Shopping Center Business

MAY 2016

Shopping Center Business is the leading monthly business magazine for the retail real estate industry.

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GRAND PARKWAY 292 • SHOPPING CENTER BUSINESS • May 2016 T exas continues to be one of the hottest economies in the U.S., and the state's population has continued an upswing as well. While Houston's energy sector has been hit by falling oil prices, the metro area's population continues rising. With this growth comes increased demand for housing, office real estate and retail. Another effect of the population growth is the building of infrastructure to help new residents move from place to place easier. One such project is a new toll road five miles south of The Woodlands, a large master planned community north of Houston. The road is known as the Grand Park- way, and runs north from Sugar Land to the Rose Hill area, then cuts east until it meets Interstate 69. Kimco Realty is developing a retail de- velopment on a 65-acre site to accomo- date growth in the corridor. The project is known as Grand Parkway Marketplace and is desgined to bring today's leading retailers to the area with an understanding of the needs in the immediate trade area. Kimco purchased the site, located in Spring at the intersection of Grand Parkway and Kuykendahl Road, in De- cember 2014 for the development of the 500,000-square-foot power center. The area includes 170,000 residents in a five- mile radius, with an average household income of around $110,000. "We were attracted to this property due to the explosive growth that was going on in the north side of Houston at the time," says Robert Nadler, president of Kimco Realty's central division. "We felt that the population was underserved and many of the national retailers operating in Greater Houston were not penetrating this excep- tional demographic. The existing retail nodes were all six to seven miles away in each direction." The site is seven miles southwest of The Woodlands Mall and nine miles north- east of Willowbrook Mall. Exxon recent- ly opened a new campus on 385 acres that houses 10,000 white collar, highly educated and well-paid employees in its Upstream, Downstream and Chemical Service groups, consolidating a number of offices the company has around the Houston market and several offices from both coasts. The Exxon campus is only 3.5 miles from Kimco's Grand Parkway Marketplace. Set to open in spring 2017, Grand Park- way Marketplace will be anchored by a 126,000-square-foot Target, with eight junior anchors already committed. The center is now leasing for the remaining space. A groundbreaking ceremony was held April 7 and about 75 percent of the space is pre-leased. "This will be one of the few suburban, large-format stores Target plans to open over the new few years," says Nadler. "Se- curing Target resulted in explosive inter- est from other tenants." Nadler adds that there will be a heavy emphasis on value-oriented fashion re- tailers, both national and regional. The project will also include a restaurant vil- lage with four or five restaurants situated around a small lake that also services the Adding To The Location With the addition of Grand Parkway, the Houston area is seeing a booming area for new population — and retail. Haisten Willis Kimco Realty is developing Grand Parkway Marketplace in a growing area of suburban Houston.

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