Bob's Blog

Office Beat

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 07 May 2013 08:24:29 -0700

As a former landlord and current tenant broker, it’s impossible not to have a strong admiration for great buildings. Some have architecture and personality that draw you in and excite you while others just leave you flat and bored. John Alvarado approaches buildings in an interesting way- by giving them musical styles. Read his blog here to see what I mean.

So here are my questions: What’s the musical style of your office? Does the “musical style” of your office follow the beat of your business?

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

REATA Client Profile: The Sport Source

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 30 Apr 2013 09:15:27 -0700

REATA sat down with Charlie Kadupski of The Sport Source to learn about programs available for student athletes throughout the country.

My name is Kadupski. I am the CEO and founder of the Sport Source, which is an educational publishing company. Our niche in the market is assisting student athletes in making a college decision and their future decisions.

What we do is have e-learning labs that assist the kids. From 8:30-5:30 Central Standard Time, you can get a live body. We work with youth organizations. We work with independent school districts to assist them in helping their kids transition from high school sports to college sports.

We have another unique product that is a college profile, which helps the general student combine their academics with a program. Say they want to study French or they want a second language that combines their skillset. We find the right college for them. They actually do the work. It’s a self-directed approach.

We were at one location for 15 years, and we wanted to move to upgrade our images. As we transitioned from a print medium to an online platform, we didn’t need warehouse space. So we contacted Bob Gibbons and I enlisted his services to go out and take a look at space.

Quickly what we realized was Bob Gibbons did his due diligence to understand our needs so that we can find the right fit for Sport Source and what we were looking for.

We targeted an area. Bob lined up appointment times that fit our work schedule. He would do anything to maximize our time and effort to find the right space. We’re fortunate that we met him, first and foremost. But the second part to it is that we love our office. The negotiations were seamless between Bob and our current landlord to allow us to maximize our space and get a quality space.

I’m here to tell you I’m extremely excited about our space because it’s really nice. Anytime you have a pool table in your space, you’ve got to love that!

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Construction Starts in (One of) My Favorite Parks!

Bob Gibbons (REATA Commercial Realty, Inc.) — Wed, 17 Apr 2013 12:27:08 -0700

One of my favorite office parks, Granite Park at the Tollway and Highway 121, broke ground on a new building. The Granite Park development team shared concept drawings for the upcoming 300,000 SF office building and adjacent conference hotel. Looks like a pretty stylish, modern place to do business. Granite Park IV is scheduled to be finished with construction in the mid-2014. I can’t wait to see what it looks like when it’s finished and possibly negotiate some leases for the building’s first tenants. Check out the Dallas Business Journal’s article and slideshow of the building designs here.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

REATA Client Profile: Blu Age

Bob Gibbons (REATA Commercial Realty, Inc.) — Thu, 11 Apr 2013 08:13:04 -0700

REATA sat down with Frédéric Vermenouze of Blu Age to talk about international business and breaking into the American market. It's tough enough to start a new location for your business, it's even harder from another country! Having an experienced, local expert on your side can make all the difference!

Blu Age Corporation is a software editor. We have a software that helps us modernize legacy applications, legacy code like COBOL to new technologies, web technologies like G2E and dot net structure.

We are based out of Paris, France where we have a major part of our staff. We are also present in Morocco. We have about 30 people based in Morocco and 70 in France. We are now 12 people in the U.S. from a starting group of about two or three two years ago. The U.S. is a very important market or us. We are growing with our partners, which are Accenture, HP Enterprise Services, and MagicDraw.

The software market in the U.S. is about 60 or 70% of software market in the world. It’s still very big. We started working and our first major partner in the U.S. is HP Enterprise Services where we have a very big project that’s been ongoing for two years.

The first thing REATA did was to find something very close to HP because we are on the HP compound, and the HP building are right next to us. The second thing that was important for Blu Age was at the time we had this major contract with HP, but we didn’t have a very big pipe here in the U.S. and we wanted to find a contract that was not too long. REATA helped us in finding a sublease at a very interesting price. In fact, we are happy with the sublease because now we are going to renew that contract into a full lease for the same offices.

I’m not used to the U.S. market. I’m not used to the way things work here in the U.S. There are a lot of contractor aspects and working with REATA we established a trust relation that has simplified for us all those aspects. We had some minor issues with our tenant at one point. They were supposed to take out some of the equipment from the building we were leasing. It was stated in the contract that this should be done by the tenant, and when we asked them to do that, they said, “Okay, we’re going to bill you for that.” Bob resolved the issue and they went ahead and cleaned up the building for us at no charge.

