Providence Plaza

Marcus & Millichap is pleased to exclusively offer for sale Providence Plaza, a 90,327-square-foot shopping center located at 9402-9478 Highway 6 South in Houston, Texas. The retail center sits on 7.7 acres at the southwest corner of Highway 6 and Bissonnet Street, seeing over 70,000 vehicles per day. The property features approximately 720 feet of frontage on Highway 6 and nearly 250 feet of frontage on Bissonnet Street.

Providence Plaza has a strong lineup of diverse, internet-resistant tenants with staggered leases, including its anchors: Dollar Tree and Spec’s, as well as restaurants, medical practices, beauty providers and retailers, specialty grocery and retailers, and more. Southwest Houston is known for strong residential density and diversity, with approximately 170,000 residents in a three-mile radius. Providence Plaza successfully caters to the diverse population in this submarket, with a track record of frequent tenant renewals. The strength of this submarket is also evidenced by the property boasting no vacancies.

An investor can enjoy stabilized cashflow by purchasing this fully occupied property, while retaining leverage on existing tenants to increase rents over time. An owner is expected to experience increased cash flow and value appreciation by enjoying scheduled rent increases in most tenants’ leases and option periods. Once tenants’ leases expire without remaining renewal options, an owner can increase below-market rents to achieve market rents, by taking advantage of this submarket’s lack of quality vacant retail offerings. Currently, submarket rental rates average between $15 to $23 per square foot plus triple-net for in-line retail space, and $9 to $15 per square foot plus triple-net for junior-box retail space, both dependent on size, existing buildout, visibility, access, and co-tenancy. Given Providence Plaza’s excellent corner location, clear visibility, and healthy tenant mix, it gives vacancies an upper-hand versus competing offerings. This will help a buyer to achieve market, or above-market rents as leases turnover. Additionally, a purchaser may add value to the property by leasing or selling its undeveloped pad sites.