CTX Represents McNutt Business Park
Everest Manufacturing Corporation has recently leased 6,300 square feet of warehouse space at McNutt Business Park in Hutto, Texas. Lee Ellison and Dan Meyer of Commercial Texas represented the landlord, McNutt Business Park.
CTX Represents the Jewelry Channel
The Jewelry Channel has recently leased 15,115 square feet of office space for broadcast production at Corridor Park D.
Carl Condon and Dan Meyer of Commercial Texas represented the Jewelry Channel. Doug Thomas of Live Oak-Gottesman Group represented the landlord.
CTX Represents PROS Revenue Management
PROS Revenue Management, L.P., headquartered in Houston, Texas, has recently opened a branch office in Austin, Texas and has leased 4,255 square feet of office space at High Flex Technology Center.
Carl Condon, Burke Kennedy and Russell Young of Commercial Texas represented PROS Revenue Management, L.P. David Bremer represented the landlord.
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 Austin Market Boom or Bust?
By Russell D. Young, CCIM, SIOR, Vice President, Commercial Texas
With 2.3 million square feet of commercial real estate space coming online in Austin within the next three months, along with 13 condominium projects downtown in the works and 25 building sales so far in 2007, are we in for a boom or a bust?
Investors have been pouring money into acquiring Austin’s landmark buildings. In the face of relatively low absorption, these new building owners have been pushing for higher rates per square foot to generate returns.
Betting on big returns in coming years, local and national developers are completing numerous Class A office buildings across the city’s submarkets. And the cost of construction with all the development happening at once has been steep.
Read full article (free)
 Myth #1: Your office space isn’t critical to your business strategy.
On October 19, Commercial Texas unveiled the first myth of commercial real estate. Below is a sample of the white paper:
A lease is a financial obligation that can equate to millions of dollars over its term. Office space typically represents a business’ second largest expense, behind employee payroll. Depending on the terms and conditions, a lease can also be next to impossible to terminate, if exit strategies were not defined in advance of signing on the dotted-line.
Businesses clearly need a lease that reflects their business strategy.
How much should a company spend on its lease? Key metrics should be considered. The percentage of operating revenue to the lease obligation varies significantly depending on the type of business: this is referred to as the rent-to-revenue ratio.
Every company is unique in terms of its needs. Industry averages, location and specific business elements provide a frame of reference for evaluating appropriate terms and costs. Ultimately, a company’s business model should drive the economics of a lease, not market trends.
To download the full white paper of the first myth of commercial real estate, visit the Commercial Texas Web page.
On November 9, Commercial Texas revealed and discounted the second myth of commercial real estate. Keep track of future debunked commercial real estate myths on www.commercialtexas.com/fivemyths/
 It’s not about the Rental Rate
By Carl Condon, Vice President, Tenant Representation Group
Our ever-changing and complex global economy moves faster with each new technological advance, offering an endless supply of information at your fingertips. In this dynamic market, it’s important for a company to maintain lease flexibility to react quickly to business swings.
When entering a lease negotiation, tenants are often concerned primarily with rental rates because of its impact on cash flow and cost structure. Often two other factors hitting the bottom-line are overlooked: expansion and subletting/assignment rights.
To have the option, not obligation, to expand in a contiguous and orderly manner over a lease term is the best scenario for a tenant. As this is not always achievable, Rights of First Offer and Rights of First Refusal control expansion in a building.
Read full article (free)
Expanded rail system election proposed for next year
Republished from the Austin Business Journal
October 25, 2007
Austin could have another rail system to augment the planned 2008 commuter rail.
Austin Mayor Will Wynn today in his State of Downtown Address called for a November 2008 election to build a downtown and Central Austin rail system.
Wynn said a proposed passenger rail system would connect downtown Austin, Austin-Bergstrom International Airport, the University of Texas and state complexes and the Triangle and Mueller developments.
"We have a remarkable opportunity for urban planning from a transportation standpoint," said Wynn. "Let's begin the next obvious phase of our desperately needed comprehensive transportation system."
While there's not an estimated price tag for the project yet, Wynn proposed the creation of an intra-jurisdictional task force that will look at financing questions and public-private partnerships to pay for the proposed project. Although general obligation bonds have been proposed as one possible financing method, Wynn said he would like to carry the project forward without any new taxes or general obligation bonds.
Financing options include tax increment financing, transportation bonds, and airport bonds which ABIA has to finance infrastructure off-site, said Wynn. The $800 million dollar airport completed in 1999 has a built-in railway connection at the Barbara Jordan Terminal, Wynn said.
A 2006 Capital Metropolitan Transportation Authority proposal for a downtown streetcar was estimated to cost close to $230 million, but Wynn's proposal would be more comprehensive, including an airport route.
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