BLVD Place Mixed-Use: 1700 Post Oak Blvd & Upcoming Development At 1800 Post Oak Blvd.

[ProHouston]

I have been hearing great things from my real estate contacts about the national reatilers going into this project. It should be a great addition to the Uptown/Post Oak area.

Any news on the development progress?

Can you name the retailers?

[Houston19514]

They are a year out at best.

A year out from starting construction?

[ricco67]

I'm anxious for this project to get started, I want afton oaks to get swamped with traffic.

[Houston19514]

They are a year out at best.

I'll ask again. Do you mean to say they are at least a year away from starting construction? If so, why do you say that?

[ProHouston]

UPDATE:

Hunan and the neighboring art gallery are now closed in the Pavilion. However, America's is still open. Additionally, we already know that EatZi's is closed, well so is Blue Plate. I take this as a sign that leases are expiring and as they do, we should start seeing construction begin.

[what]

same development ^^

i don't think anyone can find enough tenants to go into a 300,000 sf of space at this location. Keep in mind, those properties have been vacant/empty with over 100,000 sf + of space for several years in just part of the property...it wouldn't surprise me if over 200,000-250,000 sf + has been vacant now that i think about it a little more. They had a hard enough time filling those two properties when they were at their prime. Partly because there was already too much duplication of tenants in the area from Steak houses, bookstores, jewelry stores,etc. i will ck. back maybe after 3 years after light rail finishes carving in front of it and closing every business in its path first...i have difficulty even reading comparisons of this to H. Pavilions when this seems no where close to materializing in my opinon. The safe bet for most is downtown in the long run and thats why i think Cafe Annie's is going to move out of this location at San Felipe/PostOak and has decided to move downtown where they are opening 2 new restaurants.

[jmancuso]

did eatzi's reopen somewhere else while this is going on? yeah, i drove by that strip center and it looked pretty desolate.

[largeTEXAS]

If all goes as planned, construction should start in the next few weeks.

[what]

i don't think anyone can find enough tenants to go into a 300,000 sf of space at this location. Keep in mind, those properties have been vacant/empty with over 100,000 sf + of space for several years in just part of the property...it wouldn't surprise me if over 200,000-250,000 sf + has been vacant now that i think about it a little more. They had a hard enough time filling those two properties when they were at their prime. Partly because there was already too much duplication of tenants in the area from Steak houses, bookstores, jewelry stores,etc. i will ck. back maybe after 3 years after light rail finishes carving in front of it and closing every business in its path first...i have difficulty even reading comparisons of this to H. Pavilions when this seems no where close to materializing in my opinon. The safe bet for most is downtown in the long run and thats why i think Cafe Annie's is going to move out of this location at San Felipe/PostOak and has decided to move downtown where they are opening 2 new restaurants.

one more time...IF... it even breaks ground it will be difficult to get enough tenants to fill it. this is the problem this location has now, which is why it is being torn down in my opinion. i think that stores in the galleria are extremely cautious about venturing outside of the galleria into projects along post oak and in fact ended up moving back into the galleria like cartier did for example. others were not as fortunate and simply closed. This area also has too many duplicate types of stores already . isn't the developer of Saks and this new concept the same. it seems that they are talking about tearing down/re-building to target the same high-end users who won't go there now and/or that there really weren't enough of to go there in the first place ?

[ProHouston]

one more time...IF... it even breaks ground it will be difficult to get enough tenants to fill it. this is the problem this location has now, which is why it is being torn down in my opinion. i think that stores in the galleria are extremely cautious about venturing outside of the galleria into projects along post oak and in fact ended up moving back into the galleria like cartier did for example. others were not as fortunate and simply closed. This area also has too many duplicate types of stores already . isn't the developer of Saks and this new concept the same. it seems that they are talking about tearing down/re-building to target the same high-end users who won't go there now and/or that there really weren't enough of to go there in the first place ?

