"As a team, we were determined to identify experiential retail that would be desirable the Understory customer," Damborsky tells GlobeSt.com. "We intentionally designed the space to provide a true connection to the rich cultural fabric of Houston–including the steps at the corner of Rusk and Milam Street and the five tunnel connections. We're excited The Argyle League saw the opportunity to complement Understory's existing roster of homegrown offerings with their acclaimed upscale barber services, which will provide a great neighborhood amenity that addresses an underserved client base. We're excited to bring this unique local amenity to our customers in downtown Houston and look forward to continuing to expand our retailer to reflect the vibrancy and diversity of Houston."

The Argyle League adds another attraction to Understory, which also boasts distinctive culinary offerings. Public games, a happy hour, and a wide variety of day and evening programming continue to expand Understory's popularity, with the market now 85% leased.

Designed by Texas-based Michael Hsu Office of Architecture, Understory is an experience-based destination that brings the community together through culture, commerce and cuisine. A design hallmark of Understory is the open-air blending of the street and tunnel levels, facilitated by the "great steps," a 30-foot-wide monumental staircase and gathering place that offers the first true street-level gateway to the tunnel network.

Situated at 800 Capitol St. on a prime block in Houston's central business district, Understory's location near cultural landmarks such as Jones Hall for the Performing Arts, the Alley Theatre, Revention Music Center, Market Square Park and Wortham positions the space to become a staple of downtown's cultural life. Understory is the first dining and cocktail space in the tunnel network to be active seven days a week from morning to night, with a wide variety of culinary, retail and cultural offerings. The community area offers high-speed Wi-Fi, mobile device charging stations and engaging art. There is also a fitness center for the exclusive use of building tenants.

Nick Hernandez, Crystal Allen and Lacee Wilke from Transwestern represented Skanska and The Argyle League in the transaction.

Established in 2014 in the Montrose neighborhood, The Argyle League was recognized by Arrows.com as the Coolest Barbershop in the World in 2016, Houston Modern Luxury as the Best Barbershop in 2016, Houston Press as the Best Barbershop in 2017 and Themanual.com as the Best Barbershop in 2018. The Argyle League is known for an upscale atmosphere and services including full shaves, beard trims, precision haircuts with hot towel treatments, complimentary trims between services, and free bourbon and beer for patrons.

Net absorption in the Houston retail market increased to almost 1.3 million square feet in the third quarter compared to the previous quarter at 1.2 million square feet, a 3.5% increase, while leasing activity included 1.4 million square feet of signed deals, according to a report by NAI Partners. The overall occupancy rate remained unchanged quarter-over-quarter at 94.4% and down only 10 basis points from this time last year at 94.5%. The retail market saw overall average asking rates rise yet again by $0.39 per square feet quarter-over-quarter to finish at $18.38, surpassing last quarter's all-time high on a triple-net basis. A year ago, average rates were at $16.90, representing an 8.8% increase, says NAI Partners.