One of Houston's longtime industrial-focused real estate shops is under new ownership by two brokers who say they spend more time on the street than in a conference room.
First Houston Properties, founded in 1981, was recently bought by Patrick McKiernan and Managing Partner James Mashni, who describe themselves as street brokers for the amount of time they are out in the field. They are busy seeking to expand the firm, now marketed simply as First Houston, that specializes in industrial outdoor storage beyond its existing Texas locations in Houston and Laredo.
"First Houston has always only been focused on industrial real estate," McKiernan, First Houston's president, told CoStar News. "We've never done retail or office, and we thrive on industrial outdoor storage. We were doing IOS before it was an acronym."
We've never done retail or office, and we thrive on industrial outdoor storage.
Industrial outdoor storage has emerged as a standout performer among industrial real estate, Newmark noted in a research report, with U.S. rents having increased 123% since 2020 — more than twice the rate of bulk warehouse rents. With well-located sites remaining scarce, McKiernan said he and his business partner spend as much time walking properties in Texas as they can.
"We are out in the field 80% of the time, stopping in on properties, canvassing and doing deals," McKiernan added. "We are not sitting in the 50th floor of an office tower."
That's because being on the streets of Houston and Laredo gives First Houston an edge in what has become a very competitive industry, with "institutional capital at every level trying to get into IOS," McKiernan said. First Houston's 45 years in the industrial sector also offer an advantage, with this not being the firm's first rodeo when it comes to zoning or access challenges, he added.
"It's important to know what you can and cannot do for your clients," McKiernan said, who has been looking at potentially buying First Houston for the last decade.
McKiernan, 36, has worked at First Houston since 2016 and has almost two decades of experience in commercial real estate. Mashni, 37, has been at First Houston since 2017 and got into the industry because of his family. They were given a chance to buy First Houston, which was founded by Aron Grenader, after Grenader decided to exit the business and had no one to pass the brokerage's torch to.
"He turned down other offers to sell it to us," McKiernan said, who added the duo had been working on the acquisition for the last five years.
Now, he and Mashni are looking to open the next chapter for First Houston, with plans to grow outside the Houston brand and expand the firm's capabilities to other Texas markets, including Dallas, Austin and San Antonio.
"We're already actively adding people in Laredo and in the next year, we plan to add another 10 people," McKiernan said. As the firm's listings grow, its representation needs to keep pace.
Ideal candidates need to have what McKiernan calls a solid foundation, with the ability to talk to clients and good morals. The rest, he said, can be taught.
"There's few groups like First Houston out there doing this to our level and we are looking to grow," he said. "Our deals get done on the ground."