein Drive, continuing to offer invaluable educational experiences to our children.

Click here to read more about the challenges face by Escuelita del Alma.

THE SOURCE

Tue, 14 May 2024 16:35:14 GMT

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Bankable Feasibility Study: The First Step Towards Securing Your Project’s Success

Thu, 09 May 2024 22:07:04 GMT

Quick Summary Before You Read.....

Question: Why is a Bankable Feasibility Study (BFS) crucial for commercial real estate projects?

Answer: A Bankable Feasibility Study is essential for commercial real estate ventures as it provides a comprehensive analysis of a project's viability, encompassing market trends, technical requirements, legal considerations, financial projections, and risk assessments. This thorough evaluation not only aids in making informed decisions but also plays a pivotal role in securing financing from banks and investors by demonstrating the project's potential for success. Incorporating advanced technologies like AI and big data analytics, modern BFS approaches enhance accuracy and efficiency, offering a strategic roadmap for project execution and boosting stakeholder confidence.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Bankable Feasibility Study

What is a Bankable Feasibility Study?

A bankable feasibility study (BFS) is more than just a deep dive into a real estate project—it's a tool that assesses everything from economic viability to potential risks and profitability. The "bankable" (or bankability) part of its name means it's detailed enough to support major funding decisions. Unlike preliminary assessments that just skim the surface, a BFS gets into the nitty-gritty. This study explores economic, technical, legal, and operational aspects thoroughly. The comprehensive analysis not only provides vital data and projections but also reassures lenders and investors of the project's financial health.

Securing funding for any project, especially in real estate, can often feel like searching for a diamond in the rough. A well-executed BFS can be a game-changer. The study can help prove the project's worth to banks and financial institutions. It's an essential step that can pave the way for financial backing and ultimately, the success of the project.

Cost of Feasibility Study

The cost of a feasibility study can vary widely depending on several factors including the project's scope, complexity, and the specific requirements needed for the study. Generally, feasibility studies can range from $5,000 to $500,000. For smaller projects, you might expect to pay between $5,000 and $20,000, while medium-scale projects can range from $20,000 to $50,000. Larger projects, particularly those that require extensive research and specialized expertise, can cost anywhere from $50,000 to $100,000 or more

Key Elements of a Bankable Feasibility Study

To ensure comprehensiveness, a BFS encompasses several critical components:

1. Detailed Market Analysis:

The market analysis dives into understanding how the market works. It will look at things like supply and demand, demographic trends, and economic factors that are specific to the location and type of commercial property being considered. For example, it might examine the demand for office spaces in the business district of a city or check how well retail spaces are doing in a suburban shopping center. This detailed look helps make decisions that are best suited to the specific conditions of each property.

2. Technical and Physical Analysis:

This element of the study involves a detailed look at the technical parts of the project. For example, things like architectural designs, engineering plans, infrastructure needs, and environmental impact studies. It checks the practical sides of carrying out the project, from how it will be built to how technology will be used, making sure everything can be done and meets the required standards.

3. Legal and Regulatory Framework:

A feasibility study checks all the legal boxes, such as who owns the land, what the zoning laws are, and whether the project follows local and national rules. This helps make sure the project doesn't run into legal problems that could slow down or stop the development.

4. Comprehensive Financial Modeling:

Financial analysis is a key part of a BFS. It gives a detailed look at financial projections, costs, how the project will be funded, and how it plans to make money. It also includes sensitivity analyses, which help figure out how changes in the market or delays in the project could impact profitability. The goal of this section is to forecast financial results, such as return on investment (ROI), internal rate of return (IRR), and how quickly the investment pays back, to make sure the project is financially appealing.

5. Risk Evaluation and Mitigation Strategies:

Identifying potential risks—whether they're financial, regulatory, or environmental—and suggesting ways to deal with them is very important. This part of the process helps get the project ready for any unexpected situations by creating a plan to manage risks effectively.

6. Implementation Timeline:

A project timeline is needed for understanding the phases of development and the expected completion dates. This helps stakeholders manage expectations and coordinate efforts throughout the project lifecycle.

The Strategic Importance of a BFS

Here at CIP , we see the bankable feasibility study (BFS) not just as a piece of paper, but as a strategic plan that helps us manage every part of a commercial real estate project. It's really important for a few big reasons:

Securing Investments: The BFS shows that a project is worth investing in because it proves it can make money and be successful.
Guiding Project Execution: The study gives us a clear plan to follow from the start to the end of the project. This helps us keep the project on schedule and within budget.
Enhancing Stakeholder Confidence: The BFS provides detailed information and predictions that make investors, partners, and banks feel more confident about putting their money into the project..

Future Trends and Innovations in Bankable Feasibility Studies

Bankable feasibility studies for real estate in Texas are evolving rapidly thanks to advancements in technology like AI, big data, and blockchain. AI and machine learning are revolutionizing BFS by quickly analyzing vast amounts of data to predict market trends and financial outcomes. This helps stakeholders make better-informed decisions about their projects. Big data analytics allows real estate professionals to deeply understand market conditions by identifying optimal locations for new developments based on comprehensive data analysis. Blockchain technology, though newer to the field, promises to speed up transactions and enhance data security, particularly in managing contracts and property records.

These technologies make feasibility studies faster and more accurate, leading to quicker development times and lower costs – we love to hear that! They also help build investor confidence by providing detailed, reliable project analyses, which is helpful in attracting investments. Additionally, the ability to rapidly adjust to economic changes or consumer behavior trends is a significant advantage in the dynamic Texas real estate market. As these technologies become more integrated into BFS processes, they are expected to drive smarter, more strategic real estate development across the state.

Conclusion

At Commercial Industrial Properties, we believe wholeheartedly in the power of a thorough bankable feasibility study for commercial real estate projects. Our dedication to deep analysis and strategic planning shines through in our track record of successful investments and happy clients. Whether you're aiming to invest, develop, or sell commercial real estate, really getting to grips with what your investment could achieve with a BFS is key.

For more info on how we can support your next commercial real estate venture, reach out to one of our real estate experts . Let us help you tackle the complexities of commercial real estate with precision and professionalism, ensuring your investments are both well-thought-out and successful.

HANCE SCARBOROUGH SIGNS DOWNTOWN LEASE

Thu, 09 May 2024 14:47:27 GMT

Hance Scarborough, LLP has signed a lease at the Texas Bankers Association headquarters building at 203 W 10th St in downtown Austin. Glen Sorrel of Commercial Industrial Properties represented the tenant in this transaction. Hance Scarborough is a firm that represents and counsels clients in matters involving regulatory and public policy law. They are expected to occupy the space in the fall of 2024.

You can read more about the transaction by clicking here.

Tenant Improvement: Navigating Allowances and Costs for Your Business Space

Thu, 18 Apr 2024 17:05:26 GMT

Quick Summary Before You Read.....

Question: What should tenants and landlords understand about tenant improvement (TI) allowances and costs in commercial leases?

Answer: Tenant improvements (TIs) are essential for customizing leased commercial spaces to meet specific business needs. The Tenant Improvement Allowance (TIA) is a negotiable sum provided by landlords to cover such modifications. However, expenses exceeding the TIA are typically the tenant's responsibility. It's crucial to delineate in the lease agreement which improvements remain with the property and which can be removed upon lease termination. Ownership of these improvements usually transfers to the landlord unless otherwise agreed. Strategic planning, clear communication, and professional guidance are key to navigating the complexities of TIs effectively.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Tenant Improvement: Navigating Allowances and Costs for Your Business Space

Commercial real estate is always evolving, and tenant improvements stand out as a critical component we’d like to discuss. These improvements are key for businesses looking to tailor their leased spaces to better suit their operational needs and aesthetic preferences. Whether it's a startup aiming to infuse its culture into an office design, or a retailer looking to enhance the shopper experience. Navigating the complexities of tenant improvements can significantly enhance the value derived from a commercial lease. This detailed guide covers the essentials of tenant improvements, including tenant improvement allowances, financial obligations, rights over improvements, and ownership considerations. We hope to provide a thorough understanding to tenants and landlords alike. Let’s begin!

What is Tenant Improvement Allowance?

At the center of making changes to a rental space is something called the Tenant Improvement Allowance , or TIA for short. This is a chunk of money that the landlord sets aside for tenants to use to modify or upgrade their leased area. How much money you get can be negotiated and really depends on a few things like where the property is located, what the market is like at the time, how long you plan to stay there, and what condition the space is in when you move in. With this allowance, you could do anything from small updates, like painting the walls or putting in new carpets, to big renovations that might include knocking down walls or adding new fixtures and fittings.

The Financial Dynamics of Tenant Improvements

So who pays for tenant improvements? Although it might look like the lease improvement allowance from the landlord is just a simple help with the costs of setting up your space, the reality is a bit more complicated. Any expenses that go beyond the agreed upon allowance will have to be covered by the tenant. This means you really have to think carefully about your improvement plans and how they fit with your budget. Also, even though the landlord gives the TIA upfront, they usually get this money back through the terms of the lease, often by charging higher rent. This shows why it's so crucial to negotiate a lease that meets your needs for improvements while also being realistic about the financial commitment you're making.

Navigating the Removal of Tenant Improvements

A lot of tenants wonder if they can take down any of the improvements they've made once their lease ends. It's important that the lease agreement spells out exactly what can be taken down and what must stay . Generally, anything that's permanently attached to the property or is part of the building’s essential structure or systems needs to stay put. However, tenants can sometimes negotiate with their landlords to remove certain items, especially if these items are particularly valuable to the tenant's business or can be used again somewhere else. To avoid any misunderstandings or surprise costs when the lease is up, it's really important for tenants to get these details hammered out and clearly agreed upon right from the start.

Ownership of Tenant Improvements

When you make upgrades or changes to a leased space, these improvements usually end up belonging to the landlord once they're completed. This is because the changes are a permanent part of the building, and they can make the property more valuable and attractive to future renters. However, tenants and landlords can talk things out and make special agreements about who owns tenant improvements, especially if they're unique or really expensive. Having clear agreements from the beginning can help avoid any confusion and make sure both sides get benefits from the improvements for the entire time of the lease.

Strategic Planning for Tenant Improvements

Assessing Needs vs. Wants:

Before you dive into negotiations, it's smart for businesses to really think about what they absolutely need versus what would be nice to have. This means looking at what your company needs right now to operate smoothly, where you see your business growing, and what you might need down the road. By figuring out which improvements will give you the most bang for your buck or are absolutely essential for your day-to-day operations, you can make sure you're using your budget in the smartest way possible.

Thinking About the Long-Term Impact:

When planning improvements, it’s important to think about how they'll help or hinder you over the entire time you're in the space. For instance, customizing a space too specifically might backfire if it means you can't easily change things later as your business evolves. On the other hand, investing in upgrades that make the space work better or reduce energy costs can keep paying off in the long run, making your operations cheaper and keeping your team happy.

Focusing on Sustainability and Efficiency:

More and more, businesses are leaning into eco-friendly building practices . Using sustainable materials, energy-saving lights, and efficient heating and cooling systems does more than just cut down on your utility bills—it also helps the planet. Plus, showing that your company cares about sustainability can really boost your image and attract customers who value environmental responsibility. Negotiating for these kinds of improvements can be a big win for everyone involved.

Best Practices in Negotiating Tenant Improvement

Start Early: Kick off your lease negotiations by talking about commercial tenant improvements right from the start. Knowing what changes you can make and what the landlord is willing to pay for can really help you decide if a place is right for you. Getting this figured out early can save you from headaches later and make sure you're picking the best spot for your needs.

Detailed Proposals: When you know what improvements you want, put together a detailed plan. Include how much it'll cost, how long it'll take, and how it's going to help your business. Being clear and specific about your plans helps make discussions about the tenant allowance smoother and ensures that everyone is on the same page about what’s involved in the project.

Professional Assistance: It’s a smart move to hire experts like architects, contractors, or project managers who know all about commercial spaces. They can offer insights into what can be done, how much it will cost, and the best way to go about it. Plus, they make sure that all the improvements meet local building codes and regulations, which is super important for keeping things legal and safe.

Understanding Legal and Regulatory Considerations

When you're making changes to a leased space, there are some important rules and details you need to keep in mind to avoid any legal or financial headaches later. Here's a breakdown:

Compliance with Laws: Anytime you're considering tenant improvements, you've got to follow local building codes and zoning laws, not to mention the requirements of the Americans with Disabilities Act (ADA) . If you don't stick to these rules, you could be hit with fines, face legal problems, or have to pay for expensive changes to make things right.
Lease Terms: Your lease agreement should clearly lay out everything about the improvements you plan to make. This includes who pays for what, how all the approvals are handled, and who's responsible for upkeep and repairs down the line. It should also explain what happens at the end of the lease, like whether you need to undo any changes you've made or if you can leave things as they are.
Insurance and Liability: Both tenants and landlords need to double-check their insurance policies to make sure they cover the changes made during and after the improvement process. It's also important to figure out who would be responsible if something goes wrong, like if there's damage to the property or someone gets hurt because of the improvements.

Final Thoughts

Tenant improvements give businesses a fantastic chance to shape their spaces in ways that really show off who they are, what they stand for, and what they need to operate successfully. By tackling these projects with careful planning, good communication, and strategic thinking, tenants and landlords can build strong partnerships that make their commercial spaces more valuable and attractive. As the world of commercial real estate keeps changing, being flexible, sustainable, and innovative with tenant improvements is crucial. These qualities will help create spaces that not only look good but also support the success and toughness of businesses in a constantly shifting world.

SOLD! 8871 TALLWOOD DRIVE

Thu, 28 Mar 2024 15:21:11 GMT

SOLD! 8871 TALLWOOD DRIVE

Commercial Industrial Properties (CIP) is proud to announce the successful sale of an office building, spanning 3,600 square feet on a ¾ acre lot situated at the intersection of Tallwood and North Mopac in Westover Hills. Bob Springer, SIOR, CCIM and Evan Bole, CCIM of CIP represented the seller in this transaction.

Our strategic marketing approach generated considerable interest, culminating in multiple offers. Despite the challenges of a fluctuating market with rising interest rates, we navigated to a successful sale proving to bring valuable representation to our client.

The acquisition by a local early education immersion school underscores the site's potential to enrich the community. This new educational institution represents an investment in the future, promising to offer substantial benefits to the families in the vicinity. CIP's expertise has once again delivered a transaction that not only contributes positively to local development but most importantly provides value to our clients.

Double Net Lease: A Strategic Guide for Investors and Tenants

Wed, 27 Mar 2024 23:04:36 GMT

Quick Summary Before You Read.....

Question: What is a Double Net (NN) Lease, and how does it benefit both commercial real estate investors and tenants?

Answer: A Double Net Lease (NN) is a commercial lease structure where tenants pay base rent along with property taxes and building insurance, while landlords handle structural maintenance and major repairs. This arrangement offers tenants potentially lower base rents and greater control over certain expenses, while providing landlords with more predictable income and reduced operational responsibilities. It's a balanced option commonly used in retail, office, and warehouse leases.

For a detailed exploration of these questions and insights from CIP Texas, you can read the full article here

Double Net Lease: A Strategic Guide for Investors and Tenants

How you structure a lease can be a game-changer for both the property owner and the tenants in commercial real estate. It's like setting the rules for a partnership where both sides need to understand the financial play. The Double Net Lease, or as the insiders call it, NN, stands out as a clever way to share costs between the landlord and the tenant. This guide will cover the nitty-gritty of Double Net Leases, shed some light on their structure, perks, and things to watch out for. We also highlight the differences between the NN and NNN lease. Our hope is to provide insights for both investors and tenants. Let’s get into it!

What is a Double Net Lease?

Imagine a lease agreement that's not just about paying rent, but also involves the tenant picking up the tab for a couple of major property costs. That's your Double Net Lease . Here, the tenant agrees to cover property taxes and the building's insurance, on top of their rent. This leaves the landlord with the responsibility for the big stuff, like making sure the roof doesn't leak, the walls stand strong, and the foundation holds up. It's a middle-of-the-road approach that splits the difference between leases that put almost everything on the tenant and those that leave much of the cost with the landlord. Double Net Leases are the go-to for many commercial spots like shops , office blocks , and warehouses . This structure offers a blend of predictability for the landlord and potential savings on rent for the tenant.

Key Features of the NN Lease

The essence of a Double Net Lease is all about dividing up costs and duties so both the tenant and the landlord know what they're signing up for. Here's some key features to be aware of:

Rent and Core Expenses:

The tenant pays the base rent plus two major property-related expenses. These expenses are typically property taxes and building insurance premiums. This structure allows for a more predictable cost base for tenants while establishing that landlords can cover significant property expenses without dipping into rental income.

Tenant Responsibilities:

Property Taxes: Tenants are responsible for paying the property taxes for the leased space directly to the relevant governmental authorities. This confirms that the property remains in good legal standing regarding tax obligations.

Building Insurance: Tenants also pay for the building insurance. This covers the property against damages from insured risks like fire, theft, and natural disasters. However, the tenant’s responsibility might be limited to the insurable value or premiums associated with the building itself, not including the landlord's personal property or liability insurance.

Landlord Responsibilities:

Structural Repairs and Maintenance: The landlord is responsible for structural repairs and maintenance. This can include items such as the roof, walls, foundation, and potentially common areas. Furthermore, helping the property maintain its value and functionality over time.

Operational Costs: In most double net leases, the landlord may still be responsible for other operational costs that are not explicitly passed on to the tenant, such as maintenance of common areas (if not included in the structural maintenance clause ).

Lease Term:

Double net leases are often long-term agreements, lasting several years. This provides stability for the landlord in terms of occupancy and for the tenant in terms of predictable operating costs and the security of a fixed location for their business operations.

Flexibility and Negotiation:

While the basic structure of a double net lease is standardized, the specifics can vary widely based on negotiation between the tenant and landlord. This might include caps on annual increases in property taxes and insurance, specific maintenance responsibilities, and other operational nuances.

Potential for Lower Rent:

Given the additional financial responsibilities taken on by the tenant, the base rent in a double net lease might be lower compared to other lease types (such as a gross lease ), where the landlord absorbs all or most of the property expenses.

NN vs. NNN Leases: The Showdown

When you pit Double Net Leases against Triple Net Leases , the main event is about who pays for what. NN leases share the cost burden, with tenants handling taxes and insurance while landlords deal with the big repairs. NNN leases go a step further, putting almost all property-related costs on the tenant. Each has its attractions and drawbacks, with landlords weighing the predictability of income against maintenance responsibilities, and tenants balancing lower rent against taking on more of the property's financial upkeep.

Choosing between NN and NNN leases boils down to how much control and financial responsibility each party is willing to take on. It's about finding the sweet spot that aligns with their commercial real estate strategy, aiming for a partnership that benefits both sides in the long run. Here’s a closer look at how this decision shapes the journey for each party:

For Landlords: The allure of a Double Net Lease lies in maintaining a balance. You get a steady income flow by passing on some significant costs to the tenant, yet you keep a hand on the wheel when it comes to the property’s structural integrity. It’s about not letting go completely, making sure the property doesn’t just stay occupied but also stays in top-notch condition. On the flip side, a Triple Net Lease is the ultimate hands-off approach. It's attractive for those who prefer to watch from a distance, guaranteeing a predictable income without the day-to-day hassles of property maintenance. However, the challenge is finding tenants ready to embrace the full spectrum of responsibilities, which might mean more effort in filling vacancies.

For Tenants: A Double Net Lease can be the sweet spot if you’re looking for a bit of a break on your rent in exchange for taking on some property expenses. It’s a bit like having a say in how some of your lease money is spent, especially when it comes to insurance costs. However, this model does mean you need to be ready for the additional financial responsibilities and the possibility of variable costs like fluctuating property taxes. On the other hand, a Triple Net Lease puts you in the driver’s seat, giving you full control over the property's expenses. It's ideal for tenants who want the freedom to manage costs and make decisions that could potentially save money in the long run, though it comes with the challenge of managing all property-related expenses, including those unexpected repairs.

The Bottom Line

In wrapping up the ins and outs of Double Net Leases, it's clear that while they offer a unique blend of opportunities and considerations for both landlords and tenants , success lies in understanding and navigating these dynamics effectively. For landlords, the allure of steady income and lower operational expenses is balanced against the responsibility for structural upkeep. For tenants, the advantage of lower upfront costs and some control over expenses comes with the need to budget for variable additional costs. By carefully weighing these aspects and negotiating terms that align with their long-term objectives, both parties can forge a mutually beneficial relationship, turning the Double Net Lease into a strategic tool for achieving their commercial real estate goals.

LEASED! THE SUMMIT AT LA FRONTERA

Wed, 20 Mar 2024 21:28:30 GMT

LEASED!

Commercial Industrial Properties represented our client, iMarket America , in finding office space for their U.S. headquarters. After an extensive search by CIP’s Eric Davis and Bob Springer, iMarket leased space at The Summit at La Frontera in Round Rock.

In addition to working on their new US headquarters, CIP represented iMarket America in their purchase of over 200 industrial acres in Taylor over the past two years. Headquartered in South Korea and with offices around the world, iMarket serves as a vendor to Samsung worldwide.

THE PULSE

Thu, 22 Feb 2024 20:06:55 GMT

Austin MSA Medical Office Q2 2024 Report

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LEASED! MEDICAL OFFICE ON WILLIAM CANNON

Thu, 08 Feb 2024 16:52:04 GMT

LEASED! MEDICAL OFFICE ON WILLIAM CANNON

This past June, Jeff Ecton and Robby Eaves, CCIM joined forces with Austin Spine & Rehabilitation to transform their workspace. The expanding practice had outgrown their old space, and they needed something more suited to their needs without breaking the bank.

