Downtown Retail Construction Expected To Follow Apartment-Building Boom
by: Andrew Schneider, July 5, 2013 5:07:00 am
There’s a high demand for urban retail development in the Inner Loop. But the supply of such land is very tight for developers of big-box retail stores — or even for smaller strip centers or freestanding stores.
Matthew Deal, owner of real estate valuation firm Deal Sikes & Associates, says that’s leading to a push for new mixed-use developments — with apartment complexes atop ground level retail.
“Rooftops always come first — residential comes first and is filled in with retail after the residential comes. And what we’ve seen recently is an announcement of a significant amount of multifamily properties in the Inner Loop that are under construction that will be delivered this year and into the next two or three years.”
Prices for Houston apartment development sites have doubled in many locations since 2010, Deal says. He expects prices for commercial space to escalate next.