Texas Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in Texas.
Issue link: https://texasrealestatebusiness.epubxp.com/i/591312
T he saying "retail follows roof- tops" is ringing true in the rapid- ly growing state of Texas. Texas added more new residents than any other state in the nation in 2014, ac- cording to the U.S. Census Bureau. Several of the state's metros are at or near record low retail vacancy rates and construction is fnally starting to ramp up in the Lone Star State. Whether it's power centers, grocer- anchored retail, mall redevelopment, construction along new thoroughfares or outlet centers, the major metros of San Antonio, Austin, Dallas and Houston are all seeing rapid absorp- tion and construction growth in the retail sector. Here's a look at retail development in the four major metropolitan areas of Texas. Growth in San Antonio According to a second-quarter re- tail survey conducted by leasing and management frm REOC San Anto- nio, there is 826,000 square feet of retail under construction in the city and surrounding suburbs. Most of the projects are smaller, unanchored centers. For example, Verde Plaza is a 24,265-square-foot center nearing completion along the I-35 corridor in close proximity to the Amazon.com W ith double-digit rent growth and soaring occupancy rates, Houston and its surround- ing markets are looking stronger than ever, despite a lingering perception of risk in the eyes of outside investors. This disconnect between perception and reality is afording local Texas investors the opportunity to heavily engage in the retail market, as outside investors look on from the sidelines, notes David Luther, frst vice presi- dent of Marcus and Millichap. Moderated by Editor Randall Shea- rin, Shopping Center Business and Texas Real Estate Business held their annual retail roundtable in mid-September at the ofce of host Gray Reed in Hous- ton. This year's roundtable participants included Luther; Mark Vondrak, di- rector of leasing at InvenTrust Prop- erties; Jim Gibson, regional director of Stan Johnson Co.; Corey Ferguson, president of Raintree Commercial; Gerald Crump, senior vice president of Weingarten; Kurt Dennis, director at LMI Capital; Scott Gardner, partner at StreetWise; Michael Axelrad, senior vice president of Brixmor Property Group; Jason Gaines, director of retail leasing at Hunington Properties Inc.; George Weatherall, vice president of Oldham Goodwin Group LLC; Lance Gilliam, partner of Waterman Steele RE Advisors; Kenneth Katz, partner at www.REBusinessOnline.com November 2015 • Volume 11, Issue 9 INFILL, EXURBAN PROJECTS LEAD HOUSTON RETAIL New projects, new restaurants, new retailers not slowing in Houston and surrounding markets. Moderated by Randall Shearin TEXAS RETAIL EXPANSION REMAINS HEALTHY Population growth, strong employment pave the way for development in retail. By Haisten Willis San Antonio Wins the Race with Consistency, Diversifed Economy page 38 No Slowing Net Lease Sector in Texas page 42 page 22 Star Cinema Grill to Open Fifth Houston Location INSIDE THIS ISSUE see HOUSTON, page 45 see RETAIL, page 44 Endeavor Real Estate Group is leading the redevelopment of Springtown Shopping Center in San Marcos, located 30 miles southwest of Austin. From left to right, Gerald Crump, Weingarten; George Weatherall, Oldham Goodwin Group LLC; Jim Murphy, Westchase District; and Louis Jullien, Westchase District.