Challenge accepted! We walked them through the process of relocation vs. staying in the current location and all the factors it would entail. In record time, we found a 2200 square foot space that ticked all the boxes. The new location in Stonegate Two off William Cannon was ideal, not too far from their earlier location in the Medical Village off SW Parkway. It was larger with a better layout and wallet friendly. Plus, the new suite was almost ready to go, slashing their relocation expenses significantly. At CIP, we understand that besides the cost human resources, real estate is usually your largest expense.

Looking to upgrade your workspace? Our medical office team is just a call away, ready to help you find your ideal space. Let the team at CIP help you make it happen!

HOW A TEXAS COMMERCIAL REAL ESTATE BROKER CAN TRANSFORM YOUR BUSINESS

Thu, 28 Dec 2023 16:47:26 GMT

A Texas commercial real estate broker is one of the best investments you can make if you own a property to run your business. Business owners often assume they can manage or rent commercial properties without brokers, but you might have gotten a better deal and saved on current costs by working with one.

Learn how brokers can transform your Texas business and why you should take advantage of professional representation.

BENEFITS OF USING A TEXAS COMMERCIAL REAL ESTATE BROKER FOR YOUR BUSINESS

Whether you rent or own commercial properties, business owners should always use brokers . This is especially true if it is a complicated deal or for high-value real estate.

The benefits of utilizing brokers for commercial real estate include:

No Additional Cost for Representation: Broker commissions are typically built into listing agreements.
Legally Bound to Prioritize Your Interests: Brokers are obligated to get you the best deal possible.
Exclusive Resources: Brokers have access to an internal professional network of local real estate agents, fellow brokers, and off-market property owners for unlisted property access and reduced pricing.
Stronger Risk Mitigation: Brokers are experienced with robust deal analysis to ensure all contract and lease terms are presented accurately.
Saves You Time: Brokers offer streamlined property search tools to save you time and resources—so you can focus more on your business.

Leasing or buying commercial real estate is a significant investment. That’s why hiring professionals to protect and grow your business is invaluable.

Local Market Insights

A Texas commercial real estate broker has in-depth knowledge of the local market. They have exclusive access to private databases and multiple listing services (MLS) that you cannot get alone. Some MLS platforms require a paid subscription or restrict access to professional use only.

These local insights can benefit business owners in making strategic decisions about their real estate needs. If you’re looking to buy a property for your business, brokers know how to find profitable sectors for commercial real estate investment.

Brokers have comprehensive data to evaluate popular asset classes, dominating industries, job/population growth, average income, and buying power. This way you make data-driven decisions on commercial properties that will drive the highest returns for your business.

If you currently own or rent, brokers can also assist you with improved asset management to better achieve your business’s investment goals. They can help you strategize on the best capital improvements to preserve its value and assets. For tenants, brokers can help you with negotiable deal points for commercial leases, such as favorable contract terms and abated rent.

Strategic Property Acquisition and Leasing

One of the most crucial decisions a business owner first makes is deciding how they’ll invest in commercial properties. A Texas commercial real estate broker can help you decide whether it is more profitable to buy or lease .

Brokers strategically acquire properties or leasing arrangements with your business goals in mind while negotiating favorable terms. This is done through a financial analysis to evaluate what’s best for you and your business. They’ll take your current budget and compare it to the local market to identify new listings with the most potential.

For current properties, brokers will evaluate your current lease terms and business profits. They use this information to find opportunities for better agreements and greater cash flow.

Navigating Complex Transactions

Commercial real estate transactions in Texas can be complex, especially for high-value properties. In Texas, if you signed a commercial lease and don’t understand some of its terms, the current owner isn’t obligated to advise you since it’s a private contract.

A Texas commercial real estate broker can help you navigate and leverage these intricacies to help craft a stronger deal that best suits your needs. They have the transactional expertise and negotiation skills to recognize critical legal details you may miss.

Choosing the Right Texas Commercial Real Estate Broker

Now that you know how brokers can benefit Texas businesses, you must also choose the right one for your needs. Always use local brokerage firms, as they have local connections and niche expertise in the areas you’re interested in. Ask how they use a client-focused approach to guide business owners in making profitable decisions.

Review their case studies or portfolios to ensure they have a successful track record within your sector. Business owners can always benefit from obtaining professional industry knowledge to make more strategic real estate decisions for the bottom line.

SUSTAINABILITY AND INNOVATION IN SAN ANTONIO’S INDUSTRIAL REAL ESTATE

Thu, 16 Nov 2023 16:39:03 GMT

The San Antonio industrial real estate industry is evolving now more than ever towards innovative sustainability. For this reason, it is providing new opportunities for investors to capitalize on greener market trends and make a greater environmental impact.

Consumer demands are increasing for businesses to meet climate pledges for existing properties and improve greener building designs for new construction and renovations.

From government-administered green building certifications to smart technology integration for energy efficiency, here is how the industrial real estate landscape in San Antonio is adapting— and why your investment strategy should, too.

HOW SUSTAINABILITY IS SHAPING SAN ANTONIO INDUSTRIAL REAL ESTATE

Whether it is new construction for manufacturing facilities or current industrial plants, San Antonio industrial real estate is showing new investment opportunities through its recent sustainability developments.

The City of San Antonio’s Office of Sustainability offers financial incentives or rebates for facilities that reduce their utility expenditures. San Antonio is one of the few cities in the U.S. to utilize this sustainability model, which positively impacts its industrial real estate through a revolving funds strategy.

Sustainability developments in San Antonio that are shaping the industrial real estate market include exterior/interior lighting retrofits, PC energy management, and HVAC control upgrades.

The City of San Antonio’s greener building initiatives benefit industrial real estate investors by:

Lowering operational costs by 54%
Providing opportunities to invest utility rebates into future energy savings technologies
Decreasing overall property energy usage
Reducing carbon footprints and greenhouse gas emissions
Increasing property asset value through new sustainable technology and meeting consumer demands

In addition to the city’s current developments, here is how other organizations and eco-friendly technology are impacting San Antonio industrial real estate.

Green Building Certifications: LEED and ENERGY STAR

San Antonio’s industrial real estate sector is increasingly adopting green building certifications like LEED (Leadership in Energy and Environmental Design) and ENERGY STAR. These certifications emphasize energy efficiency, reduced environmental impact, and sustainable building practices.

LEED (LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN)

LEED is a third-party framework for certifying green building construction and design. They are a globally recognized symbol of sustainability and a widely used certification system to reduce contributions to climate change for existing buildings and new construction .

It analyzes a building’s environmental impact and performance by ESG (environmental, social governance), decarbonization, and equity goals.

Factors that impact LEED certifications include:

Sustainable material sourcing methods
Energy-efficient usage and management
Water conservation efforts
Use of reusable materials during new construction and renovation

LEED provides rating systems to encourage businesses and investors to achieve sustainability goals in their San Antonio industrial real estate. In return, LEED-certified buildings are proven to be top-performing real estate investments.

According to LEED, certified real estate lowers operational costs, increases assets , and achieves higher rent premiums by 11.1% since they have a higher resale value compared to non-LEED-certified buildings.

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LEED-CERTIFIED BUILDINGS LOWER OPERATIONAL COSTS, INCREASE ASSET VALUE, AND ACHIEVE HIGHER RENT PREMIUMS BY 11.1% COMPARED TO NON-LEED-CERTIFIED BUILDINGS.

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ENERGY STAR

ENERGY STAR is an organization administered by the U.S. Environmental Protection Agency (EPA) to deliver energy-efficiency solutions for consumer products and real estate. Together, they aim to transform how people and businesses use and save energy to improve sustainability.

When it comes to San Antonio industrial real estate with ENERGY STAR certifications, their industry focuses include aluminum casting, iron/steel manufacturing, and motor vehicle manufacturing. They work with industrial plants and manufacturing sectors to improve their facility’s energy usage, management, and efficiency.

ENERGY STAR measures and tracks industrial energy performance through an industry-specific Energy Performance Indicator (EPI) on a scale of 1 to 100. EPIs analyze annual energy use, energy-related CO2 equivalent emission reduction from improving energy efficiency, and total source energy savings. Industrial plants with an ENERGY STAR certification must receive a minimum of 75 or higher to qualify.

ENERGY STAR buildings offer the following financial benefits for industrial real estate investors:

1% to 31% increase in sale prices
3% to 16% higher in rental premiums
Up to 10% higher occupancy levels

These statistics are especially significant for manufacturing sectors as production facilities and industrial plants use high-power energy systems. However, similar to LEED, ENERGY STAR-certified buildings also have higher asset value, cost savings, and favorable financing.

Solar Power Integration

Did you know that industrial sectors consume more than 79% more energy than any other commercial industry in the past 10 years? A primary contributor is power supply usage, resulting in significant electricity consumption.

For this reason, industrial facilities in San Antonio are incorporating solar power solutions to reduce their carbon footprint and lower energy costs. Solar panels and renewable energy sources are now more common in industrial properties since they are becoming more affordable, contributing to attainable sustainability goals in various sectors.

San Antonio industrial real estate investors who integrate solar power technology into their properties may qualify for federal solar tax credits . They are government-backed tax programs to reward and encourage people and businesses to invest in sustainable solutions.

Solar power systems that are tax-expensed for industrial real estate include:

Solar PV roofing panels
Concentrating solar-thermal power (CSP) energy generation technologies
Surge arrestors
Solar water space heaters

Large industrial facilities in San Antonio are ideal for solar panel installations because of Texas state incentives that reduce upfront costs. Depending on the system used and your site structure, the cost savings in return can be profitable.

This is especially profitable for industrial properties utilizing LEED or ENERGY STAR-certified products, which are proven to benefit buildings with higher renewal rates, improved net cash flow, increased net operating income, and lower absorption time in the real estate market.

Efficient Water Management

Sustainable projects for industrial real estate in San Antonio prioritize efficient water management systems, including rainwater harvesting and wastewater recycling.

The San Antonio River Authority is an example of how the city is reducing stormwater runoff pollution and is funded by the U.S. EPA. These practices help conserve water resources in a region prone to periodic droughts.

The City of San Antonio is also investing significant funds into local real estate for water conservation. Their Office of Sustainability invested $162 billion in residential and commercial properties by the San Antonio Water System between 1992 and 2018. As a result, San Antonio benefitted from $762 million in avoided costs associated with water and wastewater demand.

Other industrial real estate design and construction methods for water conservation include:

Low-flush toilets, waterless urinals, and low-flow plumbing fixtures
Landscaping elements for onsite water retention, like grass berms and bioswale drainage systems
French drains for reducing water discharge into sewer systems
Upgraded water conservation fixtures, such as low-volume spray hoses and motion-activated sink faucets

In addition to water conservation systems, establishing a water savings plan is essential to optimize water usage for industrial sites. Investors must create conservation benchmarks to continuously measure and track their property’s water usage for improved sustainability.

In the green era of San Antonio industrial real estate, inventors can find that building and maintaining sustainable properties is not only financially justifiable but profitable.

Adaptive Reuse of Buildings

Innovative adaptive reuse projects are converting older industrial buildings into modern, eco-friendly spaces. This practice reduces urban sprawl and repurposes existing structures for new, sustainable uses.

According to the CCIM Institute, the adaptive reuse of industrial properties includes the following sustainable features:

Recycling building materials and carpet
Maximizing daylighting with strategic window placement and skylights
Upgrading current mechanical systems to be more energy-efficient
Implementing clerestory glass in warehouse areas
Power-saving warehouse lighting with automatic shutdown once ambient lighting is achieved

Repurposing the initial design of industrial sites instead of demolishing them for new construction not only saves on time, demolition, and development costs, but provides a considerable value opportunity for San Antonio investment properties .

Additionally, the U.S. National Park Service offers federal and state tax breaks for the adaptive reuse of industrial buildings. If the original site is considered historic, the Federal Historic Tax incentive program offers up to 20% in federal tax credit for rehabilitating historic properties.

An example of successful historic reuse in San Antonio is the Pearl Brewery development, which repurposed this 21-acre industrial site into a vibrant mixed-use development . Beer storage tanks and old garage doors were repurposed into large, metal-framed windows for residential spaces, a boutique hotel, restaurants, an amphitheater, and more.

Industrial real estate investors should consider adaptive reuse not only for its economic and sustainable advantages, but it also for its contributions to reviving San Antonio’s local history and culture.

Smart Technology Integration

Industrial properties in San Antonio are embracing smart technology solutions to optimize energy consumption, monitor environmental conditions, and enhance overall sustainability performance.

Sustainable automation in industrial sites includes:

IoT (Internet of Things) energy meters and sensors for energy consumption insights to optimize energy usage
Smart thermostat scheduling features to power off heating or cooling in factory areas when unoccupied
Occupancy sensors to automatically turn off lighting systems if no movement is detected

Smart technology integration showcases how sustainability and innovation are transforming San Antonio’s industrial real estate sector by aligning it with modern environmental and efficiency standards.

Whether you are considering leasing warehouse space in San Antonio or investing in manufacturing plants to support your business operations, industrial building automation can provide significant returns.

MAXIMIZE YOUR RETURNS WITH SUSTAINABLE INDUSTRIAL REAL ESTATE IN SAN ANTONIO

The demand for sustainable, next-generation solutions in San Antonio is rising with no signs of slowing down in its industrial real estate market. By investing in green technologies and systems now, investors can position themselves in a better place for the future. From increasing asset value to reducing operational costs, now more than ever is a profitable time for you to capitalize on eco-friendly industrial sites and designs in San Antonio.

At CIP Texas, we are a full-service real estate and brokerage firm with over 20 years of tenure in commercial and industrial real estate in Texas. From warehouse offices and build-to-suits to new plant developments, we can help you increase cash flow for diverse industrial properties.

Are you ready to embrace greener practices for San Antonio industrial real estate?

Maximize your investment sales or contact us for questions on how you can better invest sustainability into your industrial properties today.

HOW TO IDENTIFY PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Thu, 12 Oct 2023 15:21:43 GMT

HOW TO IDENTIFY PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Below is a complete guide to identifying successful commercial real estate in Austin before deploying capital in a new market.

HOW TO FIND PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Through comprehensive industry assessments, investors can find which verticals are thriving so they can invest in the commercial property required to drive the highest returns.

Evaluate the following data during your commercial real estate market analysis:

Popular Asset Classes: Determine the building type and quality in demand.
Local Dominating Industries: Analyze which sectors are contributing most to the local economy.
Population and Job Growth: Calculate resident and job growth rates for cash flow projections.
Average Income and Buying Power: Ensure local tenants can afford to rent or buy the services/products the commercial property offers.

Here is how to execute an in-depth market analysis to find profitable industries for commercial real estate in Austin and how brokers can help maximize your investment sales.

Conduct a Market Analysis to Identify Popular Asset Classes

The three asset classes of commercial real estate include:

Class A: New construction or top-quality buildings built within the last 15 years. Offers investors the opportunity to preserve capital due to minimal property risks and attracting high-income earning tenants.
Class B: Fewer luxury amenities and older compared to Class A. Typically easier to find a profitable deal for immediate cash flow.
Class C: Buildings over 20 years old with possible maintenance issues. Not highly profitable and requires renovation to increase asset value. Ideal for investors looking to flip commercial properties.

For example, there is a current industrial real estate boom in Austin for computer manufacturing, warehouse offices, and data centers. Last year alone, 83 million square feet of industrial leases were recorded in Austin, with projections to keep increasing.

From ground leases for Class A manufacturing facilities to renovating Class C buildings for hospitality tourism in metropolitan areas, understanding the asset value of commercial real estate is crucial. Identifying assets that are generating the highest revenue is key to investing in the most profitable commercial real estate markets.

Research Population and Job Growth Data to Determine Profitability

Big tech companies, like Dell, employ more than 13,000 local Austin residents, and Tesla has around 12,000 regional staff. Electronics R&D and manufacturing also represent 65% of manufacturing employment within the Austin region.

According to the Austin Chamber of Commerce , the fastest job sector growth in the last year was hospitality at 11.7%. Wholesale trade industries fell closely behind at 6.5%. They also stated that Austin is the 7th best-performing metro out of the top 50 regarding job growth in the last 12 months.

Analyze Local Market Landscapes to Discover Dominating Industries

As mentioned above, Austin has a significant influx of new residents who are young working professionals (specifically millennials) in computer manufacturing technology. The Austin Journal states that Austin ranked #1 in the U.S. for millennial population growth in 2021 and continues to attract more similar resident demographics.

Consider Austin commercial properties with close access to the Capital Metro line, street parking, and downtown Austin to accommodate employees traveling to work. By discovering dominating industries influencing job and population growth, you can better determine local commercial real estate worth investing in.

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ACCORDING TO THE AUSTIN JOURNAL, AUSTIN RANKED #1 IN THE U.S. FOR MILLENNIAL POPULATION GROWTH IN 2021 AND CONTINUES TO ATTRACT SIMILAR RESIDENT DEMOGRAPHICS.

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Learn the Local Average Income and Buying Power Before Deploying Capital

Validate Potential Profitability for Commercial Real Estate with Local Competitors

Did you know that Austin investors were awarded nearly 4,400 patents last year? According to the Austin Chamber, the city ranks 11th for total patents awarded out of the 366 U.S. metros. If your competitors are investing in specific commercial property niches within the area, this is a sign of sector profitability.

Work with a Commercial Real Estate Broker to Access Off-Market Deals

Benefits of utilizing brokers for off-market deals in Austin commercial real estate include:

Early access to off-market listings
No paid subscription is required for a multiple listing service (MLS)
Streamlined access to professional MLS— instead of lengthier processes through the local county’s public tax office or tax records
Privilege of exclusive broker relationships for unlisted property access
Strong selling experience with off-market property owners
Simpler sales process due to no required negotiations and no red tape involved
Potential for reduced pricing for convenience or from strong broker relationships

Texas commercial real estate brokers can optimize your off-market searches based on target sectors, investment budgets, and exclusive deals, which you can often not easily access on your own. Through their local real estate assessments, they can help you better project future cash flow based on property data and expertise in off-market industry trends.

DISCOVER PROFITABLE SECTORS FOR COMMERCIAL REAL ESTATE INVESTMENT IN AUSTIN

Do you want to maximize your investment sales for commercial real estate in Austin?

HOW TO DIVERSIFY YOUR INVESTMENT PORTFOLIO WITH INDUSTRIAL REAL ESTATE IN DALLAS

Fri, 08 Sep 2023 15:02:34 GMT

The trend of onshoring is causing ripples in the investment waters, especially for industrial real estate in Austin. As companies increasingly bring their operations closer to home, the demand for domestic industrial spaces like warehouses and factories rises. This presents a golden chance for investors to diversify their portfolios, and where better to start than with the expertise of Commercial Industrial Properties (CIP)?

HOW TO DIVERSIFY YOUR INVESTMENT PORTFOLIO WITH INDUSTRIAL REAL ESTATE IN AUSTIN: THE ONSHORING OPPORTUNITY AND THE ROLE OF COMMERCIAL INDUSTRIAL PROPERTIES

Onshoring: Navigating Industrial Real Estate in Austin

The return of previously outsourced operations to a company’s home country, or onshoring, has been spurred by a variety of factors, from reduced transportation costs to a heightened emphasis on quality control. These developments directly lead to an increased demand for local industrial facilities.

Harnessing the Power of Commercial Industrial Properties

As the shift towards onshoring becomes pronounced, partnering with experts in the field can be a game-changer for industrial real estate in Austin. This is where Commercial Industrial Properties shines.

Industry Expertise: CIP brings with it years of experience in the industrial real estate sector. They understand the nuances, the shifting demands, and the best regions poised for growth.
Tailored Solutions: Every investor has unique needs and goals. CIP offers bespoke solutions to ensure that your investment aligns perfectly with your portfolio’s diversification strategy.
Market Insights: With their finger on the pulse of the market, CIP can provide valuable insights on emerging domestic manufacturing hubs, trade policies, and more.
Network: CIP’s vast network of contacts—from local economic bodies to infrastructure experts—can be invaluable for investors looking to capitalize on the onshoring trend.
Facility Modernization and Management: Beyond just identifying the right properties, CIP can guide investors on modernizing older facilities or repurposing them to meet current industry standards. Their management expertise ensures that these properties remain prime assets in an investor’s portfolio.

Reaping the Rewards

By integrating the expertise of Commercial Industrial Properties into your diversification strategy, you stand to benefit in numerous ways:

Seamless Diversification: The transition to industrial real estate becomes smoother, reducing potential pitfalls.
Optimized Returns: Leveraging CIP’s insights can lead to better property selections, translating to higher returns.
Strategic Growth: With CIP’s guidance, you can focus on strategic growth, ensuring your investments are not just timely but also future-proof.

DIVERSIFY YOUR INVESTMENT PORTFOLIO WITH INDUSTRIAL REAL ESTATE IN AUSTIN

The onshoring wave is an opportune moment for investors to diversify into industrial real estate in Austin. Commercial Industrial Properties, with its unmatched expertise and resources, can be the guiding star for those navigating these promising waters. As the world of industry transforms, ensure you’re not just a spectator but an active player reaping the rewards.