Definitely I would recommend REATA to other clients or to some of my partners.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Shopping in a Landlord's Market

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 02 Apr 2013 08:10:09 -0700

On the cusp of job growth and economic stimulation, tenant incentives fly out of the window. Curious about just how dramatic the changes have already been so far? Check out Bill Cawlely’s blog post “Pendulum Shifting in Landlord’s Favor”

What can tenants do about suddenly becoming the underdog? Make sure you have representation on your side. Tenant Reps are one of the most effective ways to shift power on your side of lease negotiations in a growing landlord market.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

REATA Client Profile: ignite partnership

Bob Gibbons (REATA Commercial Realty, Inc.) — Wed, 20 Mar 2013 12:27:53 -0700

REATA sat down with Mike Covert from ignite partnership. Check out the video below to learn how ignite partnership markets some of Dallas' biggest brands!

I’m Mike Covert, President of ignite partnership. We’re a 4 ½-year-old marketing and advertising agency. We have 25 people, a little boutique shop, about ten active clients right now working in a wide variety of industries from telecom to CPG to professional services.

We really do different things for different clients. When our clients come to us, they're looking for insights, they're looking for a creative way of applying a different view of what they can do themselves. We don’t really define ourselves by industry or tactic. We understand that all of our clients’ issues are unique and deserve a unique perspective.

When it came time to renew our lease here, we knew one thing and one thing only: we didn’t want to do it ourselves again. In a broker, we really looked for a relationship – someone that we could trust like the way our clients trust us.

When we went to Reata, one thing I appreciated was the willingness to get to understand our unique circumstances as a growing agency. Number one, we have a very open format here being a creative product. We had some real desires for expanding space and modeling that space to fit our needs. That was one thing.

Another unique circumstance that we flat out required was flexibility within our lease. It would be obvious to use Reata again.

We appreciated the service, we appreciated the insight, and we really saw the value shine through in using Reata to represent our interest. Again, it wasn’t necessarily any one thing but the value of the total experience which made it a no-brainer.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Forbe's List of America's Fastest Growing Cities

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 05 Mar 2013 08:38:40 -0800

Texas dominates the top three fastest growing cities in America according to Forbes. Behind Austin and Houston, Dallas boasts an impressive 2.1% growth rate and 5.7% unemployment. Not too shabby, Dallas.

What does this mean for businesses already operating in Dallas? We’ve talked before about how more growth equals more business and opportunity for everyone, but this kind of growth also requires tenant to lease more space which brings a healthy sense of competition. This creates demand which can then drive rate increases.

REATA specializes in connecting clients to the right office. Your office space should work for your business, your business should not work for your office space! Rent payments are usually the 2nd highest cost that businesses have. At REATA, we use our expertise and experience in the Dallas real estate market to find office space that works for our clients. With more and more businesses competing and growing in the Dallas area, the “right” offices will be harder and harder to find.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

REATA Client Profile: Total Class Solutions

Bob Gibbons (REATA Commercial Realty, Inc.) — Wed, 20 Feb 2013 08:37:48 -0800

REATA sat down with Tim Taylor from Total Class Solutions to learn about class actions and how their office space works for them.

Total Class Solutions is a national class action administrator that specializes predominantly in construction defect issues, although we are currently expanding to other issues during 2012. It is often thought of as an insurance company-related business. It is not. It’s handling class actions and working specifically with both defendant and plaintiff attorneys who are settling or about to settle cases.

The management team of Total Class Solutions has been handling class actions for over 15 years, and has handled over a billion-dollar settlement. We have experience second to none.

We were referred to Reata by the landlord when we were looking at a sublease in this building. The biggest benefit from Reata and working with Bob was we said what we wanted and Bob ran with it and got it done.

One of the solutions that Reata developed for Total Class Solutions was when we right-sized 18 months ago. We were in a space of 5500 square feet. We only needed, we thought, 4400 square feet – but in fact, we squeezed into 3800 square feet because the layout of the space was much more convenient to our business.

We have been in this building since the early 1990s, and what this building atrium has given to us is security, parking, and it also has in-house sandwich shops so you can grab a quick lunch and don’t have to go out. It’s also a very aesthetically-pleasing building. We have enjoyed being here all this time. Even after looking in 2010 for other space, we were convinced that we should stay in this building.

We’ve also expanded by already another 1000 square feet, and recently just reconfigured the office to increase the space and make it more productive.

One of the key things that I found with working with Reata and working with Bob was the level of responsiveness. Once the project was established, Bob was very responsive, very communicative, and got the job done in a timely manner – and also worked with the construction guys as well to get build out done.

I think when you contract with somebody to do this sort of work, you want to have the confidence that they will complete the project timely, and Bob made sure that happened.

