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What’s the difference between Class A, B, or C office buildings?

May 18, 2010 By Leave a Comment

First off, let’s start with the BOMA definition of each building:

Class A

Most prestigious buildings competing for premier office users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.

Class B

Buildings competing for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area. Building finishes are fair to good for the area and systems are adequate, but the building does not compete with Class A at the same price.

Class C

Buildings competing for tenants requiring functional space at rents below the average for the area.

I can add from my own experience that Class A buildings many times will have a restaurant, bank, 24 hour manned security, covered parking, ect.  Class B will have some of the amenities of Class A, but not all of them.  Class C buildings (greatest value, fewest amenities) may possibly have a deli, video surveillance, fewer floors, ect.  Every time I think the market will follow a standard, CoStar goes ahead and will turn a Class C building into a Class “A” building because of pressure from a REIT, owner, or broker listing the space.

Ultimately, a good tenant rep broker will make sure the market decides the true value of a building, not the letter classification!

Filed Under: Commercial Real Estate

Genesis Chapter 6

May 17, 2010 By Leave a Comment

This Chapter in Genesis is about the corruption of man, Noah and the ark, and a few other points not really talked about much in Bible study that I will attempt to cover.

Genesis 6:2 – “…the sons of God saw that the daughters of men were beautiful; and they took wives for themselves, whomever they chose.”

I glanced over this verse at first, until I read the notes in my study Bible.  Who were the “sons of God?”  The study guide gives several different possibilities:

1.) Angels

2.) Godly men

3.) Royal figures

There appears to be a contrast between the “sons of God” and the “daughters of men”.  Could the daughter’s of men be descendants from Cain?  One thing is for sure, the beauty of the “daughters of men” was so stunning that those close to God took note and married them.  I believe that we all have seen this type of beauty in the women in our lives.

Another distinction in the scriptures refers to the “sons of God” having children with the “daughters of men”

Genesis 6:4 “…the sons of God came in to the daughters of men, and they bore children to them.  Those were the mighty men who were of old, men of renown.”

These guys just don’t sound like your average Joe’s right?

Here is another scripture of note:

Genesis 6:3 – “Then the Lord said, “My Spirit shall not strive with man forever, because he also is flesh; nevertheless his days shall be one hundred and twenty years.”

In my opinion, this is our “battery life” earth.  I think that we sometimes shorten our lifespan due to a ton of different factors (check out my post on diet)  God’s “Spirit” striving with man may also explain the long lives of Adam and his decedents up until this point.

Once we get to Genesis 6:5 we see that the “wickedness” and continual “evil” was not sitting well with God.  In fact, the scripture says that he “grieved” in his heart.  Based on my interpretation of the scriptures, God was remorseful for the creation of man was ready to hit the reset button.

Genesis 6:8 “But Noah found favor in the eyes of the Lord.”

The scripture calls Noah “righteous”, “blameless in his time”, and said that Noah “walked with God”.  (Genesis 6:9) Remember Enoch from previous chapters?  He also “walked with God” and did not die ,God just took him away!  Now here is another righteous man, Noah who God is going to enter into covenant with to build the ark.

Genesis 6:18 “…you shall enter the ark – you and your sons and your wife, and your sons wives with you.”

This reinforces the significance of family and shows God’s grace.  The scripture does not go into detail about how worthy or righteous Noah’s family was, yet here they are being sparred from God’s wrath as well.  I am looking forward to referencing scriptures in the future the correlation between a man or woman chosen by God to do great works and the effects or grace given to their families.

Filed Under: Family

MiSfiT tenants…are they in your building?

May 13, 2010 By Leave a Comment

My definition of a “misfit” tenant is an office space use that is allowed into a suite that does not fit the use of a traditional office tenant.  In softer markets landlords may attempt to maintain occupancy going a little further than giving attractive concessions.  When a landlord crosses the line and closes a deal with a “misfit” tenant, the entire building  (including the tenants) can suffer.

Now, I am represented or worked with almost all of the industries that I am about to name with the exception of abortion clinics.  Any good broker will direct these tenants to options that can adequately accommodate them.  If you happen to be a misfit tenant, get a broker with experience with working with your industry and start your relocation project at least 6 months to a year in advance before your move.