A COMPLETE INVESTOR’S GUIDE TO MIXED-USE PROPERTIES

Wed, 06 Sep 2023 14:54:15 GMT

Mixed-use properties are becoming increasingly popular redevelopments in urban areas, and Austin, with its rapid growth and thriving economy, is no exception. This guide will walk you through what mixed-use real estate is, the benefits of investing in them, and the considerations specific to Austin.

WHAT IS A MIXED-USE PROPERTY?

A mixed-use property combines residential, commercial, cultural, institutional, or entertainment uses. Typically, these properties might have shops or restaurants on the ground floor with apartments or offices on the upper floors.

BENEFITS OF INVESTING IN MIXED-USE PROPERTIES

Diversified Income Stream: With multiple types of tenants (e.g., commercial, residential), you have multiple sources of income.
Reduced Risk: The varied usage means that if one sector struggles, the other might compensate.
Increased Foot Traffic: Commercial entities benefit from the built-in clientele living above.
Community Creation: These properties often foster a sense of community, making them attractive to potential tenants.

BENEFITS OF INVESTING IN MIXED-USE PROPERTIES IN AUSTIN

Growing Population: Austin’s population has been on a steady rise, bringing with it increased demand for both residential and commercial spaces.
Thriving Tech Scene: Known as the “Silicon Hills”, Austin’s tech boom has led to an influx of professionals and businesses.
Cultural Hub: With events like SXSW and a vibrant music scene, Austin is always bustling with activities, which can be a boon for commercial entities in mixed-use real estate.
Friendly Business Environment: Texas, as a whole, is known for its business-friendly policies, including no state income tax.

Austin’s Key Areas for Mixed-Use Property Investments

Downtown Austin: This bustling heart of the city is ideal for high-end mixed-use properties, attracting both businesses and residents wanting to be in the center of the action.
East Austin: Once a more neglected part of town, East Austin has undergone significant revitalization. It’s now a hotspot for artists and startups.
South Congress: Known for its vibrant nightlife and eclectic shops, this area is ideal for mixed-use real estate with a more bohemian vibe.
The Domain: A newer, upscale mixed-use development in North Austin, this area appeals to tech professionals and those seeking a suburban feel without compromising on amenities.

Considerations for Mixed-Use Real Estate Investments in Austin

Zoning Laws: Austin has specific zoning laws that can affect where you can develop or purchase mixed-use properties. Always check local regulations.
Infrastructure Development: Austin’s rapid growth means there’s constant infrastructure development. Research planned projects, as they could affect property values.
Tenant Mix: Given Austin’s diverse population, it’s essential to find the right mix of tenants for both the commercial and residential parts of your property.
Price Points: Austin’s real estate market has heated up. Ensure you’re getting a fair price and factor in potential growth.
Environmental Concerns: Austin has a strong community focus on sustainability. Green or eco-friendly developments may be especially appealing to renters or buyers.

Mixed-Use Real Estate in Austin: Financing and Taxes

Financing Options: Mixed-use properties might have different financing options than traditional commercial or residential properties. Local Austin banks or credit unions can be a good starting point.
Tax Implications: The diverse nature of mixed-use properties can lead to varied tax situations. It’s crucial to consult with a local tax expert familiar with Austin’s property tax landscape.

FIND THE BEST INVESTMENT OPPORTUNITIES FOR MIXED-USE REAL ESTATE IN AUSTIN

Investing in mixed-use real estate in Austin can offer a unique opportunity to capitalize on the city’s growth and vibrancy. With careful planning, research, and local insights, investors can tap into the potential of this burgeoning market and enjoy the diversified benefits these properties bring.

HOW TO IMPROVE ASSET MANAGEMENT FOR COMMERCIAL REAL ESTATE IN AUSTIN

Thu, 10 Aug 2023 14:48:13 GMT

Is your commercial real estate in Austin overdue on maintenance and are unsure where to begin? Whether you are a property manager concerned about property condition or an investor considering capital improvements, improving your asset management strategy is a great place to start.

Asset management is more than basic property maintenance, repairs, and rent collection. It can provide a clear roadmap to maximize a greater return on investment. Here are four ways commercial real estate investors can improve asset management to better achieve their investment goals.

IDENTIFY YOUR HIGHEST AND MOST CONSISTENT REVENUE SOURCES TO INCREASE CASH FLOW

The first step to strengthening asset management for commercial real estate in Austin is having a structured financial plan. When investors have organized financial data about their property’s revenue sources, they can identify their most prominent revenue sources to maximize cash flow.

Commercial real estate investors can increase their property’s cash flow by:

Identifying the highest and most consistent revenue sources
Making financial projections based on property cap rates
Looking at significant expenses and negotiating terms
Setting realistic deadlines for commercial leasing and meeting deadlines

An actionable cash flow plan can increase revenue and decrease expenses to maximize your investment. By setting budgets and timelines, investors can improve the current state of their financial resources and constraints because they are managing them more efficiently.

MAKE CAPITAL IMPROVEMENTS TO YOUR COMMERCIAL REAL ESTATE IN AUSTIN TO MAXIMIZE PROPERTY VALUE

One of the most common mistakes made with asset management is not maintaining commercial real estate after investment. After investing in commercial real estate, ongoing maintenance is required to preserve its value and assets.

Ongoing property maintenance is also a preventative measure since investors are typically responsible for maintenance and repairs in commercial leases . If your property has lowered in value, can build equity.

According to the IRS , capital improvements include the following:

Betterment– amounts paid for material condition repairs, additions, quality, etc.
Restore– amounts paid for restoration after casualty losses, deterioration, new rebuilds, etc.
Adapt– amounts paid to the property with a new or different use than originally intended

Capital improvements maximize your investment’s returns by increasing your commercial real estate’s assets and values. Whether it is through betterments, restoring, or adapting, investors can build more equity to strengthen their asset management and cap rates.

MONITOR THE CURRENT MARKET TO MINIMIZE INVESTMENT RISKS

Did you know there is currently an industrial real estate boom in Austin? The 2023 market shows an increasing demand after 83 million square feet of industrial leases were recorded in August 2022 alone. Although inflation and capital costs are rising, investors are not pulling back from commercial real estate in Austin.

Asset management strategies for commercial real estate market research should include the following:

Find areas with curb appeal and low-crime rates
Choose desired locations with solid infrastructures to attract customers and employees
Allocate revenue streams to finance new purchases with minimal risk
Mitigate risks, adjust lease terms, and prepare contingencies in case an investment fails
Educate yourself continuously on trends to stay competitive in the market

A successful asset management strategy also leads to successful commercial property management . When investors demonstrate market knowledge, they establish credibility to earn future business and relationships. Capital improvements are crucial to asset management because it minimizes financial risks and capitalizes on new investment opportunities.

BUILD A DIVERSE INVESTMENT PORTFOLIO TO DRIVE MORE PROFITS

Another effective strategy to improve asset management for commercial real estate in Austin is building a diverse investment portfolio . A diverse investment portfolio can improve asset management by increasing your buying power.

When investors display a diverse portfolio with multiple asset classes, they can gain ownership of physical properties within the intrinsic value. The more type of real estate you invest in, the more buying power you gain.

Diversifying real estate investment portfolios to drive more profits should include:

Various types of real estate markets — mixed-used properties , office spaces, retail stores, fitness facilities, local businesses, etc.
Multiple asset classes — existing vertical and horizontal developments, new sustainable construction, etc. to earn more short and long-term profits
Different locations — varying commercial and industrial land uses

Diverse portfolios also provide investor protection in the case of decreasing cap rates or revenue stream losses. We never suggest investing in commercial real estate without an exit strategy, regardless of financial plans and investor protection.

In case of market fluctuations or unexpected uncertainties, selling your property should not be the sole exit strategy. As mentioned above, implement multiple exit strategies, such as contingency plans and lease term negotiations. No commercial real estate investment is without risks, but you can prevent being unprepared for market downturns and mitigate risks more effectively to lower negative financial impacts.

REACH YOUR INVESTMENT GOALS WITH ASSET MANAGEMENT SERVICES

Do you want to maximize your commercial real estate investment? Contact Commercial Industrial Properties for asset management services .

We are a full-service brokerage and management firm to build the proper system you need to achieve your investment goals. Learn how we can help improve your asset management to drive more revenue today.

HOW TO BECOME A COMMERCIAL REAL ESTATE AGENT IN AUSTIN

Tue, 20 Jun 2023 14:26:16 GMT

Between its high quality of life, tax benefits, and vibrant business community, the city of Austin, Texas is a great space to purchase or lease commercial real estate. Companies and organizations of all kinds have the ability to grow here, from those in hospitality to those in tech. Filled with a collaborative community of forward-thinking professionals, it’s no wonder why Austin experienced a population influx of 51,349 people in 2022 . Skilled entrepreneurs want to surround themselves with other skilled entrepreneurs.

Of course, what this means is that commercial real estate agents are needed more than ever in Austin. If you are considering going on this path, you have the opportunity to enjoy the benefits of working in a city that ranks among the top spots in the nation. You can help buyers and sellers alike get what they need out of Austin’s rapid development. To make a career out of commercial real estate, just follow along with these six steps.

DETERMINE IF REAL ESTATE IS RIGHT FOR YOU

Real estate is a very complex industry, given the fact that it is ever-evolving. This is especially true in the Austin area, what with the dramatic increase in residents in recent years. There is a lot to learn and a lot to continue educating yourself on. For that reason, you need to carefully consider whether becoming a real estate agent will align with your personal goals. Ask yourself: Do you have a genuine passion for the industry and helping people find their perfect properties ?

Further, you need to decide if commercial real estate is the appropriate career path for you because it is a different experience than residential real estate. Commercial real estate agents in Austin focus on properties intended for business purposes. Residential real estate agents, on the other hand, work with properties intended for personal use. Beyond the fact that the types of properties are different, the clientele and market dynamics are different. Talk to other Austin-based industry professionals from both sides about their experiences.

TAKE THE REQUIRED REAL ESTATE COURSES

Although every state is able to choose its own requirements, they all need you to get a license in order to sell commercial real estate. In Texas, there are certain qualifications that you must have before you can commit to becoming a real estate agent. These include that you are 18 years of age or older, that you are a legal resident of the United States, and that you pass the Texas Real Estate Commission’s (TREC) Fitness Determination . A Fitness Determination determines whether you meet expectations for honesty, trustworthiness, and integrity.

Once you have ensured that you are eligible to tackle the role of commercial real estate in Austin, you can sign up for the necessary courses. Where some states only ask for prospective agents to complete 30 hours of coursework, TREC requires 180 hours. This means that when you work with a real estate agent in Texas, they have a significant amount of educational training under their belt. You will be in good hands when selling or searching for a property. Not only that, but license holders must meet Continuing Education (CE) requirements every two years.

OBTAIN YOUR REAL ESTATE LICENSE

Following your courses, you will need to take a licensing exam. Administered by testing service company PearsonVUE in Texas, you can expect your exam to be between 75 to 150 multiple-choice questions. It is recommended that you study, either by using a guide or joining a program, so that you have the best chance of passing. For Austin residents, you have one year from the date your application is filed to meet the state’s licensing requirements.

JOIN A PROFESSIONAL REAL ESTATE ASSOCIATION

As a new commercial real estate agent in Austin, you need to be able to prove your skills and knowledge. So, it can certainly help to find a national or state-level association within the industry to take part in. It will make you appear more credible to your future clients. One example is the National Association of Realtor®s (NAR). NAR offers an array of resources to help with education, advocacy, networking, and supplying property data. As the largest trade association in the United States, NAR is dedicated to your success as a commercial real estate agent in Austin.

No matter which ones you decide to join, real estate associations provide the benefit of networking opportunities. When you attend an association’s events and conferences, you have the chance to connect with many like-minded industry professionals in one place. This allows you to form mutually valuable business relationships that will serve you well as you continue to grow your career.

CHOOSE A SPECIALIZATION IN REAL ESTATE

There are so many different types of commercial properties in the Austin area, ranging from shopping centers to industrial space to warehouses . It is a good idea to narrow your focus so that you can have the deepest understanding possible of your niche. You will be more aware of relevant micro-trends and specific building requirements. Ultimately, when you specialize in an area of commercial real estate, you can differentiate yourself from other agents. This allows you to build a positive reputation amongst your target audience and reel in more clients.

How you choose to specialize can be dependent on your personal interests. For instance, if you are someone who has a background in retail management, you might feel more inclined to specialize in retail businesses. Your decision can also be based on where the greatest financial opportunities lie. As a commercial real estate agent in Austin, you need to be keeping up with market demand and trends. Educate yourself on what is going to attract clients and close deals.

GET INVOLVED WITH A REAL ESTATE BROKERAGE

Both commercial real estate agents and commercial real estate brokers in Austin serve as liaisons between parties during commercial transactions . They each have extensive knowledge of the location and demographic, and are able to do in-depth analyses about whether a property is good for their client. While much of their day-to-day is the same, brokers are licensed to work independently and they can employ agents. Once you start learning about commercial deals at a brokerage, you may even decide to put in the extra work to become a broker yourself!

Whether your focus is on office space, retail space, or land, Commercial Industrial Properties can help. Our team has an average tenure of 20-plus years in commercial real estate, and we have continued to educate ourselves throughout that time. That means we have a long history of providing superior service to our clients. We will give you the deep relationships that you need to succeed in the world of real estate investment. Are you ready to learn more from our brokers? Contact us today to chat about your goals as a commercial real estate agent in Austin!

WHAT TO KNOW ABOUT OBTAINING FLEX SPACE FOR LEASE IN SAN ANTONIO

Tue, 13 Jun 2023 14:17:43 GMT

San Antonio is considered to be one of the top cities for starting a small business. Regardless of the size of your business, though, you need a workspace that is going to meet your needs as an industry professional. And the fact of the matter is, not every type of workspace will be the most appropriate option for your team. For San Antonio business owners, determining where to go can seem overwhelming. There are a number of factors that go into narrowing down the available listings .

That is precisely why you should consult a brokerage firm. Based on your business’s requirements, they might steer you in the direction of flex space. Flex space is a type of workspace that offers adaptable arrangements in a setting that is conducive to productivity. It can cater to your business right here, right now. Read up on why renting flex space for lease in San Antonio might be an ideal move for you.

HOW FLEX SPACE IS DIFFERENT

There are several challenges that flex space overcomes when compared to other types of commercial real estate. Offering a unique versatility, San Antonio business owners might be drawn to this type of property because of its:

Length of Agreements

Flex space for lease in San Antonio is known for having a shorter lease than commercial properties like traditional office spaces . Where a traditional office space could have a lease lasting for several years, flex spaces go for anywhere between one month to three years. This makes it easy for businesses to move around, should they outgrow their current location. It is an option with minimal risk for both the tenant and the landlord. Just keep in mind that you should consult with a local commercial real estate broker before committing to your lease so that all of the terms are clear. They can also help you negotiate the best possible deal.

Lower Startup Capital

In the case of a traditional office space, you could find yourself investing a significant amount to get everything up and running. You might even find yourself having to renovate the design and layout. This isn’t the case with flex space for lease in San Antonio, which offers just about everything you need from the very beginning. After providing an initial payment, all you have to do is move in your equipment, stock, and other necessities and get settled. With that in mind, flex space is considerably more affordable than other commercial real estate properties.

Shared Spaces and Amenities

The majority of flex spaces are collectively leased by multiple businesses. This is unlike other types of commercial properties, in which it is typically just your company leasing the space. Your team will be performing day-to-day operations alongside others, potentially from completely different industries. And you will do this in coworking spaces. You can have access to a wide range of shared amenities when you choose the right flex space for lease in San Antonio. One of these amenities is meeting rooms. This makes it easy for your team to come together and collaborate. Resources like custodial services are also split to make the experience more affordable.

WHAT IS FLEX SPACE USED FOR

Flex space is designed to be able to effectively perform multiple functions, making a game-changer across industries. Your team can enjoy the comfort of this workspace if your business falls under any of these categories:

Research and Development

If your company is involved in any research and development fields, including medical and pharmaceuticals, flex space for lease in San Antonio has the necessary accommodations. You not only get enough office space, but also have your lab needs met. Ready-to-use workspaces come equipped with the necessary utilities. Should your company’s research result in product development, you will have enough space to manufacture those goods, as well.

Manufacturing

Once again, flex space for lease in San Antonio is a good option for those needing to manufacture products. You are able to choose a location that meets your supply chain requirements and distribution channels. Flex space is known for its ability to align with the adaptive nature of modern manufacturing so that you can respond quickly to market trends. This way, your team optimizes operations every step of the way.

Data Centers

As the realm of the internet continues to expand, the increasing demand for data centers continues. This means that data centers require flexibility so that they can meet the growing needs of their clients. In this case, flex space for lease in San Antonio can be an incredibly strategic choice . Flex space is sure to meet your data center’s size requirements, whether it is serving one business or several.

ADVANTAGES OF RENTING FLEX SPACE

Businesses are able to revolutionize how they operate when they set up shop in the modern work environment of flex space. Some benefits that you can experience when switching to this dynamic solution include:

Sense of Community

You are able to experience more employee engagement when your business invests in flex space. This is because you have every member of every department working under one roof. Beyond that, you are getting to interact with workers from other businesses. Perhaps this could open the door to some collaborations. Commercial real estate brokers agree that constant face-to-face interactions are a great way to foster a company culture, as well as a sense of motivation across your team. The workday becomes much more meaningful when your San Antonio staff can switch off whether they are behind a desk or on the floor.

Customizable Space

With traditional office spaces, once again, you may wind up having to renovate the design. Otherwise, you could be quite limited in terms of what you can do with the space. And should you decide to flip the space to better suit your needs, it can get expensive. This is especially true for office spaces with tight floor plans. With flex space for lease in San Antonio, on the other hand, alterations come at a much lower cost. The floor plan is easily customizable so that you can make any dedicated workspace better suit your needs at any point during your contract.

Easy Access

Flex space for lease in San Antonio can be attractive for employees and clients alike because they are conveniently found in office complexes. There is no need to enter through a loading dock when you utilize flex space. Instead, clients are able to reach your offices by entering through a designated area. They are able to see your entire process in one space. This makes your workspace feel professional and authentic.

Let’s find flex space for lease in San Antonio that fits your personal needs! Commercial Industrial Properties is made up of a team of highly knowledgeable brokers with an average tenure of 20-plus years. We have worked with local, national, and international organizations to help them achieve their goals. Not only will our expert services minimize sale and lease cycle times, but we will help you maximize returns and value. Get in touch with us to start the search for your new property in the San Antonio area.

GET THE MOST PRODUCTIVE OFFICE SPACE IN AUSTIN

Tue, 06 Jun 2023 21:12:19 GMT

Austin, Texas is a prominent business hub. The Greater Austin area at large has experienced significant growth over the past few decades, becoming an attractive destination for entrepreneurs of all kinds. We have seen a boom in thriving technology companies, in particular, earning Austin the title of Silicon Valley’s rival. But no matter what industry your business falls under, it remains the case that you need three things out of your workforce—skill, innovation, and productivity.

Productivity is the cornerstone of your success. When your team is productive, they are utilizing resources effectively and efficiently. One way to ensure that they are doing this is by getting the perfect office space . At this centralized location, employees are able to communicate and collaborate without having to do everything from behind a screen. If you are looking to allow for more social connections within your company, you need an office. Here are the five things to be mindful of when searching for office space in Austin.

DO RESEARCH ABOUT WHERE THE OFFICE IS LOCATED.

Convenience is a key component of finding a good office space in Austin. By that, we mean that you need an office that is easily accessible to the members of your team. This should be true whether they are commuting by car, public transportation, or even bike. Office location can dramatically affect job satisfaction, ultimately helping your company retain talent.

The location of your office space even has the potential to shape the impression of your clients, partners, and prospects. If you are in a renowned business district, it is going to signal to them that you are credible. Alternatively, if you are in a sketchy area, it could reduce the confidence that your stakeholders have in your skills. Always think about what is around a potential office location to determine whether it is a good choice. Having a nearby coffee shop or gym might even uplift the experience of your Austin-based brand advocates.

HAVE A REALISTIC RENTAL BUDGET IN MIND.

There is no way around it—you need to set a budget. Price is often the most important factor for businesses when they are choosing a new office. After all, agreeing to spend too much on rent could have you struggling in the future, resulting in you having to downsize. When you start working with a commercial real estate broker, they expect you to have a good understanding of your financial situation . This knowledge will allow them to locate office spaces in Austin that fit comfortably within the budget you have allotted for leasing.

You can help your business maintain greater stability when you stay within your budget. To make sure that you achieve this, your long-term financials should be taken into account. By projecting revenue, expenses, and cash flow, you are able to make better-informed decisions about your office space needs. For instance, you can assess whether or not you are on track to require a large amount of space in the near future.

CONSIDER GOING THE ROUTE OF A COWORKING SPACE.

Because they are often cheaper than renting private office space in Austin, coworking spaces are a great choice for small businesses and start-ups. Coworking spaces are fully-serviced office buildings with a variety of workstations. They are known to come with extra perks like communal spaces, kitchens, and potentially even a gym, making your office situation quite flexible. Other resources like meeting rooms and printers are also readily available. With this kind of all-inclusive workspace comes an energetic atmosphere that boosts motivation and, thus, productivity.

Coworking spaces allow for a sense of community in a way that traditional office space might not. In today’s remote-first world, it makes a big difference in your company culture when you have more opportunities for face-to-face interactions. This is true even if those interactions are happening between people from other businesses who are similarly utilizing the space. You are encouraging individuals to stay engaged. Still, you can have a dedicated workspace within the coworking environment where your Austin team can build connections internally.