I would absolutely recommend Bob and Reata to other clients. In fact, I have done so. I don’t know whether they contacted Bob, but I have mentioned to a number of people who are looking for space, and I will do that again, absolutely.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Dallas’s Largest Office Leas…Ever

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 12 Feb 2013 08:07:31 -0800

State Farm is not shy when it comes to leasing office space in Dallas. In fact, they are on a tear. Although their official HQ in Bloomington, Illinois is supposedly not planning to move here, State Farm has amassed just over 2 million square feet of leased office space in the Metroplex in recent months. The majority of this space is in Richardson where they signed a 1.5 million square foot (SF) lease in a to-be-built mixed-use development. This is the largest office lease recorded in Dallas history, and who can blame them. It’s located adjacent to the DART Rail Bush Turnpike Station and very near the intersection of US 75 and President George Bush Turnpike.

If this weren’t enough, State Farm has also leased 400,000 SF in Irving and 291,000 SF in Richardson in 2012.

What does this really mean for Dallas area real estate? It’s not surprising that State Farm sees the value in the Dallas area! Dallas has a historical reputation for being a business hub and the future looks good too. The business economy in Dallas is projected to thrive, even soar! Dallas real estate just may be the hot pick for corporations in the coming years, and we should welcome them. The more companies, developments and industries that take root in Dallas, the more economic activity for all!

Welcome to Dallas, State Farm!

By the way, if you know of any companies needing 1.5 million SF or even just 15,000, please send them my way.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

REATA Client Profile: Cogent Company

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 29 Jan 2013 08:12:03 -0800

REATA talks with Marc Hoppers from Cogent Company who discusses working with REATA Commercial Realty.

Cogent is a management IT consulting firm. We serve clients in Texas, Oklahoma, Louisiana, and Arkansas primarily with helping clients figure out how to use Microsoft technology. Quite a bit of our work has been in financial services and insurance. In the last few years we’ve been moving into restaurant, hospitality and retail.

I’ve been working with Reata probably since 2002 or 2003 in a previous real estate investment business. The reason that we engaged Reata to begin with and the reason that we’re pleased with the continued engagement is that we don’t have to worry about it ourselves and remember to do a lease evaluation every three months, to do the financial evaluation at the end of the year, and we get notices when it’s time for rent step ups.

I knew that it would be a personal experience based on my previous history of working with Reata, and that proved out because we knew what we didn’t want more than we knew what we wanted and the folks at Reata helped us. Reata is not just interested in that initial transaction but it’s really a relationship that they form that obviously that’s who we’ll use again when it’s time to renew our lease or look for new space.

I would definitely recommend Reata, especially to small business owner, but really to any business owner or any manager of a business who needs to have somebody they can trust implicitly. Also, if they really do want someone who’s going to continue a relationship beyond that initial transaction and really someone that you can use again and again and again, because they show that they’re committed to their clients.

The whole team at Reata, as Reata has grown, it’s very obvious their commitment to their clients. I think that’s the one thing that I take away from my relationship with the team is that it’s not just one guy in there running the show; it’s really a team surrounding and they all have the same ethic of client service and focus on the client.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Green Retrofitting in Dallas

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 22 Jan 2013 08:25:04 -0800

Advancial Tower in Uptown has new owners! This is a high-rise office tower adjacent to the new Klyde Warren Park. New ownership can be a great thing. Changes brought by visionary owners can make a positive impact on tenants and the neighborhood. The new owners of the Advancial Tower plan to add sustainable practices to the building. What does that mean? Sustainable practices are sometimes known as green retrofitting.

Doug Gatlin, Vice President of the Green Building Council in Washington D.C., says “…Green retrofits are any kind of upgrade to an existing building that is wholly or partially occupied to improve energy and environmental performance, reduce water use, and improve the comfort and quality of the space in terms of natural light, air quality, and noise - all done in a way that it is financially beneficial to the owner.”

Sounds like a great idea, but do these savings trickle down to the tenants? Typically, major capital improvements to a building are paid by the landlord and don’t get passed through to the tenants. But do tenants care about the whole “green” movement. In 29 years in the commercial real estate business, I’ve never had a tenant ask to be in a “green” building.

So here are my questions: Do you care if your building is “green”? Would you be willing to pay more for a “green” building?

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

The Good, The Kinda Bad and the Growth in Dallas

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 15 Jan 2013 08:59:30 -0800

Dallas has enjoyed steady job growth and didn’t suffer nearly as bad as much of the country during the economic downturn. Job growth means more demand for commercial space. If more businesses begin to grow and/or move to Dallas, what does that mean for those of us who are already here? Change and growth always bring bad with the good. But really, even the “bad” is pretty good.

The good news: more business in Dallas means more potential clients and more economic growth for everyone and Dallas will begin to skyrocket closer to the top of places to do business in the world.

So here’s the “bad” news: growing businesses and newcomers to Dallas need a place to do business. This creates higher demand for office and warehouse space. This means that they will naturally have to compete for space. With more and more companies looking for space, your landlord will have more options and will reduce concessions and increase rent. They won’t have to work as hard do to try to keep your business. Demand goes up and supply decreases. That’s the perfect formula for higher prices.

