Local Drivers with National Echoes 

Historically, demand for 10,000-square-foot industrial facilities in San Antonio was dominated by local and regional players—small business owners graduating from leased space to property ownership. These users see real estate as a way to stabilize costs and invest in their own growth. But today, there’s more complexity at play. 

“Over the past 12 months, demand has actually slowed a bit,” remarks Colton Perkins, Vice President with Stream’s industrial team. “But that’s more reflective of macroeconomic uncertainty—tariffs, elections, interest rates—than a fundamental change in the long-term trajectory.” 

Even as some buyers pause on major decisions, structural forces continue to shape the sector. San Antonio’s population boom creates new rooftops to serve—and in turn, demand for light industrial facilities that power the businesses doing the serving. 

“These groups often start out in a garage or a 2,000-square-foot flex space,” explains Andrew Katzfey, also a Vice President with Stream’s industrial team. “When they scale up, 10,000 square feet feels like a huge leap—and it is. But it’s also exactly what they need to take the next step in their business.” 

National Users, Local Hubs 

It’s not just local entrepreneurs fueling this demand. Stream also sees regional and national tenants seeking smaller footprints in secondary markets like San Antonio to get closer to their customers. “There’s a clear trend toward regional distribution hubs and being near the end user,” Perkins comments. “That’s what’s making these smaller spaces attractive—even for larger companies.” 

That insight aligns with broader national data pointing to a “hub-and-spoke” model in logistics, where companies rely on a network of smaller, strategically located distribution centers to reduce delivery times and manage inventory risk. It’s a model well-suited to a market like San Antonio—especially when proximity to Mexico is factored in. 

Onshoring, Nearshoring—and Uncertainty 

San Antonio’s position along key trade routes with Mexico adds another dimension to its appeal. As global tensions rise and trade policy becomes more volatile, manufacturers and distributors look to hedge against risk. That makes nearshoring—bringing production closer to the U.S.—and onshoring—moving it stateside entirely—more attractive. 

“We have a building under contract right now to a group that operates in Mexico,” Katzfey reveals. “They want to establish a U.S. footprint to diversify their exposure. With all the uncertainty, having a base here is just smart risk management.” 

While it’s difficult to predict how future tariffs or trade policies will shake out, Katzfey believes San Antonio is well-positioned to benefit either way. “As the U.S. strengthens trade ties with Mexico, we can expect increased volume through Laredo—and rising demand for industrial storage in San Antonio as goods move across the country.” 

Still, uncertainty remains the dominant theme. “That’s the billion-dollar question,” Perkins reflects. “If you’re reshoring, do you stop in San Antonio—or go all the way to Nashville? No one really knows yet, but we’re watching it closely.” 

Stream’s Strategy: Full-Coverage, Flexible Delivery 

What sets Stream apart is its comprehensive, agile approach to this segment. With a team of eight industrial brokers in San Antonio alone, the firm is uniquely equipped to cover the full spectrum—from 2,000-square-foot flex units to 500,000-square-foot distribution centers. 

“We work in teams and share information across accounts,” says Katzfey. “That way, if a tenant doesn’t fit one property, we can immediately redirect them to another that works. Our market share gives us a bird’s-eye view of every deal happening in this size range.” 

Currently, five of Stream’s eight industrial brokers focus on the 2,000 to 20,000 square foot “shallow bay” segment—leasing a combined 2.5 million square feet of product across the San Antonio metro. That critical mass allows them to build a robust, data-backed understanding of what tenants want, how investors are thinking, and where opportunities are emerging. 

“We’re essentially creating a matchmaking network within this size range,” Perkins states. “That gives our clients an edge—whether they’re looking to lease space, acquire it, or develop it from the ground up.” 

The Road Ahead 

While the next 12 months may be defined more by caution than by a bull market, Stream’s team is optimistic about the long-term health of the 10,000-square-foot industrial segment. 

“As the world continues to change—whether it’s trade, e-commerce, or consumer expectations—flexibility will remain king,” Perkins concludes. “And these buildings offer the kind of versatility companies need to adjust without overcommitting.” 

That’s a message investors are starting to hear loud and clear. In a time when scale can be a liability and uncertainty is a given, the humble 10,000-square-foot warehouse might just be the smartest play in the industrial game.

The post Why 10,000-Square-Foot Industrial Spaces Are Gaining Ground in San Antonio—and Nationwide appeared first on Stream Realty Partners.

The recent escalation of trade tensions—fueled by significant tariffs from Canada, Mexico, China, and the European Union—signals a major shift in U.S. trade policy, one not seen since World War II. Understanding the evolution of international and North American trade agreements over this period offers insight into how trade has long been a balancing act between cooperation and competition on the global stage.

Today’s Tariffs

Tariff policy has shifted rapidly in recent months, creating uncertainty across global markets. As of April 5, 2025, the U.S. implemented a universal 10% tariff on all imports. Shortly after, on May 12, the U.S. and China agreed to a 90-day temporary reduction in tariffs—lowering the U.S. rate on Chinese goods from 145% to 30% and China’s tariff on U.S. imports from 125% to 10%. Just days later, on May 15, President Trump announced that India had proposed a new trade agreement that would eliminate tariffs on a wide range of American goods, though Indian officials have not yet confirmed the offer.

