luvs_chocolate Posted January 14, 2009 Share Posted January 14, 2009 I see that something new is going up next to Ashley Furniture, on the north side of I-10 next to LA Fitness. Does anybody know what it is? --Thanks. Joanne Katy, TX Link to comment Share on other sites More sharing options...
RWReagen Posted January 14, 2009 Share Posted January 14, 2009 Hopefully, IF we are really lucky, it will be another half empty shopping center with a nail salon, dry cleaners, and taqueria. But I'm not sure we can keep the streak going. (Sorry couldn't resist) Link to comment Share on other sites More sharing options...
Mr. B Posted January 15, 2009 Share Posted January 15, 2009 Sorry we already broke that streak back here on the ass end of Mason.We got one strip mall that has been up for a year now and has a nail salon and flooring place in it and thats it. The other one that opened up under the pretense of medical offices doesn't look like its even sniffed a tenant and the other on up on Mason and Westhiemer has a nail salon and soon to be defunct resturant.But wait they have a sign up next to the strip mall on end of Mason looking to sell land for another strip mall or something worse probably. Top all of that with all of the apartments that flew up expecting to have high paying tenants for all these jobs that have fallen by the wayside with the economy. So lets just hope that they keep the standards up on the apartments and not start cutting rent to get anyone in the door. Link to comment Share on other sites More sharing options...
RWReagen Posted January 15, 2009 Share Posted January 15, 2009 I don't know the first thing about real estate which is why I can't comprehend the reasoning of people that keep building these eyesore empty shopping centers if they see noone is wanting the exisiting ones. Link to comment Share on other sites More sharing options...
luvs_chocolate Posted January 15, 2009 Author Share Posted January 15, 2009 Haha!! No apologies necessary, as my husband and I say that all the time. How do these nail salons, on every corner, stay in business?? I find it hard to believe that there are that many women in Katy who need manicures!Anyway, I'm praying it's going to be a Barnes and Noble, but that's wishful thinking.I also wonder what's going to become of the former Linens N' Things space...any ideas?Thanks.Hopefully, IF we are really lucky, it will be another half empty shopping center with a nail salon, dry cleaners, and taqueria. But I'm not sure we can keep the streak going. (Sorry couldn't resist) Link to comment Share on other sites More sharing options...
tigz Posted January 16, 2009 Share Posted January 16, 2009 Haha!! No apologies necessary, as my husband and I say that all the time. How do these nail salons, on every corner, stay in business?? I find it hard to believe that there are that many women in Katy who need manicures!Anyway, I'm praying it's going to be a Barnes and Noble, but that's wishful thinking.I also wonder what's going to become of the former Linens N' Things space...any ideas?Thanks.How about a Jimmy Buffett's margaritaville? Link to comment Share on other sites More sharing options...
CandW Posted January 22, 2009 Share Posted January 22, 2009 I don't know the first thing about real estate which is why I can't comprehend the reasoning of people that keep building these eyesore empty shopping centers if they see noone is wanting the exisiting ones.A primary reason behind retail center development is the carry cost of the land. Most corner locations are too high priced for multi-family development so they are out or the size of the land may not be large enough to develop on. So, you have a piece of property and don't know what to do with it? Based upon the "highest and best use" scenario, it is to go with retail. You get the bang for the buck. You take a property that you are having to carry, i.e. pay taxes, insurance and a note to the bank. The only way to get it from being a liability to an asset is to put something on it. Thus the above scenario plays out. The owner can produce more income from a multi-tenant facility vs. a single user unless it's a CVS or other pharmacy. Link to comment Share on other sites More sharing options...
RWReagen Posted January 22, 2009 Share Posted January 22, 2009 Interesting. But if you build a shopping center and have no tenants then you are out the cost of development and you are still out the carry cost of the land etc. But if I knew all the tricks I would be a high powered developer and not a desk monkey... Link to comment Share on other sites More sharing options...
CandW Posted January 22, 2009 Share Posted January 22, 2009 Interesting. But if you build a shopping center and have no tenants then you are out the cost of development and you are still out the carry cost of the land etc. But if I knew all the tricks I would be a high powered developer and not a desk monkey...You're correct in that. Up until the recent past, that was the best possible scenario to follow for a commercial owner. That also is not the best course of action. The problem with the commercial real estate market is as follows but is not to be taken as a blanket statement. There are two trains of thought 1) Money has been historically cheap, so if there was a minor hick-up in the market, it was ok to build and wait for the tenants to come, not so any longer. The retailers are taking a beating right now, support them as much as you can. That's kind of the concept behind capitalism, lol. 2) This is the most painful scenario that has played out. G-ma and G-pa owned a large tract of land and sold off a portion of it for speculative single family development. Well all of a sudden, yesterday they couldn't spell developer and today they wake up and the dumb grandson/daughter says we need to make some money with this money, why don't we build a retail center. Do you see the pain? If you are not a savy enough commercial developer, don't try and play one on TV. They build the center and hire a new broker to lease it up that most likely has only been in the business for about two weeks and makes promises he knows he can't keep. The build it they will come attitude does not always work, but it does not always fail either. You have to have supportive rooftops to make them work. I have said this before and will repeat it again. Look at Kroger/Wal-Mart and watch where/how they develop their sites. They need X number of rooftops to support them, so it stands to reason that the mom and pop retailer will need pretty much the same number of rooftops with a good amount of disposable income to shop there. I know it's apples and oranges, but you get the idea. With Wal-Mart they like to be around 15 minutes apart from store to store. This grants them market dominance as well as keeps the supply chain close. Anyway, I hope I educated some on why they do and don't work all the time. Link to comment Share on other sites More sharing options...
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