Category: News & Market Reports

First Watch Coming to Grand at Aliana as NewQuest Starts Work on More Multi-tenant Space

Posted on by Sarah

NewQuest Properties will soon break ground on additional multi-tenant space in the Grand at Aliana after landing the award-winning First Watch as its newest tenant in the 56-acre regional development in Fort Bend County, Texas. The popular breakfast, brunch and lunch eatery has leased a 4,060-square-foot end cap in a soon-to-start 10,900-square-foot building. A second multi-tenant project, totaling 9,490 square feet, will begin to rise in early Q1. Both structures will be prominently positioned at the main entrance of the Grand at Aliana and front the Grand Parkway/TX 99. “The Grand at Aliana is one of the few large shopping centers that has delivered in 2020 in the region and has stores that are opening,” said Josh Friedlander, vice president of NewQuest Properties. He and David Meyers, leasing director, lease the project for the Houston-based development and brokerage firm. NewQuest will deliver the first multi-tenant building in May. Otwell Construction Inc. of Magnolia, Texas, is the general contractor. If all goes as planned, First Watch will open in September. The Grand at Aliana is First Watch’s 16th location in Greater Houston for franchisee Mac Haik Enterprises. Ron Marshall, president of Mac Haik Realty LLC, served as tenant representative in the negotiations. Opening in the past month were Burlington, Five Below and Petco. In early Q1, Michaels, Ross Dress for Less and Ulta will come online. At build-out, the Grand at Aliana will add nearly 400,000 square feet of class A retail and restaurant space to the Grand Parkway-West Airport Boulevard intersection. “First Watch is the first in its category to land at that intersection. The Aliana neighborhood has been asking for a wider selection of restaurants, which we are trying to provide,” Friedlander said. Aliana is one of Fort Bend County’s newest communities. It is master planned for 4,423 homes and its neighbor, Harvest Green, will have 2,626 at completion. NewQuest’s regional development’s trade area boasts 42,339 households with an average annual income of nearly $100,000. “The area as a whole is experiencing extraordinary growth,” Friedlander said. “As a result, our leasing activity is strong for inline space and pads. I have another dozen deals under negotiation.”

Stream Secures Four Houston Deals

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Stream Realty Partners recently facilitated four industrial leases in Houston. Ordinary Concepts signed a lease of 2,865 square feet at Fairway Business Park, 10606 Hempstead Road. Garret Geaccone and William Carpenter with Stream Realty Partners represented the landlord, Brennan Investment Group. Green Explosion signed a lease of 3,600 square feet at Southport Business Park, 6001-6021 S. Loop Fwy. E. Cesar de la Guardia with CBI Realty represented the tenant. Boone Smith and Garret Geaccone with Stream Realty Partners represented the Landlord, Agellan Commercial REIT. Atlantic Clothing signed a lease of 19,221 square feet at Turning Basin Industrial Park, 2025 Turning Basin Drive. Matteson Hamilton and Jeremy Lumbreras represented the landlord, CenterPoint Properties Trust. Boomtown Coffee signed a lease of 5,603 square feet at Fairway Business Park, 2517 Fairway Park Drive. Garret Geaccone and William Carpenter represented the landlord, Brennan Investment Group.

Covid Pushes Real Estate Into the Future

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The coronavirus could be the crisis that finally propels the tech-averse real estate industry into the 21st century. Location matters less, now that the office is the kitchen. Size matters more, now that everyone is at home. And the best way to the kitchen. Size matters more, now that everyone is at home. And the best way to the building’s amenity package — it’s peace of mind walking from the lobby to the living room. These are the touchpoints for a host of new or newly valuable technologies emerging in the post-Covid housing market, from rent-regulated apartments to luxury condos. They range from robotic furniture that reimagines itself inside our shrinking walls, to contactless apps designed to bring neighbors together. They are futuristic takes on prosaic features, like ultraviolet wands in air ducts, and “Ghostbusters”-inspired blasters to hose down Amazon boxes. Some may be passing fads. Still, the ones that stick could have long-term implications for a stubbornly analog industry, even as some critics have raised concerns about data collection and privacy. And it remains unclear whether these improvements will reach the workaday housing market, or remain a luxury niche. Click to read more at www.nytimes.com.