How do we overcome these obstacles? The best way to compete in a growing market is to start early, create competition among landlords and have a Tenant Rep on your side. Not only do they stay current on the market, but they will also add strength to your side in negotiations with your current or potential landlord.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Expand Your Business Without Leasing More Space

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 22 Oct 2012 13:48:34 -0700

Nearly everyone enjoys the success of an expanding business. More work, clients and employees allow your business to not only become more successful, but also make a greater impact on your field.

But rent is expensive. It's usually the 2nd-highest expense for most companies. Wouldn't it be great is you could grow your business without taking on the financial burden of expanding office space?

Well there are several simple and cost-effective alternatives to expanding which can be implemented within the perimeters of your existing office.

Rearrange. It seems simple enough, but you’d be surprised how much more efficient you can arrange your office. Your office layout may not be set in stone, so explore a redesign of the layout of your space - remove walls, move or replace the furniture to promote density where extra space is underutilized or unnecessary. Rearrange the layout of cubicles. Cubicles are designed with flexibility in mind, so use them to your advantage rather than arbitrarily partitioning your employees.

Open. Collaborative spaces not only take up less square feet, but they can also promote a more creative and efficient workplace. This is especially true of younger workers who don't want to be isolated in private offices. The social aspect of an open plan where they can talk to each other throughout the day can make a big difference in their happiness in the office. My son recently passed on an offer from another company which included a very large salary increase primarily because the office environment of the new company was very quiet, staid and basically boring. Not everyone will feel this way, of course, but with a generation of workers who have spent a considerable amount of time socializing, studying and working in Starbucks, the buzz of an open environment is preferred.

Cluster. Salespeople are often not in the office much. Instead of dedicating offices or desks in an open layout to each individual person waiting for the occasional visit, condense them into a shared work area. A few shared desks for use as-needed by your on-the-go sales team can save a lot of space and not take away any of the resources. With a shared workspace in place, you can cycle employees between working at home and working in the office. This adds a new dimension of flexibility while allowing for less or reallocated office space. Dynamic office situations such as these can break up monotonous ruts and give a new energy to an office and your employees.

You don't always need more space to expand your business. Sometimes all you need is a new plan.These suggestions may not work for every business and that's okay. It may only take an architect or furniture expert to review your situation to provide solutions other than just taking on more office space. Better to pay an architect, contractor and/or furniture dealer once than to pay the landlord every month for years.

If you would like to talk to an architect or furniture expert, let me know and I can refer one to you.

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Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Office Leasing Booms in Third Quarter

Bob Gibbons (REATA Commercial Realty, Inc.) — Thu, 27 Sep 2012 15:13:39 -0700

According to the latest stats from Cushman & Wakefield as reported by D Real Points, net absorption of office space n the DFW area for the third quarter alone is a positive 2 million square feet. That's incredible. Net absorption is the net change in occupied space.

If the total occupied space goes from 300 million square feet to 302 million square feet, that would represent 2 million square feet of positive absorption. This is the best indication of market demand for office space.

Overall leasing activity (total leases signed) was over 10 miilion square feet, but much of that was renewals for the same size space so it doesn't represent an increase in total occupied space. That's why total leases signed is usually far higher than absorption.

The most active areas included Las Colinas, Far North Dallas, west Plano, Frisco, Uptown and the central business district.

With all that demand, you would expect rental rates to go up and they have in some submarkets. But overall, C&W reports that the average rental rate fell by 27 cents to $20.11 per square foot. Class A averaged $24.47. Class A in Plano is now going for $27.00 - $32.00 plus electric.

With the demand being high and the best submarkets raising rates, now is the time to consider renewing your lease early if you have 2 years or less left on your current term.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Speculative Construction is Back in Plano...despite area vacancy

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 17 Sep 2012 08:47:48 -0700

Crains are popping up on the skyline of Plano again. And this time it's for construction of new office buildings instead of bridges.

There are currently 7 office buildings under construction in Plano totaling 959,591 square feet (SF). All of these buildings are in west Plano where we have seen rental rates rise dramatically in the last year. That is also the area where it is increasingly difficult to find large blocks of space available. Interestingly, it's also hard to find small space under 5,000 SF.

Three of the buildings are build-to-suits for large users - Encana Oil & Gas, Tyler Technologies, and Med Assets.

The other 4 buildings are being built on a spec basis meaning there was little or no pre-leasing when they started construction. These range from 26,229 SF to 157,800 SF. Three of these are multi-story office buildings with rental rates ranging from $21.00 net of all expenses to $30.00 full service plus electric. One building is a single-story office/flex property with rates quoted at $13.50 net of all expenses.

Construction has been announced for other property typces in Plano as well. An office/warehouse build-to-suit was recently announced for Eltek in far east Plano. And Granite Properties is planning to build a hotel in Granite Park at The Tollway and Highway 121 (Ram Rayburn Turnpike). It will flyer the Hilton flag.

