“This ain’t easy”

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NukoteSycamore Commercial was proud to represent industrial coatings maker Nukote International in relocating their operations from Dallas-Fort Worth to Houston. Their space needs were simple enough, but the class of materials they handle presented a challenge. Beyond investigating the property, it was necessary to research both neighboring tenants and neighboring properties to ensure compliance with safety regulations. By working closely with our client, we were able to find an excellent fit in the World Center complex near George Bush International Airport, leasing nearly 20,000sf of flex space. It was a pleasure working with Clay Reichenbach of InSite Realty who represented the landlord, EastGroup Properties, LP.

New Agent on Board

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We’re pleased to welcome Monal Parmar as our newest agent. With excellent academic credentials and an entrepreneurial background, she is well qualified to assist our clients in meeting their commercial real estate needs. Check out her background on LinkedIn – https://www.linkedin.com/in/monal-parmar-87553617

Anecdotal Market Report – Come on in, the water’s fine

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While relatively well balanced, the bulk of our practice is helping tenants and buyers meet their commercial real estate needs, mostly in the industrial and retail sectors. What we think we are seeing is that with oil prices seemingly having bottomed out and stabilized, owners (sellers and landlords) appear to be holding firm to their asking prices. Attempts at “low-ball” offers by some of our clients have yielded zero results. Well researched offers in-line with recent transactions, however, have fared better, netting clients affordable space or fair returns on their capital. It seems to be a market in equilibrium – no feeding frenzy, but no fire-sales either.

It also seems there is still money coming into the Houston market from elsewhere – either outside the state or outside the country – Texas is still a good place to invest in commercial real estate.

Lending Environment

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The National Association of Realtors recently published a nationwide summary of the commercial real estate lending markets. Not surprisingly, the more positive and upbeat information came from Texas based comments. Nonetheless, it seemed everyone bemoans the increasingly tight stranglehold our well intentioned (or not) government has over the banking industry and its negative impact on the capital markets. The report can be found here: http://www.realtor.org/sites/default/files/commercial-lending-trends-survey-2015-05-08.pdf

Remember the next time an election comes around, to get out and vote – it matters!

Negotiating Skills in Action

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Gemini Fab

Sycamore Commercial Properties is pleased to have played a key role in negotiating the recent lease for Gemini Fabrication. The complicating factor was the state of the relationship of the landlord and the current tenant, or more specifically, their brokers. Let’s just say near the end, they weren’t holding hands. By playing the concurrent roles of mediator, diplomat, analyst, agent and mind reader, we were able to keep the discussions moving forward and ultimately got everything signed. Despite some frayed nerves, all parties came out ahead – win-win-win.

1. The landlord now had the space leased for a longer term, and got some “parting gifts” from the tenant.
2. The tenant was released from their lease and paid some incentives to our client, on balance saving themselves over a quarter of a million by not keeping an empty facility.
3. Our client received significant moving/modification offsets to takeover the lease, was able to occupy the new plant in time to avoid a renewal of his current lease and can now accept new orders for projects too big for his previous shop.

Gemini Fabrication (check them out at GeminiFab.com) will soon be operating out of a reconfigured 25,000sf plant in northwest Houston with multiple heavy cranes with high under-hook clearances – they make big stuff !!

Rapid Response Team!

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DirectBuy

When we say “we’ll return your phone call”, we mean it! This kind of response is what landed a recent client and produced rapid results. The national buying club Direct Buy was in need of a Houston warehouse after being displaced due to a structural issue (roof collapse) in their current location. Receiving our first call on a Wednesday, we had searched for and located a suitable space, negotiated and executed a competitive lease and had keys in their hands the following Wednesday. If that’s the kind of service you demand, give us a call.