When I first started in this business almost 10 years ago, I was afforded an incredible opportunity by birthright... the chance to office in the same room with a tenured broker who has been very successful in the land brokerage business since 1959, my father, Bill McDade.  I have sat less than 10 feet away from him for all these years, hearing every phone conversation, having the ability to ask questions as they arrive and learning the business moment by moment.

Little did we realize that this was a mentoring experiment that was about to expand.  I learned deals inside out: from getting the listing, to marketing the property, letters of intent, closing the contract, and all of the details that make the sale happen.  I have heard a few war stories, of how it used to be, the RTC days, the eighties, surviving the downspells and riding the waves.  As the business grew, we needed more help in our operation.

About five years ago, Bill took on another young broker to mentor, another relationship that has been very successful.  This young man, Hunter Jaggard, works arms length from both of us as well.  The three of us along with an assistant work hand in hand on every deal.  Every day we learn something new and have the opportunity to pass along knowledge and experience.

Several senior brokers in our firm took note of the process and have followed suit.  Each senior broker has recruited a bright trainee, eager to learn the industry from the best of the best.  Slowly, we have matched the right broker mentoring pairs and watched this concept yield results.  The young broker trainees have brought fresh ideas and energy with them.  Our firm is more productive and more profitable because of this collaboration.

My father, Bill McDade, is sought out by many young people.  They come to him for his wisdom, his experience, and his insight, as he directs them and their ideas to some of the key brokers, developers and investors in the city.  He has coached them about how to make inquiries and find the right fit with a personality that they can learn from and do business with.  Bill also encourages experienced brokers to talk to these young brokers regularly.  Hear their ideas, offer advice and benefit from their youthful energy.

We are seeing more broker mentorships like these in commercial real estate firms across the greater Houston area.  If you are a young person just getting into the business, consider talking to the more experienced brokers.  Look for opportunities to cooperate and partner with these mentors with the intent of getting your footing and experience in brokerage while helping them get a deal done!

In the end, these broker mentorships have resulted in some phenomenal new brokers handling some remarkable pieces of real estate in our city.  Some well respected brokers will have a chance to be even more successful by benefiting from the eager attitudes of their young partners.

With the increase in the number of green office buildings in Houston, green leases are now a more viable option. Today there is over two million square feet of green building space in Houston, with approximately six million additional square feet will be built in the next two years. These numbers reflect the amount of square footage available in buildings that are registered with The Leadership in Energy and Environmental Design (LEED) program. LEED is a third party certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings. Additionally, over 75 buildings in Houston have achieved the Energy Star rating.

A green lease includes provisions that encourage the landlord to compete for tenants by designing, building and managing comfortable, energy efficient buildings. Specific green lease terms might include:

1.       Definition of Operating Costs Since lower energy consumption is the primary objective, a green lease may specify minimum performance criteria for the buildings heating, cooling and lighting systems.

2.       Energy Star Rating Require the building to achieve and maintain the Energy Star Rating.

3.       Green Cleaning Specifications An addendum to the lease that specifies eco- conscious materials and procedures to be used in cleaning, janitorial and pest control.

4.       Tenant Construction Agreement This exhibit identifies sustainable products and designs to be used for tenant improvements and build out.

5.       Green Common Areas This clause would require that the landlord bring the buildings common areas into compliance with sustainable building practices (i.e. natural lighting, water conservation, etc.).

6.       Longer Lease Terms Longer lease terms mean less re-construction and tenant build out, which means less waste and reduced resource requirements (i.e. new furniture, walls, etc.).

These are just a few examples of clauses and exhibits that may be included in a green lease. Specific lease language will vary depending on the extent of a buildings ecologically friendly design or renovation.

Bottom line: Although a green lease requires a commitment to be more sustainable from both the landlord and tenant, the environmental and financial benefits are tangible and expected to increase as more tenants seek space in green buildings. 

Condemnation is the process of the government taking private property, without the consent of the owner, for public use through the power of eminent domain. Condemnation by a public agency can occur for various reasons, such as road expansions, regional drainage, or transit facilities. Some private sector companies such as railroads or utilities also have the power of eminent domain. The law requires that parties engage in Good Faith Negotiations (including independent appraisals and counter offers) to reach an agreement. This is how most acquisitions are completed, but if no agreement can be reached, then the property is subject to condemnation proceedings. Owners whose property has been acquired are entitled to just compensation under the law.

Although there are legal distinctions between acquisitions vs. condemnations, the effect on the property owner is similar. If a property owner is facing a forced governmental taking, there are several steps that should be taken.

Analyze the Impact - Review the preliminary plans and maps and plot the legal description so you know how much property might be taken. Stay in touch with the agency in charge of the project, because the preliminary plans can change. Reevaluate your business real estate needs. What will remain after the acquisition, and will it support your business? It may be best to identify a new property.

Know the Agency and the Schedule - You need to know which governmental agency you are working with and their schedule. For example, it is widely believed that the proposed Hempstead/290 Corridor right-of-way acquisitions are controlled by the state. This is only the case on the Northwest Freeway where the process has yet to begin. Property along Hempstead Rd. will be acquired by Harris County, and those acquisitions are moving ahead within 18 months.

Negotiate Access Issues - As the government reconfigures your property, they may also change the ways that you are allowed to access the property. The number and location of driveways can affect the value and usefulness of the property. Many agencies have broad powers in determining the access permits granted to a property owner. So in addition to getting monetary compensation you may need to negotiate the access permits.

Tenant Issues - If there is a tenant leasing the property, then the condemnation language in their lease will determine the tenants options to terminate the lease, be compensated or find another suitable location.

Know Your Rights and Get Professional Help - Depending on the scope of a project, some owners represent themselves, others will retain an attorney. If the agencys offer seems low or unfair, it may take the efforts of an attorney and an appraiser to negotiate a settlement. An experienced commercial broker can also assist in evaluating alternative scenarios for maximizing the value of the property and the business located on the subject property.