So why is all this construction making news? It's because the Dallas Ft. Worth area has an overall vacancy rate of 16.1% as of the end of June according to Costar, a commercial real estate information and research service.

But that hides the nuances from one submarket to the next. Plano has a vacancy rate of only 9% citywide. In west Plano, it's only 8.1%. For class A properties, it's an even lower 6.6%.

So that's the real story. Companies have few options if they want to lease in the most desirable area of west Plano. And if they want to be there, they should be prepared to pay a higher rental rate than they could get in most other submarkets including east Plano, Frisco, and Addison.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Back to Costar

Bob Gibbons (REATA Commercial Realty, Inc.) — Fri, 14 Sep 2012 09:35:08 -0700

Costar is a commercial real estate information platform to which i just subscribed again. It is by far the largest and most accurate database out there. They list every office, industrial and retail building available for lease in the Dallas Fort Worth area plus tons of other markets throughout the country. They list hundreds of thousands of properties for sale throughout the country. They verify this data with their own researchers instead of just relying on the listing brokers to keep things accurate (that will never happen). They list tenant information and sales comps.

But all that information and power comes at a price. I'm talking 3.5 - 4 times the price of the next best competitor. That's why I haven't subscribed in so long. It's been about 5 years since I subscribed and I have missed it.

Fortunately, Costar is trying to grab market share before that nearest competitor (Xceligent) dramatically ups its game after getting a huge cash infusion from a new investor. All this comes after Costar bought LoopNet (yet another competitor) and the FTC stepped in to keep things competitive.

Costar is still expensive don't get me wrong. But that market share grab has brought down the price considerably...at least for a while. So I'm back for now. The competitive landscape will probably be much different when my two-year contract expires.

It sure would be easier if the commercial world could get its act together and agree on a single database that has everything like the MLS for residential. I don't see that ever happening though.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Will Technology Replace Tenant Rep Brokers?

Bob Gibbons (REATA Commercial Realty, Inc.) — Wed, 29 Aug 2012 09:34:54 -0700

That's the basic question being asked in a Wall Street Journal article yesterday. It's an interesting idea and one that has been asked many times before. In fact, the question has been asked for virtually every industry in the last 200 years.

I am a tenant rep in the Dallas area focused on Plano, Frisco, Richardson, Addison, and Far North Dallas. So it's important that you know that up front - full disclosure. I am a little biased.

Technology usually works best when applied to a series of repetitive tasks or the collection of data. It's great at increasing the speed at which milions of tasks can be completed. It's not always as good at the interpretation of the data, however, or how the data should be best applied to a given situation.

Let's take a look at an office lease. That is, a company looking and negotiating for lease space in an office building.

The occupancy costs for most companies is usually the 2nd highest expense on the P&L just behind all the payroll related costs. Leases average 5 years in length, but can range from 1 year to 10 years. Some go even longer. Unlike payroll which can change quickly as you hire and fire employees, office occupancy costs are a fixed cost at least for the term of the lease. So you are stuck with it even if you don't need it most of the time.

Leases include renewal options, termination options, lots of varieties of expansion options, and sometimes options to buy the building or a death or disability clause.

Leases usually address construction of the premises to some extent. I have negotiated a few leases where the tenant takes the space as-is, but most involve new carpet and paint at a minimum and occassionally the new construction of the entire building. Most of the time, construction will involve carpet, paint, moving walls, electrical, plumbing and HVAC.

Lease documents for office buildings are generally 30-60 pages long and can be much longer at times. They address issues that seem extremely unlikely and many things that seem obvious, but aren't. What happens if the building burns down or is destroyed by a tornado or other natural disaster? What happens if the state condemns the building to build a new road? Can the tenant sublease its space to another company if they don't need the space any more? Who pays taxes, insurance, maintenance, landscaping, and all the other expenses of running the property? Can I bring my dog to work? Can I wear white after Labor Day? Okay, I threw that last one in just to see if you were paying attention.

I could go on for much longer, but I think you get the point.

If tenant rep brokers were just collecting floor plans, quoting rental rates and arranging for property tours, we could easily be replaced and probably should be.

But the complexity of the transactions and the length of time it takes to search and negotiate (6-12 months on average) makes automating this process unfeasible. That doesn't mean that parts of the process can't be automated or that technology can't be used to a greater degree in the industry. I welcome that.

My clients look to me for advice, consultation, expertise, market knowledge, industry contacts, and referrals to all the services they will need (architects, contractors, attorneys, movers, insurance agents, telecommunications providers, furniture dealers, etc.).

By using my services, the company owner or top executive can stay focused on her business and making money instead of taking countless hours to manage a process that she would likely only do once every 5 years. I handle dozens of leases every year. My clients use me when they need me and don't have to have someone on staff to deal wtih it.