FIGURE OUT WHAT FACILITIES AND INFRASTRUCTURE YOU NEED.

Talk to your commercial real estate broker about what your business requirements consist of. This might mean asking yourself questions like:

How many employees will be working in the office every day?
Would our team prefer open desks or cubicles?
Are client meetings going to be held at the office?
How much storage space is going to be necessary?
Will we need any specific technology infrastructure?
Does our industry have compliance standards we must abide by?

One thing, in particular, that you should think about is the internet. It is likely that your business will be handling a lot of day-to-day activities online. Therefore, above all else, strong internet is a must. When you have a poor connection, you risk the workday coming to a grinding halt. So, be sure that your office space in Austin is equipped to support your team’s daily operations with its resilient networking infrastructure .

DON’T DISCOUNT THE IMPORTANCE OF STYLE.

You need an office space in Austin that is going to make your team feel comfortable and driven. To do this, you have to invest in a space that is well-designed and reflects your company’s values. The style of your office will have a considerable influence on the collaboration between your employees, given that having more visually stimulating elements can inspire innovative thinking. Become the brand you want clients to believe you are.

At the end of the day, what makes a good office space is one that is customizable. It is recommended that you allow your employees to reflect their identities by personalizing their spaces around the office. This can go a long way in terms of fostering a positive work culture. It shows that you, as a business owner, care about individuality, creativity, and being able to take pride in your workspace. You might be surprised to learn that something as small as a desk plant can make a real impact in terms of your staff’s well-being!

Commercial Industrial Properties is made up of a team of ethical brokers who have decades of experience navigating the local market. If you are in need of office space in Austin, we are sure to find the best fit for you. We have worked with a wide range of clients, from start-ups to Fortune 500 companies. No matter the size of your business or your goals, we are prepared to give you the same level of high-quality service. Send us a message now to get started with our expert consulting.

BEST ADVICE FROM A TEXAS COMMERCIAL REAL ESTATE BROKER

Tue, 23 May 2023 20:55:09 GMT

Texas is a land of vast opportunities. That is why people from all over the country—and, for that matter, the world—are moving here. According to the United States Census Bureau , the Lone Star State is now one of two states with a population that exceeds 30 million, second to California. In fact, several Texas counties are leading the nation in growth.

With the dramatic rise in residents and businesses, more and more developments are being built to accommodate them. This means that you likely have plenty of chances to start investing in commercial properties. But what do you need to know prior to taking this leap? Let’s walk you through what Texas commercial real estate brokers feel is necessary for your investment’s success.

DO YOUR RESEARCH TO BETTER UNDERSTAND THE MARKET.

When you conduct market research, you are able to identify potential investment opportunities . If you are getting into real estate investing for the first time, this is a critical step. It is your chance to analyze trends and rental rates so that you know where the most favorable conditions are for your needs. By straying away from areas with oversaturated markets, you set yourself up for having higher growth potential. Executing research is also beneficial for your long-term understanding of the real estate industry. You need to keep up to date on local development plans and other factors that will affect your investment over time.

GET TO KNOW YOUR LOCAL LAWS AND REGULATIONS.

Texas commercial real estate brokers always emphasize compliance. You need to familiarize yourself with laws and regulations regarding commercial real estate so that you avoid potential legal disputes down the line. Taking some time to understand zoning, permits, and building codes, just to name a few things, will be incredibly advantageous to you as an investor. Your local laws are what dictate how you can use your commercial property. When you have an advanced understanding of the kind of restrictions that you are up against, you meet business requirements. This keeps you from making costly mistakes or winding up with delays.

ALWAYS HAVE A BUDGET AND TIMELINE IN PLACE.

If you want to receive a maximum return on investment, you must have a clear budget in place. This budget helps you comprehend the current state of your financial resources and constraints. As a real estate investor, you don’t want to overextend yourself because you have to be able to manage your projects efficiently. Texas commercial real estate brokers suggest having a timeline that allows you to stay on track. Continuing to set realistic deadlines for leasing activities—and actually meeting those deadlines—helps you stay on the road to success. Your budget and timeline work together to prioritize your actions when it comes to your commercial properties.

DIVERSIFY YOUR INVESTMENT PORTFOLIO.

By including commercial real estate in your portfolio alongside other asset classes, you gain ownership of physical properties with intrinsic value. Any Texas commercial real estate broker will tell you that this type of asset is directly influenced by you, the investor. And if you decide to invest in different types of real estate across various markets, you can achieve greater appreciation. Of course, no type of investment is without risk. It is recommended that you never make an investment without having multiple exit strategies. In the case of real estate, the market is subject to many fluctuations and uncertainties. If your only exit strategy is selling the property, you are still at risk of market downturns.

TREAT YOUR INVESTMENTS LIKE A BUSINESS.

Your tenants need you to be professional and foster a high level of accountability. To do this, you are expected to make well-informed decisions based on business best practices. It all starts with goal setting. By developing a long-term strategy to achieve your goals, you have a defined roadmap for what you hope to get out of your investment. But that isn’t to say your goals are stuck right where they are. Texas commercial real estate brokers want you to feel comfortable with adapting your strategies based on acquired knowledge. As you continue to educate yourself, find ways to stay competitive in the market. Capitalize on new opportunities as they arise.

DO THOROUGH BACKGROUND CHECKS ON TENANTS.

A good tenant is someone who has a history of financial responsibility. Whenever you are deciding on whether or not to approve a business to reside in your property, you must evaluate their ability to pay rent. This can be noted through their credit history. You don’t want to have to continuously deal with someone who doesn’t pay on time when there could be others waiting for the spot to open up. Another must-have for your tenants is business verification. It is necessary to verify the legitimacy of their business by checking their licenses and reviewing their reputation. This minimizes the risk on your end as the property owner because you won’t be working with people who are untrustworthy.

MAINTAIN A LINE OF COMMUNICATION WITH TENANTS.

You cannot simply approve a tenant and go off the grid. It is important that you go out of your way to foster a positive relationship with them. Make sure that, throughout the duration of their lease, you are addressing their concerns. Texas commercial real estate brokers recommend taking appropriate action as promptly as possible so that you protect your interests as the property owner. When a tenant is satisfied, they are more likely to renew their lease. This means your investment is more stable and profitable, since you won’t have to keep doing your due diligence, looking into prospective tenants.

LEVERAGE TEXAS COMMERCIAL REAL ESTATE BROKERS.

You can always benefit from obtaining more industry knowledge. So, while it is already a great idea to keep regularly conducting research, you should also make use of other commercial real estate professionals. By networking with property owners just like you, you may even come across opportunities to refer tenants or buyers. But from the very beginning to the end of your investment journey, you should join forces with Texas commercial real estate brokers. It doesn’t matter whether you live in Austin, San Antonio, Houston, or Dallas. And it doesn’t matter whether you are a seasoned real estate investor or a novice. They have you covered every step of the way with their comprehensive databases and trusted collaborators.

You need someone by your side with a depth of knowledge in all aspects of commercial real estate. And that is exactly why Commercial Industrial Properties will be the right fit for you. We have been serving Texans with our expert consulting skills since 1975. Our team is able to understand the unique nuances of each assignment prior to making strategic recommendations and implementing effective strategies. If you are ready to work with a Texas commercial real estate broker, get in touch with CIP.

TOP FACTORS TO CONSIDER WHEN LOOKING AT INDUSTRIAL SPACE FOR RENT IN SAN ANTONIO

Tue, 16 May 2023 20:49:02 GMT

Industrial properties are designed with industrial purposes in mind. That is to say, buildings that are used for manufacturing, distribution, and research and development. They play a major role in supporting various industries and supply chains. You might even be looking for industrial real estate right now to carry out your business’s demands. Across the city of San Antonio, you can find spaces for sale or for rent. But where you end up is based on a number of personal factors. Take a look at these items that you need to check off your list before committing to industrial space for rent in San Antonio.

YOUR BUDGET

Renting industrial space is a long-term commitment. You will likely be at your chosen property for multiple years. With that in mind, it is critical that you take the time to financially plan so that you can craft a carefully considered budget. This includes setting a limit on how much you can afford to spend on rent. Doing this enables you to make better-informed business decisions. You have the opportunity to ensure that your expenses remain within manageable limits, meaning you avoid financial strain.

When you have a budget in mind, you can compare different property options and have a real estate broker help you negotiate favorable terms. The best industrial space for rent in San Antonio will be one that doesn’t eat into your profits and affect your bottom line. Your budget is going to be what keeps your business meeting its operational needs while maintaining healthy profit margins. It will also give you greater flexibility as time goes on.

LOCATION

One vital aspect of industrial space for rent in San Antonio is proximity to suppliers and customers. Your property’s location can significantly impact your supply chain, distribution efficiency, and order fulfillment. After all, your industrial operations require the movement of goods and materials. If your building does not have easy access to transportation infrastructure, you run the risk of running a less efficient business. Robust transportation infrastructure might include major highways, ports, airports, or railways, depending on your business’s needs.

Note that you also want to be in an area with the availability of skilled labor. Your business might be reliant on specialized types of workers. If you are not somewhere that can attract and support that workforce, you will not be able to achieve your goals. So, both you and your broker should assess the local labor market when searching for the ideal industrial space.

SIZE AND LAYOUT

When you search for industrial property, you need to be mindful of your inventory requirements. Talk to your broker about the volume and type of goods that you handle. They will ensure that you obtain a building that meets your storage needs. By having the right amount of designated storage areas and shelving, you have easier access to products and can execute more accurate tracking.

Do you believe that your business is going to expand in the near future? If so, it is in your best interest to choose an industrial space for rent in San Antonio that has growth potential. The size and layout of your building have a direct effect on your operational efficiency. You are able to optimize your usage of resources and, in turn, adopt a smoother workflow. An industrial space that is too small may result in the need for off-site storage which means you are incurring additional costs .

INFRASTRUCTURE

You need to have an adequate infrastructure with your industrial space for rent in San Antonio. Otherwise, you aren’t able to operate to the fullest extent. Before signing a leasing agreement for an industrial property, ensure that it has reliable electricity, appropriate ventilation, utility connections, and a water supply, among other necessities. When you have an insufficient infrastructure, your operations are inefficient. Don’t put yourself at risk of downtime.

Going back to the significance of accessibility for your team and customers, your industrial space for rent in San Antonio must also have a well-designed parking lot. While on-street parking is okay, it isn’t ideal. This is especially true on narrow streets. Providing ease of access to your building will be greatly appreciated by your employees and visitors alike. The parking lot should allow for the efficient flow of truck traffic as well. If your business will be shipping or receiving goods, efficient ingress and egress are important. Getting these factors right means that you, as the business owner, will achieve greater property satisfaction.

SECURITY

Depending on what industry your business is in, you might have specific security requirements that you must meet. But in any industry, it is incredibly important that you, your valuable assets, equipment, and inventory are protected. No one ever wants to be vulnerable to theft or vandalism. By having the appropriate security measures in place, you keep your industrial space in San Antonio safe. Some examples of security measures are surveillance cameras and access control systems. These additions will contribute to the safety and well-being of your employees.

Cybersecurity is another thing to be incredibly mindful of. According to Techjury, 64% of companies around the world have experienced at least one form of cyber attack. Because you may be storing sensitive information and intellectual property, your business could certainly be at risk. In order to maintain both a competitive advantage and the trust of your customers, you have to keep data protected against unauthorized access. Take care to implement data encryption and firewalls.

ZONING LAWS

Local authorities put zoning regulations and permits in place for a reason. You might face environmental considerations and restrictions on hours of operation, for instance. At the end of the day, the authority figures are expecting you to align your industrial activities with their legal requirements. If you fail to comply, the operations of your industrial space for rent in San Antonio could be shut down. Therefore, real estate investors are obliged to not just know about the laws, but apply items to any property they are considering purchasing.

Read up on San Antonio’s zoning laws in the Unified Development Code or check out the City’s One Stop Zoning Map . Get the full breakdown of zoning information before leasing a space.

LEASE TERMS

It doesn’t matter how many times you have rented an industrial property before—a real estate broker can be your saving grace. They know what it takes to get a lease that aligns perfectly with your business goals, both in the present day and well into the future. By hiring a broker to advocate for you, you have access to expertise that helps you avoid lease agreements that may not be in your best interest.

After a broker has assisted you with finding an industrial space for rent in San Antonio, they will help you through the negotiation process and its complex legal language. Depending on the property owner, there may be counteroffers to respond to. The good thing is that real estate brokers are highly skilled in lease negotiation. With their knowledge of rental rates, escalation clauses, and additional fees, your broker will advocate on your behalf to get a solid deal.

NEIGHBORING TENANTS

When you are near businesses that share supply chain networks or similar customer bases, you have opportunities to share resources. That might include proximity to suppliers and distributors. This can be incredibly cost-effective for your operations. Plus, the presence of neighboring businesses provides you with a more supportive environment across the board.

As the new kid on the block, you can absolutely benefit from the well-established businesses near you. This is because being associated with reputable businesses can positively impact your reputation. You need that buyer’s confidence so that you can thrive in the long term.

Let the team of expert brokers at Commercial Industrial Properties help you find industrial space for rent in San Antonio. As real estate professionals, we are equipped with the market knowledge to help you succeed as a tenant. Our clients receive a path tailored specifically to them, whether they are renewing, expanding, contracting, or relocating their current business. Send us a message now to start discussing your needs for industrial space. We look forward to representing you!

A BEGINNER’S GUIDE TO INVESTMENT PROPERTIES IN SAN ANTONIO

Tue, 25 Apr 2023 20:34:57 GMT

Investing in real estate can be a complex process if you are just now getting into it. This is even true for those who have dabbled in investing in other industries. Real estate comes in many forms, with each type of property having its own unique set of characteristics. Further, how you choose to invest depends on how you plan to go about building wealth. As experts in navigating the market, we aim to provide you with knowledge that points you in the direction of succeeding in the world of real estate investing. Here is everything you need to know about getting started with investment properties in San Antonio.

FIGURE OUT WHAT YOUR INVESTMENT GOALS ARE.

When coming up with your investment strategy, you need to have specific, realistic goals in mind. Ask yourself whether you are looking to generate long-term income or short-term profits. But above all else, you are going to need to consider your current financial situation before diving into real estate investments. This means thinking about not just your income and savings, but also the expenses that will come with having an extra property to manage.

Based on your financial situation, you will be able to identify your risk tolerance. Because investing can be risky no matter where your money goes, it is critical that you have a sense of how much risk you are comfortable taking on. If it doesn’t appear to be in the card for you to get investment properties in San Antonio right now, take some extra time to save. The key to being a smart investor is being willing to adjust your goals.

DETERMINE THE TYPE OF PROPERTY THAT MEETS YOUR GOALS.

While it is important to note that real estate is a dynamic field, your investment strategies should be capable of helping you make well-informed decisions along the way. Once you have your goals in place, translate them into the type of investment properties in San Antonio that will achieve them. Four types of properties that you could invest in are:

Residential Properties

Defined as real property used for residential purposes, residential real estate is often known for being made up of single-family homes. These homes are on their own lots of land, and you can rent them as is or flip them. Other examples of residential properties include townhouses, condominiums, and multi-family houses. In areas zoned for residential use, laws prohibit large-scale commercial operations.

Commercial Properties

Commercial real estate comes with the goal of generating revenue, making it an especially lucrative space to invest in. This type of investment property in San Antonio is used exclusively for business-related purposes. It includes strip malls, healthcare facilities, restaurants, hotels, and office spaces . By investing in commercial properties, you reap the advantages of cash flow stability and longer-term tenants.

Industrial Properties

All land and buildings that accommodate industrial activities fall under industrial real estate . Such activities range from manufacturing to assembly to distribution. If you are looking for warehouse space for lease in San Antonio, for instance, it is an industrial property. Data centers, research and development sites, and industrial showrooms are other examples.

Real Estate Investment Trusts (REITs)

Bought and sold on major exchanges, REITs are created with the formation of a corporation or trust. An investor’s money is used to purchase, operate, and finances a property that produces income. REITs invest in most real estate property types, such as retail centers and apartment buildings. The collected rent is distributed amongst shareholders.

LOOK FOR THE RIGHT FINANCING OPTIONS.

As mentioned earlier, you are going to need to evaluate your financial situation prior to investing in real estate. This will help you determine what kind of financing option you need. For example, in the case of acquiring commercial investment properties in San Antonio, you might be best suited for a Small Business Administration (SBA) loan. Backed by the U.S. SBA, these loans are designed to help small business owners access funding for real estate. Other financial options include commercial real estate lending, raising capital with equity investors, and real estate syndication.

HIRE A BROKER TO HELP YOU NEGOTIATE THE DEAL.

If you have never invested in real estate before, you might feel overwhelmed. After all, there is a lot of skill that goes into crafting a fair deal. Negotiation is an art and not everyone can master it. A commercial real estate broker, however, is well-equipped to tackle any negotiation of investment properties in San Antonio. They have the education and experience to close a real estate transaction in a way that benefits their client, given that they seek to maximize value. Being provided with their expert consulting along the way will also give you leverage in the future as you continue to grow your investment portfolio.

EFFECTIVELY MANAGE YOUR INVESTMENT PROPERTY.

Something to keep in mind as a commercial property owner is that you will have to maintain it. So, once you have successfully closed the deal on your investment property in San Antonio, get ready to take on responsibilities beyond collecting rent. Your tenants will want to feel like they are getting what they pay for. This means you should ensure that the property is in safe and habitable condition. Perform routine inspections and necessary repairs throughout their lease. By not going above and beyond, you cannot be sure that your tenants will renew their leases in the future.

TAKE SOME TIME TO REGULARLY EVALUATE YOUR PROPERTY.

You want to monitor the financial performance of your investment over time. During this analysis, you are able to identify areas where you need to make improvements to maximize the property’s profitability. With regular evaluations of your investment property in San Antonio, you also are able to identify problems early on. Compare it to other similar properties in the market to see how it stacks up.

It may be the case that you are considering selling your property or refinancing it. Through your evaluation, you can figure out its current market value so that you can make the most appropriate decision. This decision could come up sooner than later if you find yourself not taking corrective actions to combat serious issues.

If you are looking to acquire investment properties in San Antonio, let Commercial Industrial Properties be your guide. We have served as an integral part of Texas’s growth since 1975. Investors and property owners work with us to add value to their portfolios, gain the local knowledge to achieve real results, and rid themselves of financial pressures. No matter your situation, our expert team of brokers can design the best strategies for you. Let’s have a chat about your experience with investing in commercial real estate.

THE BEST APPROACHES WHEN OBTAINING WAREHOUSE SPACE FOR LEASE IN SAN ANTONIO

Tue, 11 Apr 2023 20:19:06 GMT

Picking out a warehouse for your company is a big deal. The one that you go with could drastically impact how you operate. And because you to secure the best warehouse space for your needs, it can be a time-consuming process. It can definitely be a challenge to sift through all of the warehouses available on your local market , but you cannot risk acquiring a space that doesn’t meet your requirements for location, layout, and size. Let’s walk through how to tackle finding the right warehouse space for lease in San Antonio.

DETERMINE HOW MUCH SPACE YOU NEED.

Before looking for a warehouse space for lease in San Antonio, you need to take stock of the products that you will be storing. How big is each product? What is the volume of them? Do you plan on creating more offerings anytime soon? This knowledge helps you estimate how much space is needed to accommodate your business. It also helps you determine what your storage requirements should entail, such as using shelves, pallets, or racks.

Another thing to be mindful of is your actual operations. You are going to need enough space to perform activities like assembly, packaging, and shipping. If you are new to the warehouse scene and are not sure of how extensive your operational needs will be, seek advice from professionals. They will guide you toward making a more informed decision about the warehouse space that is required for your operational needs.

CONDUCT MARKET RESEARCH.

Once you have a good sense of what you hope to get out of warehouse space for lease in San Antonio, dedicate some time to understanding the geography and demographics of the area you are considering. You want to find a location that checks off all of your boxes. That may include easy access to transportation hubs and suppliers of materials. During your market research, you can also determine what the local trends and demand look like for similar products in that area. It may surprise you to find that another location will be much better suited to reach the most valuable customers.

WORK WITH A COMMERCIAL REAL ESTATE BROKER.

It may be the case that you are lacking in knowledge about the market and simply don’t have time to do a deep dive. But there is no need to worry—commercial real estate brokers can take the load off of your shoulders. They have a strong grasp on the local market, giving them the ability to provide you with meaningful insights into the available warehouse spaces for lease in San Antonio.

In fact, brokers have access to off-market properties. These are properties that are not publicly listed for rent or sale. Essentially, with a commercial real estate broker, your business earns an advantage because you have a better chance of finding a location that meets your specific needs. Plus, they can expertly handle the negotiation of your lease so that you aren’t overwhelmed by trying to interpret legalese and hoping you come out with a fair deal.

PAY ATTENTION TO ELECTRICAL CAPACITY.

Think about the size of your operation and the type of equipment that you use. These are going to factor into choosing a warehouse space for lease in San Antonio because they determine your power requirements. Should you choose a warehouse that doesn’t have enough power capacity, you risk experiencing outages or brownouts. These will disrupt your operation and potentially damage your equipment. And given the fact that making upgrades to the electrical system could be quite costly, it is in your best interest to consider the expense from the beginning.

