Four times a year, the Bay Area Houston Economic Partnership produces The Business Development Update newsletter that reports on Commercial / Office / Industrial Development; Retail / Hospitality Development; Residential Development; and Infrastructure News and Everything Else!

Commercial / Office / Industrial Development

Recent Industrial and Flex Lease Transactions

  • 3,500 SF – Balli Cook Athletics (full-service gym) leased at FM518 in League City.
  • 2,400SF – Liberty Flare leased at 880 Lawrence Rd. in League City.

Office Leases

  • 21,760 SF – Castle Biosciences has leased space at a new four-story office building nearing completion at 505 South Friendswood Drive, which is more than twice the size of its current Friendswood office location. The company develops and sells diagnostic and prognostic tests for dermatologic cancers, for example, its “DecisionDx-Melanoma’ test. It now employs 40 and plans to grow its local headcount to 60 by the end of the year. Much of the company’s R&D and clinical research operations are based in Phoenix with another 100 employees.
  • 7,711 SF – Houston Methodist Hospital leased at 505 S. Friendswood Dr. Additionally, there were three more leases at this new office building: Dentistry 4 Children and Adults – 6,350 SF, HV Services – 5,671 SF, and Potter Handy Law Firm – 3,003SF.
  • New transactions at 3027 Marina Bay Drive (One Harbour Square) in League City : Savage Services – 2,574 SF (expansion and renewal); Vanguard Management – 921 SF; Modern Skin Solutions – 987 SF; Marina Bay Insurance – 543SF.

Medical News

  • The new South Tower expansion at the UTMB Health League City campus has opened. It’s five stories, 264,000 SF, and connects to the existing hospital. The addition added 60 inpatient beds, 30 intensive care unit beds, 30 medical surgical beds and other support areas, including a serving and dining kitchen, a pharmacy, a laboratory and blood bank and other features. University of Texas Medical Branch officials have the option to expand the tower to 12 stories in the future, if need arises.
  • The Board of Governors at Shriners Hospitals for Children in Houston and Galveston voted to merge their world-renowned specialty pediatric services to the Galveston location by early 2021. It will then be known as Shriners Hospitals for Children – Texas. In addition to being famous for developing standards for modern burn care across the globe, the staff also provides care for a variety of orthopaedic and neuromusculoskeletal disorders and diseases and also facial abnormalities. Since 1922, care has been provided to 1.4 million children from more than 180 countries over nearly 100 years.

Now Open

Friendswood – Village Medical at 102 N. Friendswood Drive

Opening Soon

League City – Seasons Memory Care at South Shore at 600 Enterprise Ave. in 2021.

Retail / Hospitality Development

Northern Tool + Equipment plans to open in League City. The 22,040 SF store will employ about 20. Location is 200 Gulf Freeway South at FM 518 – this is the 8th store in the greater Houston area providing brand-name tools and equipment, a repair department, and cleaning and disinfectant equipment. Anticipated opening is this summer bringing 20 new jobs.

It’s coming! Alamo Drafthouse plans to open a 10-screen theater in League City at the Victory Lakes Shopping Center along the Gulf Freeway just behind Jimmy Changa’s. The theater will have a 60-ft. premium large screen ‘Big Show’ with laser projection and Atmos surround sounds, 100% reserved seating in oversized luxury recliners plus a full- service dinner menu and 40+ craft beer selections. And, how about those famous cereal parties! This will be the second Houston-area Drafthouse location.

Retail and Commercial Leasing Activity

In Clear Lake Shores

  • The Target store in Clear Lake Shores at 255 Marina Bay Drive has a $3.25M redesign and update underway. It’s one of the 1,000 stores that will have not only a new look but more technology and digital services to keep up with the way people shop.

In Friendswood

  • Park Avenue Yarns & Clothyard Fabrics is relocating to 315 S. FriendswoodDr. – its new building will be 7,500 SF.
  • Site One Landworx is under construction – 7,020 SF building – at 4448 FM 2351 in Friendswood’sIndustry Park. The business park consists of seven industrial-zoned parcels available for land lease, BTS or purchase.
  • Dark Horse Investments is constructing a new building at 107 Shadwell Lane near Friendswood’sStevenson Park consisting of a 1-1/2 story, 4,000 SF building with ten office suites available for lease.

