Y&K Real Estate is moving forward with a $20 million mixed-use project in Westchase.
The Houston-based firm has plans to build two buildings spanning 190,000 square feet, according to a recent state filing.
The development, featuring office, retail and restaurants, will be located between 3507 and 3515 Rogerdale Road. The buildings will span 80,000 and 110,000 square feet.
The developer intends to start construction on the project in early February and finish up in about a year. The designer on the project is Houston-based Anderson Canyon.
The project’s location offers easy access to the Westpark Tollway and the Sam Houston Tollway. It’s about 17 miles west of downtown Houston.
Given Houston’s large amount of vintage office inventory, its office market has struggled as aging buildings and remote work norms render many properties obsolete. However, new buildings with lots of amenities fare better.
Houston’s office vacancy rate was 26.3 percent midway through this year, according to Partners Real Estate. That’s a jump from 24.7 percent a year before.
Experts predict the recent reduction in interest rates will provide more exit options for distressed operators. But Houston’s foreclosure rates remain high.
Nationwide foreclosure activity dipped slightly in the third quarter, but Houston still ranked as one of the cities with the most foreclosure starts, according to ATTOM Data Solutions.
Houston ranks fifth (behind New York, Chicago, Los Angeles and Miami) with 1,791 foreclosure starts. Last month, $260 million in commercial real estate loans faced foreclosure in Harris County, including four multifamily properties.
As in-person office culture continues to change, some operators are pivoting to small spec suites that are well-suited for small tenants or tenants needing flexibility.
Y&K Real Estate was founded by Joseph Shum. In addition to development, the firm also sells retail, office and industrial property.
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