While these shifts signal potential movement toward broader trade deals, they also highlight just how fluid and unpredictable the current landscape remains. According to PitchBook Data, Inc., a Morningstar company specializing in private market intelligence, a lasting shift toward protectionism could mark a major departure from the free-trade era that has shaped the global economy for the past 75 years. Prolonged tariff enforcement could redirect capital flows, reshape supply chains, and disrupt trade relationships—carrying significant implications for private markets in both the near and long term.

What does this mean for CRE?

To better understand how tariffs are impacting commercial real estate, we spoke with several of Stream’s sector leaders: Albert Jarrell, Managing Director of National Industrial Development Services; Jared Dienstag, Director of Research for Stream’s Southwest Region; and Andrew Katzfey and Colton Perkins, Vice Presidents on the San Antonio industrial team. From construction pricing and port activity to supply chain shifts and tenant decision-making, these experts share how global trade policy is influencing activity on the ground—and what they’re watching as the landscape continues to evolve.

Construction

“Late in Q1 2025, I had conversations with contractors across the U.S.—from Atlanta to DFW to Southern California,” says Jarrell. “While some price increases in the first quarter are customary annual adjustments, there is ongoing uncertainty surrounding the impact of tariffs. Many acknowledge the potential for cost increases; however, most are unsure about the timing and extent of the impacts.”

According to Jarrell, as of early May 2025, subcontractors and suppliers were holding their prices, with costs 1.3% to 2.5% lower than a year ago, depending on building size and region. “Any price increases related to finally imposed permanent tariffs are expected to stabilize once they take full effect, since they tend to be fixed percentages. Until construction demand picks up significantly, pricing should level out at the final tariff-adjusted rate,” Jarrell continues.

Many expected price increases surround structural and reinforcing steel, aluminum, concrete, drywall, mechanical, electrical, and plumbing; those imported metals, minerals, and mineral by-products are typically obtained at lower offshore production costs.

For most of these materials, imports make up 25% or less of U.S. consumption; however, copper imports represent a significant portion of U.S. consumption, at approximately 45%. Simply put, if the cost of one-quarter to one-half of your material is impacted 10% or more, you should expect an impact of 1% to 5% on your total fabricated product cost.

Ports of Entry

According to Dienstag, the tariff situation remains fluid and subject to change based on negotiations between the U.S. and foreign countries. “While tariffs can influence U.S. port activities on both the west and east coasts, the ports on the west coast are particularly impacted due to the ongoing trade dynamics with China,” Dienstag explains. “The Los Angeles and Long Beach ports, for instance, have recently seen record-high TEU volumes, largely driven by trade with China. However, both ports anticipate a decline in cargo volume as tariffs are expected to reduce imports and exports. This, in turn, could have a ripple effect on dock workers and other jobs reliant on port activity.”

Industrial Leasing

Both Katzfey and Perkins note that while market activity has remained steady, decision-making has become noticeably more cautious. “Tariffs—and what will ultimately happen with them—is the billion-dollar question,” said Perkins. “No one really knows yet, which is why we’re watching the situation closely and advising our clients to remain flexible and position themselves from a place of strength.”

For example, ongoing trade uncertainty is prompting many companies to reevaluate their supply chain strategies—some by moving operations closer to home. “We have a building under contract with a group that operates in Mexico,” shares Katzfey. “They’re looking to establish a U.S. footprint to diversify their exposure. With all the uncertainty, having a base here is just smart risk management.”

Still, their outlook remains optimistic. Whether it’s nearshoring or reshoring, they believe there’s ample opportunity across the U.S.—and particularly in San Antonio, thanks to its strategic location near the U.S.-Mexico border. “You just need to know your market, keep your ear to the ground, and be ready to move when the moment’s right,” Katzfey adds.

—-

Trade policy is constantly evolving, influenced by geopolitical shifts, economic trends, and technological innovation. From GATT to NAFTA to the USMCA, each chapter has reshaped how industries source, produce, and distribute goods. Today’s uncertainties are no exception. With a clear understanding of the past and an agile vision for the future, CRE professionals can be well-positioned to navigate—and help their clients capitalize on—what’s next.

The post From NAFTA To Now: An Exploration of the History of Trade in the United States appeared first on Stream Realty Partners.

Here are the key takeaways from the discussion: 

1. Tariffs

Panelists discussed the growing economic impact of tariffs, warning of widespread disruption. 

“Tariffs are just taxes,” Perryman said. “If you buy something overseas and it’s subject to a tariff, you pay for it. While reshoring has potential, only about 13% of manufacturing can realistically return, so tariffs won’t deliver the economic boost some expect.” 

Brown and Viswanathan agreed that although interest in the U.S. market remains, rising uncertainty is prompting investors to slow down. Momentum had been building, but economic and geopolitical concerns are driving a more cautious, wait-and-see approach. 

Price emphasized overlooked parts of the power grid, noting that beyond turbines, critical components like substations, reclosers, and switchgear are in global short supply. With 36% of high-voltage switchgear made in Mexico, new tariffs could worsen supply issues. Inflation and demand have already driven up costs, and “we’re just piling more pressure on top of an already strained system,” he said. 