In League City

  • 7,992SF – Black Bear Automotive leased at 2986 Marina Bay Drive in League City.
  • Board & Brush Creative Studio leased 1,613 SF at FM 518 and the Gulf Freeway in League City. Customers will learn about sanding, staining, woodwork and other materials. Opening in July.
  • 1,400SF – Headz Up Hair Cuts leased at 2951 Marina Bay Drive in League City.
  • A new development is underway at the corner of FM 518 and Lawrence Rd. in League City. Conversations are ongoing with retailers and restaurant franchise operators for five available pad sites. One site, 1.583 acres, is under contract with closing scheduled this month.
  • Update on Riverbend at Clear Creek; Wesley Drive at the Gulf Freeway in League City – Bulkheading is in progress on the marina; dock construction will follow. The 150-room Aloft Hotel will be under construction very soon. Still to come is the Spotted Trout restaurant that will overlook the marina, 80 townhomes and 285 Class A multifamily units. Additional sites are planned for retail, a garden office park and senior housing.

In Texas City

  • The owner of the Mainland City Centre (formerly Mainland Mall) in Texas City continues to revamp the property and plans to add large entertainment and recreational attractions including an outdoor sky diving venue and a 65,000 SF race track with overpasses and underpasses. A deal has been made for a new restaurant — not sure what the menu will look like yet, but the popular restaurant owner holds many trophies and awards for his barbecue. Four more restaurants are also planned. A massive exterior upgrade will include water fountains, splash pads and other water elements.

Real Estate Changing Hands

  • Plaza at Amber Lane retail center at 2750 W. Main in League City sold to a new buyer.
  • 1.49 acres at 1825 Brookport in League City sold – plans are to build a retail center including a dry cleaner business.
  • 1.76 acres sold at 100 ½ E. League City Parkway for a new multi-tenant development to include a dentist office.

Just for Fun

Now open – the Friendswood Fairy Trail, a nature-based educational activity, at Stevenson Park. The fairy abodes feature child-sized doors that tots can open and close to reveal the fairy inside; they will be built onto trees or nestled in other hidden places. There’s no cost, and its wheelchair accessible. Children will learn about caring for the environment such as: recycling, volunteerism, community, healthy eating, waste prevention, native plants and wildlife, andlitterprevention. The trail is approximately one mile so it is perfect for little feet.

Adventure Pointe, a new theme attraction in Texas City , is back on track. Located near Tanger Outlets along the Gulf Freeway, the first phase will include a carousel, a pirate village and Jean Lafitte’s ship, a Land of Oz area plus interactive games and a live entertainment venue.

Coming Soon

League City – Fairfield Inn & Suites by Marriott plans to open soon; the facility will have 112 rooms and a full-service bar and fitness room.

Friendswood –SmoothieKingatFM528andFM518.

Now Open

Kemah – Denny’s at 212 FM 518

Clear Lake Shores – Soul Freak Studio Café at 822 Clear Lake Road (coffee, tea, classes)

League City – Prime Pizza at 2508 S. Gulf Freeway; The Drink Station at 3729 E. League City Pkwy; Moon Valley Nurseries at 402 W. FM646; Cakes by Jula at 190 S. Gulf Freeway; Iron Keel Strength and Fitness at 3311 FM518; CMIT Solutions of Clear Lake (cybersecurity & informationtechnology) at 2925 S. Gulf Fwy.; Clear Creek Mediation Center at 814 E. Main Street; Ace Hardware at 1915 W. League City Pkwy.; Fajita Pete’s at 201 S. Egret Bay Blvd.; Reserve Wine and Spirits at 1915 W. League City Pkwy.; Hue Salon at 828 W. FM646

Friendswood – Chick-fil-A at 1757 S. Friendswood Drive; Southern Sol Boutique at 152 S. Friendswood Dr.; Catfish Station at 145 E. Friendswood Dr.; Lowens Seafood (and Cajun) restaurant at 2111 W. Parkwood Ave.; Garage Ultimate at 4650 FM 2351; Friendswood Grocery at 214 S. Friendswood Dr.; Forgotten Lore Bookshop, LLC at 628 S. Friendswood Dr.; Lu’s Barber Shop at 1765 S. Friendswood Drive; Bellissimo Day Spa at 119 W. Parkwood Ave.; Gentlemen’s League Barber Shop at 2407 W. Parkwood Ave.; Flawless Skin Lounge at 607 S. Friendswood Dr.

Dickinson – Rancho’s Taqueria at 3300 Gulf Freeway

Residential Development

A new development is planned by Legend Communities and Tiki Time LLC in Galveston County on Tiki Island. Six acres of undeveloped waterfront property was acquired for a new upscale residential community, yacht club and boathouse resort. Tiki Island Residences and Boathouse Resort will include 75 condominiums, five penthouses and a 5,500+ SF restaurant plus storage for up to 220 boats on four levels. Prices will start in the $600’s. The first phase, a boathouse and waterfront restaurant, is breaking ground this year. Phase II, the residential component, starts in 2021. Read more in Galveston Daily News (subscription required) 1, 2 and BizJournal

New multifamily project in progress at 1445 S. Egret Bay Blvd. in League City : Highbridge at Egret Bay is a 4-story garage wrap style – the garage is totally enclosed by residential units. The project consists of 254 total units (200 one- bedroom and 54 two-bedroom). Class A finishes – granite, stainless steel appliances, washer/dryer, smart home locks, thermostats and hub. Community amenities: pool, putting green, two-story fitness center, game room, business center, running/walking track, package lockers. The first units are expected to be available around June 2021.

Huntington at Kemah – A new retirement project is underway on FM 518 near Lawrence Road in Kemah. Planned are 148 units, one and two bedrooms. Amenities are still in the planning stage but a pool is definitely in the mix.

Crystal Lagoon has opened for use by residents at master-planned Lago Mar in Texas City. The resident-designated beach and amenities take up about 35% of the lagoon’s perimeter. The big picture is a 12-acre lagoon within a planned 70-acre mixed-use resort development. The public access section is expected to open in 2021 on the lagoon’s west side. The lagoon’s east side will eventually be home to a mixed-use entertainment district, allowing guests to experience sunset views as they shop and dine. Conversations are in play with hotel, restaurant and retail developers about waterfront development. Community Impact: 1, and 2

Update on Bayou Bend Estates, a 58-acre residential development in Dickinson. Forty-seven homes on ¾-acre lots are planned; twelve of the lots are waterfront. Homes will range from 2,500 SF to 3,000 SF. Five models will be underway very soon with completion expected by the end of the year. The location is FM 517 and Country Club Drive.

  • Raamco International purchased the Towers at Clear Lake, a 216-unit multifamily property at 18707 Egret Bay Blvd.
  • A private investor purchased 3rd Street Village Apartments, 48 units, at 310 Waco Ave in League City. The buyer intends to make extensive renovations to the interior and exterior of theproperty.

Infrastructure News and Everything Else!

Port of Galveston has extended its lease with Royal Caribbean Cruises to allow the company another year to fullycommit to building a $100 million terminal at Pier 10.

One of the Galveston rail trolleys is back. It will be tested for about 30 days before ridership can begin. Two more are still in repair and expected back soon.

City News

League City has a new 13,000 SF Animal Care and Adoption Center at 755 W. Walker Street. This is the place to adopt your new pet! Check out the care and services offered: 1

To replace critical aging infrastructure, the City of Houston is partnering with seven cities and water authorities to build a new southeast transmission line that will transmit up to 75 million gallons a day (MGD) of surface water from the Southeast Water Purification Plant. Lockwood, Andrews & Newnam, Inc. was selected as the technical adviser for the water line. The 54-inch line will be completed in 2025 and will service the City of Houston, League City/Gulf Coast Water Authority, Clear Lake City Water Authority, Cities of Webster and Friendswood, Baybrook Municipal Utility District (MUD) No. 1, Harris County MUD No. 55 and City of Pasadena. To request the article, email

Education News

Texas A&M at Galveston will offer a new doctoral degree program in marine and coastal management and science this fall. There is a demand for people with expertise in coastal issues; the university estimated there were as many as 24,300 jobs open nationally and 2,360 jobs in Texas that fit with the training provided by the new program. This includes jobs as teachers, biological and conservation scientists and natural science managers. Read more: Galveston Daily News(subscription may be required)

College of the Mainland update – On the main campus in Texas City , the 160,000 SF STEAM building (Science, Technology, Engineering, Arts & Mathematics) and 60,000 SF administration building should be completed in mid- January. Both are funded by a $162.5 million bond referendum that was approved November 2018. Some of the new programs being developed are engineering, surgical and imaging technicians, dental hygienist and physical therapy assistant. Expanded programs include pharmacy technician, nursing and medical assistants and medical coding. Other planned bond projects include a new 90,000 SF industrial careers building, and renovations to the fine arts building and to an existing building in League City which will house a COM satellite campus.

Free Tuition! The Texas City Economic Development Corp. made a $1 million donation to College of the Mainland’s Opening Doors Promise Scholarship fund, making it possible for high school students residing in Texas City to attend the college without paying tuition. Additionally, COM’s scholarship program is open to 2020 graduates of Hitchcock through donations from the Hitchcock Economic Development Corp., Associated Credit Union of Texas and the Hitchcock ISD’s Education Foundation. and Galveston Daily News and 2