So many houses of prostitution in Houston . . . but who’s counting? “Because arresting prostitutes or customers barely slows the actual sex trade, investigators have concentrated on owners, bringing money laundering charges that carry stiffer penalties or using state nuisance laws to close their doors. But it takes months to put a case together as officers pose as customers and prostitutes. Even when a final conviction takes out a business, someone else can move in to the buildings along Houston’s highways and neighborhoods to ply their wares, Houston Police Sgt. Mark Kilty said. ‘There’s so much money involved in sex, in the sale of sex, that’s why you have so many establishments,’ Kilty said. He estimated that there are over 100 brothels in Houston. Others have put the number as high as 300. ‘Because they’re illegal they’re hard to track,’ Kilty said.” [Houston Chronicle]
Read more about: Crime, Leasing, Openings and Closings
And suddenly, Houston Pavilions gets some action:
NRG Texas and Reliant, NRG’s retail electric company, have agreed to lease 240,000 square feet of the 11-story Pavilions Tower, which comprises most of the building at 1201 Fannin.
NRG/Reliant will take 10 floors. The law firm Sheehy, Serpe & Ware has the top floor.
The bottom three floors of Pavilions Tower have always been designated as “swing space,” which could have been used for retail or office space, Houston Pavilions co-developer Geoff Jones said. NRG/Reliant will take all of the swing space, as well as some additional space on the second floor that initially had been designated for retail, Jones said.
How much of that lonely and vacant retail “additional space” on the second floor is being turned into office space?
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Read more about: 77002, Downtown, Houston Pavilions, Leasing, Mixed Use, Office Space, Retail
Armed with a camera, two enterprising Swamplot readers set out to document the retail carnage along South Shepherd, between 59 and the Shepherd Curve:
The sheer number of businesses that have disappeared along Shepherd in 4 months has been stupefying. This is with a large, new, empty Weingarten development at one end …and the chronically empty Shepherd Plaza at the other. Hell, we have gone from 4 Starbucks to 3!!
That’s a 25 percent reduction in mocha lattes alone. How about in some of the other sectors?
Granted, there have been some new businesses, a Hallmark store, a dance studio, and something seems to have filled the lingerie place at Welch and Shepherd, but the vacancy rate now stands at 22%!!! We counted 172 retail “units” and found 37 of them to be empty. As recently as February, I remember only about a dozen vacancies.
What are the sights?
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Read more about: 77019, 77098, Commercial Real Estate, Leasing, Montrose, Retail, Retail Vacancies, Shepherd Curve, Shepherd Dr.
Writing in the River Oaks Examiner, Cynthia Lescalleet has a few updates on the River Oaks Shopping Center. Here’s what Swamplot has pieced together:
- That well-trafficked space across the atrium from The Gap on the south side of West Gray will soon have a new tenant. Yes, this is the spot previously occupied by clothing retailer Harold Powell (whose parent company, Harold’s Stores, declared bankruptcy in November). Before that, it was occupied by M. King Interiors (which skipped out in the night a few years earlier, according to reports), before that Mesa Restaurant (ditto), and apparently way before that a restaurant called XIT. A new 6,200-sq.-ft. Mutual of Omaha Bank will be moving into the space soon.
- Meanwhile, across the street, Barnes & Noble will be opening in its brand hulking new building around October 1st.
What else?
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Read more about: 77019, Commercial Real Estate, Leasing, Neighborhood Disputes, Openings and Closings, Restaurants, Retail, River Oaks, River-Oaks-Shopping-Center, Shopping Centers, Weingarten Realty
A reader sends in a pic of the action at the renovated but long-suffering strip center at the southwest corner of Kirby and Richmond, which looked to be getting awfully lonely again after the departure of its lone tenant, Hue Vietnamese restaurant, in March.
But Hue is back as Kata Robata Sushi and Grill, and that white banner on the opposite leg indicates that the Dessert Gallery has moved in. Off camera, to the right, signs announce that the endcap is slated for a Texas Community Bank, but our reader reports seeing no sign of any money inside.
Photo: Swamplot inbox
Read more about: 77098, Leasing, Openings and Closings, Restaurants, Retail, Shopping Centers, Strip Centers, Upper Kirby
A reader sends in a photo of the Arch-Con tilt-up office building going up at 1335 West Gray just west of Waugh, across from The Tavern on Gray — and asks:
This has got to be the first ever tilt up building inside the loop, right?
The 21,000-sq.-ft. building was planned to house the Houston headquarters for general contractor Arch-Con on the third floor, next to the terrace. Scraped bungalows will make room for an adjacent surface parking lot. The architect’s website notes there will be “additional parking on the first floor.” Stream Realty has two 7,466-sq.-ft. floor plates listed for lease.
Renderings of the finished building, from Ziegler Cooper Architects:
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Read more about: 77019, General Contractors, Leasing, Montrose, New Construction, Office Buildings
At last: That year-old, right-up-to-the-street, parking-garage-behind The Mix @ Midtown building at 3201 Louisiana gets a ground-floor tenant! Going into the buildout in the space at the southeast corner of Elgin, below 24 Hour Fitness: a new Japanese restaurant.
Want a peek inside?