So for now, I think the answer is a resounding "NO". Tenant rep brokers won't be replaced by technology. But hopefully, they will become even more valuable because of it.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

The Emerging Workplace

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 27 Aug 2012 11:40:13 -0700

Last week I attended a presentation on The Emerging Workplace. It was a presentation by Miller Office Interiors, Access Business Centers and Interprise Design.

It was interesting to hear how the workplace is changing largely due to technology and the preferred work environment of younger workers. Office layouts are getting more open and collaborative. An open space with gathering areas stimulates greater creativity than putting everyone in separate offices and cubes where they can’t see or talk to each other.

Open space is more inviting and attractive to workers who are used to spending a lot of their time in coffee shops.

Connectivity is incredibly important. Whether sitting at their desk, gathering with coworkers around a coffee table or finding a “touchdown” space for a few minutes of work between meetings, workers expect to have fast and seamless internet access.

Touchdown space is space where someone can touchdown in while flying between appointments. They don’t want to camp out or have their personal items there. They just need it for a few minutes to a few hours before moving on.

Touchdown space is your space for a little while. Space dedicated to a single person is known as “iSpace.” Gathering or shared areas are known as “weSpace.”

Companies are using more contingent works than ever and will account for 25% of the workforce in the coming years. Contingent workers are often called contract workers. They are hired by the project and are not full-time, permanent workers.

Remote workers are now used in 62% of US companies. Of those companies, 34% have remote workers who don’t work in the office at all. That definitely changes the dynamics of the workforce and requires a different approach to technology, communication and office space configuration.

We have all seen video conferencing systems. But have you heard of a worm hole? Neither had I. It’s a video link between offices in different cities or countries. It isn’t intended for communication like in video conferencing. It’s just there for workers to see each other’s office environment. It makes them feel like they are a part of something larger than just there local office. The Plano office can see the Dallas office, the Houston office and the London office just by looking up at a flat panel mounted on the office wall.

So in the end, it’s important for companies to consider how their workforce wants to work and communicate and the resulting technology implications before deciding how to configure the office or even decide on its location.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Knowledge is POWER!

Bob Gibbons (REATA Commercial Realty, Inc.) — Wed, 15 Aug 2012 08:01:24 -0700

The more imbalanced the knowledge in a negotiation, the more the side with greater knowledge can take advantage of the other side.

So many times in life we try to do something ourselves because we're too cheap to pay an expert. That's why the floor tile is crooked in my bathroom and the faucet at the kitchen sink is loose. Sure I can do it, but can I do it well and without a lot of education and practice.

It's the same in business. What am I doing myself that I should be paying someone else to do? Website? Marketing? Adwords? Health benefits? Negotiating a lease?

I can't possibly know how to do all these things well and have the time and tools to do them effectively and efficiently. Too often when I try to do things myself, I just don't know what I should know because I'm not an expert. I haven't studied the industries to know the nuances and norms.

So let's talk about negotiating a commercial lease. A business owner or top executive can do it herself - no question about it. But she isn't in the business of real estate so she doesn't have the tools or market knowledge to manage the process and know what is or is not a good deal.

Landlords count on the fact that tenants aren’t experts in the real estate business. It’s better for them if a tenant negotiates a lease renewal without a broker because the landlord can safely assume that the tenant isn’t shopping. One of the primary jobs of a tenant rep is to level the negotiating balance of power and knowledge.

By hiring a tenant rep broker, a business owner or top executive gets the assurance of having market knowledge - current market conditions, the process, industry norms and standards, other industry experts that will be needed (attorneys, architects, contractors, etc).

In fact, I was a landlord for 20 years before “switching sides” to exclusively represent tenants. I was the guy who signed the leases, approved budgets, and directed the leasing program. No other tenant rep I know can say that. All that experience is now working only for tenants.

The funny thing is that my clients don't pay me. Does that mean I work for free? Certainly not. I am paid, but by the landlord. At least it's the landlord who writes the check. In reality, I'm paid by the tenant indirectly because it's included in the rental rate just like the landlord agent's fee. But the landlord doesn't give the tenant the commission if a tenant rep isn't used. In fact, the landlord's agent makes double and the landlord saves a third of the commission. So it's like the tenant is paying for a service that he's not getting.

Sure, the landlord will tell the tenant that he'll give the commission to the tenant if he doesn't use a broker, but then the rental rate will likely be higher than it should be. There's a reason why landlords want to keep tenant reps out of the negotiations.

Here's the bottom line: Use a tenant rep broker when negotiating a office lease renewal or a new lease. It saves you time and money, reduces your risk and ensures that you have someone loyal to you negotiating for you. It gives the tenant leverage in the negotiations.

If your lease expires in the next 2 years and you are in Plano, Frisco, Richardson, Addison or Dallas, don't delay. Contact me today for a complimentary lease review.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Specialist or Generalist? What is Your Agent?