I believe BLVD Place will be hugely successful. They have put together an urban, mixed use development that is nothing like what you see today. You're not considering the inclusion of the high rise residences, the high rise hotel, the new urban Whole Foods, etc. They aren't simply tearing down what is existing to build an updated strip center. Review the plans earlier in the post and let us know if you still think this development won't be successful, let alone break ground.

Edited March 8, 2007 by ProHouston

[what]

I believe BLVD Place will be hugely successful. They have put together an urban, mixed use development that is nothing like what you see today. You're not considering the inclusion of the high rise residences, the high rise hotel, the new urban Whole Foods, etc. They aren't simply tearing down what is existing to build an updated strip center. Review the plans earlier in the post and let us know if you still think this development won't be successful, let alone break ground.

ok. i will. But any grocery store seems odd for the tenant mix...i think it takes away more than ads to that location ? not sexy...

[TheNiche]

If all goes as planned, construction should start in the next few weeks.

Source?

[TheNiche]

ok. i will. But any grocery store seems odd for the tenant mix...i think it takes away more than ads to that location ? not sexy...

This isn't a podunk Kroger. This is a flagship Whole Foods store, like the one at their headquarters in Austin. This will make food sexy. Whole Foods will bring in traffic, and by virtue of it being a high-end-grocery-anchored shopping center, smaller retailers will follow.

The only thing that I'd be concerned about is whether BLVD Place or the Oaks District is able to break ground first. The one would likely negate the other. ...but right now, my money is on BLVD Place.

[Houston19514]

This isn't a podunk Kroger. This is a flagship Whole Foods store, like the one at their headquarters in Austin. This will make food sexy. Whole Foods will bring in traffic, and by virtue of it being a high-end-grocery-anchored shopping center, smaller retailers will follow.

The only thing that I'd be concerned about is whether BLVD Place or the Oaks District is able to break ground first. The one would likely negate the other. ...but right now, my money is on BLVD Place.

What is Oaks District? Don't recall hearing of that one before.

[WesternGulf]

I am guessing he is talking about the River Oaks mixed use on Kirby and Westheimer?.?.

[fernz]

ok. i will. But any grocery store seems odd for the tenant mix...i think it takes away more than ads to that location ? not sexy...

Do you think Central Market is sexy enough for Highland Village?

[what]

This isn't a podunk Kroger. This is a flagship Whole Foods store, like the one at their headquarters in Austin. This will make food sexy. Whole Foods will bring in traffic, and by virtue of it being a high-end-grocery-anchored shopping center, smaller retailers will follow.

The only thing that I'd be concerned about is whether BLVD Place or the Oaks District is able to break ground first. The one would likely negate the other. ...but right now, my money is on BLVD Place.

oh i enjoy reading this stuff. next we will hear about a race to the Galleria Mall amongst grocery stores. they have the demographics for a grocery store in their high-end retail location certainly. i am surprised that nobody else thought about it . yeah-right !!!!!

[largeTEXAS]

The only thing that I'd be concerned about is whether BLVD Place or the Oaks District is able to break ground first. The one would likely negate the other. ...but right now, my money is on BLVD Place.

Oaks District is nowhere near ready to break ground while BLVD Place is very close. To me what is really interesting is what will happen if and when all these developments are complete. Since they all want to create Houston's version of Rodeo Dr. or 5th Ave., one or more will likely have to change scope (unless this city can all the sudden supports multiple high end districts). I think West Ave has the chance to be the most accessible of the developments, simply because the mix of tenants will likely be less couture-only. While I'm excited I might finally be able to buy a pair of Miu Miu's or Paul Smith shoes here in Houston, being able to walk around and hang out without getting hit by a car (hopefully) is what I'm most excited about.

[largeTEXAS]

oh i enjoy reading this stuff. next we will hear about a race to the Galleria Mall amongst grocery stores. they have the demographics for a grocery store in their high-end retail location certainly. i am surprised that nobody else thought about it . yeah-right !!!!!

Well, the city that invented the mall, Milan, sure thinks grocery stores are good anchors.

