Great to see the creation and expansion of education and the health industry across west Texas.

- Erik Johnson

Texas Tech University Health Sciences Center School of Pharmacy Abilene Campus, opened on 08-12-2007. Classes are held in a Spanish-themed 36,000-square-footbuilding, constructed at a cost of $15.5 million. The initial enrollment of 40 is expected to grow to 160 by fall of 2011. Also, by that time, the school is expected to have 40 professors and staff.

TECH'S PHARMACY CAMPUS COMPLETE

AMARILLO (Amarillo Globe-News) - Work is complete on the newest academic and administrative building for Texas Tech School of Pharmacy.

The facility includes two 120-seat classrooms, 12 patient simulation training rooms, two debriefing rooms and administrative space.

The campus will open for students next year.

A ribbon-cutting ceremony will be held Friday for the $8 million center, which will increase the Amarillo campus' enrollment from 90 to 115 professional-degree students. The addition, along with a new Abilene campus, will allow for 155 graduates per year across the School of Pharmacy's four Texas campuses.

There is also a podcast if you go to the RECON link below.  Interesting info about Trespassing in Texas, the fence its self is a NO TRESPASSING sign.  Also, crops grown for human consumption are NO TRESPASSING or a Puple Stripe 8"hx 1"w is also a notice.

- Erik Johnson

Just in time for deer season, Real Estate Center Attorney Judon Fambrough talks about changes to regulations regarding Texas deer lease management. Also, Edie Craig discusses big deals in Georgetown, El Paso, Seguin and Abilene. 

JUST IN TIME FOR DEER SEASON

COLLEGE STATION (Real Estate Center) - We've rolled out a revised edition of one of our most requested publications - The Texas Deer Lease. And with deer season having just begun, the timing couldn't be better.

Center Attorney Judon Fambrough, who wrote the original report and oversaw the revision, will talk about the changes on this week's Real Estate Red Zone podcast, which comes out tomorrow.

Until then, print a copy, or order it from our online store.

I recently had a request for a Buyer looking to purchase Charter Schools.  Apparently there is a market for the privately owned public schools.  Interesting to see how the investment horizon changes from year to year.

- Erik Johnson

GATES FOUNDATION OPENS DOOR ON CHARTER SCHOOL FINANCING

HOUSTON (Austin American-Statesman) - Charter school KIPP Houston has issued $67 million in bonds to finance a new facility - with a little help from Bill and Melinda Gates.

The Gates Foundation contributed $10 million to a $20 million bond guaranty that helped the school attain more favorable lending terms. This was the first time a private foundation has backed charter school facility bonds at this scale.

The $10 million is a portion of the $30 million the Gates Foundation has committed to Houston charter schools to help them secure $300 million in financing for facilities.

Here is an article about Charter Schools and what they do.

Charter schools are part of the reinvention of public education. They first emerged in the 1990s as a prominent and controversial school reform idea. Parents, teachers, and community organizations are the founders of most charter schools, but some are started by for-profit companies. Charter schools are public schools that have been freed of many restrictive rules and regulations. In return, these schools are expected to achieve specific educational outcomes within a certain period (usually three to five years) or have their charters revoked.

Fortunately the Abilene office sector has been stable.  I have seen more activity in the Industrial and Office markets than Retail or Multi Family.  The A Class office spaces are saturated and there is no new construction.  Many companies and businesses have either moved to larger rental space or opted to purchase and renovate existing buildings.  The latter is great for bringing older space up to current codes and creating more value and generally more attractive buildings.

- Erik Johnson

AUSTIN OFFICE VACANCIES UP

AUSTIN (Marcus & Millichap) - Recent overbuilding and employers' thinning space requirements have widened the Austin office supply/demand imbalance in recent months, driving metrowide vacancy close to 20 percent for the first time since 2004, according to a fourth-quarter Office Research Report by Marcus & Millichap.

Despite projections for further weakening into the first half of 2010, this downturn will likely be shallower than the tech bust earlier in the decade, as job losses are expected to ease through the end of this year.

"Buyers will remain cautious when approaching deals and continue to hold out for price corrections, given projections for further fundamental weakening," says J. Michael Watson, regional manager of the Austin office of Marcus & Millichap.

Following are some of the most significant findings from the report:

• Hiring is projected to pick up by year end. In 2009, employers are forecasted to reduce payrolls in Austin by 6,000 positions, a 0.8 percent decline. Office-using businesses are expected to eliminate 700 jobs.
• Office construction will drop off significantly this year as developers are on pace to bring only 650,000 sf online, down from 2008, when 2.7 million sf was added to stock.
• Although office development activity will slow in 2009, contracting demand and oversupply issues are expected to push up metrowide vacancy 200 basis points to 20.8 percent. Last year, vacancy increased 430 basis points.
• This year, more moderate tenant demand will prompt owners to reduce rental rates in an attempt to stabilize operations. Asking rents are forecast to decrease 3.7 percent to $25.29 per sf, and effective rents will end the year at $20.59 per sf, a 7.5 percent annual drop.

In Abilene we are still spread between $10 - $15 p/s/f p/yr for B, B+ space and $13 - $18 for A, A+ space.  There are some vacancies to be filled in most of the shopping centers and opportunities are available for Retailers.  Now is the time to update your business plan and talk to some Landlords and Brokers about getting in to some of the great locations around town.

- Erik Johnson

SA RETAIL RENTS FALL

SAN ANTONIO (San Antonio Express-News) - After slight increases in retail rents in the first two quarters of 2009, asking annual rents fell 42 cents per sf to $17.91 in the third quarter, according to NAI REOC Partners.

That marks a decrease of 8 cents from this time last year.