Characteristics of “misfit” tenants for office space can vary based on the building, but the most common misfit tenants are the following:

Salons and Barbershops – They use a lot of utilities, require a lot more build out, really thrive much more in a retail or mall environment where they benefit from the exposure and foot traffic.  If you walk into an atrium building immediately smell perm, weave, and shampoo…. You guessed it!  There is a “misfit” tenant in the building!

Deli w/out proper ventilation – Deli’s are great ….most of the time.  A deli without proper ventilation can have an entire building smell like a greasy kitchen inside of a month!

“Drug Centers” – These centers thrive in unregulated class C buildings where they can get away with the sometimes inappropriate or illegal activity that goes on in these centers.  I have seen a few reports in my years of thefts,  break-ins, even shootings where these centers have been located.

Educational Institutions –  High traffic and density are two of the major problems with these institutions in many buildings in the Houston market.  Most office spaces are designed to accommodate about 4-5 spaces per 1,000 sf of space.  Just one classroom alone can easily take up many of the prime/non-reserved parking that tenants would like reserved for their own visitors.

Call Centers -  Call Centers share the same issue with educational institutions high traffic, high density of employees.  Occasionally neighboring tenants will complain about call center employees not complying with a professional dress code.  Some buildings are a great fit for call centers in Houston.  Some are not.  There are several buildings that I know that are very well suited for call centers and I will always try these options first when working with this type of client.

Buildings with the right tenant mix really add value to all of the tenants.  At the end of the day, a “misfit” tenant has just not found the right fit for their industry and needs to make a change.  Many times, this change will ultimately save them time, money, and the headaches of dealing with angry neighboring tenants!

Filed Under: Commercial Real Estate

Descendants of Adam: Genesis Chapter 5

May 12, 2010 By Leave a Comment

Adam’s partial family tree in chapter 5:

Adam – Seth – Enosh – Kenan – Mahaalalel – Jared – Enoch – Methuselah – Lamech – Noah – Shem,Ham, Japheth

This chapter explains Adam’s family tree from Seth all the way to Noah’s children.  All of the children of these men are not written from what I can tell and there is a very interesting contrast between all of the children of Adam and Enoch.  Check out the scripture below:

Genesis Chapter 5:24 (NIV)

21 When Enoch had lived 65 years, he became the father of Methuselah. 22 And after he became the father of Methuselah, Enoch walked with God 300 years and had other sons and daughters. 23 Altogether, Enoch lived 365 years. 24 Enoch walked with God; then he was no more, because God took him away.

I wondered after reading this, how was Enoch’s walk with God?  Everyone in Adam’s lineage died except for Enoch who “God took him away”.  Enoch must have been living in a way that pleased God.  Read Genesis 3:8 when Adam and Eve sinned against God:

Genesis 3:8 “They heard the sound of the Lord God walking in the garden in the cool of the day, and the man and his wife hid themselves from the presence of the Lord God among the trees of the garden. 9 Then the Lord God called to the man, and said to him, “Where are you?”

I looked at the contrast between these two versus and it re-enforces to me how sin separates us from God.  When Adam and Eve sinned, God was not with them.  I know this because later they heard God coming and hid from him.

If Adam and Eve were walking with God in the garden would satan have been able to tempt them?  Would satan have dared to show himself in God’s presence with his children?  I wonder how that conversation would have gone with God RIGHT there listening to the conversation?  satan is a liar and uses lies to deceive, divide, and destroy.  What does a liar do when in the presence of truth!

We don’t know much about Enoch, but we know what we need to know.  Enoch walked with God.  How much it must please God to walk with him!  Let us walk with God as well through Jesus Christ our Lord and Savior!

Filed Under: Family

Inspiration from my mechanic

May 10, 2010 By Leave a Comment

This last Friday my radiator literally blew-up on my Nissan Altima while I was near the beltway.  By the time that I stopped the car and popped the hood, there was already a tow truck driver pulling up shaking his head at my smoking car.

