In Houston we tend to talk a whole lot about oil and gas. Houston knows how to monetize earthly resources- and we do it quite well. So what does that mean for the vertical resources above ground- namely Houston Commercial Real Estate and the linchpins who swim in the fear propelled swells?
Trey Halberdier, President of HALBERDIER Real Estate, headquartered in The Woodlands Texas gives his take on Houston Commercial Real Estate as it meshes with Oil and Gas…
“We create exceptional real estate opportunities thru land and vertical commercial real estate asset classes. It starts with Land and ends with end-users who ultimately pay rent or want to own real estate. The difference between real estate and O&G, in our opinion, is commercial real estate is less volatile. It’s tangible and easily understood. Why,… because rooftops, businesses and people with lifestyle and career needs will still office, shop, eat, sleep, bank, seek medical help and coexist in reputable communities – which leads to a business we can control with fundamental real estate investing, creativity and large equity tranches.”
Trey Halberdier and his H Real Estate team thrive on fundamentals, opportunity, raising capital, always planning for the worst/expecting the best and being fanatically disciplined in good and bad times. As he says, “Ok- so if oil drops like a rock again for sustainable periods, how are our assets positioned when tenants contract, investment appetites subside, and net absorption fades away. We plan for it – low leverage, endurance, and having irreplaceable real estate assets with strong capital partners.”
Halberdier’s play off ExxonMobil plans to hedge just that. “We have procured and are developing over $150 Million in commercial real assets in past 18 months- and the only reason you do that is when you have a multi-billion dollar recession proof conglomerate ExxonMobil (and Grand Parkway) in your backyard- coupled with The Woodlands TX- arguably one of the best communities in the USA.”
While oil prices plunged from $107 to $45 in a just a few months, the descent is not over despite a recent bounce above $60. Oil and Gas professionals predict global trends which will erode oil prices further in the coming weeks.
So in fact, for Trey Halberdier and THE H Companies, they encourage other courageous contrarian entrepreneurs and investors to:
- focus on the inflow and not the outflow
- buy right- not just buy
- leave the fear mongers at bay- listen to paranoia, but dance with it and iterate
- use more cash than normal on acquisition- closer to 50% Loan to Costs…if any loan at all
- be hyper disciplined and use empirical data to drive sound decisions
- stash more cash while seeking new deals always
- diversify tenant/user mixes to other professional fields, not just oil and gas end users
- play on the edges, not out of the box or in the box,… but on the edges where the magic happens
HALBERDIER Real Estate is bullish on Houston commercial real estate, with the above matrices in place. Connect now to learn more right ways to win, invest, and create impact!
The H Real Estate – info@theHrealestate.com