Partners

In Q3 2024, San Antonio’s industrial market experienced a significant slowdown in absorption and construction activity, with net absorption flat at 16,104 sq. ft., a sharp decline from the previous quarter. The manufacturing sector drove most of the positive absorption, while flex properties continued to struggle. Construction deliveries plummeted, and the pipeline shrank by 18% year-over-year. Vacancy rates held steady at 8.6%, but are up compared to last year, with a slight increase expected in the coming quarters due to lower pre-leasing rates. Leasing activity declined by 15%, driven largely by the Warehouse/Distribution sector. Despite these challenges, asking rents reached a new high, although growth was modest at just 1.4% quarter-over-quarter. https://lnkd.in/dG25J72W

Please join us in congratulating Cheryl Real on her promotion to Account Manager! Cheryl has played an integral role in our San Antonio office, supporting three of our Partners and bringing her 25 years of commercial real estate experience to the team. From detailed research and data analysis to crafting impactful marketing materials and navigating clients through the leasing process, Cheryl’s dedication and expertise have been invaluable. She does it all in the spirit of positive collaboration and teamwork, a true reflection of our core values.

Houston’s industrial market performed well over the past quarter, with demand increasing, and vacancy dipping to 7.0%. Looking ahead there has been some moderate slowing on the leasing activity front and the construction pipeline continues to contract, down 36% from last year. Still, the market continued its 15-year streak of positive net absorption, signaling resilient demand, especially in the Warehouse/Distribution segment, which continues to dominate leasing activity. Average asking rates held steady at a record-high $0.79 per sq. ft., further underscoring the market’s ongoing strength in the face of reduced construction deliveries and slowing leasing momentum. https://lnkd.in/gtv-qtSy

Over the past decade, Griff Bandy and Partners have worked closely with Castle Biosciences, Inc. to advise on their office space needs. With their commitment to staying in Friendswood and an increased need for space, we pursued a “buy dirt & build” approach to establish their new headquarters. By leveraging Partners’ full suite of services, including development, we’re providing a single-source solution that gives Castle Biosciences ownership of their headquarters, with room for future expansion and site amenities. This project underscores our commitment to supporting clients’ growth and long-term vision. ”It has been great working with the leadership team of this growing, high-tech, healthcare organization that is so committed to its long-term goals. The idea of building their future HQ and utilizing our platform to help them realize this dream has been a wonderful fit. Excited to see the final delivery here," said Mr. Bandy

Please join us in welcoming Bentley Rysedorph to the firm as Creative Director! Bentley brings a wealth of creativity and expertise to the firm and will play a pivotal role on the Corporate Marketing team. Her focus will include elevating pitches and presentations with stunning graphics and innovative designs, and further enhancing our overall brand, storytelling capabilities, and visual acumen, among other responsibilities.

The Austin industrial market is experiencing a cooling trend, with net absorption decreasing to 363,217 sq. ft. this quarter, a 59% drop year-over-year. Flex and Manufacturing properties exhibited negative absorption, while Warehouse/Distribution properties remained strong. Leasing activity has also declined, down 21% from the previous quarter. Despite these softening indicators, the construction pipeline remains at a record 19 million sq. ft., with 50% pre-leased, suggesting that supply may outpace demand in the near term. The vacancy rate dipped slightly to 10.2% but remains elevated compared to the prior year, and average rental rates held steady at $1.25 per sq. ft., matching prior market highs. https://lnkd.in/gwWeVcEJ

Partners is pleased to announce that Evergen Equity, LLC has successfully acquired a prominent industrial outdoor storage (IOS) project in Southwest San Antonio’s manufacturing hub. Partners, which was already actively involved in the leasing of the property, will continue its role under the new ownership, ensuring seamless operations and strategic growth. For leasing inquiries, contact John Colglazier Jr. - SIOR, Kyle Kennan, Stan Nowak, SIOR, and David Oldham https://lnkd.in/g54N-GAe

The DFW industrial market remains stable, with the overall vacancy rate decreasing slightly to 9.5% as of Q3 2024. However, due to the recent increase in vacancy over the past few quarters, there is now a surplus of available industrial space. This has prompted landlords to become more aggressive with lease terms, leading to a drop in effective rental rates. Despite this shift, market conditions are still considered neutral, with neither landlords nor tenants having a significant advantage in negotiations. Construction activity has slowed dramatically, with both deliveries and the pipeline of projects under construction down by over 60% year-over-year. Leasing activity has also declined, though demand and supply are closer to historic norms. https://lnkd.in/gixY-BCP

Houston’s metropolitan area is undergoing an exciting period of growth, with its northern suburbs at the heart of this expansion. The Woodlands, Conroe, and Montgomery County are attracting new residents, businesses, and developments, creating a dynamic and rapidly evolving landscape. Over the past 20 years, major commercial developments (100,000 sq. ft. or greater) have totaled more than 73 million sq. ft. across Montgomery County. Of those, multifamily has dominated as the households have expanded northward. Industrial/Flex properties, along with office and retail developments have followed suit. https://lnkd.in/gphyF6hZ

Houston Office Tenant Representation experts Dan F Boyles, Jr. and Brent Bishop, MBA arranged a 26,530-sq.-ft. sublease on behalf of Kodiak Gas Services, LLC located at 9950 Woodlock Forest Drive in The Woodlands, Texas. This transaction expanded Kodiak Gas Services HQ to encompass all of floors 18-20. https://lnkd.in/ggPz3pR8