PRIORITIZE SAFETY IN THE WAREHOUSE.

When it comes to warehouse space for lease in San Antonio, efficiency is tied to safety. By taking a proactive approach to safety, your team is less likely to be injured and your productivity is less likely to take a hit. This is not an area that you will want to cut costs in. So, make sure to factor safety equipment into your total expected costs prior to committing to a warehouse.

Also, understand that, while you cannot control everything, you can at least be prepared. Make sure that you have a plan in place to handle unexpected problems. This could be a data breach, for instance. When you put in more preventative efforts, you will experience fewer emergencies. It is better to have plans in place and not need them than to face the alternative.

FACTOR IN OPERATING AND MAINTENANCE COSTS.

In order to accurately estimate the total cost of occupying a space, you need to be mindful of all costs that you will incur. Included in this are security, repairs, and utilities. Unexpected costs could arise, as well, based on the aforementioned potential problems. But if you are already going into your lease with a nest egg set aside for those emergencies, your financial stability will not be dramatically impacted.

CAREFULLY READ OVER THE LEASE.

Your lease is a legally binding agreement between you and your landlord. It outlines what responsibilities both parties have for the property. One important responsibility is who will be maintaining and building and providing the necessary repairs. Having a clear picture of what your role entails with warehouse space for lease in San Antonio will be what sets you up for success.

Once again, having a commercial real estate broker to help you through this process is a smart idea. Their job is to help you avoid any surprises regarding your tenancy. They will identify any unexpected clauses or fees, as well as inform you of your rights so that you avoid potential violations. This keeps you being able to operate within the terms of the agreement well into the future.

KNOW WHEN IT IS TIME TO EXPAND.

After some time at your current warehouse, you might experience your order volume ramping up. In order to keep operations running smoothly, you decide that acquiring more space is necessary. This could mean creating more space by utilizing vertical space that is often overlooked. Otherwise, you might consider moving to a new warehouse entirely. During both cases of expansion, make sure that you are also investing in improved systems. Doing so will increase your team’s productivity and safety.

Commercial Industrial Properties has the tenant services you need to acquire the best warehouse space for lease in San Antonio. This includes ridding you of your frustrations with the complexity of the real estate industry at large. For nearly five decades, our brokerage firm has done this by providing excellent service to all of our clients. We offer cutting-edge technology, deep relationships, and years of experience to help you exceed your goals. Contact us today to learn more about how our team of expert brokers can be the right fit for you.

PRO TIPS FROM A TEXAS COMMERCIAL REAL ESTATE BROKER ON FINANCING OPTIONS

Tue, 28 Mar 2023 20:07:18 GMT

Texas commercial real estate brokers are well-versed in buying, selling, and leasing commercial properties . This means that they know a thing or two about how to analyze the market and negotiate services to help you achieve your real estate goals. Something that falls into this realm of expert consulting and management is their understanding of financing. They work with several financing options while navigating the complex world of commercial real estate.

Brokers should be able to explain financing options to their clients in clear and concise terms. This way, they will be able to understand the risks and benefits, and ultimately make more informed decisions. It is especially important to consult with a broker if you have never invested in commercial real estate before. Before having that conversation, let’s dive into what your options are when it comes to lending.

WHAT IS COMMERCIAL REAL ESTATE LENDING?

Commercial real estate lending refers to credit that is created to finance an income-producing property. This includes shopping centers, office buildings, hotels, restaurants, and even multifamily housing. It is a type of lending that is usually done by banks or financial institutions that specialize in commercial real estate. The loans are backed by the property itself, with borrowers needing to meet certain financial requirements to qualify. Because lending can be complicated, it pays to have a Texas commercial real estate broker by your side. They will guide you to make logical decisions about taking loans for your business.

HOW IS A LOAN-TO-VALUE RATIO CALCULATED?

Lenders and financial institutions examine the loan-to-value (LTV) ratio before approving a mortgage, a line of credit, or a home equity loan. The LTV ratio is an assessment of lending risk. Were a property to have a high ratio, a loan would be considered high-risk. A good LTV ratio is considered to be 80% or below, with the lowest ratio being achieved with a lower sales price and higher down payment. That said, a higher ratio does not mean that you cannot be approved—the interest on your loan may simply rise.

To calculate the LTV ratio, take the loan amount and divide it by the value of the asset being borrowed against. This percentage represents the amount of the property’s value that is being financed by the loan. The formula looks like this:

LTV ratio = MA / APV

MA = Mortgage Amount

APV = Appraised Property Value

WHAT IS A COMMERCIAL MORTGAGE?

When a financial institution grants a business a loan for the purpose of purchasing or refinancing a commercial property, it is known as a commercial mortgage. This is one of the most common types of commercial real estate lending. Essentially, until the mortgage is paid off, a lender will have a legal claim on your property and you will continue to build up equity (ownership). To apply for a commercial mortgage, you can apply directly or make use of a Texas commercial real estate broker. Because commercial mortgages have different requirements and terms than residential mortgages, it can certainly help to partner with a professional.

CAN I RAISE CAPITAL WITH EQUITY INVESTORS?

Raising capital with equity investors is another common way for businesses to secure funding. Equity investors are individuals or institutions who invest in a company in exchange for a percentage share of the company. This is an option recommended to those without anything of value to give to loan providers. Because equity investors take big risks with the goal of earning big rewards, they are willing to do business with you in a way that lenders aren’t. But, with that in mind, they want to see real results once operations are underway.

Be aware that, once you have given up equity, it is likely the case that you will never get it back. Private equity agreements stay in place as long as a business is running, meaning revenue will always be divided. So, you should consult with a Texas commercial real estate broker before committing to this financing option. You should also consult with an attorney who specializes in securities law and is familiar with the rules and regulations surrounding raising capital.

WHAT ARE SMALL BUSINESS ADMINISTRATION LOANS?

Lenders are given an extra layer of security with Small Business Administration (SBA) loans. These are government-backed, which means that, in the case you default, the government covers a portion of your outstanding balance. The aim of SBA loans is to reduce risk and enable easier access to capital. Because they feature low-interest rates and long terms, Texas commercial real estate brokers find that SBA loans are an ideal financing option. That said, to be eligible, you do have to meet a number of requirements . An example of this is meeting SBA’s size standards, which determine whether your business is legitimately a small business.

HOW DOES REAL ESTATE SYNDICATION WORK?

When a group of investors pools together their capital to purchase a real estate property, it is known as real estate syndication. The key players in this type of investment are the syndicators (general partners) and the passive investors. Syndicators will underwrite the deal, arrange the financing, and build a business plan, while passive investors simply provide capital. When going this route in financing your business, make sure that you can trust these investors. This will be the most challenging decision you can make, so take the vetting process seriously and have a Texas commercial real estate broker help with negotiations.

Brian Smith, a developer of office/warehouses in Austin and also a broker with Commercial Industrial Properties. says that: “One of the most important decisions you can make when structuring a real estate investment is in choosing your partners. As someone who has successfully structured syndications for commercial real estate myself, I will say having great investor partners made a big difference. Inevitably when developing or operating commercial real estate challenges may arise. When they do, you will know very quickly whether or not you have chosen the right partners.”

While real estate syndication is not risk-free, it does come with several benefits. For instance, you will have access to larger, more valuable properties that you would not be able to purchase alone. This means you have a better chance of diversifying your investment portfolio.

CAN I HAVE A PRIVATE TRANSACTION?

The buyer and seller can absolutely cut a deal between themselves. In seller-financed real estate deals, there is no need to go through a traditional bank or mortgage lender. Through this transaction, the buyer typically makes a down payment to the seller. Over time, they will pay off the remainder of the purchase with interest. There is risk in this financing option considering sellers may not have the same legal protections as traditional lenders do. They have to be prepared in the event that the buyer defaults. However, if done carefully, a seller-financed real estate deal could result in a quick sale of a property and a steady stream of income for the seller.

As an adaption of a brokerage firm that started in 1975, Commercial Industrial Properties is made up of longtime Texas commercial real estate brokers. Clients across a variety of business types look to our brokers for expert consulting. If you need an analysis of your current holdings, we will handle that. And if you have never made a real estate investment before, we will look out for your best interest. Send us a message today to learn more about what services we can provide you. The CIP team looks forward to sharing our expertise!

PROTESTING TAXES WITH A COMMERCIAL PROPERTY MANAGEMENT FIRM IN SAN ANTONIO

Fri, 24 Mar 2023 19:58:39 GMT

High property taxes can be a financial burden on businesses. This is especially true of small businesses. After all, taxes increase the overall cost of owning and operating a property, meaning it could be very difficult for a small business to turn a profit. From there, that could even translate into closures. Other businesses may be deterred to start up in that area, resulting in a lack of economic growth and development at large.

If a small business were to feel unfairly burdened by taxes, they might choose to protest. This gives them the opportunity to advocate for better policies for small businesses and the overall community. Should you decide to enter a protest, make sure to consult with your commercial property management firm in San Antonio. Discover how you can alleviate your worries with the guidance of the brokers responsible for helping you maximize the value of your property.

UNDERSTANDING PROPERTY TAXES IN TEXAS

Across the state of Texas, property taxes are a primary source of revenue for local governments. In fact, property taxes generate over 50% of all revenue because Texas does not have a state income tax. Local governments are the ones that set tax rates, using property values to determine how much a business owner owes. Per state law, these taxes must be uniform and property owners have the right to protest.

As a business owner, the appraisal district expects to report your income-producing personal property. This means identifying and describing your equipment, inventory, vehicles, and more. You also must report your real property, which involves any improvements being made on your land. Discuss your report findings with a commercial property management firm in San Antonio. If you believe that your property has been overvalued, you can enact your right to protest and have your assessment reviewed.

WHEN TO PROTEST BUSINESS PROPERTY TAX

Property tax is a necessary expense to be able to operate a business. It is what funds public services like roads, schools, and public safety. But that isn’t to say that you should refrain from protesting because you want to serve your community. After all, you may be facing your own financial hardship due to your property tax. Should you decide to protest based on this reason, you will need to provide evidence that paying the tax is causing a significant burden.

Another reason why you could protest is, as mentioned previously, if your property has been assessed at a higher value than its actual worth. This happens when there are changes in the local real estate market, which your commercial property management firm in San Antonio can explain. Alternatively, there may be exemptions that you are entitled to that you are no longer receiving. Should your exemptions have been canceled or reduced, file your protest.

HOW TO FILE AN APPRAISAL PROTEST

In 2021, it was found that over 140,000 property owners in Bexar County have protested the taxable value put on their businesses and homes. A year later, this number rose by approximately 16,000. If you find yourself needing to do the same for your commercial property, you are able to file a notice of protest online. Filing an appraisal protest can be a daunting task, given its complexity. For this reason, it is beneficial to get assistance from a real estate attorney. Real estate attorneys provide advice to clients involved in real estate transactions, including resolving disputes related to property ownership.

Any real estate attorney and commercial property management firm in San Antonio will tell you that you need to gather multiple copies of your information. This way, you can provide it to an appraiser and the Appraisal Review Board. This information is everything about your business personal property and your real property that may be relevant to your true market value. That includes:

Property surveys
Deed records
Blueprints or architectural drawings
Photographs of your property and comparable properties
Comparable property values
Sales price documentation
Receipts for repairs

WHAT IS THE APPRAISAL REVIEW BOARD?

The Appraisal Review Board is made up of impartial individuals who are responsible for resolving disputes regarding property value assessments. These individuals are often a three-member panel of trained citizens. They are not subject to the same authority of the county appraisal district. The primary responsibility of the Appraisal Review Board is to ensure that property appraisals are fair and accurate, so they hold hearings to decide on the valuation of your business personal property and real property.

You will receive a notice from the Appraisal Review Board detailing the date, time, and place of your hearing. The notice will also describe the subject matter of your protest. As with any hearing, when you get in front of an Appraisal Review Board in San Antonio, you can expect to present your case with evidence, as outlined in the previous section. The board will listen to your arguments and review your evidence to make an appropriate decision.

APPEALING TO A DISTRICT COURT IN TEXAS

You will only move on to the District Court level if you do not agree with the decision made by the Appraisal Review Board. Texas law gives you the right to petition the court within 60 days of that decision. In turn, following being served with your petition, the appraisal district has 20 days to file a response. Your real estate attorney will continue gathering evidence in order to build an even stronger case on your behalf to provide to the appraisal district. Ultimately, when filing a business property tax protest, having someone who will stay on top of things is critical to your success.

It could get to the point where your case goes to trial. This happens if your lawsuit does not settle out of court. When you go to trial, you could either face a bench trial with a judge or a jury trial. In either situation, should they rule in your favor and compensation be awarded, you could also be awarded attorney fees.

If you are searching for the best commercial property management firm in San Antonio, you have come to the right place. With the latest tools and software programs at our disposal, Commercial Industrial Properties is capable of making all of your real estate dealings that much smoother. No longer will you feel the burden of financial pressure. Let’s chat about what your specific needs are as a business owner. Our team of brokers will be happy to share our professional insight and resources.

LEARN ABOUT THE DIFFERENCES BETWEEN COMMERCIAL AND RESIDENTIAL LEASES FROM A TENANT REP IN AUSTIN

Tue, 21 Mar 2023 19:51:43 GMT

Throughout the state of Texas, there are many things that are different about commercial and residential properties. This includes their intended use, management, and financial implications. Commercial properties are used for business purposes, including restaurants, retail stores, and office spaces. A company or investor often owns the building and leases it out to a business. Residential properties, on the other hand, are used for living purposes. Therefore, they are owned or rented by individuals or families.

But another critical way that commercial and residential properties differ is in terms of their leases. As a tenant, you need to be able to understand your lease before entering into an agreement. It could be in your best interest to hire a tenant rep in Austin so that you have expert guidance throughout the leasing process. Before getting to that point, check out how these two types of leases compare.

LENGTH OF THE LEASE

Typically, commercial real estate leases are longer than residential leases. Average commercial lease lengths are between three to five years, though you can certainly sign for ten. Business owners are expected to need time to establish their businesses and ultimately recoup their investments. Residential leases, on the other hand, have a standard duration of one year in Texas. Some landlords may offer shorter or longer lease terms, depending on local laws and their own preferences.

Commercial leases are more complex and binding. The reason for this is that landlords are investing capital into the property, so they require a stronger commitment from the tenant. The contract can not be easily broken or changed, or else the tenant will have to pay a significant amount of money. If it is the case that you want to alter your agreement, make sure to have a conversation with a tenant rep in Austin.

PROPERTY VALUES

The value of commercial property is based on the amount of income that it can generate. This is unlike residential properties, which are valued based on their size, location, and amenities. Residential real estate is, therefore, dependent on the quality of its surrounding area. When investing as a landlord, you want to find an area with a good school district and lots of curb appeal. Desirable location is a factor in the value of commercial property, too, considering an area with good infrastructure can attract both customers and employees.

It is necessary to note that you will gain a higher return on investment as a landlord when it comes to commercial properties. Commercial real estate has an easier ability to increase value. The higher the cash flow that the business earns, the higher the property value will be. From the tenant’s perspective, property value is important because it affects their own return on investment, as well as their rent. Were property value to decrease, a landlord may decide to make significant changes, disrupting a tenant’s situation and making it critical to contact a tenant rep in Austin.

WARRANTY OF HABITABILITY

Commercial landlords have an obligation to maintain their property and ensure that it is safe for both tenants and visitors. However, commercial properties do not have a warranty of habitability. This is a legal concept for residential properties that requires landlords to provide tenants with a habitable living environment. A habitable living environment is defined as a space that is clean, safe, and comfortable. Should a residential landlord fail to meet these minimum standards, tenants have the right to take legal action. In this case, documentation is a must.

COMMON AREAS

Commercial and residential tenants alike benefit from having common areas on a property. Common areas have amenities that are shared by all tenants. These include parking areas, hallways, elevators, lobbies, and recreational facilities. For commercial properties, specifically, this also includes restrooms. Essentially, because all occupants of a building are utilizing these spaces, they need to be kept up by whoever is responsible for property management. While commercial leases tend to include provisions for common area maintenance charges, residential leases keep a fixed amount for monthly rent.

MAINTENANCE AND REPAIRS

The responsibilities of landlords and tenants vary greatly based on negotiations. That said, in a commercial lease, it is typically the case that you will be responsible for the majority of the property’s maintenance and repairs. This includes work needed to be done on both the building and the common areas. Make sure that your contract breaks down who is responsible for what, in the event of everyday updates and problems due to natural disasters. A tenant rep in Austin will not only help you get the best deal possible, but also make sense of the clauses that dictate any expenses.

For residential tenants, maintenance and repairs are minimal. The landlord will take care of the majority of issues that arise on the premises. Much like with a commercial lease, the specific terms vary based on the agreement. But, ultimately, the landlord will have a greater responsibility. Because residential leases have several legal protections to guarantee safe living conditions for tenants, landlords must respond within a reasonable time frame when tenants inform them of an issue on the property.

RENT CONTROL LAWS

In some areas, how much a landlord is able to charge for rent on a property is limited by rent control laws. These are regulations that are in place by local governments to protect tenants when housing costs are rapidly rising. This ensures that housing remains affordable. In the state of Texas , rent control is prohibited across the state. But while there is no rent control in Austin, there are other laws that are designed for tenant protection for those with commercial and residential leases.

One example of these laws is that, in order to avoid prospective tenants writing a check and being denied, a landlord is required to provide applicants with a written notice of eligibility. This is a document that states the applicant has met the qualifications to rent the property. You should go over this document with a tenant rep in Austin to better understand it. They will tell you that, were your landlord to not provide this information, you are entitled to have your funds returned within 30 days.

Are you in need of a tenant rep in Austin to handle your commercial property needs? Let Commercial Industrial Properties take the stress off of your shoulders. With over two decades of experience, our team is highly equipped to overcome any obstacles you may face with your lease. We have been offering tenant services for decades, using our knowledge of the market to guide clients to make good decisions. Fill out our contact form to get started with a CIP representative.

INSIGHT FROM A CCIM IN AUSTIN: WHAT TO EXPECT FROM DEVELOPING IN THE ETJ VS THE CITY

Thu, 02 Mar 2023 20:51:52 GMT

WHAT TO EXPECT FROM DEVELOPING IN THE ETJ VS THE CITY

Land development is important to communities. While we may face the burdens of having heavier traffic and ecosystem changes, development also generates more jobs and unites locals. Before you go searching for a parcel of land to break ground on, however, you need to understand what goes into the development process. What kind of property is going to earn you the best return on investment? How do you go about acquiring land? Who can provide you with the relationships and local knowledge you need?

A Certified Commercial Investment Member (CCIM) is exactly who you need to minimize your risk. The CCIM designation is the gold standard for commercial real estate professionals. These experts will develop a comprehensive strategy for you to make your investment a successful one. Let’s take a look at what you can expect out of land development with a CCIM in Austin by your side.

DEFINITION OF CITY

A city is an area in which a larger number of people live close together than a town or a village. But it is more than a physical imprint on a map. Cities often have their own separate governments, as well as utility and transportation maintenance systems. While Austin is among the largest cities in Texas , Houston comes out on top with well over two million residents.

DEFINITION OF EXTRATERRITORIAL JURISDICTION

Every Texas city has an extraterritorial jurisdiction (ETJ). An ETJ is defined as a situation when a state’s legal power is extended beyond its territorial boundaries. It is located within a specified distance of the corporate boundaries of the municipality. A municipality’s population only incorporates residents within city limits, and does not include ETJ residents. Although, the size of an ETJ depends on the city’s population.

ETJ ZONES IN TEXAS

In an extraterritorial jurisdiction zone, a municipality regulates land that they do not have jurisdiction over. This differs from annexation, in which a municipality claims the land. What this means is that property owners cannot vote in an ETJ zone, nor do they have to pay taxes to the municipality. It is important to be aware of this because Austin is the number one housing market for growth and stability. But it is also the second most overpriced in the country. This is due to the rise in housing prices and mortgage rates. This causes many homeowners to be priced out of Austin and other major metro areas in Texas.

TEXAS ANNEXATION RIGHT TO VOTE ACT

In 2017, the Texas Senate voted 19-12 in favor of the Texas Annexation Right to Vote Act, otherwise known as Senate Bill 6. This means that they passed a bill to allow people to vote on whether a city is able to annex them. Homeowners and businesses are to be protected from forced annexation. Ultimately, according to the immediate release , this bill makes the municipal annexation process in Texas more democratic.

STATE STATUTES FOR REGULATING ETJS

A CCIM in Austin will tell you that cities are able to regulate activity in their extraterritorial jurisdiction. Specifically, they can regulate water conservation, waste disposal, and signage. Regulation is accomplished through six types of statutes—Texas Health & Safety Code, Texas Local Government Code, Texas National Resources Code, Tax Tax Code, Texas Water Code, and Texas Administrative Code. State law, however, determines what a city is not allowed to regulate in an ETJ. It prohibits these matters:

Certain circumstances involving the size, type, or method of construction of a water facility that is constructed to serve a developed tract
The use of a property for residential, commercial, or industrial purposes
What size, bulk, and height a building can be constructed on a tract of land
The number of buildings that can be constructed on a tract of land
How many residential units can be built per acre of land

THE PROCESS OF LAND DEVELOPMENT

Often viewed as a complex investing strategy, the raw land development process is one that not many beginners tackle. But that isn’t to say beginners should avoid it. Many new real estate investors are capable of being successful with investing in raw land. This entails purchasing a parcel of land with either the intention of building on it or simply holding onto it to earn long-term appreciation. Once you have discussed with your CCIM in Austin and determined the economic feasibility of raw land investing, follow these three steps.