Now I have had my share of wrench-time under my 83 GMC pickup truck in college, so I knew that my car was in no condition to drive.  The tow truck driver offered me a discount if he could bring my car to his “shop” down the street.  Otherwise he would charge me $60 bucks for the tow.

Years ago, I brought my car to Champions Car Care in Northwest Houston and the mechanic treated me honestly and fairly.  His prices are slightly more than the competition, but he became my “go-to” guy when he was able to fix a $150 headlight problem (according to the Nissan dealership) for $10 bucks.  Was he a mechanical genius?  Maybe, however it was more likely that I just found myself an honest mechanic!

So even though I had to pay for the tow, and a little more for service I feel confident when I pick up my car that it will be fixed the right way the first time for a fair price.  When you treat people right, tell the truth, and charge people fairly you will stay busy!

Filed Under: Family

More time=More leverage,More opportunities in a "tight" or "soft" office market

May 6, 2010 By 1 Comment

Time can be your best friend or worst enemy.  This is especially true when it comes time to renegotiate an office lease. Either landlord broker will come two years before your lease expires to renew a deal, or they will wait a until the expiration date is right over your shoulder before trying to work a deal.   In either case, any good Tenant Rep broker should be advising that you take at least one full year to take a good hard look at the market before getting a deal done.

A great first step in positioning yourself as a tenant to negotiate/renegotiate a lease is to hire an experienced Tenant Rep broker at least one year before the lease expiration date.  Starting early will allows the tenant to  control the clock instead of the landlord.  An experienced broker should lay out a timeline or some sort of gameplan on how to “attack” the market, gather options, educate the client, ect. so that the tenant is able to make select the option that fits the highest and best use for their business model and industry.

Less Time = Lost opportunities for tenant, Increased leverage for landlord

More Time = More market opportunities revealed, Increased leverage for the tenant (and a happier, less stressed tenant!)

Filed Under: Commercial Real Estate

JR’s take on the History of Tenant Representation

May 5, 2010 By Leave a Comment

About twenty years ago, the only place that you would have seen Tenant Representation Brokers would have been New York, Chicago, and a handful of other cities around the country.  Tenant Rep started during a time period where office building supply was quickly overwhelming the demand due to economic changes, construction outpacing demand, ect.  When the vacancy dropped, banks started to get nervous and develop a more “hands on” approach with building owners sitting on loans.  (Sound familiar!)

It was apparent in the 70′s just as today that the tenant was in a stronger negotiating position.  One major problem however is that they did not have the expertise to take full advantage of the opportunities being presented.  Landlords understood how to track lease rates, vacancies, positive (or negative) absorption, but most tenants did not have access or experience with the variables that control a typical lease deal.

It was primarily out of this need that Tenant Representation was created.  One of the reasons that have such a passion for my job is that we are defenders by nature.  We do not “defend tenants against the evil landlord”… instead we defend the tenant against ignorance (lack of market knowledge).  Now there will always be the “do-it-yourselfers” out there that believe that their negotiating skills are just so awesome that they can tackle a deal without understanding their market.  I would relate this to going to a big car dealership on the freeway and buying the newest BMW without knowing the fair market value.  (Car Salesman just got a new best friend!)  This is fairly common with smaller deals, but I would not recommend it unless that tenant has access to the experience, market knowledge, relationships, and leverage that most of the professionals in our industry enjoy!  We have some great professionals on the Landlord side of the business and they will make you feel absolutely wonderful signing a lease that is totally pro-landlord.

In Houston, there are just a few hundred commercial real estate professionals in the office industry.  Most of us veterans know each other and those relationships provide  better access in tight markets.  When things slow down, our industry knowledge can pinpoint quickly the highest and best use for our clients.  While many of my clients are concerned about rental rates, culture, safety, parking, amenities, even LEED certification. (Green buildings) If you are reading this as Tenant Rep broker, you know all of this already.  If you are reading this as a Tenant, let me assure you that there are more reasons to use experienced help than not!  If you ever want to talk shop about the market, just give me a call and I will be glad to help!

Filed Under: Commercial Real Estate Tagged With:

sin is crouching at your door: Genesis Chapter 4

May 4, 2010 By Leave a Comment

This is my 365 Bible Challenge continued:  Genesis Ch 4

It did not take man long to continue to fall into sin.  Chapter 4 talks about the birth of Cain and Abel.  In Gen Ch4:2 Eve says that she received a man child (Cain) with the help of the Lord.

