2 min read January 2022 — In an interview with Invest:, John Cannon, president of DH Realty Partners, talked about the benefits of being located in both San Antonio and Austin, as well as the steady growth occurring all over the state of Texas. He also spoke on how the company has maneuvered through the pandemic and how low interest rates are impacting the current market in a positive way.
What are some of the biggest ways DH Realty Partners grew over the pandemic?
Last year was a challenge for everyone, especially in the commercial real estate market. The highlight for us has been the growth of our company. In the last five years, we’ve tripled the size of our agency, with offices both in San Antonio and in Austin. Being a very collaborative group, we were ready for the pandemic as we were already doing virtual meetings with agents and team members who now work remotely in various parts of the country. Financially for us it wasn’t a huge hit, because we had pivoted to include other real estate services, such as expanding our property management portfolio, and as such, didn’t need to worry about staff layoffs. We were ready to push forward as soon as investors started showing interest again, and they have come back in a big way.
What are some big opportunities and challenges you are dealing with?
An opportunity lies in the fact that people are moving to Texas in droves. That benefits us because company headquarters are moving to our area in Texas, along with many of their employees. We’ve practically become a Tier 1 commercial real estate market if you look at both San Antonio and Austin together, because of our close proximity to each other. Because of the need for more commercial space, we have seen land sales increase drastically, and as a result a lot more land development. There has been a shift in the need for office space, with many companies using more remote employees. Even though the size of office space needs has reduced, we have been able to take these properties and pivot them to meet new needs.
Have you noticed any shifts in demand for your services?
The first thought that comes to mind is medical offices. It has really gained momentum as medical office needs are moving into class-A buildings, often in established neighborhoods.
Internally, we’ve found that people have enjoyed a flexible workspace for their own safety and because it benefits them. There is also more collaboration now with other real estate companies. For instance, we provide accounting services for smaller real estate firms, which demonstrates trust between us. Culture is also very important to us and when everyone is happy, production increases.
How do you think low interest rates have impacted recent developments?
We work with our clients to find the best rates. We find that banks are willing to risk a fixed rate for the next 10 years, so we’re seeing a lot of availability in funds in the market. Interest rates are so low that we see an increase in cap rates coming down, creating a greater yield for sellers. In addition, many investors are taking advantage of buying land today, thus avoiding higher rates in the future.
What separates San Antonio from other markets?
There are some people who fight against progress but I’m okay with that because those are the folks who help stabilize us. San Antonio might not have the same pace as some other cities but we still get things done. The community factor is also important. We’re not as divided politically, for example. We still go to lunch together regardless of where we stand in terms of our political views. There’s also a lot of young talent coming to and staying in the area. It’s overall a great place to raise a family and has been for years. That is also very attractive to people and businesses.
For more information, visit:
