Development

ARLINGTON, VA. — U.S. retail construction activity totaled 64.2 million square feet in the first quarter, down from 70 million square feet in first-quarter 2025 and well below the 10-year average (+90 million square feet), according to research from CoStar Group. Brandon Svec, national director of retail analytics at CoStar Group, points to multiple governors for new retail construction, including the popularity of e-commerce, competition from other property types and the previous cycles of broad-based expansion in the retail industry. Additionally, he says elevated costs for land, construction materials, labor and debt have made it difficult for retail developers to justify new construction. “The pullback in construction reflects a development environment that remains difficult to pencil in most markets,” says Svec. “Even in markets with strong population growth and leasing demand, achieving returns that justify ground-up construction has become increasingly challenging.” Data from the Arlington-based commercial real estate information and analytics firm shows that the nation’s retail development pipeline is sinking to levels not seen since the previous two cyclical lows: the early stages of the COVID-19 recovery and coming out of the Great Financial Crisis in 2011. Among markets tracked by CoStar, three Texas markets are leading the way …

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LEXINGTON, KY. — Subtext is set to break ground on VERVE Lexington, a 784-bed student housing development located at 185 E. Maxwell St. near the University of Kentucky campus in Lexington. The community is being developed in partnership with Clarion Partners in a qualified opportunity zone and is scheduled for completion in summer 2028. VERVE Lexington will span 460,136 square feet and offer 275 units in one-, two-, three- and four-bedroom configurations. Shared amenities are set to include a ground floor coffee shop, dedicated study spaces, fitness and wellness spaces and a second-floor terrace with a pool and clubroom. The development team included Southern Building Group, KTGY, EA Partners and Pacific Life Insurance Co. 

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CHARLOTTE, N.C. — A partnership between Redline Property Partners and Landmark Industrial plans to develop a 137,388-square-foot industrial facility in Charlotte. The firms recently acquired a 13.2-acre infill site at 6407 Old Concord Road on the city’s east side, marking the second industrial land acquisition in the Charlotte area by the Redline and Landmark partnership in the past four months. The duo plans to deliver the facility, which will feature 32-foot clear heights, in early 2027. Henry Lobb, Nick Claudio and Colin Ferguson of Avison Young will lease the facility.

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Palladium-Park-Row-Katy-Living

KATY, TEXAS — Palladium USA is nearing completion of a $33 million mixed-income housing project in the western Houston suburb of Katy. Palladium Park Row Katy Living will feature 93 units in one-, two- and three-bedroom formats, with the affordable units reserved for households earning between 30 and 80 percent of the area median income. Amenities will include a pool, fitness center, conference center, dog park, business center, children’s playroom and clubhouse with a mini kitchen. Palladium developed the property in a public-private partnership with the Harris County Housing Finance Corp. HEDK Architects designed the community, and Brownstone Group was the general contractor.

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Oates-610-Houston

HOUSTON — Dallas-based Mohr Capital will develop Oates 610, a 371,388-square-foot warehouse in East Houston. The site spans 22.3 acres at the intersection of I-610, I-10 and U.S. Highway 90, and Oates 610 will feature a cross-dock configuration, 36-foot clear heights, 80 dock doors and 91 trailer storage stalls. Ware Malcomb is the project architect, and Kimley-Horn is the civil engineer. Site grading will commence in the coming weeks, and construction is expected to be complete in mid-2027.

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Lobo-Crossing-Albuquerque-NM

ALBUQUERQUE, N.M. — SimonCRE has acquired approximately 38 acres of land to develop Lobo Crossing, a 363,000-square-foot, open-air center located on the University of New Mexico’s south campus in Albuquerque. A timeline for the $150 million project was not disclosed. Target will anchor Lobo Crossing, which will feature 11 junior anchors and 45,000 square feet of space for small retail and restaurant operators. Committed tenants include Burlington, Marshalls, HomeGoods, Sierra, Boot Barn, Five Below and Michaels. Seven additional retailers are finalizing leases, according to the company. The center is currently 90 percent preleased. Lobo Crossing is set to be the largest retail center developed in New Mexico in recent decades, according to SimonCRE.

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Modera-Woodmont-Beach-Des-Moines-WA

DES MOINES, WASH. — Mill Creek Residential has begun construction of Modera Woodmont Beach, an apartment community in Des Moines, 20 miles south of downtown Seattle. Resident move-ins are estimated to begin in summer 2027. Modera Woodmont Beach will include 280 one-, two- and three-bedroom apartments and 7,500 square feet of retail space. Community amenities will include a resort-style pool, hot tub, an outdoor deck, a grilling and outdoor dining area, a resident clubhouse, coffee bar, dog park, children’s playground and a fitness studio. Additionally, residents will have access to a coworking lounge with private workstations, package storage and gated parking with electric vehicle charging stations. The community will be built to National Green Building Standard (NGBS) certification, which awards points for features such as energy and water efficiency and indoor air quality.

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ST. LOUIS — St. Louis-based McCarthy Building Cos. has topped out construction of the 14-story, 200-bed SSM Health Cardinal Glennon Children’s Hospital in St. Louis. The topping out ceremony signified completion of the building’s structural frame and advanced the hospital toward the planned opening in late 2027. The new facility will incorporate advanced technology, expanded specialty units and a “healing-focused environment.” Plans call for a larger pediatric intensive care unit, new bone marrow transplant unit, increased operating room capacity, a dedicated dialysis unit and private, light-filled NICU, PICU and CVICU spaces. The project team includes Dallas-based architecture and design firm HKS Inc. and St. Louis-based planning and design firm The Lawrence Group. SSM Health is a Catholic, nonprofit health system with care delivery sites in Illinois, Missouri, Oklahoma and Wisconsin.

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CHICAGO — JLL has opened its new office at O’Hare Plaza, a Class A office complex located at 8755 W. Higgins Road near the Chicago O’Hare International Airport. The brokerage giant says that the new office uses a more efficient footprint that emphasizes amenity-rich design, communal workspaces and flexibility. The 5,748-square-foot space features city views, breakout areas, upgraded conference facilities and access to shared building amenities, including a tenant lounge with a restaurant/bar and outdoor spaces. “This move is a tangible example of what we recommend to clients: create a workplace that earns the commute through experience, flexibility and thoughtful design,” says Marcellus Parker, head of corporate real estate, Americas, at JLL. Sustainability and employee well-being were core considerations throughout the design and build-out. The office features LED lighting, occupancy sensors and daylight sensors in open office areas, indoor air quality sensors and biophilic elements such as planters. The layout prioritizes access to natural light, with shared spaces such as the open office, meeting rooms and collaboration areas located along the window line. Height-adjustable desks and a range of meeting and collaboration settings support different work styles, while high-performance acoustic glass and sound-mitigating phone booths provide privacy. Open office workstations …

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WINDCREST, TEXAS — Cleveland-based investment and development firm Industrial Commercial Properties (ICP) is underway on a 685,000-square-foot industrial project in Windcrest, located just northeast of San Antonio. Phase I of Windcrest International Business Park, which is a redevelopment of the 1.2 million-square-foot former headquarters complex of local cloud computing firm Rackspace Technology, is nearing completion following infrastructure upgrades and structural improvements. ICP has partnered with the City of Windcrest and Bexar County on the project. Rackspace originally acquired the 66-acre property in 2007. JLL has been tapped as the leasing agent.

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