The Biggest Projects in Houston's Burgeoning Retail Pipeline
Houston’s retail market is posting its strongest numbers in years, according to Weitzman’s Q2 report. The sector is at 96% occupancy, and although 2.6M SF is under development (1M SF more than last year’s deliveries), the firm expects vacancy to remain low. Weitzman shared the nine biggest projects completing in 2015 (there are some even bigger ones breaking ground for future delivery):
• Baybrook Mall expansion (rendered above): the 555k SF expansion is anchored by a 42k SF Star Cinema Grill. The project will bring the mall to 1.7M SF and will open by the end of the year.
• The Galleria: Simon is building a new 198k SF Saks store adjacent to the existing property, opening up 110k SF for restaurants and other retailers within the mall.
• Hughes Landing: The 175k SF retail component includes a 40k SF Whole Foods, which opened in March. Other tenants include Truluck’s, Del Frisco Grille, California Pizza Kitchen, Local Pour, Starbucks, Pier 1 Imports and KB Kasuals.
• Market at Crenshaw: The property sits along Beltway 8 in Pasadena. Phase 1 is 169k SF, including a 55k SF Burlington. Phase 2 will be 60k SF.
• Gallery Furniture: 165k SF store in The Market at Long Meadows Farms in Richmond.
• Costco: Building a 150k SF store in Pearland and 153k SF store in The Woodlands.
• Fry-529 Retail Center: Phase 1 of the center, which is in Cypress, is 115k SF, including a 60k SF Fiesta Mart that opened in January. Pictured, site clearing at that project.
• Yale Street Market: a 114k SF grocery-anchored center at Yale and I-10 inside the Loop. It’s anchored by a 28k SF Sprouts Farmers Market, which opened in March. LA Fitness and World Market have also inked leases.
• HEB Tanglewood: Besides a 91k SF grocery store at San Felipe and Fountainview, the center features 30k SF of small shop space for tenants including La Madeleine.
Weitzman also shared three big redevelopments:
• HEB demolished a long-vacant 87k SF former Kmart on Highway 146 in Texas City and is building a 62k SF grocery store in its place.
• Academy is redeveloping the former Kroger at 1461 Spring Cypress at I-45, a 63k SF building.
• World Gym opened a 45k SF location earlier this year in a redeveloped Macy’s at the Main of the Mainland in Texas City. The redeveloped property also includes a Palais Royal.