Land Acquisition

Your offer price for a parcel of land is dependent on your knowledge of the estimated costs, revenue, and overall return. Fair market value determinations must be made, as they are the primary foundation for individual offer amounts. The fair market value is established through the Buy-Back Program . Using the mass appraisal methodology, the Buy-Back Program considers properties that are in similar use with comparable, available sales data. As a real estate investor, you will have your contractor submit a bid for this development project.

Zoning

Zoning codes are set by local governments. They define what can and cannot be built on a parcel of land. This has the potential to hinder your investment approach. Therefore, when choosing to invest in raw land, it is important to consult with a CCIM in Austin about how you can proceed. A CCIM will be highly knowledgeable about how local zoning laws will factor into the type of property you are looking to construct. This way, you get the right space for your activities and the expected building shape.

Construction

Contractors are typically paid in increments of duties performed. Once you have determined the type of financing you need to obtain, you are able to kick off construction. In many cases, you can expect to undergo horizontal development. Horizontal development refers to adding infrastructure to prepare a piece of land. This includes grading for roads, curbs, and utilities. After that, you can do vertical construction, in which the building is created. You should have a plan in mind, perhaps with market advice provided by your CCIM in Austin in mind.

HOW TO MARKET DEVELOPED LAND

Consult with a CCIM in Austin about how to best handle the marketing at the end of your land development. They have the market knowledge to help you attract qualified buyers to your property. A big part of this step will be marketing online. You should have a well-designed website, online listings (including the MLS), and active social media accounts. No longer are physical marketing materials the primary driver of sales. Prospective tenants are going to do thorough research into whether a property is a right fit for them, so you must catch them everywhere they are.

Your business needs a team of experienced and ethical brokers behind you when developing land. Even long after a building has been constructed, a commercial real estate brokerage can give you a guiding hand. No matter your situation, Commercial Industrial Properties uses cutting-edge technology to fulfill all of your real estate needs. If you are interested in working with a professional CCIM in Austin, just send us a message !

DISCOVER HOW IMPERVIOUS COVER WORKS FROM A COMMERCIAL REAL ESTATE BROKER IN SAN ANTONIO

Mon, 27 Feb 2023 20:06:43 GMT

Did you know that there are over 50 major trailheads in San Antonio? Greenways, which are outdoor spaces that connect people and places, are an important part of the city. They are considered pervious cover. Pervious cover is the areas of land that are occupied by trees, lawns, mulch, and other natural materials. They permit rainwater to permeate them, keeping from a build-up of stagnant water puddles and reducing the need for drain systems. Now, let’s dig into the opposite material type—impervious cover.

WHAT IS IMPERVIOUS COVER?

Impervious cover is the total area of any human-made surface that prevents the infiltration of water into the ground, meaning it does not absorb rainfall. Examples include patios, driveways, rooftops, sidewalks, parking lots, and roadways. Even buildings or structures that are raised above the ground, such as pier and beam foundations, are considered impervious cover. A commercial real estate broker in San Antonio can help you determine what is considered impervious cover on your property.

Impervious cover allows stormwater to pick up more silt and pollutants (including fertilizers, gasoline, and oil). The velocity and force of stormwater are increased, as well. This results in greater storm damage, bank erosion, and flash flooding.

HOW IS IMPERVIOUS COVER DATA GENERATED?

To generate impervious cover data, aerial photography is collected every two years. In these photographs, which can originate from satellite images or air photos, each pixel is representative of six inches of land. It is suitable for defining the edges of various types of impervious cover. Any properties that are modified or developed after the most recent aerial photography work with building permit data to determine impervious cover.

Thematic maps are also used for municipal governance applications and land management. These are single-top maps focusing on specific themes. In the case in point, these maps are land cover maps. Several types of classification systems are used to categorize land cover, and the complexity of the map is dependent on the anticipated use of the data. But a typical land cover map includes buildings, roads and railroads, and other impervious surfaces.

WHY ARE THERE IMPERVIOUS COVER LIMITATIONS?

When a property is subdivided, impervious cover limitations may be established. These limitations are adopted to minimize negative flooding effects that come from stormwater runoff. They also control water pollution that results from runoff, whether it be rainwater or other sources. When submitting an application for a commercial development project, you need to demonstrate that your property will not exceed maximum impervious cover limitations.

Impervious cover limitations are crucial for a number of reasons. For San Antonio properties, these limitations specifically protect the Edwards Aquifer from chemicals. This is a unique groundwater system that is one of the most prolific artesian aquifers in the world. Note that appropriate impervious cover limitations may differ in other parts of the city, outside of the aquifer recharge zone. Make sure to talk to a commercial real estate broker in San Antonio if you have any questions about your subdivision.

HOW IS IMPERVIOUS COVER CALCULATED?

For mixed-use projects, impervious cover is calculated with the following simple formula :

Total Impervious Cover = A*60% + B*80%

A = % of multifamily residential ground floor

B = % of commercial ground floor use

60% = multifamily residential impervious cover allowance

80% = commercial impervious cover allowance

In impervious cover calculations, the following are excluded (but not limited to):

Multi-use trails that are open to the public
Drainage swales and conveyances
Sidewalks in a public right-of-way
Solar screen tents
Uncovered horse corrals
Detention basins (does not include subsurface detention basins)
Water quality controls (does not include subsurface water quality controls)
Weed screens
Areas with gravel over pervious surfaces
The water surface area of ground-level pools, ponds, and foundations

WHAT ARE TRANSFERABLE DEVELOPMENT RIGHTS?

Transferable development rights are programs that are designed by local governments to allow for the free market transfer of development or subdivision rights. This transfer moves from rural zones to a jurisdiction’s designated development zone. A land developer purchases rights at market value from a landowner. Common attributes of successful programs include working in conjunction with other preservation programs, inter-jurisdictional cooperation, and embracing a healthy level of development activity.

Essentially, with transferable development rights, the land is permanently protected with conservation value. It is a flexible tool that can fit many different types of land and growth management scenarios. Commercial real estate brokers in San Antonio understand that transferable development rights programs are only effective when designed around real estate market forces.

ARE THERE OTHER SITE DEVELOPMENT STANDARDS?

There are site-specific challenges anywhere you go. On top of a site’s geographic location, development plans can be complicated by local zoning and land-use requirements. With that in mind, it is critical that you understand the circumstances surrounding your unique San Antonio site so that you can create a comprehensive strategy to overcome any challenges. It is a good idea to utilize the expertise of real estate professionals. Here are three things that every commercial real estate broker in San Antonio will consider.

Traffic Impact

Local leaders and residents alike have concerns regarding traffic. Many development projects impact roadways, resulting in increased traffic and ultimately more frustrated drivers. You must plan for this by conducting a traffic implant analysis. A traffic impact analysis is an engineering study that evaluates if nearby transportation infrastructure is able to accommodate the proposed development. Either the applicant or their consultant must identify their jurisdiction and consider project location , phases of construction, land use, density, and access points. Because each jurisdiction has its own guidelines, applicants are expected to receive approval for their scope of work prior to completing their traffic impact analysis.

Environmental Regulations

You likely already understand that development impacts the environment. However, if this is your first time executing a land development project, you must take the time to familiarize yourself with local ecosystems. Are there any open-space requirements, for instance? A large portion of San Antonio sits on top of the Edwards Aquifer, so a geological assessment might be necessary, as well. Because Edwards Aquifer is a vital drinking water supply aquifer, you must be considerate of the Texas Commission on Environmental Quality. This is responsible for approving water-quality protection plans. Environmental setbacks and development requirements, including impervious cover, vary based on local watersheds.

Utility Entitlements

Essential concerns around water continue with water and wastewater capacity. In the majority of cases, this is provided by the San Antonio Water System . Created in 1992, this is a public utility owned by the city of San Antonio. The mission of the San Antonio Water System is to provide sustainable, affordable water services. Going into a development project, you must determine whether your property’s needs are met by the water systems. If your existing infrastructure cannot meet those needs, a commercial real estate broker in San Antonio will tell you that budgeting for utility upgrades is a must.

Commercial Industrial Properties has been serving Texas since 1975. We have longtime brokers who are highly experienced in recommending and implementing strategies for businesses. With our expertise, you are sure to get the best deal possible with your real estate investment, whether it’s retail, office, land, or industrial. Get in touch with our team of commercial real estate brokers today to start diversifying your portfolio.

CIP WELCOMES BRIAN E. SMITH

Tue, 21 Feb 2023 15:43:46 GMT

CIP WELCOMES BRIAN E. SMITH

CIP would like to introduce our newest team member, Brian E. Smith .

Brian is a forward-thinking real estate advisor, investor, entrepreneur, and community leader. As an Associate at Commercial Industrial Properties, he serves as a trusted source for acquisitions and dispositions, leasing, land development, and the entitlement and construction of light industrial projects.

Brian brings over 18 years of experience in finance, business, and commercial real estate, where he specializes in brokerage and development. Given his former background in building and managing an industry-recognized wealth management firm, Brian has become an expert in business operations, leadership, capital raising, and mergers and acquisitions.

Brian’s knowledge of leasing operations and industrial development gives him a competitive edge when working with clients across the commercial real estate space.

We hope you’ll join us in giving Brian a warm welcome!

Brian E. Smith

Associate

brian@cipaustin.com

512-682-1014 office

512-731-4132 cell

PROS AND CONS OF GROUND LEASES FROM A COMMERCIAL REAL ESTATE BROKER IN AUSTIN

Fri, 10 Feb 2023 19:53:12 GMT

Commercial real estate brokers in Austin serve as liaisons between parties in commercial transactions. They should be well-versed in information about the location of and the demographic surrounding a property. This way, their client is able to get the most out of a deal. If the client is a tenant, a broker’s focus is on securing space that will support their business’s growth. On the other hand, if the client is a landlord, the broker’s job is to market to tenants and negotiate the best returns.

You might assume that a typical commercial real estate investment will entail the purchase, development, and eventual sale of the property. But not every development opportunity ends after the planned holding period. When a property owner is hesitant to sell, they may instead opt for a ground lease, also known as a land lease. Learn from a commercial real estate broker in Austin what a ground lease entails.

WHAT SHOULD GROUND LEASES INCLUDE?

Ground leases define who owns the building and the land, as well as what improvements are to be made to the property. They make it easier for tenants to develop on what are often expensive pieces of property. Typically, ground leases are used by franchises and commercial entities. Once the land is purchased and an agreement is made, the tenant is able to construct a facility. The tenant’s lease will run from anywhere between 50 to 99 years, wherein the landowner is given ownership of the facility.

A ground lease is made up of these parts:

Fees
Terms of the lease
Title insurance
Use provisions
Default conditions
Financing conditions
Landlord rights
Tenant rights

ADVANTAGES AND DISADVANTAGES OF GROUND LEASES

Ground leases are chosen by landowners because they hope to retain property ownership for planning reasons. These leases have a structure that can benefit both tenants and landlords. Of course, like any rental agreement, there are stipulations that must be met in a ground lease. Here is some insight into the reasons for and against a ground lease.

Advantages For Tenants

With a ground lease, tenants have access to prime real estate . Prime real estate refers to properties that have the most desirable assets in a specific area. These new and highly specified assets are reflected in the price of the property. Were they to attempt to buy this property outright, it would be quite costly. With a ground lease, tenants are not required to have a down payment, meaning less equity is involved. Therefore, commercial real estate brokers in Austin find that tenants are able to put more of their money into improving the land rather than acquiring it. They even get a reduction in their overall tax burden because rent paid on a ground lease could be deductible.

Advantages For Landlords

Commercial property owners can monetize their property with a ground lease. This means that landlords are able to have a steady stream of income. Plus, they are capable of doing this without relinquishing control over the land, given that certain provisions allow them to keep a degree of control. A landowner, thus, has the ability to approve or deny changes to the land. This would not be the case in an outright sale. So, while a tenant is taking on the hassle of making improvements to the land, the landlord is freed from worry and reaps the benefits of the improvements in the end.

Disadvantages for Tenants

Given that landowners often have the final say about changes to the land, tenants have less flexibility than they do with an outright sale. Due to the restrictive terms of the lease agreement, tenants may experience setbacks throughout the development process . Landlords are also able to drive up the costs for tenants with ground leases, making these properties expensive investments. The escalation clause that is built into the lease may turn out to be much higher than the tenant had expected. Before committing to a ground lease, make sure to consult a commercial real estate broker in Austin. With their knowledge of the market, they will be able to secure you the best deal possible.

Disadvantages for Landlords

One of the biggest problems for property owners when it comes to ground leases is the higher tax implications. Of course, this will vary based on the property’s location. But, in general, landlords face an increase in their tax burden due to the rent they charge being considered as income. It is taxed at ordinary rates rather than capital gain rates. A landlord must also have their lease reviewed before signing to ensure that there are the proper provisions to retain their control of the land.

TYPES OF GROUND LEASES

Terms and conditions of a lease vary between parties. However, there are two main types of ground leases—subordinated and unsubordinated. The difference is how a tenant’s financial difficulties during the terms of the lease are responded to. In either of these cases, though, a commercial real estate broker in Austin will be able to act as your guide.

Subordinated Ground Leases

The landowner takes a lower position in the claim hierarchy with a subordinated ground lease agreement. By giving up the first claim on the land, they are allowed to negotiate more favorable terms, such as higher rent. And in the case that a tenant defaults on a loan, the landlord is allowing the property deed to act as collateral. Landlords, therefore, take on additional risk with a subordinated ground lease while aiming to increase the property’s value.

Unsubordinated Ground Leases

On the opposite hand, landlords who sign an unsubordinated ground lease agreement retain top priority. Should a tenant default on their loan, their lenders will not have to foreclose on the land. Prospective lenders might not want to extend a mortgage because they are unable to take ownership of the land if tenants do not pay their loan. So, while landlords have to charge lower rent, an unsubordinated ground lease is a much less risky position for them.

Are you in need of a commercial real estate broker in Austin? The Commercial Industrial Properties team has you covered. Our brokers have an average tenure of over two decades and have worked with clients from all backgrounds, ranging from start-ups to Fortune 500 companies. With our emphasis on building relationships and executing ethical practices, we are sure to help you exceed your goals. Fill out our contact form to hear back from one of the commercial real estate professionals at CIP.

6 REASONS WHY YOU NEED A TENANT REP IN HOUSTON

Tue, 07 Feb 2023 19:41:49 GMT

There is a lot that goes into finding the right real estate solution in Houston, Texas. It may be the case that you lack the resources needed to obtain the best deal possible. When you lack resources, you also lack confidence. However, renting real estate space for a business does not have to be complicated or stressful. A tenant representation broker —otherwise known as tenant advisory—will be the one to revive your sense of confidence so that you can continue to take your business to new heights.

As the name implies, a tenant rep handles the tenant side of commercial real estate transactions. They will assist you through the entirety of the leasing process. With a tenant rep, you get all of your real estate questions answered, whether you are deciding to renew your current commercial property or relocate. Take a look at how a tenant rep in Houston can help guide you through your decision-making process.

YOUR TENANT REP WILL HAVE INSIGHT INTO THE WHOLE MARKET.

With residential real estate, it is easy to look up houses on a Multiple Listing Service (MLS). An MLS is a database that is created for real estate brokers to share information about properties. This way, they can help their clients buy and/or sell. But commercial real estate is different. There is no central repository for the available commercial space. With that in mind, getting a tenant rep in Houston will be very beneficial in terms of not just clarifying what properties are currently available, but also which ones are going to be. They have insider knowledge about who will be moving before properties even hit the public market. So, just keep in mind during your search for commercial real estate that the best spaces aren’t all located on the surface.

YOUR TENANT REP WILL UNDERSTAND REAL ESTATE COMPLEXITIES.

Think about certain phrases that your industry uses that may confuse others. Real estate is the same way in that it has its own language. For instance, do you know how valuable a triple net lease is? If you go into a commercial real estate deal with minimal understanding of the jargon, you could end up overspending on a property. A tenant rep in Houston adds a lot of value to the transaction process because they are highly knowledgeable about the terms within the lease. They also know what kind of detailed information must be asked for. Paired with their experience with the market, this gives you a considerable amount of leverage during negotiations.

YOUR TENANT REP WILL FIND THE RIGHT COMMERCIAL PROPERTY.

When choosing to relocate, it is likely that you already have a list of requirements that your commercial space needs to meet. Be vocal about these to your tenant rep in Houston. Doing so will help them prioritize certain factors during their search for your perfect property. Your tenant representation broker’s first job is going to be to perform a site selection, which is based on your outlined requirements. They will survey the market to see what is available in your particular submarket. In a commercial real estate context, a submarket is a smaller defined area, such as a neighborhood, within the larger market. Submarkets vary in regard to building types and average asking rates. Next, your tenant rep will take you on tours to the top selections to give you a better feel for them than what is on paper.

YOUR TENANT REP WILL PROVIDE YOU WITH TRANSPARENT CONSULTING.

Tenant reps in Houston keep your best interests as their number one priority. They use your company data to understand your needs . With this data, tenant reps are even able to assist with space forecasting years into the future. Estimating what size building you need is a challenge considering you may not be sure of exactly how much space is needed. Luckily, your tenant rep has everything under control. It does not matter whether your business is a startup or an established company. By compiling your current number of employees with your expectations for company growth, your tenant representation broker will be able to guide you toward the right office layout and square footage. Further, they can help you determine whether a Class A space is genuinely worth the cost premium so that your money is well spent.

Fun Fact: The average size of office spaces in Houston, Texas is 392,097 square feet . Will this fit your business?

YOUR TENANT REP WILL HAVE PROFESSIONAL CONNECTIONS.

For those just now moving to the Houston area, it may be the case that you currently lack connections in the real estate space. This means that you have limited support and could face the challenges that come with difficult landlords. However, tenant reps in Houston already benefit from working with a team of experts to make transactions as smooth as possible. Let them help build you a skilled team of architects, construction professionals, and real estate attorneys that are physically proximate to your ideal properties.

YOUR TENANT REP WILL SAVE YOU TIME AND MONEY.

If you are planning on tackling the search for a property on your own, know that there are several steps. You are a busy professional. Therefore, you may not have the time in the day to devote to researching commercial property and communicating with landlords. And you certainly won’t have the time to facilitate the process of due diligence while working on the lease. Pass off these tasks to a tenant rep in Houston. They will work hard to negotiate terms based on points that are important to you as the tenant. All you have to do is go on tours to select properties , make the ultimate decision, and sign. By the time you do have to sign the lease, you will be able to do so with confidence, in a fraction of the time.

Commercial Industrial Properties is home to some of the best tenant reps in Texas. Whether you are renewing, expanding, contracting, or relocating your business, let us take some of the stress off of your shoulders. Our tenant reps are well-versed in the tricks of the trade. We will work closely with you to facilitate a seamless closing. If you are a business owner or facility manager, consider our team for all of your real estate needs. Contact us today to get started with our tenant services.

WHY DO I NEED AN RE ATTORNEY TO REVIEW COMMERCIAL PROPERTY FOR LEASE IN SAN ANTONIO?

Fri, 03 Feb 2023 18:15:18 GMT

If you have purchased a house, you know that it is not a simple purchase. The property must be legally transferred from one party to another. In this case, it may be in your best interest to get a real estate attorney involved. That way, you have someone who is well-versed in real estate law to support you through the transaction. This same principle applies when you are renting a commercial property for your business.

As the tenant of a building, you need to have a good understanding of your landlord’s expectations. There is no getting around the necessity of carefully reading your lease before signing it. A real estate attorney will ensure that the lease includes your rights to quiet enjoyment, health and safety, and security. Find out more about how you can benefit from connecting with a real estate attorney once you have discovered the perfect commercial property for lease in San Antonio.

TYPES OF COMMERCIAL PROPERTY FOR LEASE IN SAN ANTONIO

Commercial properties consist of buildings and land that are home to profit-generating activities. The designation as a commercial property has implications for financing, taxation, and, of course, how laws are applied. Before all else, though, you need to determine what type of property your business needs so that you can make a proper investment. Here are three types of commercial property for lease in San Antonio:

Office

Whether you are looking for an office building in the heart of San Antonio or in the surrounding suburbs, consider how many people are on your team. Keep in mind your projected growth, as well. Then, consult with your real estate brokerage to determine which local office buildings would accommodate that size. Office buildings are grouped into the categories of Class A, Class B, or Class C. While these classifications are largely dependent on the health of the market, they range from best construction and location to most unfavorable. But note that just because a commercial property for lease in San Antonio falls outside of your desired class does not mean that you should completely write it off.

Retail

Retail properties are not just single storefronts. You might want to invest in a shopping center. This is a retail property that may or may not contain anchor tenants. Anchor tenants are larger retail tenants, known to draw in more customers. Examples include Whole Foods, Walmart, or The Home Depot. Other benefits of anchor tenants are that they bring credibility to the space and help to stabilize cash flow. Smaller businesses, thus, benefit from their presence. A community retail center, on the other hand, is made up of multiple anchor tenants. These are bigger centers that include grocery stores, drug stores, and restaurants. So, when searching for retail commercial property for lease in San Antonio, you need to consider what kind of space will most successfully reach your target audience.

