TheWriter
11-21-2005, 01:54 AM
Although I don't believe Hoover is giving Toyota enough credit for the growth on the South side, it's still a very good article.
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South Side growth began long before Toyota entered scene
Michael D. Hoover
The land along Loop 1604 between U.S. Highway 281 and Interstate 35 on the South Side of San Antonio is changing hands faster and faster, with developers responding to consumer demand for land, houses and stores. After decades of talk, the area is finally beginning to mature as both builders and buyers shift further south to avoid congestion.
Of course, with its expected $800 million in investment, Toyota Motor Co.'s new truck plant has only fueled the fire. And, while it will certainly spark new retail growth on the city's South Side, the demographic shift, increased development and resulting burst of retail activity isn't entirely due to the huge manufacturing facility.
Much was in place even before Toyota announced its entry into the city. Yes, Toyota is expected to employ some 9,000 people. But, in 2004 BT (before Toyota), San Antonio added more than 12,000 new jobs. By September 2005, we were looking at a 5.3 percent growth rate and some 18,400 new jobs from the same time last year.
It's incredible growth. Something retailers take notice of. They also notice rooftops. Last year, we broke records with 12,700 starts. But that doesn't even begin to paint the picture for 2005. According to a recent survey by Metrostudy, San Antonio had more housing starts than any other major Texas market in the third quarter with 4,034 housing starts. And these aren't houses that are staying empty. In fact, some say that while other areas need to be concerned about a housing bubble that's about to burst, San Antonio won't be on the receiving end of that pink slip.
New housing
Several new large residential projects are either on the books or already in the works. They include Savannah Heights, a planned neighborhood about 1.5 miles from the intersection of Loop 1604 and State Highway 16. Work on the 1,000 residential lots was begun because of a belief that South San Antonio is prime for new residents.
Matching that thought is South Port, a 522-acre, a planned mixed used development to be located right across the street from the Toyota plant. It will include several pedestrian-friendly villages with parks and plazas and at least 34,000 square feet of retail. Already three major leases are in the works at the development for at least two restaurants, office space and day care facilities.
At U.S. Highway 281 South and Loop 410, Terramark Communities has inked a deal on 500 acres for a master-planned community that includes 150,000 square feet of retail. Homes should be on the market by early 2007. A second master-planned community known as Hunter's Pond includes some 90 acres between South Zarzamora and Texas Highway 16. It's expected to include 447 residential lots.
Homes are already up for sale at Mission del Lago, just east of 281 and south of Loop 410, as part of a plan for some 2,000 homes. Alternative Housing also has completed the first of its affordable homes in the Palo Alto subdivision near Toyota southwest of the intersection of Applewhite Road and Hwy. 16.
New retail
And that's just a few of the plans. With all this growth, it's clear to see why retail is experiencing a glorious revitalization on the South Side.
It's the Military Drive-Goliad intersection that is busiest at the moment. With Wal-Mart and Sam's coming online at Brooks City-Base, additional retailers are fast to follow. Best Buy, Office Depot, Home Depot, Peter Piper Pizza and an IBC Bank branch have already inked leases.
The original impetus at Military and Goliad was H-E-B. The grocery chain has moved three times in that area. Starting in what was the original K-mart building at that intersection, H-E-B built a freestanding store there, and then moved across the street to build a larger store with three drive-thru pharmacy windows.
But that wasn't enough to meet demand. So, down to the Military/Zarzamora intersection the grocer went. They bought more land and planned an H-E-B Plus store, a much-larger-than-average store with expanded inventory including music, books and furniture.
Wal-Mart also picked up on the tremendous need in the area, opening two stores just 1.5 miles apart. The same logic appears to be working for Sam's as well, with this store sitting pretty just five miles away from Wal-Mart at Somerset Road and Military.
Even with all this retail, there's more to the story. In the BT era, shoppers from smaller towns south of San Antonio like Floresville and Pleasanton drove north to buy goods and services at the larger discount retailers. Their dollars helped add to the synergy in the area, particularly along Military. The basics, however, they could still find nearer home with the proliferation of mom-and-pop retailers that have dotted these towns for years.
Toyota may well change some of that.
And more changes
The plant is expected to create a housing boom in these bedroom communities that boast lower building costs. As sure as the rooftop landscape grows, big retail will follow. That's good news for locals ... or is it? Such growth will most likely ring in the end of the mom-and-pop retailers -- particularly those carrying products available at the Wal-Marts of the world. It's a sad, sad story that follows category killers wherever they go.
The second half of that greater story has to do with schools. While there are plans for expansions of schools along the Somerset-Atascosa county line to accommodate the growing population, such district initiatives under way are few and far between.
There is a good possibility the Harlandale, Somerset and South San Antonio districts may see the same kinds of growing pains now being experienced by Northside and North East districts.
If the area is to be holistically successful, expansion of the schools must happen. Stymied growth in any sector -- and that includes education -- hinders the ability of new retail to be successfully built.
This is all just the beginning. There are thousands of acres, sitting out there on the South Side, waiting. It will take years and maybe decades to fill up, but it is going to happen. The land boom is starting. And, there's little that will be able to slow it down.