This scripture tells me that God’s hand is active in conception of Cain.  God does not make mistakes and each and every one of us that was conceived was done purposefully by God.  She gave birth to Cain first, then Abel and Able was keeper of the flocks and Cain tiller of the ground.

Trouble came when they were giving offerings to God. In Genesis Ch 4:4-7  Abel brought his offerings and their fat portions and the Lord had was satisfied with it.  When Cain rolled up with his offering he was not pleased. Gen 4:5 “but for Cain and for his offering He had no regard. So Cain became angry and his countenance fell”.

Now I did not understand what countenance meant, so I went to dictionary.com and looked it up:

coun·te·nance

1.

appearance, esp. the look or expression of the face: a sad countenance.

2.

the face; visage.

3.

calm facial expression; composure.

4.

approval or favor; encouragement; moral support.

5.Obsolete. bearing; behavior.

So Cain was upset that God was not pleased with his offering. In Gen 7:7 “Then the Lord said to Cain,  “Why are you angry? And why has your countenance fallen? 7 If you do well, will not your countenance be lifted up? And if you do not do well, sin is crouching at the door; and its desire is for you, but you must master it.”

There are a few things that really stood out  to me in this scripture.  Cain was being affected by sin and sin had influenced Cain to not work as hard, have a negative attitude (countenance fell), have jealousy in his heart, and anger.  I also highlighted the verse where God told Cain to master sin.  Cain and Abel were so close to God that they could talk to him, yet Cain was still affected by sin! I don’t know about you, but I experienced all of the emotions that Cain has and this chapter strengthens my resolve to fight sin with the help of God.

Cain could have chosen to work harder to please God, but he did not.  He chose wrong and was punished for it.

The rest of the chapter shows Cain’s life after he kills Abel and is punished for it.  Even after Cain’s mistakes God makes provision for Cain by giving him a mark so that no one that knew what he did would kill him.  Even in our sin, even when we fail, God still loves and will provide a way forward.  His will is perfect.

Filed Under: Family Tagged With: ,

Killing me softly (sin)

May 3, 2010 By Leave a Comment

In the past, I thought that I was doing “ok” in my life as far as walking with Christ.  I broke a couple of God’s commandments, but justified it by saying that I did not break the “big” ones like murder, ect.  There was a problem with the way that I was thinking however.  The Bible tells us that sin separates us from God. The Bible also says that if we have an “habitual” sin, then Christ is not in us because we cannot have light and darkness in the same place.  Do you have any “acceptable sins” in your life? (gluttony, lust, white lies, ect.) In my life, I had a few of them for years and did not realize it.

The problem with acceptable sin is that it WILL destroy you if you do not remove it from your life.  Does this mean that we need to be perfect?… The Bible says that we cannot be perfect, but we are responsible for living our lives as imitators of Christ.  When we follow Christ example you will find that the sin in your life will no longer have a place to reside permanently!

One of my sins is gluttony (love for food).  My family is from New Orleans (nuff said) and culturally we use food to celebrate, comfort, bring families together, ect.  Now food is not evil, but the place of food in my life was inappropriate.  In the past, when I needed comfort instead of going to God, I went to the fridge.  Over time, this “acceptable sin” would have destroyed my relationship with God, my family, my career and eventually my own life.

As I write this today, I have decided to destroy the root of this sin.  Dieting is not longer a seasonal thing for me… proper nutrition is a lifetime responsibility.  When I am overworked or stressed I am deciding to go to God instead of to the fridge!

Look, it is not easy to admit that there was an issue here in my life.  I made every excuse, I negotiated with myself that I was being unreasonable or taking the Bible out of context.  However, once I was willing to look at the truth it was obvious that this “acceptable sin” must be removed from my life.  I am here to pray for you if you need support and I can refer scripture and materials that deal with these types of sins to help.

Just hit me up via email at james[at]jamesrobertsonjr.com (Substitute [at] for the @ symbol.)

Filed Under: Fitness Tagged With: