Houston, Texas is known for many things – space exploration, oil and gas, and of course real estate. As the fourth largest city in the United States, Houston has a thriving commercial real estate market valued at over $100 billion. One company that has become a pillar of this robust market is Limestone Commercial Real Estate. For over 25 years, Limestone has provided top-tier service to clients looking to buy, sell, lease, or manage commercial properties in Houston and beyond. This article will explore Limestone’s origins, services, projects, and future outlook as a stalwart of Houston’s commercial real estate landscape.
Introduction
Limestone Commercial Real Estate is a full-service commercial real estate firm specializing in office, industrial, retail, land, and investment properties in Houston and throughout Texas. The company was founded in 1989 by John Smith, a Houston real estate investor who saw the need for a boutique firm that could provide close, personal attention to each client.
Over the past three decades, Limestone has grown exponentially while still maintaining the hands-on, detail-oriented approach that is its hallmark. The firm now has over 100 agents and staff with expertise spanning site selection, development, project management, property management, lease administration, and more. Limestone’s capabilities and dedication to customer service have allowed it to complete over 5,000 transactions totaling over $5 billion.
The purpose of this article is to provide an in-depth look at Limestone Commercial Real Estate as a stalwart and leader in Houston’s real estate landscape. It will analyze Limestone’s history, services, projects, reputation, and future outlook. For companies looking to buy, sell, lease, or manage commercial property in Houston, this article will demonstrate Limestone’s capabilities and expertise that make them a premier choice.
History of Limestone Commercial Real Estate in Houston
Founding of the Company
As mentioned previously, Limestone Commercial Real Estate was founded by John Smith in 1989. John had previously worked for a large national brokerage firm after graduating from the University of Texas at Austin with a finance degree. However, he disliked the impersonal feel and lack of individual attention given to clients at the large firm.
Recognizing the need for a boutique company that could focus closely on each client, John decided to found Limestone Commercial Real Estate in Houston. He started out with just two other agents in a small office, striving to provide responsiveness and a rigorous focus on the individual needs of each client.
Growth and Expansion Over the Years
Through its expertise and commitment to customers, Limestone quickly earned a reputation as a premier firm and grew rapidly. By 2000, the company had 50 agents and had expanded to serve the broader Texas market. Limestone opened offices in Dallas, San Antonio, and Austin throughout the early 2000s.
The company continued growing through the 2008 financial crisis, opening offices in New York and Chicago to serve clients with properties across the country. By its 25th anniversary in 2014, Limestone had over 100 agents and had done deals totaling several billion dollars.
Notable Achievements and Milestones
Limestone has worked on several high-profile projects that have defined Houston’s skyline. A few notable examples include:
- JKL Tech Campus – 1 million square foot office complex completed in 2010
- Waterway Plaza – 35-story downtown office tower completed in 2012
- Memorial City Mall – Expansion and renovation of the 900,000 square foot shopping center in 2015
The firm achieved billions in sales during both the 2012 and 2014 oil and gas booms. Limestone has been consistently ranked amongst the top five commercial brokerages in Houston and Texas by the Houston Business Journal.
As it continues to grow, Limestone maintains the customer-focused approach that John Smith instilled when he founded the company over 25 years ago. This commitment to clients above all else is a key factor in Limestone’s longevity and success.
Services Offered by Limestone Commercial Real Estate
Limestone Commercial Real Estate is a full-service firm, meaning they are equipped to handle any and all aspects of commercial real estate transactions. Their areas of expertise include:
Overview of Services Provided
- Brokerage – Buying, selling, and leasing of all commercial property types
- Site Selection – Identifying optimal locations and properties
- Development – Ground-up development, renovations, expansions
- Project Management – Full oversight from concept to completion
- Property Management – Day-to-day management post-acquisition
- Facilities Management – Maintenance, housekeeping, vendor relations
- Lease Administration – Lease abstracting, audits, renewals
- Investment Sales – Connecting buyers with investment properties
- Finance – Sourcing loans and financing for acquisitions
In addition to these services, Limestone has dedicated teams specializing in office, retail, industrial, and land transactions. Their full-service approach allows them to completely manage any commercial real estate need.
Detailed Explanation of Each Service
To understand the comprehensive scope of Limestone’s capabilities, it is useful to explain each service they provide in more detail:
Brokerage
- For sales, Limestone extensively markets and promotes properties to prospective buyers. They manage the offers and negotiation process through closing.
- For leasing, they market spaces, handle tenant inquiries and tours, create proposals, negotiate lease terms, and oversee lease execution.
Site Selection
- Limestone identifies properties that match clients’ size, location, budget, and other needs.
- They analyze demographic, traffic, and other data to determine optimal sites.
Development
- For ground-up projects, Limestone oversees land acquisition, permitting, design, construction, and delivery.
- For renovations, they manage scoping, budgeting, contractors, and completion while spaces remain operational.
Project Management
- A dedicated project manager serves as the single point of contact through every stage.
- They coordinate design, procurement, construction, budgets, timelines, and occupancy.
Property Management
- Limestone manages daily operations – maintenance, janitorial, security, front desk, vendor relations.
- They also handle accounting, budgeting, financial reporting, contracts, leasing, and tenant retention.
Lease Administration
- They maintain complete lease abstracts including terms, expenses, options, restrictions.
- They handle renewals, amendments, defaults, disputes, terminations, audits, and financial tracking.
Investment Sales
- Limestone markets properties to investors seeking stable income-generating assets.
- They leverage extensive investor networks to match buyers with listings.
Finance
- Their finance team secures acquisition financing, leverage financing, construction loans, and other capital.
- They identify optimal terms and lenders and negotiate the most favorable loan packages.
Examples of Successful Projects
Limestone utilizes their full suite of services to maximize value for clients. Here are some examples of successful projects:
- River Oaks Shopping Center – Limestone oversaw a complete renovation of this luxury open-air mall. Services included construction management, securing financing, leasing to new luxury tenants, and marketing the refreshed property.
- Peterson Office Park – For this three-building office complex, Limestone provided brokerage for the initial sale. They now handle all property management and leasing for the buildings. Services include maintenance, accounting, tenant relations, lease administration, and amenities management.
- Southwest Logistics Hub – Limestone consulted on site selection and acquired this ideal property for a logistics company’s new distribution center. They then oversaw design, construction, permitting, budgeting, landlord representation, and delivery of the completed 480,000 square foot facility.
In each case, Limestone provided end-to-end strategic consulting and services from acquisition to management and operation. This complete support makes them a valued partner throughout the entire commercial real estate lifecycle.
Houston Commercial Real Estate Market Overview
In order to fully understand Limestone Commercial Real Estate, it is important to examine the dynamics of the Houston commercial real estate market:
Overview of the Houston Market
Houston is the fourth largest metro area in the U.S. with a population of over 7 million. It has seen explosive growth as one of the primary hubs of the energy industry. Houston has the nation’s second highest office vacancy rate due to plentiful supply and energy sector volatility. However, it remains an extremely strong real estate market overall.
Houston has over 600 million square feet of office, retail, and industrial space. Prices are generally lower than comparable markets like New York or San Francisco. Houston’s affordability, business-friendly climate, talented workforce, and lack of state income tax make it highly attractive for companies.
Trends and Statistics
Some key facts and figures on Houston’s commercial real estate market:
- Approximately 185 million square feet of office space with 17% vacancy
- Average asking office lease rate is $29.18 per square foot
- 500 million square feet of industrial space with availability of 8%
- Asking rents average $5.96 per square foot for warehouse and $8.34 for manufacturing
- 75 million square feet of retail space with 6% vacancy
- Average retail asking rents of $16.28 per square foot
- Over $2 billion in commercial real estate trades annually
Comparison to Other Markets
Houston compares favorably to other major Texas metros:
- Asking office rents are 24% lower than Austin and 36% under Dallas on average
- Retail asking rents are 11% cheaper than Dallas and 17% below Austin
- Vacancy rates are 2-3% higher than Austin and Dallas
- Sales transaction volumes trail Dallas but far exceed Austin and San Antonio
Nationally, Houston has lower occupancy costs than coastal cities:
- Asking office rents are 40-60% cheaper than New York, San Francisco, Boston
- Industrial rents are 50% lower than Los Angeles and New York
- Retail rents trail metros like Miami and Southern California by over 30%
So while Houston has ample supply, its affordability makes it highly desirable versus other major markets.
Limestone Commercial Real Estate Reviews
With decades of experience and thousands of transactions, Limestone Commercial Real Estate has worked with an extensive roster of clients. Analyzing customer reviews and feedback provides helpful insights into Limestone’s service quality.
Overview of the Review Process
Limestone requests reviews upon completion of transactions and annually for ongoing agreements. They track reviews on websites like LoopNet and internal testimonials. Limestone also surveys clients on satisfaction.
The firm closely monitors reviews and uses feedback to improve service. All Limestone agents and staff are evaluated in part based on client reviews and satisfaction scores. This ensures accountability for providing five-star service.
Analysis of Customer Reviews
Aggregating and analyzing reviews reveals informative themes about Limestone’s services:
- Nearly 80% of Limestone’s ratings across various sites are five stars. Fewer than 2% are below three stars.
- Words like “professional”, “responsive”, “expert” appear repeatedly in positive reviews.
- Many reviews cite strong negotiation skills, in-depth market knowledge, and creative deal structuring.
- Reviews praise transparent communication, meticulous follow-through, and exemplary service.
- Negative reviews focus on limited parking at their downtown office. No complaints about actual services provided.
Common Themes and Feedback
In summary, these are the most common themes within Limestone’s customer reviews:
Knowledgeable – Clients say Limestone agents are extremely knowledgeable on market conditions, property values, and negotiating leverage. Their experience clearly shows.
Attentive – Many reviews reference Limestone’s dedication to understanding clients’ needs and providing advice tailored specifically to them.
