21 new grocery stores planned amid
Houston's strongest retail growth in years
Jan 13, 2017, 1:33pm
CST
Olivia
PulsinelliSenior web editorHouston Business Journal
Houston's
retail development boom — including grocery stores, big-box retailers and other
major projects — shows no sign of slowing down this year, even as the energy
downturn has hit several other real estate sectors.
The area is expected to see 4.98 million square feet of retail
space built and opened in 2017, according to Houston-based Wulfe & Co.’s 24th Annual Retail
Survey. That’s up 9.2 percent form the 4.5 million completed in 2016 and the
largest figure the Houston area has seen since 2008. Click through the
slideshow to see some major retail developments underway around the Houston
area.
Much of the new space is already under construction, is fully
leased by national retailers, is being self-developed by national retailers or
includes planned new projects of major development firms. Only about 10 percent
will be speculative store space available for lease.
Grocers plan to add 21 new stores in the Houston area this year,
accounting for 23 percent of the new space. Here are the new grocery stores
planned for 2017:
- Kroger: six more
123,000-square-foot prototype Marketplace stores ( see a recent slideshow)
- H-E-B: three more
100,000-square-foot stores and one Joe V’s Smart Shop ( see a recent slideshow)
- Aldi: 10 more
19,000-square-foot stores ( recent news)
- Wal-Mart: one neighborhood
supermarket
Here are other major big box stores planned for 2017:
- Wal-Mart: three super stores
- Target: two super stores
- Costco: a new
150,000-square-foot store
- At Home: three
100,000-square-foot stores
- Total Wine: six stores between
25,000 and 35,000 square feet
- Lowes: two new stores
- Home Depot: one new store
The report also highlights seven new theaters, two
new Lifetime Fitness locations, one new LA Fitness and
a new VillaSport Athletic Club and Spa.
Additionally, Pinstripe will open a 34,000-square-foot bowling and
restaurant concept in the new Kirby Collection mixed-use
development in Upper Kirby.
The region’s suburban areas will see a large portion of 2017’s
growth, driven by the new sections of the Grand Parkway and recent
single-family and multifamily housing booms. Even though multifamily and office
construction is expected to slow in 2017, retail should not be effected this
year or in the immediate future, Ed Wulfe, chairman and CEO of Wulfe & Co.,
said in the report.
“Even with this
aggressive expansion of new retail space commitments, overall retail occupancy
in Houston will continue to strengthen and approach an all-time high rate in
excess of an estimated 94 percent,” Wulfe said in the report. “Retail rental
rates will increase slightly in response to the limited availability of
shopping center space and higher land and development costs. With the area’s
continued growth along with the expansion needs of both established and
new-to-market retailers, the competition for available space in well located,
well tenanted retail developments, is intensive in spite of the higher rental
rates,”
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