2. Reshoring

Reshoring has long been discussed, but proposed tariffs are bringing renewed attention to the idea. Some companies had already begun reshoring due to poor overseas productivity, but the pandemic accelerated the shift. Supply chain disruptions exposed the risks of over-reliance on foreign manufacturing, prompting a reassessment of offshoring’s true cost. 

Perryman explained, “The pandemic sort of put it on steroids because we realized we needed many things we couldn’t get. That motivated people to look at things differently—maybe it’s worth paying a bit more to produce in Mexico or southern Texas instead of China.” 

While tariffs are intended to boost U.S. manufacturing, Perryman warned they shouldn’t be a permanent solution: “The costs are too great, and their uncertainty offsets much of the intended benefit.” 

Brown noted that investors are reallocating from coastal to central markets. “Texas offers a strong business climate and family-friendly environment,” he said. “Investors want to get ahead of the manufacturing trend, which favors many Texas markets—and select areas of Chicago. This shift should be a net positive for the region.” 

3. Inflation

With inflation and interest rates expected to stay elevated, Viswanathan offered an optimistic outlook for real estate: 

“Real estate is a good place to invest during inflation—if you pick the right spots,” he said. “New construction is limited, partly due to inflation and tariffs. So, if you’re in a market with growing demand and natural tailwinds, you’re in a strong position.” 

He pointed to migration to the Sun Belt and the rise of nearshoring and reshoring as key drivers: “Migration to the Sun Belt isn’t slowing—creating housing demand. Nearshoring and reshoring are boosting industrial demand. Even with inflation and high rates, growing markets should see income gains.” 

Brown offered broader context on the economic climate, noting that while inflation concerns eased slightly last year, tariffs are keeping prices high—likely delaying Fed action and fueling uncertainty that complicates investment decisions. 

“It makes underwriting tougher,” he said. “There’s a lot of noise around forecasting growth, demand, and cap rates. Predicting pricing two or three years out is difficult.” 

Still, Brown pointed to resilient fundamentals: “Supply is in check, and fundamentals aren’t bad. But it’s a harder environment to underwrite with confidence.” 

4. Government Cuts 

The question remains: will the Department of Government Efficiency (DOGE) continue to shape the economy—and if so, to what effect? 

Perryman recalled the Clinton Administration’s careful streamlining, which cut 400,000 jobs department by department. “It was done thoughtfully, asking: what do we need, what do we not need?” he said. “That scalpel approach was effective. What we see today feels more like a blunt instrument, with some agencies reversing cuts they didn’t fully consider.” 

While acknowledging inefficiencies, Perryman warned that improvements shouldn’t come through broad disruption. Shuttering offices or canceling contracts could harm local economies and real estate markets. 

His larger concern is the paralysis uncertainty creates. “The most common response is to do nothing,” he said. “And economies are built on people doing something.” 

Panelists agreed that adaptation speed and clear policy communication will shape the outcome. The path forward may be slower—but those ready to act with purpose will find opportunity.

5. What’s Next for CRE

The outlook for commercial real estate—especially office—is shifting. Despite bleak headlines, many investors see a more nuanced and opportunistic landscape. 

Viswanathan noted that financing is returning, with New York leading the rebound. “Spreads are tightening, and more capital is available—that’s positive for office investments,” he said. 

This has sparked cautious optimism. Perryman noted that while many investors had paused due to uncertainty, public market volatility is renewing interest in real estate—especially in Texas and Chicago, which remain top locations for corporate expansion thanks to strong infrastructure, diverse economies, and competitive costs. 

“Texas has won the Governor’s Cup 14 times in 30 years, and Chicago has topped city rankings for 12 straight years,” he said. “Texas offers low power costs and a business-friendly climate, while suburbs like Elgin, Illinois, are growing fast.” 

Price pointed to energy costs as a key driver for industrial users. “Texas with ERCOT, and Chicago’s place in the PJM electric grid, offers cost control through long-term energy contracts—a major advantage over regulated markets,” he said. 

One thing is clear: adaptable markets and assets are leading the way. “Momentum doesn’t disappear—it just shifts,” Brown said. “And right now, it’s shifting toward regions and strategies built for what’s next.”

A Fireside Chat

Marcus Luttrell, Navy Cross, and Purple Heart recipient, closed the panel with powerful insights on leadership in times of uncertainty. Drawing from his personal experiences, he urged leaders to keep moving forward, reminding them that immense potential awaits on the other side of challenges. Luttrell highlighted that resilience, adaptability, and perseverance are essential to navigating challenging times. His message struck a chord with the audience, reinforcing the fact that, just as in leadership, overcoming market challenges brings extraordinary rewards for those who confidently press on. 

Our Central State of the Market panel discussion was expertly moderated by Patrick Russo, Executive Managing Director & Partner at Stream’s Chicago office. Managing Director of Texas Office Services, Doug Jones, led our engaging Fireside Chat. 