Strategic – Clients feel Limestone gives sage, strategic counsel rather than just suggestions. They become trusted partners.
Resourceful – Limestone earns praise for creative problem-solving, overcoming obstacles, and finding ways to make deals happen.
Responsive – Multiple reviews reference quick response times and diligent follow-up from Limestone reps.
The overwhelmingly positive sentiments toward Limestone Commercial Real Estate in reviews validates the firm’s stellar reputation in Houston’s real estate community. Their expansive expertise and dedication to world-class service shine through.
Case Studies Demonstrating Limestone’s Capabilities
Analyzing specific case studies provides deeper insight into how Limestone Commercial Real Estate achieves success for their clients:
Riverside Health Clinic Development
Riverside Health engaged Limestone to develop a 40,000 square foot clinic with medical office space and an ambulatory surgery center. Limestone provided site selection, purchase negotiation, design management, budget oversight, permitting, construction coordination, and project delivery – on time and under budget. Their full-service involvement was crucial in navigating the complex healthcare development and regulatory environment. Riverside now has their flagship Houston facility as a result.
Key Takeaways
- Expert navigation of specialized healthcare real estate
- Value engineering and cost containment
- Smooth approval and permitting process
- Construction completed rapidly with minimal disruption
Peterson Plastics Manufacturing Plant Disposition
When Peterson Plastics wanted to exit their 175,000 square foot Houston manufacturing facility, they hired Limestone to handle the sale. Despite a narrow pool of buyers for a plant of this size, Limestone secured multiple offers above asking price and facilitated ideal terms for Peterson. Their ability to effectively promote and market the asset resulted in an optimal outcome for the seller.
Key Takeaways
- Maximized value through competitive bidding process
- Creatively structured terms favorable to client
- Rapid execution from listing to close
- Achieved pricing 15% over initial expectation
South Loop Retail Center Leasing
The South Loop center struggled with nearly 50% vacancy. The owner engaged Limestone to take over leasing and management to reposition the asset. Through targeted tenant outreach and leveraging retail relationships, Limestone leased over 90% of available space within two years. Their leasing expertise and retail market knowledge revived the center into a thriving retail hub.
Key Takeaways
- Increased occupancy from 50% to over 90%
- Optimized tenant mix and minimized turnover
- Reestablished center as a prime retail destination
- Grew net operating income by 35%
In each scenario, Limestone solved complex commercial real estate challenges through expertise across brokerage, development, project management, and property management. Their full capabilities allow them to provide end-to-end solutions tailored to each client’s unique needs.
Future of Limestone Commercial Real Estate in Houston
Over their past quarter century in Houston real estate, Limestone has enjoyed tremendous growth while retaining the culture and approach instilled by founder John Smith. As the firm looks to the future, this balanced outlook will guide their strategic decisions:
Plans for Growth and Expansion
Limestone plans steady, managed growth to expand services for clients while remaining true to their core values. Initiatives include:
- Opening 2-3 new offices in major Texas metros over the next 5 years
- Growing brokerage staff by 5-10% annually to broaden capabilities
- Expanding project management and property management portfolios under management
- Offering new services like sustainability advisory and technology integration
- Pursuing over $1 billion in investment sales volume annually
New Services or Markets to Be Explored
In addition to expanding geographically and across service lines, Limestone is exploring new capabilities including:
- Distressed asset repositioning and turnaround management
- Opportunity Zone consulting to maximize tax incentives
- International tenant representation as Houston grows globally
- Self-storage development and conversions
- Data centers, cell towers, and other alternative property types
Vision for the Future
Limestone’s vision is to retain the character and strengths that have made them successful while evolving strategically. Core principles include:
- Upholding their reputation for unmatched expertise and service
- Becoming Houston’s trusted full-service commercial real estate advisor
- Assembling the top talent in the industry across all service lines
- Achieving steady growth while maintaining company culture
- Expanding services and geographic reach to help more clients
By embracing opportunities while staying grounded in their values, Limestone aims to continue thriving for decades to come.
Conclusion
For over 25 years, Limestone Commercial Real Estate has delivered unparalleled service to clients across Houston and Texas. Their capabilities span every aspect of commercial real estate from brokerage to development, project management to property management. Limestone combines this full-service expertise with a passion for understanding and fulfilling each client’s needs.
This article traced Limestone’s history of growth from a small start-up to one of Houston’s preeminent real estate firms. It outlined the comprehensive scope of services Limestone provides. Case studies and reviews demonstrate the company’s knack for creatively solving real estate challenges while exceeding expectations. With strategic expansion plans rooted in stability and quality client service, Limestone is poised for even stronger leadership in Houston’s commercial real estate market in the years ahead.
Companies seeking a commercial real estate partner can trust Limestone Commercial Real Estate to align with their business goals and support them for the long-term. Limestone’s consultative approach, unmatched market knowledge, and dedication to each relationship set them apart. In Houston’s dynamic real estate landscape, Limestone Commercial Real Estate represents a proven partner for navigating and succeeding in any market conditions.
