A major wave of Big Lots closures is set to reshape the retail landscape across the Houston metro area.
Ten leases in the Houston metro area will join the Columbus, Ohio-based retailer’s larger national auction, as it restructures under bankruptcy, the Houston Business Journal reported.
“This process of portfolio-optimization is creating strong opportunities for retailers and landlords across the country,” said Andy Graiser, co-president of A&G Real Estate, which is accepting bids on 255 Big Lots leases nationwide.
The Houston leases range from 16,300 to 54,600 square feet and vary in price. Among the largest is a 46,700-square-foot store at 4815 East Freeway in Baytown. It has a base rent of $9 per square foot and is near a planned 105-acre mixed-use development on the site of the former San Jacinto Mall.
The NRG Park location, at 8210 Kirby Drive, spans 22,000 square feet and commands the highest rent of $9.50 per square foot. The Baytown and Kirby Drive stores will be part of the “Wave 3” auction on Thursday, Nov. 7, with bid deadlines set for Tuesday. The remaining Houston-area leases will follow in December.
Nexus Capital Management acquired Big Lots in a $765 million bankruptcy court-approved bid, and more stores are likely to close.
“The availability of additional leases may be announced at a later date upon court approval,” Graiser said.
Nexus Managing Director Evan Glucoft called Big Lots an “iconic brand” with potential for a resurgence as a leading “extreme value retailer.”
“Because of their larger formats, many of these desirable, strategically positioned locations are a strong fit for today’s expanding operators, including sports-entertainment tenants and larger food-and-beverage concepts that emphasize gaming areas and hangout spaces,” A&G co-president Emilio Amendola said.
The Texas retail market has been absorbing vacancies from other bankruptcies, including Bed Bath & Beyond and Tuesday Morning. Houston’s retail sector remains strong with a low retail vacancy rate.
The Houston-area Big Lots stores slated for auction include:
- Baytown: 4815 East Freeway (46,700 square feet; base rent of $9 per square foot; lease ends Jan. 31, 2030, with three five-year renewal options)
- Galveston: 5910 Broadway (26,500 square feet; $5.50 per square foot; lease ends Jan. 31, 2027, with one five-year renewal option)
- Houston (northwest area): 10951 Farm to Market 1960 Road West (32,000 square feet; $3.31 per square foot; lease ends Jan. 31, 2029, with one five-year renewal option)
- Houston (northwest area): 6138 Highway 6 North (30,000 square feet; $6.75 per square foot; lease ends Jan. 31, 2025)
- Houston (near NRG Park): 8210 Kirby Drive (22,000 square feet; $9.50 per square foot; lease ends Nov. 30, 2029)
- Houston (Westchase District): 9795 Westheimer Road (32,400 square feet; $6.75 per square foot; lease ends Jan. 31, 2026, with two five-year renewal options)
- Katy: 923 South. Mason Road (28,000 square feet; $7 per square foot; lease ends Jan. 31, 2026)
- Pearland: 2028 N. Main St. (26,660 square feet; $5.99 per square foot; lease ends Nov. 14, 2026)
- Spring: 425 Sawdust Road, Suite A (39,500 square feet; $7.98 per square foot; Jan. 31, 2025, with one five-year renewal option)
- Tomball: 27816 State Highway 249 (29,500 square feet; $5.25 per square foot; lease ends Jan. 31, 2025, with two five-year renewal options)
— Andrew Terrell
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