Special thanks to our sponsors:

Munsch Hardt Kopf & Harr, P.C., SITE Technologies, Austin Industries, Clean Scapes, Metropolis Technologies, KPRS Construction Services, Inc., Kimley-Horn, CoStar Group, PJS of Texas, Scout Security Group, Titan Security Group, and RealtyAds 

The post Advance Potential and Shape CRE’s Future: Key Insights from Stream’s 2025 Central Region State of the Market appeared first on Stream Realty Partners.

Click below to watch the episode!  

About Stream Deep Dive  

#StreamDeepDive conversations go beneath the surface to uncover trends in the commercial real estate industry and offer the opportunity to learn more about our people.  

The post Stream Deep Dive Podcast: Bridging the Gap Between Workplace Strategy & Financial Analytics appeared first on Stream Realty Partners.

Success often arrives on an unexpected path, fueled by unwavering dedication to a mission. For Adam Jackson, that mission was unraveling the complexities of investment management, a pursuit that led him down a road he never envisioned, yet one that has proven immensely rewarding. “I never planned to go into commercial real estate, let alone investment management,” Jackson admits. “But it’s truly become my passion.” 

Jackson’s story begins in Houston, Texas, where he was raised in a family rich in love and hard work. He recalls a joy-filled childhood, punctuated by the stark realities of occasional utility shut-offs. “A lot of perspective comes from that,” he reflects. “Makes you appreciate the good days.” 

Unsure of his exact career path, Jackson knew he wanted to be in business. He chose accounting as a strong foundation, earning both a bachelor’s and master’s degree from Texas A&M before launching his career at Ernst & Young. While gaining valuable experience there, he found himself drawn not just to the financials but to the office building he commuted to each day. The scale, design, and impact of the space fascinated him, sparking a deeper curiosity about real estate. 

Determined to explore this interest, he met with every real estate firm he could, ultimately landing a position at HFF (now part of JLL), where he discovered his passion for arranging capital for projects and people. “It was an exciting platform,” Jackson explains. “The idea of shaping communities and enhancing daily lives through real estate was incredibly compelling.” 

As Jackson’s career progressed, he gravitated to Stream Realty Partners, a rapidly growing firm that had just 120 employees at the time and has since expanded to more than 1,500. His brother, Chris, now President & CEO, was already part of the team, giving Jackson firsthand insight into the firm’s dynamic culture. Initially engaged in arranging financing for projects in Houston and San Antonio, he quickly became captivated by the energy and vision that set Stream apart. 

“It was the moment I knew—investment management, specifically at Stream, was where I wanted to be,” he recalls. “The people, the culture; it was a chance to apply everything I’d learned within a platform that stood apart.” 

Where Passion Meets Opportunity 

Joining Stream at the height of the financial crisis in 2008 was a bold move. However, while others perceived uncertainty, Jackson saw opportunity. His relentless research into corporate successes and failures—examining high-profile cases like Enron, Arthur Andersen, WorldCom, and later Madoff—solidified his belief, which remains steadfast as he continues his research today: integrity is the foundation of a sound investment strategy.  

As the platform grew, Stream’s founders, Mike McVean and Lee Belland, recognized the need for dedicated investment leadership. “They realized someone needed to run it beyond them and asked me to take on that role. So, at the end of 2015, I moved to Dallas to lead the effort,” Jackson shares. 

At that time, the fund had just one investor and $175 million in equity. That quickly grew to $275 million, and today, Stream’s investment platform encompasses five funds with $2 billion in equity. To date, Stream has delivered a 36% gross IRR and a 2.10x gross equity multiple, with projects spanning office, industrial, multifamily, land, retail, and data centers. 

Jackson credits Stream’s success to its hands-on approach, leveraging in-house expertise and deep local market knowledge. By sourcing deals within their own communities and maintaining a strong on-the-ground presence, the firm gains a competitive edge. “We live where we invest,” Jackson emphasizes. “That personal connection drives us to focus on long-term value, not short-term gains.” 

As Jackson and his team work on their sixth fund, targeting $850 million, they are deliberate in their approach to investor selection. “We keep it smaller than most because we care deeply about who invests with us—individuals and benefactors alike,” Jackson explains. 

Stream’s investors include prestigious institutions across the country, whose endowments support education and research, and pension funds providing retirement security for state and local employees. 

“That’s been one of the most rewarding aspects of the business,” says Jackson. “More than making deals and generating returns—we’re creating meaningful outcomes that influence education, retirement, and causes that matter. It allows us to take pride in the work we do, knowing it’s making a real difference.” 

Driven by Integrity, Defined by Impact 

Reflecting on his career and Stream’s accomplishments, Jackson acknowledges the personal significance of his success. “To me and my family, success isn’t just about your achievements. It’s about using your God-given talents to their fullest potential daily and creating positive change—for yourself and those around you.” 

As the CRE industry faces ongoing headwinds, Jackson sees Stream’s private ownership as a defining strength. Without the bureaucracy of a public company, the firm can move decisively, adapting to market shifts with agility and always acting in its clients’ best interests. “Being privately held makes all the difference,” he asserts. “It allows us to stay nimble, protect our clients, and seize opportunities faster than our competitors.” 