Milan Elan

Shopping Centers Today, January 2007

MILAN

Edited March 8, 2007 by largeTEXAS

[Houston19514]

Oaks District is nowhere near ready to break ground while BLVD Place is very close. To me what is really interesting is what will happen if and when all these developments are complete. Since they all want to create Houston's version of Rodeo Dr. or 5th Ave., one or more will likely have to change scope (unless this city can all the sudden supports multiple high end districts). I think West Ave has the chance to be the most accessible of the developments, simply because the mix of tenants will likely be less couture-only. While I'm excited I might finally be able to buy a pair of Miu Miu's or Paul Smith shoes here in Houston, being able to walk around and hang out without getting hit by a car (hopefully) is what I'm most excited about.

Since The Niche hasn't answered, I'll ask you. What is the Oaks District? And what is the West Ave. development?

[what]

Well, the city that invented the mall, Milan, sure thinks grocery stores are good anchors.

Milan Elan

Shopping Centers Today, January 2007

MILAN

[ProHouston]

That's really nice and all, but i think it is not fair to compare a small grocery store in italy to the local market, just like i don't think that one can say that concepts that work in Florida are going to work or are appropriate for Houston. If you think about it Auchan was a Belgian company that believed in grocery stores that came to town a while back and it didn't work. Additionally, grocery stores are found all over this town, many of which are closed today and they traditionally pay some of the lowest rent which once again doesn't jive with high-end. i am sure that the galleria is out looking for a grocery store to do a build-to-suit for. on the other hand maybe a grocery store should have been placed in the vacant 100,000 sf + old Saks store...building neat things is groovy, but filling them with warm bodies is a diff. ball game. hmmmmmmm

Why is it that your comments in every thread have to be catty and egotistical? You make yourself appear to be stuck up and elitist. Neither is appreciated on HAIF.

[TheNiche]

oh i enjoy reading this stuff. next we will hear about a race to the Galleria Mall amongst grocery stores. they have the demographics for a grocery store in their high-end retail location certainly. i am surprised that nobody else thought about it . yeah-right !!!!!

When Whole Foods and Central Market first entered the Houston market (and even to a certain extent, this applies to the present), they were destinations for households within a very large trade area. Whole Foods has been expanding at a fairly rapid pace, diluting the 'special' nature of their first store and dividing up its original trade area. By building a flagship store in a location that is essentially central to Houston's wealthy households, they are able to once again take advantage of a huge trade area. This isn't a neighborhood grocer. Not only will it attract other retailers, but it will attract residents to BLVD Place. It may even have a small synergistic effect on office demand, but I'm not going to go out on a limb with that kind of an assertion.

Additionally, grocery stores are found all over this town, many of which are closed today and they traditionally pay some of the lowest rent which once again doesn't jive with high-end.

You don't seem to understand the importance of a grocery store to other retailers. It is the concept of an anchor, which is a large traffic-generating establishment within a retail center that acts as a destination and makes convenience-oriented retail and other in-line tenants more viable.

Basically, developers give away the grocery space so that they can lure the bread and butter tenants that pay high rents.

What is Oaks District? Don't recall hearing of that one before.

Can't say almost anything at all because I'm bound to confidentiality twice over, but it was briefly discussed in an article in Sunday's edition of the Chronicle.

Oaks District is nowhere near ready to break ground while BLVD Place is very close.

Is confidence high with respect to BLVD Place? Source?

[Houston19514]

Can't say almost anything at all because I'm bound to confidentiality twice over, but it was briefly discussed in an article in Sunday's edition of the Chronicle.

LOL Well, of course you are... You never disappoint.

For those interested, the Oaks District is what was formerly known as the Westcreek project. It's located at Westcreek and Westheimer just inside the loop. It consists of about 15 acres; they plan 350,000 sq. ft. of retail; 300 luxury apartments; 200,000 sq. ft. of office; and two "major" hotels

Estimated completion: Spring 2010

The development company's website doesn't give the name or the estimated completion date, but everything else agrees with what Nancy has reported.

[largeTEXAS]

Is confidence high with respect to BLVD Place? Source?