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 13 Aug 2012 13:24:27 -0700

Several years ago I was talking to a friend in Austin and mentioned that I had sold my house in Dallas as a For Sale By Owner (FSBO). He was surprised that it was possible to buy or sell a house without a residential real estate agent. I was shocked that he didn't know he could trade real estate without a broker - however ill-advised that might be.

Brokers can only negotiate the sale or purchase of a house, right? Aren't they all the same since they have access to the MLS? Even though I've been in the commercial real estate business for over 28 years now, these misconceptions surprise me. I don't have access to the MLS and I've almost always hired a residential agent when buying or selling the homes I've lived in.

Real estate brokerage has evolved in the last 30 years to become a highly specialized industry. Many brokers have essentially become real estate advisors providing financial analysis, demographic studies, market analysis, site selection research, business planning, portfolio analysis and management, marketing plans, and even construction management in some cases. This is more the case for commercial brokers, but residential brokers have also become specialized to some extent.

For example, residential agents usually specialize based on geography first and then by the price range of the house, type of house (single-family, high-rise condos, etc.), type of client (owner-occupant or investor, buyer or seller), and type of service (sales or property management). Many will be a combination of these specialties - seller agent for high-rise, luxury condos in the Uptown area of Dallas.

Commercial brokerage is far more specialized than residential. Agents will often specialize based on 4 factors - 1) geography (Dallas, Plano, Frisco, Richardson and/or Addison), 2) product type (office, industrial, retail, hospitality, or multifamily), 3) client type (seller or buyer, landlord or tenant), and 4) service provided (investment sales, tenant rep, project leasing, property management).

These criteria can be cumulative, of course. For example, I primarily focus on north Dallas county and south Collin county, in office and industrial buildings, negotiating for the tenant, as an exclusive tenant rep. So I don't represent landlords when they have property to lease or manager because that would be a conflict of interest with my clients.

The degree of specialization is often a function of the size of the market. For example, a commercial broker in Amarillo may represent both owners and users of several product types because there isn't enough business in any one specialty to make a living. In Dallas, however, specialization is the norm because it's in the best interest of clients and it's a large enough market to support broker specialists.

Rarely do you see brokers cross the residential/commercial line individually. Many national residential brokerage companies are trying to set up commercial divisions with mixed success.

The good news is that owners and users of real estate have an incredible array of options when hiring a broker to represent their interests. The greater the specialization, the better the quality of service in most cases. It's important to find an agent who specializes in the geography, product type, client type and service that fits your assignment. The agent must be of impeccable integrity, be willing to listen to your needs, and have the time to focus on your assignment. Don't be afraid to use one broker to help your company lease space, another to find a house to buy, and yet a third to handle your hotel investments. Ask for referrals even from a broker you have used.

Oh, and by the way, there is no law saying you have to use an agent at all. But using a specialist will usually save you time, money and reduce your risk considerably.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

ignite partnership - Advertising & Marketing Experts

Bob Gibbons (REATA Commercial Realty, Inc.) — Thu, 19 Jul 2012 08:26:28 -0700

This video shows one of my clients in Richardson, a suburb of Dallas, talking about his advertising/marketing agency and the work REATA did for his company. The text of the video is shown below if you prefer to read it.

Another unique circumstance that we flat out required was flexibility within our lease. It would be obvious to use Reata again.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Tenant Rep Advantage - Information

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 16 Jul 2012 07:23:18 -0700

One of the most important things that a tenant representative can provide is information. Unlike residential real estate which uses the MLS (multiple listing service), commercial real estate uses several databases including Costar, Xceligent, LoopNet, CityFeet, CommercialSource, and others. Some of these are best for finding space for lease while others are better when buying a property. Some are available only in certain cities.

Knowing where to find information that is appropriate to a particular client's needs and then how to analyze that information is the real value of an experienced tenant representative or Corporate Real Estate Advisor. The information in these databases becomes stale and unreliable over time. A space may be shown as available, but it got leased last week and the database just hasn't been updated yet. Or a tenant may have just moved out creating a new option that the database doesn't show.

Anyone can search for office space. All you have to do is drive down any major road in Plano, Frisco, Dallas, Addison or any other city and call the phone numbers on the leasing signs in front of office buildings.

But once you get that leasing agent on the line, what questions should be asked of him or her? How do you compare rental rates which are quoted differently? Some are full service gross. Others are triple net or plus electric. These have to be analyzed on an apples-to-apples basis to be sure the client is getting the best deal. There are dozens of other important factors when comparing office lease options.

After 20 years as a landlord, I switched sides and now only represent tenants. So I not only understand what a tenant needs and how to find it and negotiate the best deal for the tenant. But I also know how landlords think and what motivates them. That provides an advantage to the tenants I represent.

