Pier 1 stock has taken off like a rocket. Up almost 450% since Friday’s opening. If I was a betting man, which I rarely am, I would short this. But this isn’t a stock blog, and I don’t own any shares, or work there.
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24Mar
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24Mar
There’s no doubt that the economy isn’t stopping the Trinity River Vision from proceeding. I wonder what this will mean for other long standing projects around town though? Omni had to be up and running before the super bowl, but the also have the edge of virtually out-classing every other hotel in town (with the arguable exception of boutiques). So then, what can we expect from projects like Midtown Urban Village?
Hailed as a potential gateway to the hospital district (near south side), the development should arise from a 10 acre tract of abandonded city property. The idea is to offer retail and lodging at the Forest Park and Rosedale intersection. Slow moving to say the least, Townsite Company purchased the property in April of 2006 from Fort Worth South Inc (FWS got it from the city for $1.3MM).
All in all this project sounds like a great idea. I was a bit surprised not to see any deeded restrictions for future development, but I suppose that would have a been a little bit of a headache. My thought is that if Fort Worth South could somehow influence a buildout along what I would assume to be in keeping with their vision, Midtown may be really unique. Unique tenants, unique culture, unique patrons. They may not have to trouble at all with finding anchor stores, or creating a west 7th feel.
Still, the project isn’t moving quickly and most likely won’t be any time soon. While we don’t really need to further bulk the commercial market locally; I have a “if you build it they will come” feeling about Midtown Village.
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23Mar
Beverly Hills based Starpoint Commercial Properties has purchased about 200,000 square feet of commercial space in The Tower downtown. No doubt that the best deals will be in existing and proven infrastructure such as this. The Tower has so far made a fairly good run at things with a good showing on the street level retail.
Aside from the restaurant locations on street level, The Tower has so far been able to make good use of second floor office space and 70,000 additional square feet in the annexed parking garage. This space has been leased by Chesapeake since before their Pier 1 building acquisition. Given a contraction in Chesapeake’s activity and the additional space they now own, my concern would be in losing a tenant for one third of newly acquired space. This concern would be compounded by the fact that another third of the space acquired by Starpoint is subsurface. 70,000 square feet of the sale includes two underground levels within The Tower proper. Starpoint is most likely betting long term; but it should be interesting what ends up the basement of The Tower.
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23Mar
It really comes as no surprise that the commercial market is hurting in DFW. We can expect it not only as a symptom of the national economy, but also as a fallout from over building. Fort Worth had been faced with a swelling of lease percentages originating primarily from Barnett activity; a contraction there has really slowed the overall market.
I would think then that the city should have enough free office space to keep our markets at reasonable rates for the next few years. The incredible amount of activity we are seeing along Camp Bowie, University, and 7th Street will be offering a glut of retail and office space. One thing to look for would be consildation of commercial space in these area’s with more vacancies among the more established Hulen and Western Camp Bowie areas. Slow progress at Montgomery Plaza may be indicative of the commercial use to come locally within the next few years.
It will be a while before demand catches back up to supply.
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