I'd tell you but I'd have to kill you

[what]

When Whole Foods and Central Market first entered the Houston market (and even to a certain extent, this applies to the present), they were destinations for households within a very large trade area. Whole Foods has been expanding at a fairly rapid pace, diluting the 'special' nature of their first store and dividing up its original trade area. By building a flagship store in a location that is essentially central to Houston's wealthy households, they are able to once again take advantage of a huge trade area. This isn't a neighborhood grocer. Not only will it attract other retailers, but it will attract residents to BLVD Place. It may even have a small synergistic effect on office demand, but I'm not going to go out on a limb with that kind of an assertion.

First of all there is already a grocery store across the street. i am not sure why we are not reading about it yet and its importance to that center. it should be stealing the spot light ! i guess you are basically saying that this should be considered to be like any other strip center that has a grocery store in it and so i will. i thought it was supposed to be a cut above or something. i probably mis-understood. oh well.

You don't seem to understand the importance of a grocery store to other retailers. It is the concept of an anchor, which is a large traffic-generating establishment within a retail center that acts as a destination and makes convenience-oriented retail and other in-line tenants more viable.

Basically, developers give away the grocery space so that they can lure the bread and butter tenants that pay high rents.

Can't say almost anything at all because I'm bound to confidentiality twice over, but it was briefly discussed in an article in Sunday's edition of the Chronicle.

Is confidence high with respect to BLVD Place? Source?

[buildingunbuildingrebuilding]

The only thing that I'd be concerned about is whether BLVD Place or the Oaks District is able to break ground first. The one would likely negate the other. ...but right now, my money is on BLVD Place.

Oaks District is about 2 years out, at least. Considering they are both planning luxury hotel and residential, I would think there is plenty of retai l to go around.

Both these developments will really add to the overall strength of the Uptown area- right now other than Galleria itself there is really not that much upscale retail in Uptown when compared to other cities our size (Uptown Dallas, Lenox/Buckhead in Atlanta, for instance).

[TheNiche]

Oaks District is about 2 years out, at least. Considering they are both planning luxury hotel and residential, I would think there is plenty of retai l to go around.

Both these developments will really add to the overall strength of the Uptown area- right now other than Galleria itself there is really not that much upscale retail in Uptown when compared to other cities our size (Uptown Dallas, Lenox/Buckhead in Atlanta, for instance).

On-site residential won't support many retail tenants by itself. I reviewed some numbers in response to some HAIFers being upset about losing the residential component of Houston Pavilions, and even under unreasonably optimistic assumptions, only a small fraction of the retail component would've been supported by on-site residential. Hotels are supportive as well, but really only of certain types of retail for the most part. Oaks has to be a destination, and that will be the challenge.

I've said too much...

[buildingunbuildingrebuilding]

On-site residential won't support many retail tenants by itself. I reviewed some numbers in response to some HAIFers being upset about losing the residential component of Houston Pavilions, and even under unreasonably optimistic assumptions, only a small fraction of the retail component would've been supported by on-site residential. Hotels are supportive as well, but really only of certain types of retail for the most part. Oaks has to be a destination, and that will be the challenge.

I've said too much...

Point is that with part of each site dedicated to residential and hotel there is not that much additional retail, it is at great location in cool projects, and will be a couple years minimum before the bulk of it comes online. I would expect these would be a destination. Let's not forget that Galleria is Houston's #1 tourist venue. People get excited about retail downtown, but Uptown is Houston's top retail zone.

[TheNiche]

Point is that with part of each site dedicated to residential and hotel there is not that much additional retail, it is at great location in cool projects, and will be a couple years minimum before the bulk of it comes online. I would expect these would be a destination. Let's not forget that Galleria is Houston's #1 tourist venue. People get excited about retail downtown, but Uptown is Houston's top retail zone.

Is this Uptown? I know some folks that might not think so...

Let us also not forget that a retail component of this size is no small feat as of right now (today), but that the market will be even more competitive as this nears completion. This will be no walk in the park.