Hotel

Options for hotel properties range from full-service to limited service and extended stay. They are designed with different guests in mind. With more and more people moving to and traveling to Texas, the hotel industry is booming. In fact, San Antonio’s hotel bookings were reported to top Austin, Dallas, and Houston in the last quarter of 2021 . The San Antonio hotel sector generated over $335.3 million in approximately three million hotel nights during those final months. If you are interested in getting into hospitality, now is your time. A well-managed hotel is capable of delivering annual returns that far exceed other forms of real estate.

WHAT DO REAL ESTATE ATTORNEYS DO?

Real estate attorneys are licensed to practice real estate law. This is the area of law that touches on legal issues related to buying, using, and selling property. These attorneys are legally authorized to prepare and review documents and contracts related to your investment in a commercial property for lease in San Antonio. They may also facilitate the closing and, eventually, confirm whether each party has fulfilled their obligations under the contract. If there are any unpaid loans or claims against the property, a real estate attorney works to clear them.

WHO DO REAL ESTATE ATTORNEYS REPRESENT?

A real estate attorney is able to represent the tenant or the property owner of commercial property for lease in San Antonio. They may otherwise represent the lender or the title company as a closing agent. But no matter the case, a real estate attorney must not have a conflict of interest by representing the other party at the same time. It is not possible for a real estate agent representing both parties to give each client the best deal, due to the difference in their interests. That said, a buyer and a seller are able to hire attorneys from the same firm.

HOW DO REAL ESTATE ATTORNEYS PROVIDE PROTECTION?

The role of a real estate attorney is to consider issues that you cannot predict. This is done by examining and evaluating documents regarding the terms of a sale. Your attorney will provide you with complete peace of mind over your commercial property investments. This is essential considering what a large financial commitment a commercial property for lease in San Antonio is. If you go without an attorney from the start, you could face greater costs or losses in the future. Allow them to negotiate on your behalf with their priceless range of real estate knowledge.

HOW DO I FIND A REAL ESTATE ATTORNEY?

It may be the case that your relatives, friends, or colleagues have previously utilized a real estate attorney when investing in a property. Ask them about their experience and whether they have a recommendation. If you are joining forces with a real estate brokerage to locate a commercial property for lease in San Antonio, also consider their connections. They will have already gone through the proper vetting process so you don’t have to.

WHEN SHOULD I HIRE A REAL ESTATE ATTORNEY?

As you now know, hiring a real estate attorney during a transaction related to an investment property is a good idea. But for landlords, real estate attorneys are also hired on the basis of evicting tenants. This is especially the case if a tenant is fighting an eviction with their own lawyer. While landlords are capable of winning an eviction lawsuit on their own, it always pays to have someone in your corner whose career is centered around contracts. There are many detailed rules that a landlord must follow in an eviction lawsuit, and judges will often set the bar high in favor of the tenant. After all, it is their home or business at stake.

Commercial Industrial Properties has been an integral part of Texas’s growth since 1975. Many of the brokers who are currently with CIP were involved with the original brokerage firm from the start. This means that when you partner with our diverse team, you get decades of experience to make your search go as smoothly as possible. Looking for commercial property for lease in San Antonio, Austin, Houston, or Dallas? Send us a message to start discussing your real estate needs with an expert broker.

THE SPEC CRAZE: INDUSTRIAL REAL ESTATE BOOM IN AUSTIN

Thu, 12 Jan 2023 18:07:23 GMT

The fact of the matter is, if you want to have the utmost success in finding an industrial property, you need to hire a professional. In doing so, you save yourself a considerable amount of time that you would have spent poring over the internet. A real estate broker has the education and experience to act as your mediator. After a discussion of your preferences, they will find properties that meet your criteria. From there, they will get in touch with the agents of sellers in your area and schedule your appointments accordingly.

One of the biggest benefits of teaming up with an industrial real estate broker is that they are well-versed in market trends. They have the analytical tools and databases to make the best decisions possible on your behalf. Even so, it is a good idea for you to keep up with where the market stands, too. This way, you can be smarter about how to handle your investments. Find out what is currently happening with industrial real estate in Austin.

WHAT IS INDUSTRIAL REAL ESTATE?

When you hear the words “industrial real estate,” you may picture a factory. However, this comprehensive subset of real estate extends far past that image. Industrial real estate encapsulates land and buildings that accommodate industrial activities. These activities include research, production, manufacturing, and distribution. Essentially, it is the properties that are not for public commercial use, where the behind-the-scenes work is going on. Leases for industrial buildings tend to last a long time, and they are often very low maintenance. Both of these factors are hugely beneficial for investors hoping to yield massive returns.

CLASS TYPES OF INDUSTRIAL REAL ESTATE

There are three different classes of buildings that you should be aware of—Class A, Class B, and Class C. Property classifications help investors understand the value and risk of that property. Some industrial real estate properties experience capital appreciation (a rise in an investment’s market price), while others have the goal of capital preservation (avoiding loss of value). Let’s dive into each of these classes of industrial real estate in Austin to establish which is the best option for you.

Class A

The highest-quality buildings on the market are known as Class A. Oftentimes, these buildings were constructed in the last 15 years. Because they carry so few risks and offer the opportunity to preserve capital, landlords are able to price these properties at top dollar. This means Class A properties bring in high-income earning tenants.

Class B

While Class B buildings are older than Class A, they are not necessarily in disrepair. Many of these buildings simply offer fewer luxurious amenities. It can be easier to find an attractive deal with Class B properties. If you are an investor looking for an immediate cash flow, this is a desirable type of industrial real estate in Austin.

Class C

Relative to Class A and B buildings, Class C buildings are not highly profitable. Investors will often purchase these properties with the goal to renovate them. Therefore, passive investment opportunities are less likely with a Class C. If you are not interested in dealing with the maintenance issues of a building that is over 20 years old, step back from Class C’s.

EXAMPLES OF INDUSTRIAL REAL ESTATE

As we mentioned earlier, the types of industrial properties are vast. Some of them are capable of accommodating multiple industrial uses. Property owners should be aware of which kinds of tenants will be occupying the space. Companies that are focused on short-term growth, for instance, are recommended to lean toward spec buildings. These do not require as much upfront capital investment as a custom building. Check out these three types of properties that you can invest in.

Warehouses

When you decide to invest in industrial real estate in Austin, it may be with the intention to obtain a warehouse. This can either be a bulk warehouse or a flex warehouse. A bulk warehouse is the largest industrial property available, possibly coming in at over one million square feet. Alternatively, flex warehouses are known to accommodate a wide variety of users, so they are highly sought after by different businesses.

Data Centers

There are several important services that come out of a data center. For instance, data storage and recovery. Data centers are spaces that are designed to support business applications and activities, so they require high-quality technology. They need to have access to a large power supply, so they should be in close proximity to major communication trunk lines.

Heavy Manufacturing

Are you looking for industrial real estate in Austin for the next branch of your large national company? Heavy manufacturing properties are great for those who utilize heavy machinery. Because of how inconvenient it is to relocate such operations, tenants are likely to stick around for a long time. These properties can also be very customized for the specific requirements of the current user.

WHAT IS DRIVING THE SPEC CRAZE?

Currently, Austin ranks third in the Southwest for industrial space. As we push into 2023, it is important to note that industrial real estate across the nation has continued to see strong demand. CoStar reports that, during the third quarter, record highs were hit for leasing of logistics, manufacturing, and warehouse properties. There were at least 83 million square feet of industrial leases recorded in August of 2022 alone. It is clear that despite capital costs rising and inflation driving up costs for businesses, investors are not pulling back. Major United States retailers are even announcing plans to open more large distribution centers.

It is critical that you work with a team of experienced and ethical brokers when investing in industrial real estate in Austin. Commercial Industrial Properties has been an integral part of Texas’s growth for nearly five decades. Over this period, we have evolved and expanded to become a leader in not just industrial real estate, but also retail, land, and office space. We are a full-service real estate firm that is dedicated to our wide array of clients. We would love to discuss your needs as a landlord or tenant, so send us a message .

WHAT TO LOOK FOR IN A NEW OFFICE SPACE IN DALLAS

Mon, 09 Jan 2023 17:59:31 GMT

WHAT TO LOOK FOR IN A NEW OFFICE SPACE IN DALLAS

Today, we live in a world where many businesses allow their employees to work from home. Some have even opted for hybrid options, with employees choosing which days they come into the office. This has opened the door for greater opportunities in the corporate environment, given that employees can work from anywhere in the world. With that in mind, it is not a necessity to have a physical office space. Still, many companies benefit from having a central location where departments can easily communicate and collaborate outside of Zoom and Microsoft Teams.

It might be the case that you currently have an office that just isn’t fitting your needs. The space worked years ago, but has since stopped reflecting your company culture and no longer encourages employee engagement. So, you need a plan. Create a detailed report that covers all of the tools and amenities you need to improve the quality of your office. Dig into the top seven priorities for finding your office space in Dallas, and then share this information with your real estate broker.

1) COMPANY SIZE

There are two major motivators when it comes to determining adequate square footage. First is that you are downsizing. This could be the case if your business has started to largely shift to a remote environment. Alternatively, it may be the case that you are just starting your business and need room to grow. Your new team members do not want to feel crammed into a tiny space where they are walking over the top of one another, so you should have a more flexible workplace layout. Ask yourself how many people will be utilizing your new office space in Dallas so that your broker has a better chance of fulfilling your unique needs.

2) YOUR BUSINESS ACTIVITIES

What your company does will determine what technology and infrastructure you need. Across the board, it is to be expected that you require internet connectivity for your computers. When choosing an office space in Dallas, locations that already factor internet into the rent should be highly considered. If you end up deciding to go with a multi-tenant building, know that the network wiring will often go to a central location. You should check out this area to establish whether all of your equipment will be secure. On a separate note, if your business hosts a lot of on-site meetings, you are going to require designated conference rooms. Keep your employee count in mind to determine what size rooms are to be expected.

3) LOCATION AND ACCESSIBILITY

Dallas is one of the fastest-growing cities in the United States. In just one decade, the DFW area has expanded by approximately 132,000 residents . This means that, every year, more and more business owners are taking up residence. Your broker will need to act quickly to locate the perfect space for your company. A major factor they will consider is location. Just because you found a seemingly great location does not mean it will actually be great for every member of your team. Once again, your employees should not have to worry about whether or not they can get to work that day. While you cannot accommodate everyone’s unique situation, you need to think about whether it will be a long commute for the majority.

4) BUILDING DESIGN

Did you know that the layout of an office space in Dallas actually affects employee productivity and satisfaction? A well-planned workspace makes it easier for employees to effectively complete tasks. Therefore, if you want to maintain the loyalty of your team, you need to be thoughtful about their comfort. Your real estate broker should have a solid idea of what number of rooms you need, as well as any requirements for acoustics, lighting, and indoor air quality. It may be even on your checklist that you want the building to be close to nature.

5) SUPPORTIVE ECOSYSTEM

Office spaces in Dallas that are well-designed are home to employees who are happier and healthier. Continue to promote that sense of happiness and healthiness outside of the office itself. You want your business to genuinely be part of the Dallas community. That will help you attract a client base. Surround yourself with institutions and organizations that you are willing to support, and vice versa. Business relationships matter toward your long-term success since they allow you to showcase your personality and further build community connections.

6) YOUR BUDGET

A tenant representative is a commercial real estate broker who advocates for you during a transaction. Go into a conversation with your tenant representative knowing how much you are willing to spend. This means doing your research on office spaces in Dallas beforehand. You do not want to go into your conversation with unrealistic expectations of office upgrades. When discussing funds, make sure to factor in utilities and moving your equipment to the new building , as well. Give yourself a little bit of wiggle room in case an excellent office is located just outside of your budget.

7) CONTINGENCY PLAN

Your business needs to have an exit strategy from your lease. With a contingency plan, you have step-by-step guidance on how to minimize damage from an unforeseen event. It lets you know exactly what actions need to be taken and what resources are required for the plan’s implementation. Although there are many careful considerations that go into leasing an office space in Dallas, having a contingency plan, just in case, is a good idea. This way, you are able to leave for another location should your building face a natural disaster or your community endure a shift in business demographics.

You need to work with a full-service commercial real estate firm that is committed to your success. Look no further than Commercial Industrial Properties! We have the latest tools and software programs to guide you with real-world data. Combined with our several years of experience, we are sure to find you the perfect office space in Dallas before you know it. Gain some expert advice from the team at CIP when you reach out to us today.

HOW TO CHOOSE A COMMERCIAL REAL ESTATE BROKERAGE IN HOUSTON

Thu, 05 Jan 2023 17:49:21 GMT

MAKE SURE TO SCREEN YOUR TENANTS

MAINTAIN COMMUNICATION WITH TENANTS

STAY INFORMED ABOUT THE MARKET

USE TECHNOLOGY TO ENHANCE THE EXPERIENCE

Did you know that you can even use smart building systems to optimize energy usage? By 2026, approximately 90% of smart building spending will be going toward non-residential properties!

ALWAYS MAINTAIN ACCURATE RECORDS

PERFORM REGULAR PROPERTY INSPECTIONS

Faulty equipment
Electrical issues
Fire hazards
Slips, trips, and falls
Plumbing issues
Poor indoor air quality

CONTINUE TO UPGRADE OVER TIME

LEASED! RETAIL ON N LAMAR

Wed, 30 Nov 2022 15:38:40 GMT

LEASED! RETAIL ON N LAMAR

Robby Eaves, CCIM and Evan Bole represented the landlord in the leasing of 7503 N Lamar. The entire 4,009 SF space will be occupied by Flow Nocturno.

SOLD! 4 ACRES NEAR SAMSUNG

Thu, 11 Aug 2022 14:34:30 GMT

SOLD! 4 ACRES NEAR SAMSUNG

Josh Hubka, CCIM represented the Seller of 4.06 acres at the NEC of Parmer Lane and Yager Lane in NE Austin. Situated in the ETJ, the property has flexibility on its use and is immediately across the street from EastVillage and one block east of Samsung.

LEASED! OFFICE SPACE IN NORTHWEST AUSTIN

Mon, 08 Aug 2022 14:32:18 GMT

LEASED! OFFICE SPACE IN NORTHWEST AUSTIN

Commercial Industrial Properties is pleased to announce that Datacom Design Group has just moved into their new office at 9111 Jollyville Road in Austin. They were represented by Evan Bole of CIP, who helped them relocate to the 2,909 SF space. Datacom Design Group provides highly specialized technology consulting and professional design services to Owners, Architects, and Project Developers.

SOLD! 21 ACRES IN HUTTO

Mon, 01 Aug 2022 14:30:13 GMT

SOLD! 21 ACRES IN HUTTO

Lee Ellison, ALC of Commercial Industrial Properties represented the seller in the sale of 21 acres located at FM 1660 and CR 137 in Hutto, TX. The land will be used for multifamily.

WHAT GOES INTO CONSIDERING A LEASE VERSUS BUY DECISION

Wed, 20 Jul 2022 16:41:21 GMT

WHAT GOES INTO CONSIDERING A LEASE VERSUS BUY DECISION

It’s a year out before your lease terminates and you need a new facility – do you lease or buy? Every business faces that tough question every few years and there are advantages and disadvantages to both. To help you evaluate what is best for you and your business, you must compare the economics of leasing vs. buying.

What are the advantages of Leasing ?

The monthly rent is a tax deduction as a business expense. By using rent as a tax deduction, you essentially deduct the improvements and the land.
As a tenant you are not susceptible to changes in the market value with ownership in a downcycle.
Freedom to move or sublease when your lease expires.
No need to worry about selling if you need to move to another location.
Your cash flow is important to you, especially in the beginning of a business.
Your credit rating is not as important as compared to buying.

What are the disadvantages of Leasing?

As a tenant you will face annual rental increases.
The tenant will lose value on the improvements they have made to the premises.
You will have to move at the end of the lease if no renewal is offered or you have outgrown the space.
No opportunity to build equity.

What are the advantages of Buying?

Interest on the mortgage is tax deductible. *
You can take annual depreciation deductions on the Building Improvements / taxes .*
Control your own rent.
Appreciation of value over time.
Excess space can be leased to allow time to grow into it.
Any improvements to the premises are yours.

What are the disadvantages of Buying?

Requires substantial capital to secure financing.
A chance the property value may decline.
Owner is subject to various legal and regulatory risks
Owner has to spend time and energy on something this is not part of their daily business.

*Consult your CPA on the benefits of buying.

If you’re looking for a broker to help you with your lease vs buy decision or a financial analysis when considering either option, please email me, Lee Ellison at lee@cipaustin.com . I’d love to speak with you to see how I can be of assistance.

Want to learn more about other topics? Check out our Education Hub .

JUST LEASED! RETAIL SPACE ON THE DRAG

Wed, 20 Jul 2022 14:27:47 GMT

JUST LEASED! RETAIL SPACE ON THE DRAG

Kim Nordquelle of CIP represented the tenant in the leasing of 2508 Guadalupe. The 1,050 SF space is across the street from the University of Texas Campus and will be used for a high end vape shop.

WHY BUYERS AND TENANTS SHOULD ALWAYS USE BROKERS

Wed, 22 Jun 2022 16:34:12 GMT

WHY BUYERS AND TENANTS SHOULD ALWAYS USE BROKERS

These days there is a plethora of online services and resources to buy or lease commercial space . All too often this can lead people to think they can do it themselves and many assume they would be better off to not use a broker to represent them. Unfortunately, those that go it alone frequently feel like they got a good deal, but the truth is they could have gotten a better one if they had used a broker – especially if it was a complicated deal.

Here are a few good reasons why buyers and tenants should always use broker:

A broker who represents your interests is no additional cost to you. Sellers and Landlords assume the other party will be represented. Most of the time, your broker’s commission is built into the listing agreement with the Listing Broker. If you think you are going to get a better deal because you are saving the Owner money by not having representation, you are mistaken. In addition to making the Listing Broker’s job easier because they will be negotiating against someone who may not have their level of experience, you could be making it more lucrative because they may get to the keep the commission that would have gone to your broker.
They are legally bound to put your interests first. When you negotiate with the Listing Broker, they have a fiduciary duty to the Landlord, not you. By securing a broker of your own, you will now have someone obligated to get you the best deal possible. Think of it this way: you can represent yourself in court, but would you? Unless you have a law degree, I think the answer is no. When you’re going up against a professional who does that for a living, you want representation of your own. Real estate should be no different.
They have resources you do not. And I’m not talking about websites. Brokers spend years cultivating relationships, information, history, and experience. When a broker represents you, you get so much more than someone simply trying to haggle down the price. The information, connections, and guidance they can provide is invaluable.
A deal is as much about what is being presented as what is not being presented. Have you ever booked an Airbnb, only to show up and find the place quite different from how you expected it? You even went back to the listing and noticed there were no lies, but things were presented in such a way that made you envision it in a way that wasn’t accurate? Pretty disappointing, right? One of those “fool me once…” moments. Now imagine something like happening with a multi-million dollar property you just purchased. With a broker behind you, you can be sure they will be looking at the deal from all angles, not just the way the Seller wants you to see it. A broker can help you mitigate those risks before you sink too much money into it.
They save you time. Finding a property can be a challenging, time-consuming endeavor. Why not hand that over to someone else so you can focus on your family, your business, or any number of things? As a broker, it can be like pulling teeth to get information from other brokers, the owner, or governmental agencies. I spend hours trying to get basic information for some of my clients. We put in the hours so you don’t have to. A good broker should also present you with information in a way that allows you to make a quick apples-to-apples comparison. By providing you with a method to quickly assess each property, you can sift through the results faster and find the one that’s right for you.

Want to learn more about other topics? Check out our Education Hub .

TRIPLE NET LEASE (NNN)

Fri, 17 Jun 2022 15:46:39 GMT

TRIPLE NET LEASE

The NNN is rent in addition to base rent and the cost of utilities.

Triple Nets are estimated for the year and typically paid together with rent each month. At the end of the year the actual cost of NNN is calculated and reconciled with the tenant if the estimation differed from the actual expenses.

In addition, there are also:

Single Net Lease – In addition to base rent, the tenant also pays their proportionate share of property taxes.

Double Net Lease – In addition to base rent, the tenant also pays their proportionate share of property taxes and property insurance

Want to learn more about other topics? Check out our Education Hub .

TENANT TIPS: NEGOTIABLE DEAL POINTS IN A COMMERCIAL LEASE

Thu, 16 Jun 2022 15:11:53 GMT

TENANT TIPS

Tenants are frequently surprised by the number of negotiable deal points in a commercial lease. Having a clear understanding of your options, how to leverage them, and the effect they can have on your business will help you craft a strong deal that best suits your needs.

Let’s start with a few key terms:

Term : also known as the Primary Term, this refers to the length of the lease

Base Rent : the amount per square foot you pay in rent for the property

Typically represented as an annual amount, ex: $24/sf.

Escalations: the amount the base rent increases each year of the term to account for inflation

Most commonly, 2.5% – 3% each year.

Abated Rent : the amount of “free” rent the Landlord provides at the start of the term

Landlords provide this to help offset costs associated with getting the space up and running prior to opening for business.

Tenant Improvement Allowance aka TI: a set amount per square foot the Landlord will reimburse the Tenant for hard costs associated with their buildout

Note, this is for hard costs like tangible construction, not soft costs like design and engineering fees.
Typically, the Landlord provides reimbursement upon completion of construction and Release of Mechanic’s Lien Waivers.

These deal points are typically the backbone of a lease. However, even within these few deal points, there are many paths to a successful deal.