Looking ahead, Jackson still sees immense opportunity, just like he did in 2008. “As a firm that puts people first, our goals always center around them,” he states. Whether navigating the COVID crisis without layoffs or developing the latest industrial space, the objective is clear: “How does this benefit those we serve?” 

This approach is what drives Stream’s focus on sustainability as both an ethical imperative and sound business strategy.  

“Sustainable assets are what work long term,” Jackson explains, citing The QUAD in Dallas and RiverSouth in Austin–both Stream Developments–as examples. “We’ve incorporated features such as energy-efficient glass, smart building technology, and water reclamation systems in these and other projects. We build and invest in the most efficient properties available because not only is it the right approach—it’s what today’s largest tenants demand.” 

Jackson highlights The QUAD project, where an entire acre was dedicated to green space. “That land alone is worth $15 to $20 million, yet instead of maximizing density, we created parks,” he explains. “Sustainable development isn’t just about buildings—it’s about how that space creates purpose.” 

With perseverance and deep commitment, Jackson—and, by extension, Stream—demonstrates that success isn’t just about the present but about the lasting impact on the family, workplace, and the broader community. Stream is making waves, transforming lives one investment at a time. 

To learn more about Stream’s Investment Management platform, click here.    

The post Building Value Beyond the Bottom Line appeared first on Stream Realty Partners.

Chicago’s historical manufacturing roots have evolved into a dynamic hub for advanced technologies and sustainability; its commitment to innovation foundational to its economic future. A prime example is Chicago’s ambitious plan for a $20 billion, 150-acre quantum computing campus at the former U.S. Steel plant on the South Side or the former Texaco refinery in Lockport. This groundbreaking project will bolster Chicago’s position as a technological leader, attracting top talent and creating high-paying jobs. As the city continues to transform, its “Big Shoulders” mentality clearly remains the driving force behind its progress.

A spirit of innovation and adaptability  

Chicago’s on-going transformation extends far beyond its industrial and technological roots. The city’s office space landscape is undergoing a dramatic evolution. While garnering a well-earned reputation as a business hub almost since inception, Chicago is now redefining its workspace to accommodate the rise of hybrid and remote work. This shift, which began long before the pandemic, has ignited a wave of repurposing and revitalization within the city’s built environment. Mixed-use developments, blending residential, retail, and recreational spaces, are becoming increasingly common. This change is not just about improving the value of real estate; it catalyzes broader economic growth, reinforcing Chicago’s status as a premier destination for businesses seeking modern, flexible work environments.  

As a fellow Chicagoan, I’m immersed in the city’s energy and spirit daily. The tapestry of cultures, the resilience of our communities, and the unwavering belief in progress have shaped my family and me. Serving as Executive Managing Director of Stream Chicago is more than a role; it’s a privilege to contribute to this city’s dynamic story. Our team is deeply connected to Chicago’s heartbeat. We understand the evolving needs of our neighbors and businesses and are committed to building upon the innovative foundation laid by the generations before us. Together, we are creating a future where our city’s rich heritage inspires groundbreaking solutions and where the promise of tomorrow is brighter than ever.  

Capturing opportunity 

This deep-rooted commitment is exemplified by our recent acquisition of a four-building industrial portfolio totaling nearly 600,000 square feet of Class A space. The portfolio, encompassing properties in Buffalo Grove, Chicago’s City South, and Mokena, is fully leased to seven tenants. This strategic investment underscores the strong demand for premium industrial space in key Chicago submarkets and reflects the broader industrial resurgence driven by technological advancements, reshored manufacturing, and a growing emphasis on sustainability.  

Chicago’s strategic expansion of industrial parks, coupled with its pioneering adoption of smart manufacturing technologies, strengthens its position as a leading industrial powerhouse. This ongoing transformation, complemented by the city’s dynamic office space market, is a testament to Chicago’s unwavering commitment to innovation and economic growth. As Chicago continues to shape the future of industry and commerce, it remains a vibrant embodiment of the “City of Big Shoulders” spirit, poised to overcome challenges, capture new opportunities, and thrive for generations to come. 

The post Big Shoulders, Bold Investments: Chicago’s CRE Landscape   appeared first on Stream Realty Partners.

Unfortunately, this crisis is a complex mix of economic, social, and policy issues that have developed over decades, presenting a formidable challenge with no easy solutions. However, recent legislative progress at both state and local levels are creating opportunities to address the issue, particularly through affordable housing development. 

A prime example of such legislation is the recently enacted state Senate Bill 4, known as the Affordable Housing on Faith Lands Act. This groundbreaking measure permits the construction of affordable, multifamily homes on lands owned by faith-based institutions and nonprofit colleges—streamlining the permitting process and overriding local zoning restrictions.  

Similarly, the City of Los Angeles has introduced Executive Directive 1, which expedites the processing, clearances, and approvals for shelters and 100 percent affordable housing projects within city limits.  

These legislative efforts offer a promising avenue for forward-thinking investors to collaborate with churches and colleges, capitalizing on the “YIGBY” (Yes in God’s Backyard) movement by converting portions of their properties into much-needed affordable housing units.  

