Chris Sacks

Here is a simple strategy I utilize and recommend to clients. If I am seller or repping seller, and buyer wants to renegotiate, then they need to terminate their contract. And then we can renegotiate. We don’t negotiate with buyers who have call options on the property.

@Dirtdog There are probably more power centers. A lot are still in preleasing and still need capital. 60+ grocers is accurate. Will dump some stats on you next week. 🫡

@SacksRealEstate ~8.5 million people and has grown by 1.5 M people in the last 10 years 6 power centers is impressive, but still not keeping pace

ICSC 2026 - Lots of chatter on the hot pad concepts: 7 Brew Coffee, Chick-fil-A, Dutch Bros, Raising Cane’s, Take 5 Oil, Valvoline - Crab on the half shell viewed at multiple parties I attended so it seems the market is strong in general - Continued trend of little to no space being constructed in the U.S. at scale. Think of the closest Target center to you that also has Ross and a handful of fashion retailers and perhaps a movie theater. Yeah, none of those are really going. - Grocery anchored retail has decidedly shifted to small format centers. Grocery box with 8-15,000 SF of shop space and as many pads as can fit. No mid box. - Development Constraints. A laundry list of problems, special improvement districts, property tax increases, insurance increases, entitlement time frames still no bueno - ICSC built an entire prop tech area which was cool for many of these emerging companies to display what they can do. - Logistics were challenged this year. EDC was on the front end of the show causing those that arrived Sunday to battle for expensive rooms, cabs and ride shares, etc. Next year EDC is book ending the conference with back to back weekends of concerts and ICSC is in the middle. What did I miss? What was your favorite part?

@7_Bert I’ll play the other side of this. It truly does not matter at the time of inquiry. The only time it could is in retail to understand tenant’s use. If you receive an LOI, then you can address tenant’s operation/business and LL can decide.

Tenant brokers spend way too much time not wanting to share information on who their client is. If you’re not under NDA I promise it’s not that important. You’re also not going to get all the information you need from a landlord or know about potential spaces they can get back by withholding information.

@texasrunnerDFW Interesting to see that midway hollow/west Dallas area is up slightly while Lake Highlands/East Dallas is down slightly.

As you can see from the map, MOST zip codes in the cities surrounding Dallas have negative home prices YOY (red or pink in color)* *Data from ResiClub

A Tale of Two (Rich) Dallas Cities: Homes Prices in Prosper, TX (Zip 75078) are DOWN -6% YOY Median HHI in Prosper: $196,500 Home Prices in the Park Cities (Zip 75225, 75205) are UP +8% and +5% YOY Median HHI in 72225: $200,000 Median HHI in 75205: $181,000

@bethanyjbabcock Land site acqusition or building lease?

Who is the “guy” or “gal” for industrial tenant rep in Dallas? Bigger sites

@DallasAptGP As someone who is a big fan of large residual land values, we love to see a 4 story surface park 🤑

We just handed our investors a $4.3M tax loss on a new construction apartment building in Dallas. That's 53% of the amount they originally invested. The 2025 return is filed. Here's the exact math. Total cost was $19.8M, Investors put in $8.2M, a bank lent us the other $11.6M We built it in the Cedars, just south of downtown. Here's how the loss works. The IRS lets you depreciate an apartment building over 27.5 years. Slow and steady. A cost segregation study speeds it up. An engineer walks the property and breaks it into parts: cabinets, lighting, flooring, appliances, landscaping, parking. Each part has its own shorter life. On this building, the study pulled $4.3M of the $13M depreciable basis into 5-year and 15-year buckets. Then the new tax law did the rest. Under the One Big Beautiful Bill Act, Congress brought back 100% bonus depreciation. So instead of spreading those shorter-lived parts over five and fifteen years, we wrote all of it off at once. $4.3M of deductions available as soon as we placed the building into service It's not a loophole. It's the tax code working as written to get housing built. Now, who can use a loss like this? Rental real estate losses are passive. A passive investor can only use them against passive income—the kind that comes from other rentals or syndications. They can't wipe out a salary. Two groups put these losses to work: --> The investor with passive income from other deals, who uses this loss to shelter it. --> The high earner who qualifies as a Real Estate Professional, who can take passive losses against active income. At a 37% rate, a $4.3M loss is about $1.6M of tax that doesn't get paid this year. One more piece makes those losses usable at all. Our construction loan is qualified nonrecourse debt. That means investors add their share of it to their tax basis, not just the cash they put in. With $11.6M of debt behind $8.2M of equity, there's room to absorb the full loss. A paper loss you can't use is worthless. This one, they can use. Some haters will read to this point and say, "BUT WHAT ABOUT DEPRECIATION RECAPTURE!?!" When you sell a building, the IRS wants those deductions back. They call it depreciation recapture, and it takes a real bite out of the gain. The IRS adds up all the losses you've taken over the hold period and taxes them at 25%. Investors can avoid recapture in two ways: A 1031 exchange defers the tax. You roll the proceeds into another property and keep the clock running. Or you build using the Opportunity Zone tax structure. This asset, The Marcus, sits in an OZ census tract, and our investors all came in with capital gains. Hold the investment for ten years and you pay no tax on the appreciation and no recapture on the depreciation. The $4.3M loss against this year's income will be tax free. The appreciation on this $19.8M building will also be tax free. Most tax strategy pushes the bill into the future. Opportunity Zones get rid of it.

