Liviu Oltean / Commercial Property Executive – The Downtown Redevelopment Authority (DRA) of Houston has issued a request for qualifications for the acquisition, clearing and development of a 35,579-square-foot site at 1111 Main St. The RFQ calls for the development of a multifamily project and/or a mid- or high-rise hotel tower with an extensive retail component.
Younan Properties Inc., owner of the neighboring 19-story office tower at 1010 Lamar St., entered into a memorandum of understanding with the DRA to lease two or three levels in the tower. Those levels will be converted to retail space and will connect to the retail component of the future tower. Younan will also provide 587 parking spaces.
DRA stipulated an extensive retail component for the project on the basis of a 2014 study by Jeff Green Partners, which showed that there is tremendous retail potential in the Downtown Houston market. Responses to the RFQ are due May 26th and execution of an agreement has been slated for February 15, 2016.
“Retail in the Downtown Houston area would serve a base of 33,492 employees within a quarter-mile radius, growing to 176,636 within one-half mile and 215,185 within a one-mile radius of the Downtown Shopping District,” the RFQ states. “Using the average expenditures per worker reported by the International Council of Shopping Centers (ICSC) in their March 2012 report Office Retail Spending in a Digital Age(,) total (current-year) retail sales potential generated by the daytime employment base is projected to be $957 million.”