Collaborative efforts that serve a greater good 

The partnership between investors, religious institutions, and nonprofit colleges represents a powerful convergence of resources and expertise. Investors provide crucial capital and strategic insights, drawing on their extensive experience in development, while religious institutions and nonprofit colleges provide land and strong community ties, laying the groundwork for these initiatives to thrive. 

This collaborative model goes beyond addressing immediate housing needs; it fosters a holistic approach to community development. By combining their resources, these partners create vibrant, inclusive communities that drive sustainable change. 

As such, these legislative initiatives have bolstered our ability to collaborate with essential organizations throughout Orange County, exploring creative ways to use real estate to supplement charitable efforts while making a positive impact.  

For example, in partnership with National Core, we identified a site for a 71-unit apartment complex in Lake Forest, California, turning an aging office building into quality residences for individuals and families. These apartments, comprised of one-, two-, and three-bedroom units, cater to households earning between 30% and 60% of the area median income (AMI). 

The success of this venture has allowed us to pursue additional affordable housing projects in Lake Forest and beyond, aligning with our commitment to people, purpose, and passion in real estate. 

Incentives that support continued progress 

In addition to addressing the critical need for housing throughout Southern California, SB4 and Executive Directive 1 offer significant benefits: 

1. Corporations and private investors can achieve their Corporate Social Responsibility (CSR) goals, enhancing their brand image among socially conscious consumers.
2. Religious institutions and nonprofit colleges can diversify their revenue streams by leasing or selling affordable housing units. This financial flexibility supports essential social programs, infrastructure improvements, and scholarships, ensuring sustainable growth and long-term success.
3. Investors receive financial incentives, including tax credits, subsidies, grants, and increased access to the Low-Income Housing Tax Credit (LIHTC). The streamlined approval process reduces bureaucratic delays and associated costs, making affordable housing projects more attractive and financially viable.

Investing in affordable housing isn’t just a charitable act—it’s a strategic endeavor that promises substantial returns with a lasting positive impact. As purposeful investment gains importance, California’s approach to addressing homelessness is poised to tackle housing challenges while igniting social progress and economic prosperity.

The post Faith in Action: How Legislation is Enabling Religious Institutions and Investors to Champion Affordable Housing  appeared first on Stream Realty Partners.

Texas Economy Positioned Well  

Hartzell highlighted how the university is reshaping the perspective on degree attainment, emphasizing the integration between different schools, such as business and engineering, which enables students to forge a unique path aligned with their goals. “Students now want to bundle things together to add and enrich a degree,” he noted. Hartzell underscored UT Austin’s proactive role in driving innovation, fostering economic growth, and advancing healthcare, positioning the university and the state as leaders in several high-impact sectors. 

“None of this would be possible without Texas’s booming economy,” Hartzell continued, citing corporate relocations such as Tesla’s gigafactory and Samsung’s semiconductor partnership with UT Austin as key drivers. He attributed this growth to Texas’s business-friendly environment, rapid project execution, abundant talent pool, and favorable tax burden. 

The university capitalizes on this economic momentum, solidifying its status as a flagship institution in a state boasting the 8th largest economy globally. “I think Texas has a chance to be that fourth destination behind the cities like Boston, San Diego and the Bay Area,” he envisioned. 

Future Development and Healthcare Advancements 

Hartzell elaborated on the strategic utilization of UT Austin’s expansive real estate assets, emphasizing their role in attracting businesses and facilitating faculty housing development. With substantial land holdings, the university is poised to cultivate corporate collaborations, enriching its educational and research capabilities. This concerted effort to leverage its real estate assets forms a key component of UT Austin’s overarching strategy to bolster growth and enhance its economic impact. 

“That land for us is like money trapped in dirt,” he remarked, underscoring the immense potential inherent in these land holdings. 

Furthermore, Hartzell discussed a groundbreaking $2.5 billion partnership with MD Anderson to establish two state-of-the-art hospitals on the UT Austin campus. This ambitious initiative seeks to diminish the need for patients to seek complex medical treatments outside of Central Texas while harnessing UT Austin’s engineering and data science expertise to drive healthcare innovation. Through endeavors such as utilizing AI to develop personalized treatment models, Hartzell envisions this partnership catapulting Austin into prominence as a pivotal hub in the life sciences sector. Such initiatives, he believes, will fortify Austin’s competitive standing against established centers like Boston and the Bay Area. 

Healthcare Feeds into Technology, Which Feeds into Energy 

Hartzell envisions a future where Texas, particularly Austin, emerges as a formidable tech hub, poised to rival established centers such as Boston, San Diego, and the Bay Area within the next 10 to 20 years. He highlighted ongoing collaborations between universities and tech giants like Samsung to establish shared training facilities tailored for the semiconductor workforce, focusing on advanced chip packaging techniques. 

Moreover, Hartzell underscored the critical role of energy in powering the technological advancements driving this burgeoning tech ecosystem. Texas’s unwavering commitment to diverse energy sources, encompassing oil, gas, solar, wind, and nuclear power, places the state in a uniquely advantageous position for future tech developments. 

