TEXAS SNAPSHOT, JANUARY 2007

Odessa Retail Market

For the past 2 years, Odessa has experienced a surge of retail growth along the 42nd Street corridor, but with available space for development becoming limited, development will begin to shift north and east in 2007.

The two major players in Odessa’s retail market, Leeco Properties and Investment Corporation of America (ICA), have both had a busy and prosperous year in 2006, and have even more slated for 2007. ICA has announced a $10 million project named MCM Plaza directly north of its 900,000-square-foot Music City Mall.  The strip center will be approximately 90,000 square feet and a number of tenants have reportedly been secured, but not yet announced.  Music City Mall is now at approximately 95 percent occupancy.

Meanwhile, Leeco Properties has acquired about 6 acres of property at the intersection of 42nd Street and Loop 338 for a retail strip center.  Leeco’s projects encompass approximately 80,000-100,000 square feet per year.  The Crosswinds Center, located at the corner of 42nd Street and Grandview Avenue, was formerly the home of K-Mart, but has been redeveloped by Leeco into a shopping center that is now the home of Goody’s Family Clothing, Lacks, and Starbucks Coffee.  In the same area, New Plan’s 350,000-square-foot shopping center, including tenants such as H-E-B Grocery, Target and Office Depot, is near 100 percent occupancy, and the Royal Place Shopping Center has recently received a facelift.  Texas Roadhouse and Buffalo Wild Wings have also opened their doors near this intersection.  Five of Leeco’s Midland/Odessa shopping centers are currently on the market.

Further east, the 16,000-square-foot location vacated by Furniture Row has been purchased by Lubbock, Texas-based CMS Properties and has been redeveloped into a multi-tenant property currently leased by Citi Financial and Fast Eddie’s.

A small retail center is being planned for the corner of 52nd Street and Tanglewood Lane by a Midland investor.  Projected tenants include a national brand dollar store.

The corner of 52nd Street and J.B.S. Parkway has seen much action recently, with several automotive dealerships relocating from Second and Eighth streets to the northeast part of town.

A Holiday Inn Express is nearing completion on 42nd Street, just inside Loop 338, and a Tractor Supply store is to be constructed in the near future on Faudree Road.  This is the first major retail development outside the Loop and signifies a growth along Highway 191 towards Midland.

Growth will continue along Highway 191, with one large retail development already platted on the south side of the highway.  Further development will likely continue along 52nd Street and J.B.S. Parkway as additional land is made available to developers.

Another area of Odessa to watch would be the Eighth Street area, with the recent purchase and redevelopment of a shopping center at the intersection with Grandview Avenue, and the possible sale of other shopping centers in the area.  County Road West is another area which should see some moderate growth in the retail sector.

Rental rates for Class A retail space in Odessa are currently around $14-18 per square foot plus triple net.

— Kevin Andrews is a sales associate with Odessa-based The Havens Group.

©2007 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.