@DFWJoeAskew Send me the deets!

Reach out for details! bizjournals.com/dallas/news/20…

@clint_turner What were the specifics for the restriction? What was the basis for the removal?

myth: you can’t get deed restrictions removed; Texas is too land owner friendly hold my coffee ☕️

@mhp_guy I want to do the same. Key imo is to buy in the right growth corridor so that you can sell to a public homebuilder in 30 years for 10x

I just put in an offer on a beautiful Texas ranch that’s 40 mins from home. I want my boys to drive a tractor on the weekends and chop down trees. I want them to get blisters, hunt deer in the fall and drive the cattle to the processor. That’s my dream. Fingers crossed.

@CRELeasingLawTX My question was around recurring financial updates, not a qualification for initial lease. Initial qualification is common across all asset classes. Only in retail have I seen where tenants are expected to provide regular updates

Office/industrial folks, how often do you see leases without tenant financials requirements? I usually see financials required but curious if that’s unusual

@CRELeasingLawTX Yes it’s very common at lease execution but have never heard of ongoing financial reporting for any asset class other than retail

@SacksRealEstate I see it in office and industrial too. But I’d be curious what others are seeing!

I don’t think I’ve ever done a retail lease that didn’t require tenant to provide financials annually, or at least on request of landlord up to once per year. This is very standard.

@RE_Ari18 Caught up with two retail investment sales brokers this week. Both confirmed this along with unrealistic leasing expectations being underwritten. A lot of buyers that have never owned/operated retail. Going to get clobbered imo

There are groups buying unanchored strips with mid-credit tenants at 6% caps, some even lower. This is below the cost of debt. I'm a dinosaur in this space. There used to be a 300bps spread, debt vs cap rate. I don't see how these people can make money.

@AdamHKlein Is this a real deal? Or just lamenting?

Everybody wants to buy the +10% cap rate deal in Florida, but no one wants to own the big box mall when you show it to them.

@CydeWeys @patcarino Not necessary, but it is more expensive to construct a suitable foundation for a high rise if bedrock is too far down. Thus it may become economically infeasible

@SacksRealEstate @patcarino Bedrock isn't necessary.

I know nothing about New York City development. Why haven’t there been taller buildings like this built on the upper east and west side? Seems like such a better neighborhood than billionaires row which seems like trash to me. Are there less air rights available up here?

@iononrecourse Just looked at a 30 acre site in City of Dallas. Rezoning cost was going to be ~$50k for fees and required civil engineering for the application. Absurd.

The biggest alpha in commercial real estate comes from zoning and entitlement changes. Were I an enterprising young real estateur, I'd get dialed on how to do this in a high demand, high barrier market. Requires minimal capital, a little bit of research, and building a lot of relationships, but the ability to obtain added property rights is valuable. There's fortunes made in getting a data center approved, but even getting a lot split or a setback waived has real value. The trick is getting paid on outcomes not time.

@DFWJoeAskew Business center, right? Is that a fuel station?

Haltom city for the win

@hitsamty Only if Ray is attending

Looks like I will be in the Dallas area 3rd week of June for the footie. The Promote Happy Hour around then? Or has everyone already fled the coop for Aspen?