Food Halls and Celebrity Chefs: The New Perk for Skyscraper Owners
Understory, located in the Skanska skyscraper that will open in downtown this year, will add to Houston’s food hall craze.
HOUSTON – (By Ralph Bivins, Realty News Report) – Longtime Houstonians may recall when Sharpstown Mall introduced the new idea of a food court along the Southwest Freeway.
Food courts, with their rows of fast-food counters and the pervasive smell of frying oil, still exist.
But the term “food court” has largely fallen out of favor. Today the conversation centers on “food halls.” In short: food courts have been replaced by food halls.
“Lately, it seems to be raining food halls – the trendy, chef-driven, micro-restaurants that are quickly becoming the ultimate amenity. Since 2016, Houston has seen eight (8) food halls either open or announce their upcoming opening,” says Rand Stephens, head of Avison Young in Houston, in a recent blog. “Most of them are located downtown, with others popping up in The Heights and Rice Village. Is the collaboration of landlord and restaurateur just another flavor of the month, or will this become a signature dish of the commercial real estate landscape?”
Houston has many acclaimed restaurants and chefs who have earned recognition from the James Beard Awards. Food halls provide an opportunity for this culinary talent to establish a presence without taking on heavy debt. Short-term, affordable leases make food halls attractive to chefs and entrepreneurs.
Crucially, food halls can enhance the appeal of downtown office buildings. A well-executed food hall helps employers provide an amenity that supports employee satisfaction and retention—an increasingly important concern for corporations.
According to Avison Young, Houston’s recent and forthcoming food halls include Bravery in Hines’ Aris residential tower on Travis Street; Finn Hall in Midway’s The Jones on Main development; the Conservatory at 1010 Prairie; Lyric Market at 411 Smith; Railway Heights at 8200 Washington Avenue; Politan Row at 2445 Times Boulevard in The Village; and Oui Eats at 2645 North Main.
Finn Hall opened in a historic downtown building late in 2018. “Finn Hall was designed to be a community gathering space for Houstonians and visitors who want to sample the best and most diverse food offerings that represent Houston,” says David Goronkin, president of Oz Rey, an Austin-based firm that develops and manages food halls. “The trend of food halls coming to Houston reflects demand for outstanding culinary options presented in an approachable format that encourages direct interaction between chefs and the community.”
When the new 35-story Capitol Tower opens downtown later this year, it will feature a much-discussed food hall called Understory.
The Understory space, designed by architect Michael Hsu, is described by developer Skanska as “a dynamic, experience-based destination that brings the community together through culture, commerce and cuisine.” It will be the first tunnel-level food destination to operate seven days a week.
Rand D. Stephens, managing director of Avison Young in Houston
Understory’s tenant lineup will include Flip ‘n Patties, East Hampton Sandwich Co., Boomtown Coffee, Mama Ninfa’s Tacos y Tortas and MONA Fresh Italian Food.
Several vendors across various food halls started as food trucks, avoiding the overhead of traditional brick-and-mortar restaurants while building a customer base and refining their concepts.
Avison Young’s Stephens cites a Forbes.com article noting that startup restaurants with fewer than 20 employees face a higher failure rate than many other service businesses.
There’s no doubt food halls generate significant foot traffic. The question for operators and landlords is whether that initial excitement translates into sustained patronage.
“The question is,” Stephens asks, “will customers come often enough to sustain a profitable business?”