UT Austin is engaged in groundbreaking projects to further bolster Texas’s technological prowess. For instance, initiatives such as developing a digital twin of a molten salt nuclear reactor aim to streamline regulatory processes for emerging nuclear technologies. Hartzell expressed optimism regarding the potential of modular nuclear reactors and innovative battery storage solutions, highlighting their significance as integral components of the state’s energy mix. 

In jest, Hartzell humorously remarked, “If I can have an 11-2 football team and $80 (barrel of) oil, my job is easy.” He emphasized his bullish outlook on Texas, citing the state’s abundant energy resources as a critical advantage that will continue to attract investment and drive technological innovation. 

Moving to the SEC 

Amidst the fervor of the Austin crowd, the discussion naturally turned to UT football. Hartzell provided insights into the decision to transition UT Austin from the Big 12 to the SEC, driven by the imperative to remain competitive amidst evolving dynamics in college sports, including media rights, athlete compensation, and student mobility. 

The transition aims to safeguard the university’s athletic franchise while bolstering revenues through high-profile home games, which wield significant influence over the athletic budget. 

“And then this year when Georgia comes, and it’s F1 weekend, hotel rooms spike,” Hartzell quipped, injecting humor into the conversation. “So, if you have a hotel…you’re welcome.” 

A State of Potential 

President Hartzell’s insights not only illuminated the vast opportunities within Texas but also emphasized how the state’s flourishing economy, strategic initiatives, and collaborative spirit serve as a blueprint for driving positive change and shaping the future of CRE. As stakeholders navigate this dynamic landscape, they have the opportunity not only to seize current trends but also to influence outcomes and transform perspectives, thus sculpting the industry’s trajectory for years to come.  

Texas continues to stand as a beacon of growth and innovation, offering boundless possibilities for those poised to embrace the journey ahead.

—

Thanks to all who attended our 2024 Texas State of the Market event, with special thanks to our sponsors. We look forward to seeing you at our East State of the Market event this fall.  

Knight Commercial | Peak Parking | Heritage Title Company | Munsch Hardt | Professional Janitorial Service | rand* construction | CoStar | Kimley Horn | RealtyAds | Scout Security Group | Texas Fifth Wall Roofing | Fenagh Engineering & Testing | Powers Brown Architecture 

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Derek graduated with a degree in computer programming and worked as a consultant for PricewaterhouseCoopers. It became clear that technology was not his passion, and he knew a change was in order. That was when the world of CRE caught his eye. “I was young, competitive, knew I wanted to be in a more ‘eat what you kill’ business, and probably a bit naïve,” reflects Derek.  

He started as an analyst at CB Richard Ellis and transitioned into brokerage, moving to Endeavor as a leasing agent one week before September 11th, 2001.  Although it was trying time to be 100% commission, the tough market provided invaluable learning opportunities that propelled his career. In just five years, Derek became the head of Endeavor’s office leasing group. 

It was then that Derek connected with Allan Young, Executive Managing Director and Partner for Stream San Antonio, cold calling him to explain why he should hire Derek and his team to lease a building in Austin, where Stream had no presence. The conversation took an unexpected turn, though, when Allan asked Derek if he’d be interested in opening an office for Stream, leading Stream’s expansion into the Austin market. 

Risk-averse, with a “nothing to lose” mentality, Derek was all in. It was a bold move. “Honestly, it wasn’t necessarily some grand, thought-out plan. I simply thought, why not me?” 

Embracing opportunity.  

Derek’s vision wasn’t solely about establishing a presence in Austin; it was about creating something meaningful with a platform set up to do big things outside of just Texas. “There was something special in the atmosphere. It’s as if we all knew we were building something different and were genuinely excited about it–challenges and all,” recalls Derek. 

Today, Stream boasts 1400+ real estate professionals, covering some of the most active markets coast to coast.  

Drawing on his proven track record and hands-on experience in pioneering prosperous new markets, Derek assumed the position of Head of New Markets & Partner at Stream in 2020, a role that still generates excitement. “In an industry where our competitors are cutting resources, we are uniquely set up to provide our clients and teams with an advantage,” says Derek. “Talent is efficient and always gravitates to the best opportunities.  That is Stream, and it’s a fun place to be right now.”  

Exploring new frontiers.  

In the last several years, amid market turmoil, Stream has brought on three new markets, including Nashville, Phoenix, and South Florida. Yet, growth isn’t Stream’s primary driver. “We want to be the very best in the markets and lines that we offer, which is why we invest heavily in our new markets and talent,” notes Derek. “We aren’t just signing people on and then leaving them to figure it out– that’s not a formula for success.” 

Yet, Stream does continue to grow, even in an uncertain economy, a phenomenon Derek attributes entirely to the company’s distinct culture.  

“It all boils down to our people. When introducing new markets, we handpick individuals like Greg Katz, Tiffany Winne, and Rob Lowe, knowing they’ll seamlessly integrate into our culture and share our deep commitment to clients and teams,” says Derek. “As we enter new markets, we want to ensure we’re continuing to provide value for our clients; we’re not interested in simply checking dots off on a map.”  

As Stream increases its footprint and influence, Derek’s unwavering commitment to excellence serves as a guiding beacon for the entire organization. With Stream, it’s not just about navigating uncharted territories; it’s about actively shaping the future of commercial real estate, one visionary stride at a time. 

