Construction beginning on Houston's Downtown Pavilions

Tuesday, February 27, 2007

(2/27/07 - KTRK/HOUSTON) (KTRK) -- Houston city officials broke ground on a new downtown development this morning. The Houston Pavilions is a $170 million project that city leaders hope will be a premiere entertainment, retail and urban office hub in downtown Houston.

It's going up near the intersection of Dallas and Main downtown. Some say this is the perfect time to start construction. Currently, 95% of all residential space and 87% of all office space is full in the downtown area.

But while that trend is on an upward climb, retail space has seen the opposite. Several bars and restaurants have closed down and it's left many wondering if the 360,000 square feet of retail space will be supported beyond the business day and by those who live downtown.

"The uniqueness of our tenant mix, I think, is what separates the Pavilions from so many retail developments in town," said developer Geoffrey Jones. "They create their own gravitational pull, which will bring people downtown and keep them here."

"Downtown living is new to Houston. Everybody likes their suburbs," said Kathryn Koepke with O'Connor and Associates. "It may attract more. I don't know that it's going to be a boon to the residential market. Houston Pavilions itself canceled their residential component, but Finger Companies has a project that's going in about three blocks away. So there's more supply coming in. I think as long as the supply is limited and prudent and it's planning and targeting the right market, it'll be OK."

The Pavilions is supposed to be a major entertainment draw. It's also supposed to create competition for Midtown businesses for entertainment dollars. <!--/p>

The groundbreaking is scheduled for 10:30am. That's when officials will announce the two major retailers that will anchor this project.-->
<span class=xsmall> (Copyright © 2007, KTRK-TV)</span>

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