Midtown Houston Registers 50% Population Growth
Midtown is sandwiched between the two largest employment centers, downtown and the Medical Center, and is the third most densely populated square mile and one of the fastest-growing areas.
HOUSTON—Midtown is one of the fastest growing neighborhoods and the third most densely populated square mile in the city. Since 2012, Midtown Houston has experienced 50% population growth with almost 10,000 Houstonians now calling it home.
Midtown is sandwiched between the two largest employment centers in Houston, including downtown (300,000 daytime population) and the Texas Medical Center (107,000 daytime population). The demographics in Midtown are staggering, including some 188,000 residents with an average annual household income of $127,000 and a daytime population exceeding 400,000 workers within three-mile radius.
The area benefits from access to the METRORail Red Line, which connects downtown to the Texas Medical Center, passing right through Midtown. Additionally, Midtown is highly walkable as evidenced by a Walk Score of 86, and is flush with parks, art galleries, restaurants and nightlife.
It has also been the site of nationally awarded development including Federal Transportation Agency recognition and the Presidential Award of Excellence in Design and Implementation. In addition, in 2012, Midtown Houston was awarded the Texas Commission on the Arts’ Cultural Arts and Entertainment Designation, a first for a management district in the state. The neighborhood is a focal point for harnessing the power of cultural resources to stimulate economic development and community revitalization.
“Midtown fills an increasing desire for a live, work and play lifestyle with more than 200 new restaurants, wine bars, beer gardens and coffee shops, along with nine neighboring Fortune 500 company headquarters, residential development with 2,600 units under construction and nearly 4,000 multifamily units,” says Joe Russo, principal at Melbourne, Australia-based Caydon.
One of those projects is Caydon’s first US project in Midtown is Laneways, a 2.5 million-square-foot mixed-use development including a multifamily development, high-rise condominium, a 200-key boutique hotel, ground-floor retail, art and outdoor spaces. The site will include about 1,000 multifamily and condo units, and 55,000 square feet of retail space. Phase one of the project is completed and 25% occupied–Drewery Place–the first high-rise multifamily tower in Midtown.
“When I visited the US three years ago looking to expand the Caydon portfolio, I immediately had a good feeling about Houston. It is one of the most diverse cities in the US with a rapidly growing population, strong economy and employment growth, while home to several Fortune 500 companies and a dependable rental market,” Russo tells GlobeSt.com. “Coming across Midtown, we instantly targeted the Laneways sites and created a vision that would enhance Midtown’s walkability, while complementing the vibrant and active lifestyle.”
Another Midtown property is making headlines with the closing of The Mix @ Midtown, a 73,000-square-foot fully leased class-A retail property that encompasses an entire city block and anchors the Midtown neighborhood. The seller was Crosspoint Properties, which developed the property in 2008. Fifth Corner, in a joint venture with Pointer Real Estate Partners, purchased the asset.
Houston’s primary 24/7 district pioneered The Mix, the first mixed-use asset in the area. The property is located on 1.43 acres at 3201 Louisiana St., at the hard corner of Louisiana and Elgin. This is Midtown’s busiest intersection with approximately 45,000 vehicles passing through daily.
The Mix @ Midtown includes a 296-space parking garage, a unique feature in Midtown. And, it is fully leased to a roster of experiential retailers including 24 Hour Fitness, Jinya Raman Bar, Artisans Restaurant, Gen Korean BBQ, Piola, Kung Fu Tea and Cloud 10 Creamery.
The JLL capital markets team representing the seller was led by senior managing director Rusty Tamlyn, directors John Indelli and Michael Johnson, and analyst Bryan Strode.
Several major developments are underway in Midtown highlighted by Morgan Group’s Whole Foods-anchored residential building (one block away) and Rice University’s Ion innovation district. Phase I of the Ion will be a $100 million renovation of a 270,000-square-foot Sears, which will serve as a gathering place for startups, large corporations seeking new technologies, venture capitalists, business accelerators and academics.