If you’re willing to sign for a longer term, you may be able to negotiate a lower base rent and/or more TI. Many Landlords are willing to grant more favorable terms if it means they won’t have to worry about a vacancy in that suite for an extended period of time.
If the space needs a minimum amount of construction to be prepared for your use and you have the means to cover those costs, you may want to negotiate harder for abated rent instead of TI. Coming up with money for TI impacts a Landlord’s capital reserves in a way that providing abated rent doesn’t.
If your business is relocating and you want to keep costs down on the front end, you may want to negotiate for a lower base rent at the beginning of the term with larger escalations on the back end. A Landlord may have a set amount they are trying to get out of a deal. As long as they get that amount over the term, they may not be too concerned with how it is distributed.

There are a plethora of other items to be negotiated once those fundamentals have been established – personal guarantees, renewals, parking, signage, exclusivity, Tenant’s responsibilities, Landlord’s responsibilities, expansion clauses, subleasing, OPEX caps, audits, and more. Each business and every property are different, so it’s important to take all factors into consideration before submitting your LOI. A broker working with a Tenant who is considering three different properties, may write three very different LOIs. A good broker will understand your desires and limitations and find a way to structure a deal that is appealing to both parties.

If you want to learn more about the topics touched on above, discuss finding a new location, or need assistance with commercial real estate in any capacity, please contact me, hani@cipaustin.com . I look forward to speaking with you.

Want to learn more about other topics? Check out our Education Hub .

Writing Contributor:

Bob Springer , SIOR, CCIM

JOIN US AT ICSC!

Wed, 18 May 2022 14:25:48 GMT

JOIN US AT ICSC!

Did you know CIP does Retail, Analytics and Development?
We’re back so lets chat!
Reach out to schedule a meeting with CIP’s retail team in Vegas.

SOLD! 12 ACRES IN BUDA

Mon, 28 Mar 2022 14:19:47 GMT

SOLD! 12 ACRES IN BUDA

CIP is proud to share the sale of 12 acres at 18200 IH-35 in Buda, TX. Josh Hubka, CCIM and Joyce Weedman represented the Seller. The Buyer was an industrial developer.

SOLD! 6 ACRES IN ELGIN

Mon, 28 Feb 2022 15:15:23 GMT

SOLD! 6 ACRES IN ELGIN

CIP would like to congratulate Josh Hubka, CCIM , in the sale of 6 acres on Roy Rivers Rd in Elgin, TX. Representing the Seller, Josh sold the site to a multifamily developer.

PHIL MORRIS EARNS COSTAR POWER BROKER AWARD

Wed, 23 Feb 2022 15:13:29 GMT

PHIL MORRIS EARNS COSTAR POWER BROKER AWARD

Congratulations to Phil Morris for being recognized by CoStar as a 2021 CoStar Power Broker Quarterly Deals winner for Q4!

SOLD! 6.9 ACRES IN KYLE

Wed, 16 Feb 2022 15:11:12 GMT

SOLD! 6.9 ACRES IN KYLE

CIP would like to announce the sale of 6.9 acres on Dacy Lane in Kyle, TX. Josh Hubka, CCIM and Joyce Weedman represented the seller.

SOLD! 65 ACRES IN SAN MARCOS

Fri, 11 Feb 2022 15:08:18 GMT

SOLD! 65 ACRES IN SAN MARCOS

Bob Springer, CCIM of Commercial Industrial Properties sold 65 acres in San Marcos along SH 80.

SOLD! 3.8 ACRES NEAR SLAUGHTER LANE

Fri, 11 Feb 2022 14:59:58 GMT

SOLD! 3.8 ACRES NEAR SLAUGHTER LANE

Robby Eaves, CCIM and Jerred Morris represented the seller in the sale of 1802 & 1804 Oak Hill Lane in Austin, TX.

SOLD! 16.3 ACRES IN HUTTO

Tue, 08 Feb 2022 14:56:33 GMT

SOLD! 16.3 ACRES IN HUTTO

Lee Ellison, ALC represented the seller of 16.3 acres in Hutto at FM 1660 and CR 137 to a national multifamily developer.

SOLD! 8105 EXCHANGE DRIVE

Thu, 16 Dec 2021 14:53:19 GMT

SOLD! 8105 EXCHANGE DRIVE

Robby Eaves, CCIM and Evan Bole of CIP represented United Tissue Resources in their acquisition of a 8,203sf building located at 8120 Exchange Drive in Austin Texas. Special thanks to David Dawkins and Stephen Pannes who represented the seller, United States Tennis Association.

SOLD! 8.7 ACRES ON PARMER LANE

Mon, 15 Nov 2021 14:50:28 GMT

SOLD! 8.7 ACRES ON PARMER LANE

Commercial Industrial Properties is pleased to share that Josh Hubka, CCIM and Joyce Jane Weedman of CIP represented the seller of 8.7 acres at the SEC of Parmer Lane and Harris Branch Parkway. Hampton Friedman, CCIM, of Equity, represented the Buyer. Earlier this year, Josh and Joyce sold the 20 acres on the NEC.

The 8.7 acres is a part of the Harris Branch Master Planned Development, a 2,200 acre PUD that includes more than 3,800 single family homes. The land is approximately 1.2 miles east of Samsung Electronics, and directly between SH-130 and IH-35.

CIP WELCOMES GLEN SORREL

Wed, 10 Nov 2021 14:47:59 GMT

CIP WELCOMES GLEN SORREL

We are pleased to announced that Glen Sorrel has joined Commercial Industrial Properties as a Senior Vice President.

Glen has over 36 years of experience in commercial real estate in Central Texas. Throughout his career he has represented some of the nation’s major Landlords including Metropolitan Life Insurance Company, Aetna Life Insurance Company, GE Capital, Thomas Properties Group, Equity Commonwealth Management, LLC, and various private owners.

Glen has exclusively represented 47 buildings totaling 4.1 million square feet in Austin, Texas. Glen has also represented a variety of clients including Lawyers, Lobbyists, Insurance, Technology, Medical, and Advertising firms.

Prior to starting his own firm, ATX Skyline Realty, LLC, Glen worked for several firms including SynerMark Properties, Inc. which transitioned into Kennedy Wilson, Oxford Commercial which transitioned into Cushman and Wakefield, and Transwestern.

Glen was a past President and Board member of the Commercial Brokers Association of Austin (CBA). He is also a member of, and has been elected to, the Board of Directors for the Austin Commercial Real Estate Society (ACRES).

Glen is a graduate of Baylor University with a Bachelor of Business Administration degree. He is a licensed Broker with the Texas Real Estate Commission. In his free time Glen enjoys hunting, fishing, scuba diving and golf.

We hope you’ll connect with Glen today and gain from his extensive knowledge in commercial real estate!

Glen Sorrel
Senior Vice President
glen@cipaustin.com
512-682-1009 office
512-422-2573 cell

SOLD! 9.9 ACRES IN PFLUGERVILLE

Wed, 03 Nov 2021 13:44:02 GMT

SOLD! 9.9 ACRES IN PFLUGERVILLE

Commercial Industrial Properties is excited to share that Lee Ellison, ALC of CIP was the seller rep in the sale of 9.9 acres at 18629 Weiss Lane in Pflugerville to an industrial developer . The buyer was represented by Diego Alvarado of DEN Property Group.

SOLD! 101 ACRES IN SAN ANTONIO

Mon, 01 Nov 2021 20:44:21 GMT

SOLD! 101 ACRES IN SAN ANTONIO

CIP is pleased to announce Josh Hubka,CCIM and Joyce Jane Weedman sold 101 acres on Culebra Road in northwest San Antonio. This was Phase 2 of a 3 phase takedown for a 271 acre residential community.

SOLD! 10.8 ACRES IN KYLE

Tue, 26 Oct 2021 20:41:57 GMT

SOLD! 10.8 ACRES IN KYLE

Commercial Industrial Properties is pleased to announce the sale of 10.8 acres on IH-35 in Kyle, just south of Kyle Parkway. Josh Hubka, CCIM and Robby Eaves, CCIM represented the seller, Kyle 10 Holdings, LLC, while Jeremy Bartlett of Keller Williams represented the buyer.

SOLD! 25K SF INDUSTRIAL FACILITY

Thu, 14 Oct 2021 20:38:38 GMT

SOLD! 25K SF INDUSTRIAL FACILITY

Robby Eaves, CCIM of Commercial Industrial Properties (CIP) represented the seller, in the sale leaseback of the 25,573sf facility located at 1713 Hur Industrial Blvd in Cedar Park, TX. The buyer was represented by Geoff Hangartner of HPI Corporate Services, LLC.

SOLD! 16 ACRES IN CEDAR PARK

Thu, 16 Sep 2021 20:36:23 GMT

SOLD! 16 ACRES IN CEDAR PARK

Bob Springer, CCIM and Josh Hubka, CCIM , Principals at Commercial Industrial Properties, sold 16+ acres of commercial land at 2225 Whitestone Blvd in Cedar Park, at the corner of FM 1431 and Anderson Mill Road. Bob represented the Seller and Josh the Buyer.

251 N BELL BLVD PURCHASED

Tue, 17 Aug 2021 20:33:28 GMT

251 N BELL BLVD PURCHASED

Robby Eaves, CCIM , and Hani Shafi of CIP recently represented WRB Holdings LLC in the purchase of a 30,748 SF Shopping Center at 251 N. Bell Blvd in Cedar Park, TX.

SOLD! 7.74 ACRES IN WALBURG, TX

Tue, 08 Jun 2021 20:30:47 GMT

SOLD! 7.74 ACRES IN WALBURG, TX

Bob Springer, CCIM of CIP represented the owner in the sale of 4100 FM 1105 in Walburg, TX. The property is the former site of CPI Products’ Aerial Lift Products manufacturing facility. The undisclosed buyer bought the land for investment purposes.

EXACO BREAKS GROUND ON PFLUGERVILLE SITE

Tue, 18 May 2021 20:27:46 GMT

EXACO BREAKS GROUND ON PFLUGERVILLE SITE

Josh Hubka, CCIM , and Joyce Jane Weedman of CIP recently represented Exaco in their purchase of 4.4 acres at 16001 Impact Way in Pflugerville. Click the image below to read the ABJ article detailing Exaco’s plans for the site.

SOLD! 15 ACRES IN ELGIN

Fri, 14 May 2021 20:25:26 GMT

SOLD! 15 ACRES IN ELGIN

Kurt VanderMeulen and Joyce Jane Weedman of Commercial Industrial Properties represented the seller and buyer respectively in the sale of 15 acres of commercial land at the NEC of U.S. Hwy 290 and County Line Rd in the City of Elgin. The property is located next to the Austin Community College Campus.

SOLD! 31.5 ACRES IN AUSTIN

Tue, 22 Dec 2020 21:23:10 GMT

SOLD! 31.5 ACRES IN AUSTIN

Bob Springer, CCIM , and Mark Milstead of CIP represented the Seller in the sale of 9900 FM 620, Austin, TX . The 31.5 acre property was the former location of the outdoor furniture store Outside in Style.

JERRY HEARE MAKES THE LIST OF COSTAR’S TOP INDUSTRIAL LEASES IN AUSTIN

Thu, 05 Nov 2020 21:20:30 GMT

JERRY HEARE MAKES THE LIST OF COSTAR’S TOP INDUSTRIAL LEASES IN AUSTIN

Soundcheck Austin recently leased 16,310 SF of space at 3714 Bluestein Drive in Austin, TX. Jerry Heare, SIOR represented the tenant, and the deal was recognized by CoStar as a top industrial lease of Q3 for 2020.

NICK NELSON NAMED 2021 TECHNOLOGY PRESIDENTIAL LIAISON

Mon, 02 Nov 2020 21:17:59 GMT

NICK NELSON NAMED 2021 TECHNOLOGY PRESIDENTIAL LIAISON

CIP is thrilled to announce that our very own Nick Nelson, CCIM has been named the 2021 Technology Presidential Liaison for the CCIM Institute. Nick is an industry leader known for finding innovative ways to utilize technology in real estate. From the site selection process to a deep due diligence review of a Property, Nick’s clients rave about his ability to enhance their process.

“I feel humbled and honored to serve the CCIM Institute under the leadership of Tim Blair, CCIM, side by side with our local chapter leaders Robby Eaves, CCIM and Josh Hubka, CCIM, as well as hand in hand with every CCIM candidate and designee on the planet as one unified voice of collaboration to solve the toughest problems commercial real estate can throw at us.” -Nick Nelson, CCIM

The CIP team congratulates Nick on this accomplishment!

SOLD! 2 ACRES IN NORTH AUSTIN

Fri, 16 Oct 2020 20:15:06 GMT

SOLD! 2 ACRES IN NORTH AUSTIN

Josh Hubka, CCIM and Nick Nelson, CCIM, of Commercial Industrial Properties, represented the Buyer in the acquisition of 2.08 acres at the SEC of IH-35 N and Ruby Drive in North Austin. Leigh Ellis, SIOR, of Aquila Commercial, represented the Seller.

FINE ART SERVICES LEASES NEW SPACE

Wed, 14 Oct 2020 20:11:57 GMT

FINE ART SERVICES LEASES NEW SPACE

Hani Shafi and Robby Eaves, CCIM , of Commercial Industrial Properties represented the Tenant, Fine Art Services, in the lease of 1,290 sf of flex space at La Costa Corporate Park, 6448 Hwy 290 East. Joel Hargett of CSA Realty Group represented the Landlord.

SOLD! FORMER PEC PAYMENT OFFICE

Wed, 30 Sep 2020 20:09:02 GMT

SOLD! FORMER PEC PAYMENT OFFICE

CIP is pleased to announce the sale of 158 CR 4126 in Lampasas, TX. Robby Eaves, CCIM and Nick Nelson, CCIM represented the seller. The 1,936 SF building was formerly a PEC payment office.

SOLD! 10820 CRYSTAL FALLS PKWY

Fri, 21 Aug 2020 20:05:53 GMT

SOLD! 10820 CRYSTAL FALLS PKWY

CIP announces the sale of 10820 East Crystal Falls Parkway in Leander, TX. Lee Ellison, ALC of CIP and Caitlin Gary with ECR represented the Seller, Good Earth Day Schools, in the sale of 1.93 acres.

SOLD! FORMER LOGAN’S ROADHOUSE

Thu, 09 Jul 2020 20:03:21 GMT

SOLD! FORMER LOGAN’S ROADHOUSE

Robby Eaves, CCIM and Nick Nelson, CCIM represented the seller in the sale of 1100 Little Texas Lane. This 7,967 SF building was formerly a Logan’s Roadhouse.

We received this feedback from the seller regarding this transaction:

“Thank you Robby and Nick for successfully marketing the former Logan’s Roadhouse located in South Austin. The property had some challenges which you were able to overcome due to your knowledge of the market and perseverance. I have been investing in commercial real estate for 30 years and this was the most challenging property I have encountered. Your creativity paid off for all parties, with a Win-Win. I look forward to working with y’all on future projects.” -John Wolters, Wolters Investments LLC

SOLD! FREESTANDING RETAIL/OFFICE BUILDING IN CENTRAL AUSTIN

Tue, 28 Apr 2020 19:58:04 GMT

SOLD! FREESTANDING RETAIL/OFFICE BUILDING IN CENTRAL AUSTIN

CIP is pleased to announce the sale of 944 E. 51st Street in Austin, TX.

• Robby Eaves, CCIM , and Hani Shafi represented the Seller in this transaction.

• The property is conveniently located on 51st St, just west of I-35, and was only on the market for a brief time.

• The location will be redeveloped by a local bakery intending to consolidate their operations under one roof.

3.11± ACRES SOLD ON HOWARD LN

Thu, 09 Jan 2020 20:22:42 GMT

3.11± ACRES SOLD ON HOWARD LN

Josh Hubka, CCIM of Commercial Industrial Properties (CIP) sold 3.11± acres at 2900 Howard Lane, between Mopac and I-35. Hubka represented the Seller, Utopia Dog Hotel, LLC, and KC Willis represented the Buyer, Howard HSRB, LLC.

58 ACRES OF MULTIFAMILY LAND SOLD

Tue, 07 Jan 2020 20:20:39 GMT

LAND SOLD

Kurt VanderMeulen of Commercial Industrial Properties (CIP) sold 58 acres of Multifamily land at Wells Branch Parkway. Kurt represented the Seller, Village @ Northtown LTD.

26.7 ACRES ACQUIRED IN CEDAR CREEK

Tue, 17 Dec 2019 20:18:48 GMT

26.7 ACRES ACQUIRED IN CEDAR CREEK

Jerry Heare, SIOR and Josh Hubka, CCIM of Commercial Industrial Properties (CIP) represented the Buyer in the acquisition of 26.7 acres at the corner of Hwy 71 and Pope Bend in Cedar Creek, across from the Cedar Creek High School. Frank Rainosek, Jr., of RE MAX Bastrop represented the Seller

29K SF OF RENEWALS IN NORTH AUSTIN

Mon, 16 Dec 2019 20:10:45 GMT

29K SF OF RENEWALS IN NORTH AUSTIN

Mark Milstead of Commercial Industrial Properties (CIP) represented the tenant, High Tech Carpet, in three renewals in north Austin.

18,510 sf at Waterford Centre I. Sam Owen of Stream represented the Landlord.
6,173 sf at 2136 Rutland Drive. Davis Bass of HPI represented the Landlord.
4,371 sf at 2112 Rutland Drive. Dean Santacruz of PS Business Park represented the landlord.

INDUSTRIAL LAND SOLD ON PARMER LANE

Fri, 13 Dec 2019 20:05:58 GMT

INDUSTRIAL LAND SOLD ON PARMER LANE

Josh Hubka, CCIM , Joyce Weedman, and Bob Springer, CCIM of Commercial Industrial Properties (CIP) sold 7.5 acres zoned IP-CO (Industrial Park) on Harris Branch Parkway, north of Parmer Lane to Hanyang ENG USA, Inc. CIP represented the Seller, HB EXP, LLC.

KRAB KINGZ SIGNS NEW LEASE IN PFLUGERVILLE

Thu, 12 Dec 2019 19:58:38 GMT

NEW LEASE SIGNED!

Hani Shafi and Robby Eaves, CCIM of Commercial Industrial Properties (CIP) represented the landlord in leasing 2,500 sf of the Pflugerville Oasis Park at 1202 FM 685 in Pflugerville to Krab Kingz. Victory Henry of Commercial Market Exchange represented the Tenant.

14.4 ACRES SOLD IN ROUND ROCK

Thu, 12 Dec 2019 19:56:49 GMT

ACRES IN ROUND ROCK

Kurt VanderMeulen of Commercial Industrial Properties (CIP) represented the Buyer, Trinsic Residential, in their purchase of 14.4 acres for an apartment development in Avery Center on FM 1460 in Round Rock. Marshall Durrett of Cushman & Wakefield represented the Seller.

NEW MEDICAL OFFICE LEASE ON BEE CAVE ROAD

Wed, 11 Dec 2019 19:55:08 GMT

NEW MEDICAL OFFICE LEASE ON BEE CAVE ROAD

Nick Nelson, CCIM and Robby Eaves, CCIM of Commercial Industrial Properties (CIP) represented Functional Medicine Physician, Oubre Family Medicine, LLC, in its lease of 4,357 sf of medical office at the Overlook at Rob Roy on Bee Caves Road. Patrick Ley of ECR represented the landlord.

SOLD! 30,000 SF INDUSTRIAL BUILDING

Wed, 11 Dec 2019 19:52:44 GMT

SOLD! 30,000 SF INDUSTRIAL BUILDING

Jerry Heare, SIOR of Commercial Industrial Properties (CIP) sold a 30,000 sf industrial building on 10 acres in Round Mountain. Heare represented the Buyer, Pearce Development, LLC, while John Lewis represented the Seller, Blanco Warehouse, LLC.

CIP LOCATES HI TECH FACILITY IN KYLE, TEXAS

Thu, 28 Mar 2019 18:50:48 GMT

CIP LOCATES HI TECH FACILITY IN KYLE, TEXAS

Jerry Heare, SIOR, a Sr VP at Commercial Industrial Properties Company of Austin is the lead Austin Broker who made the site location search of the Austin area on behalf of ENF Technologies of Korea. Kyle, Texas is the location recently announced by WJ Yang, ENF General Manager.

The site research took over two years covering potential locations in Austin and the surrounding communities.

The facility is estimated to cost over $45 million and employ 40 personnel initially with average salaries near $85,000 yr.

Heare participated with the Samsung site location team in 1997 and has located industrial facilities in most cities around Austin.

To read more about this deal, click here for the ABJ article and click here for the CoStar article

A STORIED NAME IN AUSTIN REAL ESTATE RETURNS TO THE SCENE

Thu, 28 Mar 2019 18:47:26 GMT

The Austin Business Journal recently ran a feature on the new iteration of Commercial Industrial Properties. Click here to read the article

Frank Niendorff and his real estate brokerage firm Commercial Industrial Properties were responsible for bringing high-tech companies such as Dell, Motorola, Sematech, Applied Materials and Lockheed to Austin in the 1980s and ‘90s. About six years after Niendorff retired and sold the firm he founded in 1975, three friends have come together to relaunch Commercial Industrial Properties.

He founded the company in 1975, but sold it about six years ago and retired. Now three friends have come together to relaunch Commercial Industrial Properties LLC -- they opened for business Jan. 2 with an office at 3737 Executive Center Dr., Suite 255, in North Austin.