All good (and insanely delicious) things must come to an end, Cheddar Bay Biscuits included.

Last week was a tough one for Gen Xers and millennials, with Red Lobster joining a long list of ’80s- and ’90s-era eateries poised to go the way of the dinosaurs. It isn’t the first family sit-down restaurant of yesteryear to kick the can, and it certainly won’t be the last. So what does that mean for commercial real estate in Texas and beyond?

The answer will depend on the market, but Texas cities could ultimately benefit from the chain’s demise, unlike other places in the nation,

There are 13 Red Lobsters in Dallas-Fort Worth, followed by 10 in Houston and six in San Antonio, according to Partners Real Estate data shared with Bisnow.

All three markets have suffered from historically low levels of vacancies for several years now, which means the closures could ultimately be a blessing in disguise so long as owners are willing to take on what could be a painstaking redevelopment process. Red Lobster, like other restaurants of its era, boasts a design that is decidedly unique, making an adaptive reuse project especially challenging.

As with all things, those equipped to rise to the occasion will do so. And at least for Texas, the turnover could result in some exciting new restaurants. Not too shabby for a silver lining.

— Olivia Lueckemeyer, Bisnow DFW Reporter

What's The Big Deal?

Partners Real Estate is growing at home and throughout the region. The third-biggest firm in Houston leased 32K SF to move its headquarters down the street in the Galleria area next year, increasing its Houston office space by about 8K SF. The new lease in San Felipe Plaza will move the firm out of its subleased space in Four Oaks Place. The expansion announcement comes two months after Partners opened its first office outside of Texas.

Read more here.

Best Of Bisnow

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• The First, Not The Last: Melvelean McLemore has some mixed feelings about becoming the first Black woman to be named president of Houston’s American Institute of Architects chapter in 2023, but she’s determined to ensure she won’t be the last. In a Weekend Interview with Bisnow, McLemore detailed her career journey, why it’s so rare to see Black women in architecture and what’s being done to change that. 
• Yes, Again: Arbor Realty Trust moved to foreclose on a Houston multifamily property. That’s not the first or even second time that sentence could be written this year, and Applesway Investment Group alone accounts for six of the foreclosed properties. This time, an LLC tied to a Nashville-based private equity firm defaulted on a $56.27M loan. 
• Trail Of Destruction: Severe weather ripped through North Texas on Tuesday morning, leaving significant damage to commercial property in its wake. Early reports include collapsed roofs, shattered windows, overturned semis and downed power lines. Thousands are without power, and storms are expected to continue through the remainder of the week.

Best Of The Rest

• Just Like Us?: When he’s not engaging in infamous musical feuds, superstar rapper Aubrey “Drake” Graham is apparently working on his real estate portfolio. The Grammy Award-winning artist has scooped up a 313-acre hotel and resort property in Brenham, between Austin and Houston, Robb Report details. Drake has not revealed whether he will operate the former Inn at Dos Brisas, once a Relais & Châteaux-branded property, as a business.
• Dam Huge: The 50th Buc-ee’s location is slated to open in Luling on June 10, The Dallas Morning News reported. Slated to be the largest in the company’s portfolio, the 75K SF rest stop will replace the company’s flagship store and will be quickly followed up by the brand’s 51st store opening in Smiths Grove, Kentucky.
• Boom Goes Bust: Austin is used to appearing on Top 10 lists, but it has just landed on one that city officials might not want to boast about. The city ranks fifth among the Top 10 locations residents are fleeing this year, according to PODS Enterprises’ annual moving report. That’s a significant fall from its former perch, according to The Austin-American Statesman, which attributes the drop to spiraling housing costs following a boom in new residents.
• Solar-Powered Economics: Imperial Star Solar plans to start solar panel manufacturing operations in Lovett Industrial’s Interchange 249 business park by September, the Houston Business Journal reports. This is expected to bring a huge economic boost to Tomball, with the city getting a $10.8M net benefit from the facility and another $22.5M in payroll impact within five years. The company plans to spend almost $30M to improve the building. 
• 3 Acres Closer: Houston City Council approved the $260K sale of 3 acres of White Oak Bayou to the Texas Department of Transportation for the long-awaited Interstate 45 expansion project. The sale, approved by 11 of 16 council members, is a key move toward reality for the project, which has been heavily criticized since it will require the displacement of about 1,000 homes and 350 businesses. The project will widen and reshape 17 miles of the road from Beltway 8 North to south of Downtown, Axios reports.

Photo Of The Day

Hurricane-force winds shattered windows at 4901 Lyndon B. Johnson Freeway in North Dallas during a Tuesday storm powerful enough to overturn tractor-trailers and uproot trees. The weather event caused widespread property damage and thousands of homes and businesses were still without power this morning.