Michael D. Hoover is vice president of D.B. Harrell Management, a division of D.B. Harrell Cos. You can reach him at 210-222-2424.
http://sanantonio.bizjournals.com/sanantonio/stories/2005/11/21/focus5.html
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South Side growth began long before Toyota entered scene
Michael D. Hoover
The land along Loop 1604 between U.S. Highway 281 and Interstate 35 on the South Side of San Antonio is changing hands faster and faster, with developers responding to consumer demand for land, houses and stores. After decades of talk, the area is finally beginning to mature as both builders and buyers shift further south to avoid congestion.
Of course, with its expected $800 million in investment, Toyota Motor Co.'s new truck plant has only fueled the fire. And, while it will certainly spark new retail growth on the city's South Side, the demographic shift, increased development and resulting burst of retail activity isn't entirely due to the huge manufacturing facility.
Much was in place even before Toyota announced its entry into the city. Yes, Toyota is expected to employ some 9,000 people. But, in 2004 BT (before Toyota), San Antonio added more than 12,000 new jobs. By September 2005, we were looking at a 5.3 percent growth rate and some 18,400 new jobs from the same time last year.
It's incredible growth. Something retailers take notice of. They also notice rooftops. Last year, we broke records with 12,700 starts. But that doesn't even begin to paint the picture for 2005. According to a recent survey by Metrostudy, San Antonio had more housing starts than any other major Texas market in the third quarter with 4,034 housing starts. And these aren't houses that are staying empty. In fact, some say that while other areas need to be concerned about a housing bubble that's about to burst, San Antonio won't be on the receiving end of that pink slip.
New housing
Several new large residential projects are either on the books or already in the works. They include Savannah Heights, a planned neighborhood about 1.5 miles from the intersection of Loop 1604 and State Highway 16. Work on the 1,000 residential lots was begun because of a belief that South San Antonio is prime for new residents.
Matching that thought is South Port, a 522-acre, a planned mixed used development to be located right across the street from the Toyota plant. It will include several pedestrian-friendly villages with parks and plazas and at least 34,000 square feet of retail. Already three major leases are in the works at the development for at least two restaurants, office space and day care facilities.
At U.S. Highway 281 South and Loop 410, Terramark Communities has inked a deal on 500 acres for a master-planned community that includes 150,000 square feet of retail. Homes should be on the market by early 2007. A second master-planned community known as Hunter's Pond includes some 90 acres between South Zarzamora and Texas Highway 16. It's expected to include 447 residential lots.
Homes are already up for sale at Mission del Lago, just east of 281 and south of Loop 410, as part of a plan for some 2,000 homes. Alternative Housing also has completed the first of its affordable homes in the Palo Alto subdivision near Toyota southwest of the intersection of Applewhite Road and Hwy. 16.
New retail
And that's just a few of the plans. With all this growth, it's clear to see why retail is experiencing a glorious revitalization on the South Side.
It's the Military Drive-Goliad intersection that is busiest at the moment. With Wal-Mart and Sam's coming online at Brooks City-Base, additional retailers are fast to follow. Best Buy, Office Depot, Home Depot, Peter Piper Pizza and an IBC Bank branch have already inked leases.
The original impetus at Military and Goliad was H-E-B. The grocery chain has moved three times in that area. Starting in what was the original K-mart building at that intersection, H-E-B built a freestanding store there, and then moved across the street to build a larger store with three drive-thru pharmacy windows.
But that wasn't enough to meet demand. So, down to the Military/Zarzamora intersection the grocer went. They bought more land and planned an H-E-B Plus store, a much-larger-than-average store with expanded inventory including music, books and furniture.
Wal-Mart also picked up on the tremendous need in the area, opening two stores just 1.5 miles apart. The same logic appears to be working for Sam's as well, with this store sitting pretty just five miles away from Wal-Mart at Somerset Road and Military.
Even with all this retail, there's more to the story. In the BT era, shoppers from smaller towns south of San Antonio like Floresville and Pleasanton drove north to buy goods and services at the larger discount retailers. Their dollars helped add to the synergy in the area, particularly along Military. The basics, however, they could still find nearer home with the proliferation of mom-and-pop retailers that have dotted these towns for years.
Toyota may well change some of that.
And more changes
The plant is expected to create a housing boom in these bedroom communities that boast lower building costs. As sure as the rooftop landscape grows, big retail will follow. That's good news for locals ... or is it? Such growth will most likely ring in the end of the mom-and-pop retailers -- particularly those carrying products available at the Wal-Marts of the world. It's a sad, sad story that follows category killers wherever they go.
The second half of that greater story has to do with schools. While there are plans for expansions of schools along the Somerset-Atascosa county line to accommodate the growing population, such district initiatives under way are few and far between.
There is a good possibility the Harlandale, Somerset and South San Antonio districts may see the same kinds of growing pains now being experienced by Northside and North East districts.
If the area is to be holistically successful, expansion of the schools must happen. Stymied growth in any sector -- and that includes education -- hinders the ability of new retail to be successfully built.
This is all just the beginning. There are thousands of acres, sitting out there on the South Side, waiting. It will take years and maybe decades to fill up, but it is going to happen. The land boom is starting. And, there's little that will be able to slow it down.
Michael D. Hoover is vice president of D.B. Harrell Management, a division of D.B. Harrell Cos. You can reach him at 210-222-2424.
http://sanantonio.bizjournals.com/sanantonio/stories/2005/11/21/focus5.html