Interested in being a part of Stream’s story? Reach out to Derek Land today.  

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One alternative to the boom-and-bust nature of private markets has been the CHIPS and Science Act of 2022, which authorized $10 billion for the Regional Technology and Innovation Hubs Program (Tech Hubs), which seeks to grow industries of strategic importance and plant the seeds of future tech hub growth in regions outside of Silicon Valley. These technology hubs partner with state universities and local entrepreneurs to attract and retain graduates in more rural and affordable areas, creating these highly specialized business clusters. Below are some industries and locations covered by this new era of government-guided industrial policy:  

The Nexus for Advanced Resilient Energy (“SC Nexus”) This hub is in South Carolina, in the tightly connected MSAs within the Upstate and Midlands regions (Greenville, Spartanburg, Anderson, Columbia, and surrounding counties). This is an Advanced Energy hub, specifically developing and driving innovative research in designing and manufacturing control systems fundamental to a clean energy transition. Of significant importance is:  

• Advanced Manufacturing of small modular nuclear reactors, offshore wind turbine manufacturing, hydrogen production and storage, and development of batteries and photovoltaic solar panels.  
• Battery innovation and testing to develop and test the next-gen stationary battery components for large-scale energy storage. This includes vanadium flow, self-healing silicone anodes, and improved thermal safety technologies.  
• Grid re-engineering to develop and demonstrate new products using grid-storage AI and ML to enable efficient weather and cyber-resilient distributed systems.  

Central to this region’s success is the Savannah River National Laboratory in Jackson, South Carolina, along with a growing list of established private sector companies, such as Bosch, BMW, Duke Energy, Pomega, and Westinghouse, looking to take advantage of the substantial federal grant funding and workforce growth and development projects currently taking place in this area.

According to Rob Williams, a Vice President with Stream Carolinas, recent technology companies to establish operations in South Carolina include EnerSys, Omron Automation, Tesla, Mojave Energy Systems, TIME Bicycles, and Erchonia Corp. “South Carolina has proven itself effective in attracting top technology firms due to its low cost of living, friendly business environment, and commitment to growing the technology industry through programs such as SC Nexus,” explains Rob. “Put simply, South Carolina is a place where companies and their employees can thrive.” 

Texoma Semiconductor Innovation Consortium (TSIC) This hub offers a decentralized model of semiconductor chip production. By exploring the manufacture of bare semiconductor wafers in “Fablets,” which are mobile and distributed labs containing semiconductor manufacturing, production, and testing, it is possible to have a highly reactive semiconductor supply chain. This is especially important for the military and defense industries because it provides multiple chip redundancies and eliminates disruptions.  

Southern Methodist University leads this tech hub in Dallas, encompassing 29 counties in North Central Texas (including Dallas and Fort Worth) and Oklahoma. The North Texas Region is the birthplace of integrated circuits and has an existing advanced ecosystem of telecommunications and defense contractors. Companies involved in the TSIC area include Fujitsu, Lockheed, Toyota, GlobalWafers, and Texas Instruments, to name a few. The TSIC tech hub will strengthen existing business relationships between industries and companies dependent on stable semiconductor supply chains. The Fablet concept is looking to disrupt the production of modern microprocessors, the most complex devices ever invented or manufactured by humans.

Randy Cooper, Vice Chairman of Stream’s Tenant Representation Division, has observed the direct impact. “The buzz around tech is palpable, especially in North Texas, where firms are investing billions,” Randy notes. “For instance, the investment in Sherman, Texas by Texas Instruments could reach $30 billion. Consequently, there’s a growing interest from tech companies to locate nearby, fostering collaboration in research, development, and employment opportunities. Some in Congress are even comparing the semiconductor industry’s expansion in Texas to ‘the most significant technology revolution since the Manhattan Project.'” 

South Florida Climate Resilience Tech Hub – This region is the most exposed geography in the United States to climate-driven catastrophes, from sea level rise to hurricanes. As a result, this hub focuses on sustainable and resilient infrastructure, from extreme building codes, clean cement, and marine infrastructure to artificial reefs and seawalls to help prevent or mitigate future climate disasters. This hub partners with Miami Dade College and Florida Memorial University, venture capital funding, and 20 commercial partners to develop solutions to future climate problems. 

“Miami is rapidly emerging as a prime destination for tech companies,” notes Carlyle Coffin, Senior Vice President at Stream’s Miami office. “Major players are establishing headquarters here, while smaller firms are also flourishing. With Florida attracting more young professionals, the industry’s growth is inevitable. Apple’s recent announcement of a new 45,000 square foot office in Miami is a testament to this trend.”

In much the same way that life science laboratories sprung up in key locations (San Francisco, San Diego, and Boston) to meet the growing demand of venture capital-funded biotechnology startups, there will also be a need for creative office and R&D laboratories in these key areas focusing on these key technologies in the future. With the United States shifting priorities and providing a strategic roadmap (along with generous federal funding, grants, and workforce development plans) for industries to promote the goals of national security and climate change resilience, there is much opportunity for industrial and office developers to explore options in these hubs and ride the next wave of federal-assisted new technology startups.  

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