Mixed Use Development in Houston Getting Lots of Attention; Market Study by CDS Right On Target

Brenda Crenshaw
CDS Community Development Strategies

Source: Houston Business Journal; Thor Equities

​The Houston Business Journal reported on February 5, 2016 that The Kirby Collection, a $146 million mixed-use project in Houston's Upper Kirby is targeting boutique office tenants. 

The article quotes Jack Bousquet with Thor Equities’ (the developer) who states that he has received interest from law firms, real estate companies, brokers, and other small but high end office space users (link to article). According to Bousquet, Thor Equities has "...specifically designed this 13-story, 210,000 square foot Class A office building to attract a non-energy user." 

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Bousquet added that a handful of tenants are in the contractual phases of leasing and that he's been "pleasantly surprised" with the interest in the project. CBRE, which is handling the development's office leasing, lists 192,758 square feet of Kirby Collection office space as available and lists the office rental rate as being $32.50 per square foot (link to listing).

In November of 2013 CDS Community Development Strategies prepared the independent market study for Thor Equities. At the time, CDS reported that there was sufficient demand in the area for the then proposed 180,000 square foot office tower on the site. If built by 2015, the subject site could reasonably capture 8% of the projected demand. However, if built after 2015, it would have to capture 20% of demand--based on employment projections and the 3.8 million sf of space under construction or planned/proposed thru 2018.  ​

CDS Community Development Strategies also found that the proposed Kirby Collection office development should be priced with the competitive Greenway and West Loop sub-markets.  Our recommendations also included that the  site should be marketed to smaller users such as dentists, doctors, attorneys, financial, real estate brokers, insurance, accounting, architects, etc. Because The Kirby Collection planned to include retail and residential in addition to office space, CDS projected that the development would be more competitive in the current Houston office market.  
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CDS is always pleased to help clients with development decisions.  We take pride in seeing our market analysis and research come to fruition in the Houston area as well as across the country.  CDS was formed in 1971 for the purpose of providing professional market and economic research and consulting services.  Our specialties include market feasibility and market planning for real estate and economic development.  

About the Author:  Brenda G Crenshaw is Vice President of CDS Community Development Strategies.  She specializes in office, retail, industrial, multi-family, condominium and student housing analysis.  She has been with CDS for 7 years.