North Texas’ Healthy Industrial Market Stands Out During the Pandemic

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Dan Spika, SIOR

Since the start of the pandemic back in March 2020, the economy has suffered millions of lost jobs. Of course, this has had a direct impact on the commercial real estate market. But compared to the office and retail sectors, the industrial market has been much more resilient. In fact, there is some evidence showing that Covid-19 has fueled warehouse demand in Dallas-Fort Worth. We spoke with Dan Spika, SIOR, Executive Vice President and Principal of the Office and Industrial Division for Henry S. Miller Brokerage, to get his take on North Texas’ healthy industrial market. What is your overall perspective on the DFW industrial market since the pandemic started and looking toward the future? The industrial market was in and is still in great shape. Even before the pandemic and the resulting economic downturn, the industrial real estate market in North Texas was booming. Not long ago, The Dallas Morning News reported that some 30 million square feet of new warehouse space is planned around DFW. As a CRE asset, an industrial building is very stable. All indications are that will not change. How has the increase in e-commerce shopping impacted the need for industrial space in the DFW area?
Consumers are finding ways to purchase goods that do not require in-store shopping. One method that was popular before coronavirus and even more so now is e-commerce. People buying online expect to receive their merchandise immediately, which requires retailers to have a so-called ‘last mile’ location for inventory. You only have to look at Amazon’s new distribution center near DFW International Airport that is more than one million square feet to understand the importance of that last mile. What makes DFW the preferred location for warehouse and distribution centers?
First of all, Dallas-Fort Worth is easily accessible to and from any part of the country, including both coasts. Our central location as well as convenient transportation and distribution networks make the region a logistical hot spot. Labor costs here are less than they are on the east and west coast, too. DFW also offers a lower cost of living, great school systems and an overall good quality of life. So right now we’re seeing an influx of many different types of companies, especially from the west coast. What are developers doing vis-à-vis the industrial market? Developers are looking for land! North Tarrant County, Denton, Forney and Terrell are all good locations. South of I-20 is still relevant, too, because land is a bit cheaper there. But it’s difficult to find anything near DFW, Flower Mound, Carrollton or Lewisville. What has been the impact on tenant leasing and rents? Leasing activity has been keeping up with new supply as indicated by a vacancy rate of only four or five percent. And rents are going up as fast as landlords can get to the new sites. And how do investors feel about DFW’s industrial market? They are very bullish on DFW. I haven’t noticed investors being scared off by the pandemic. In fact, I think they’re recognizing the industrial market’s stability, which will likely increase interest for the foreseeable future. Click to read more at www.henrysmiller.com.

Tesla’s ‘Ecological Paradise’ in Giga Texas Could Serve a Role in Austin’s Development Plans

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Tesla Gigafactory Texas sprawls over 2,000 acres and may prove to be a key component of the Austin City Council’s development initiatives in the area. The Austin City Council held a meeting on November 12 and approved a resolution for the development of East Austin. Tesla Giga Texas’s ecological paradise would fit perfectly in East Austin’s changing environment. The Council’s resolution tasked City Manager Spencer Cronk to create a broad, long-term development plan to support East Austin’s growth and potential of economic development. “(This resolution) brings some much needed focus to a long-neglected part of East Austin that’s basically on the precipice of really experiencing considerable growth,” said Council Member Natasha Harper-Madison. “This is our opportunity to really get it right and get ahead of unfettered growth with more proactive action in this area.” In drone operator Joe Tegtmeyer’s recent video, he noticed a large clearing across State Highway 130, which was part of the land Tesla purchased for Gigafactory Texas. Workers started working on that part of Giga Texas’ massive land area in August and early September, but Tegtmeyer said that activities in the location started ramping this past week. Click to read more at www.teslarati.com.