Average vacancy, which remains greater than 14 percent, is driving rents down, says Ty West, NAI REOC vice president.

San Antonio recorded 45,228 sf of positive net absorption for the third quarter and 314,849 sf for the year.

Less than 250,000 sf of new retail space is expected to finish construction by the end of the year.

Part of the area was the former Saint-Gobain plant property.

- Erik Johnson

243 ACRES ANNEXED

WICHITA FALLS (Times Record News) - The city council voted Tuesday to annex 243 acres effective next month.

The annexation addresses land generally east of Allendale Rd. and south of Kell Blvd., including property owned by the North Texas Rural Rail Transportation District and Pitts Sand and Gravel Inc., as well as what was the Saint-Gobain Vetrotex property.

This excerpt below was published last year regarding the shut down of the materials plant.

- Erik Johnson

Saint-Gobain announced Monday afternoon that it is closing the Saint-Gobain Vetrotex America plant in Wichita Falls, leaving 720 employees out of work, along with the loss of a $4.3 million monthly payroll.

Since the Wichita Falls operation is the only stand-alone operation within the group (the High-Performance Materials Sector of Saint-Gobain), it was deemed economically unfeasible to keep it in operation, a company official said.

Olivier Duval, the director of strategy for the group, said Saint-Gobain sold its reinforcement and composites businesses to Owens-Corning late last year, but the Wichita Falls plant was excluded from the sale for anti-trust considerations, which he said was the major factor that led to the decision to close the closing the 787,000-square-foot plant that sits on 330 acres on the west side of Wichita Falls.

"As Saint-Gobain is no longer in the reinforcements and composite business, it is not economically feasible for us to keep the plant running as a stand-alone operation."

He also said, "We made the decision reluctantly. We did not have an alternative."

Duval said Saint-Gobain had been trying to find a buyer for plant since July 2006. But despite months of effort and negotiations with several prospective buyers, it failed to reach "an economically viable agreement, which would assure the future of the plant."

He also said, "It was Saint-Gobain's sincere hope, but many months of effort have not resulted in a happier outcome for Saint-Gobain Vetrotex America and its employees."

Ron Lane, president of the Wichita Falls plant, said they began telling employees of the decision to shut down Monday morning. Because of the number of shifts, he said it could take the rest of the week to inform all employees of the layoffs.

He said it will be a "progressive shutdown" beginning in June and that the actual closing will be completed in the third quarter of 2008.

More and more, this is becoming an issue.  Our TAR promulgated Commercial contracts have language that transfers the sellers interest in any minerals.  Sellers are wanting to retain any rights for future exploration or potentially rich producing sites. 

This article is interesting and points out what can and cannot be reserved or conveyed.

Erik

MINERALS, SURFACE RIGHTS, ROYALTY PAYMENTS

COLLEGE STATION (Real Estate Center) - An oil and gas technical report that's been around since 1991 has been updated.

Minerals, Surface Rights and Royalty Payments by Real Estate Center Attorney Judon Fambrough updates court rulings regarding what are and are not minerals.

The present status of Texas law is that the term minerals or oil, gas and other minerals includes, as a matter of law, oil, gas and uranium. Sulphur and salt also are considered minerals.

Limestone, caliche, surface shale, building stones, sand, gravel and water cannot be reserved or conveyed. Coal, lignite and iron ore on or within 200 feet of the surface are not included if production would destroy or deplete the surface.

Retail : Amarillo) 10/6/2009

A very unique concept.  Too bad Abilene must fall short of the population threshold. 

- Erik

AMARILLO (Amarillo Globe-News) - Alamo Drafthouse - deemed "the number one movie theater in the country" by Entertainment Weekly in 2005 - could be coming to West Texas as well as other parts of the state.

Austin developer Triple Tap Ventures, which opened its first Alamo cinema in downtown Austin in 1997 and now has seven locations, has its eyes on Amarillo, Lubbock, Midland-Odessa, Corpus Christi and San Marcos. The company also plans to build two more in Houston.

The new locations would propel the company toward its goal of having 30 theaters open nationwide by the end of 2010. The company expects to have 50 locations open within five years.

www.drafthouse.com

(Industrial : Dallas-Fort Worth-Arlington) 10/19/2009 12:00:00 PM

They have satellite offices in west Texas.  I am glad to see them make a firm commitment to anchor themselves in our state.

- Erik

(Irving) - Shermco, a high-voltage electrical component testing and repair company, has purchased land for a new headquarters and plans to add 50 employees over the next several years as it positions for additional growth supporting the wind-energy industry.

Shermco Industries Inc., which now leases 95,000 sf at 2425 Pioneer Drive in Irving, bought 31 acres west of Valley View Lane and south of FAA Boulevard, also in Irving.

The company plans to initially build a 150,000-sf corporate office and electrical service/generator maintenance and repair facility that will open in 2015, the year Shermco's lease expires at its current location.

The land purchase will allow the company to expand to 250,000 sf or more beyond 2015 if growth continues,

Initial construction will be comprised of about 30,000 sf of office space and 120,000 sf of manufacturing area.

Shermco, which now employs about 250, plans to add about 50 jobs ranging from customer service positions to machine-shop workers, administrators, managers and engineers.

Driving much of the company's growth is Shermco's wind-power division, which does repairs and maintenance on wind turbine generators, among other wind-related equipment.

Looking forward to the Texas ICSC conference in San Antonio. 

- Erik Johnson

Date: 2 - 4 November, 2009

LocationHenry B. Gonzalez Convention Center
200 E Market St
San Antonio, TX 78205-2784

The Retailer Roundup will provide an opportunity for retailers to discuss their future business plans and, most importantly, increase visibility and networking contacts with shopping center owners and developers.