If you have office space or know someone who does, I offer a no-obligation consultation to discuss your situation and offer advice on how to handle it. Whether trying to decide to renew or move, lease or buy, go to one city or another, call me as your trusted Corporate Real Estate Advisor.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Help! I’m Running Out of Space

Bob Gibbons (REATA Commercial Realty, Inc.) — Mon, 09 Jul 2012 18:46:06 -0700

You’d be amazed at the number of commercial tenants that run out of space well before their lease term runs out. There are few things that are more chaotic to a business operation than having to work out of multiple locations because of poor planning. That’s why it’s vital that you plan for your growth before you start looking for space.

There are three keys to ensuring that you don’t run out of space before you run out of lease term.

The first key is to conduct a comprehensive needs analysis. And while this might seem obvious, the real question is “do you know all the right questions to ask to effectively plan your relocation?” A comprehensive needs analysis requires the specialized knowledge and skill of a seasoned tenant rep broker.

The next key is to know the leasing techniques available to manage your growth. Here are just few:

Conventional expansion options

Must take or guaranteed takedown options

Warehousing surplus space

Rights of refusal to lease or buy

Rights of 1st opportunity to lease or buy

Early termination rights and penalties, at will or for cause

Tenant improvements on optioned space

Each of these techniques has its own complexities and negotiating for them is never easy. Landlords may initially refuse or attempt to water down some of these types of expansion techniques. The reason is because it can limit their capacity to lease up the rest of their building and, therefore, they give them slowly or not at all. These are often reserved for the larger tenants, but not always.

The third key is to know which landlords in your market area have the greatest capacity and willingness to accommodate the growth of tenants. Some are more flexible than others. Some own or control more properties than others. Some do a better job of planning in their buildings to accommodate and foster the growth of their tenants.

A successful lease negotiation is not just about rents, term, and tenant improvements. It begins with a comprehensive needs analysis conducted by a professional Tenant Rep Broker who knows all the right questions to ask. Equally important is clarity on the steps in the process to arrive at a timely occupancy.

The planning and staging of the growth of your facilities to meet your needs in the future is paramount to a successful tenancy. Arriving at the end of your lease term with the appropriate amount of space to accommodate your business needs helps your business run smoothly throughout the lease term.

If you need a new office location in Plano, Frisco, Addison or one of the other Dallas area submarkets, or are just trying to decide whether to renew or move, contact me now. Let's get your lease transaction started correctly with a great needs analysis.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

The American Business Mantra – Do More with Less

Bob Gibbons (REATA Commercial Realty, Inc.) — Thu, 07 Jun 2012 14:36:46 -0700

Feeling tired and overworked? According to a study by the National Sleep Foundation, the average employed American works a 46-hour workweek and 38% of the respondents worked more than 50 hours per week.

You may be surprised to learn that this contributes to commercial tenants paying far too much when they renew their leases. This can happen when renewing a lease becomes a ‘check box’ item on a To Do list without leaving adequate time to consider the most important negotiating factors.

Being overworked and having too little time are not the only reasons tenants can overpay when renewing their lease.

Most professional landlords have a strategic tenant retention program which includes taking steps to make tenants feel good about the relationship. Landlords know that tenants rely upon good feelings when making renewal decisions. So a happy tenant may take the renewal offer their landlord gives them at face value and may be hesitant to bring in a Tenant Representative to help with their renewal.

Most of us see ourselves as good negotiators, but when it comes to lease renewals, tenants often come out on the short end for four reasons:

They don’t understand what’s at stake for the landlord if they move out.
They don’t know what concessions new tenants get when moving in.
They wait too long to open renewal discussions and let the landlord control the deadlines.
They don’t know the commercial real estate market conditions.

It’s not that they aren’t smart business people. It’s simply that they are experts in their chosen fields and not in leasing commercial property.

So how do you achieve the best renewal when time is scarce?

The solution is to level the playing field with a professional Tenant Rep broker. Landlords and the leasing agents they hire are professional lease negotiators. So are seasoned Tenant Rep brokers. It takes time and proper preparation to succeed in renewing a commercial lease without overpaying.

The best advice for tenants to ensure the best terms on a lease renewal is to start early. Use your broker to get the right market information about rates and concessions. And have other options if renewal negotiations break down.

In a world where we are called upon daily to do more with less, employing a Tenant Rep broker not only saves you time and money, it’s smart business. If you have a lease expiring in the next 18 months, now is the time to act. Contact me today for a complimentary lease analysis.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

Total Class Solutions - Client Profile & Testimonial

Bob Gibbons (REATA Commercial Realty, Inc.) — Tue, 29 May 2012 08:24:35 -0700

The management team of Total Class Solutions has been handling class actions for over 15 years, and has handled over a billion-dollar settlement. We have experience second to none.

We’ve also expanded by already another 1000 square feet, and recently just reconfigured the office to increase the space and make it more productive.

I think when you contract with somebody to do this sort of work, you want to have the confidence that they will complete the project timely, and Bob made sure that happened.

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX 75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com