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Read more about: 77006, Leasing, Midtown, Mixed Use, New Construction, Restaurants
The Lone Star College System’s $42.2 million purchase price for that chunk of the former Compaq campus it closed on last month turns out to be $100 million less than the amount it had offered to Hewlett-Packard for the property a year earlier, reports Wall Street Journal reporter Maura Webber Sadovi. A few more tidbits from her report on the second-largest office purchase in the U.S. so far this year (The auction of Boston’s 1.8 million-sq.-ft. Hancock Tower for $660 million in March was the biggest):
The $35-a-square-foot price Lone Star paid was below the $57 average paid for the few suburban Houston office properties sold in the first quarter of 2009 and a deep discount to the $145 per-square-foot suburban average in the year-earlier first quarter, according to Real Capital Analytics, a New York-based real-estate-research firm.
Expect to see administrators of the Lone Star College System (known until recently as the North Harris Montgomery Community College System) lounging around in some of the executive furniture HP threw into the deal at the last minute as well. How did they strike this bargain?
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Read more about: 77070, Buying and Selling, Commercial Real Estate, Leasing, Northwest Houston, Price Reductions
What’s a struggling mall to do these days? How about turning off the air conditioning . . . and hosting a comic-book convention! Robert W. Boyd reports from the scene:
Despite a great location [on Highway 6 between Westheimer and Richmond] and not bad interior, West Oaks Mall is plagued with vacancies. And unlike malls like Memorial City Mall, West Oaks is not able to hide the gaps. . . .
West Oaks needed to occupy its empty stores (even if temporarily), or at least cover them up. And it needed to get people in the mall who could at least potentially patronize the remaining stores. So that’s where Comicpalooza came in.
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Read more about: 77082, Alief, Attractions, Commercial Real Estate, Economic Conditions, Leasing, Malls, Retail
April 10, 2009 – 10:49 am
Lots of space is available in Houston’s industrial soft spot — on the far east side of town: “A lot of developers built huge facilities on spec at the Port of Houston. However, with trade down due to the global slowdown, the Port is starting to feel some pain, too; as is the real estate that sprang up to serve it. Exports are falling off, while imports are going from ship, to intermodal, to the rest of the country rather than remaining in Houston warehouses. Added to the fact was that building was out of control in that area during the mid-2000s. ‘Three or four years ago, everyone wanted to be at the Port, so everyone put their buildings there,’ [Grubb & Ellis Senior Vice President John] Nicholson says. ‘It was crazy.’ The result is a lot of vacant product, especially warehouse space, in the far east submarket. Transwestern’s report puts the East-Southeast Far submarket at 13.5% vacancy, including sublet space. The total inventory in that area is 34 million square feet, with 1.8 million square feet under construction. The Grubb & Ellis numbers for East Southeast Far have 30 million square feet of inventory and a 20% vacancy. And all of Houston is hunkering into recession mode in the area of lease negotiation. Nicholson and [Transwestern managing director Brian K.] Gammill say short-term deals are more common, as are more free-rent concessions.” [Globe St.]
Read more about: Industrial Properties, Leasing, Port of Houston, Warehouse Space
The River Oaks Examiner’s Cynthia Lescalleet tours the brand-new 340-unit One Park Place, across from Discovery Green Downtown:
Units are bright and spacious, with several oversized features, such as 10-foot ceilings that, unlike loft properties, are finished, meaning no dust or gloomy black paint. Each unit has a balcony. Views vary. Overall, the apartments toured felt solid and private and very much like city living in other major cities, which was the point. In One Park Place, Finger Companies wanted to build a landmark residence reminiscent of the historic parkside properties in New York, Chicago and San Francisco. Meanwhile, the project’s rose-colored masonry with stone accents connotes other noted Houston architecture. . . .
Okay, how much?
. . . the property’s floorplans have verdant names like Cedar and Azalea. The smallest units have about 800 square feet and lease for $1,800-$2,550 if located on the lower floors of the tower. The six penthouses lease for $6,400 to $11,880 for units of 2,000 to 3,500 square feet.
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Read more about: 77010, Apartments, Downtown, Highrises, Leasing, One Park Place
“Maybe Mr. Alexander could solicit such basic needs tenants for the River Oaks Shopping Center; perhaps a local bakery and a quick-serve restaurant like the Black-Eyed Pea, for example? [Hellsing, commenting on And What About the River Oaks Shopping Center?]
Read more about: 77019, Comments, Leasing, Redevelopment, River-Oaks-Shopping-Center, Shopping Centers
His company’s stock down more than 70 percent since last year and the 2009 calendar wiped clean of all new development projects, Weingarten Realty president and CEO Drew Alexander tells analysts and investors the REIT is gonna survive. “The key to the survival? An increase in cash on the balance sheet and a continued ‘focus on tenants that sell basic goods and services,’ Alexander commented. Those tenants include grocery stores, dry cleaners, quick-serve restaurants and value chains such as Ross, Marshall’s and TJ Maxx.” [Globe St.]
Read more about: 77019, Economic Conditions, Leasing, REITs, Retail, River-Oaks-Shopping-Center, Weingarten Realty
Comment of the Day: Kicking Back on Washington Ave.
“I live in the Core (since October 2008), and I’m certain that there are no plans to extend this complex across the street. The Core is a great place to live, but like every other large inner city complex, they’ve been slow to fill vacancies here. With that said, it would be foolish for them to even consider expanding. The last I heard, there were plans to put a small two story shopping strip there similar to the one on the other side of the Core. Still no solid plans though from anyone. By the way, if anyone wants to live here in the Core, put me as a reference and you and i both will get cash back.” [Hector Garcia, commenting on Washington Ave.: Extending The Core?]