Hope seen for brick, mortar world

president and chief operating officer Johnny Hendrix said operations remain strong.

In addition to supermarkets and discount chains, he said, the company continues to lease space to restaurants, health clubs, hair and nail salons, cellphone stores, pet stores and health care providers.

“We believe the omnichannel model including bricks and mortar will ultimately prevail,” Hendrix said.

The company recently finalized a deal with Gulf Coast Veterinary Specialists to move into 82,658 square feet at the northeast corner of Interstate 10 and Wirt Road in the Shoppes at Memorial Villages.

Gulf Coast will occupy 24,497 square feet of space in another building at the center temporarily while the permanent location is built out. Once the clinic moves into its new facility, Weingarten will demolish the smaller building and use it for parking. Both spaces were formerly occupied by Rexel USA.

Gulf Coast’s 1111 West Loop location has been closed due to Harvey. Services have moved to the clinic’s neurology center at 3800 Southwest Freeway.

In a separate announcement this week, Weingarten said construction on a planned 30-story residential tower at the River Oaks Shopping Center is scheduled to start in March. The $150 million project is designed to include 10,000 square feet of retail space.

The Driscoll at River Oaks will be built at West Gray and Driscoll. Houston-based Hanover will develop and manage the building for Weingarten.

Two permanent tenants will close or move as a result of the construction. Café Ginger is moving into another spot on West Gray in February, and Local Pour has already closed its location at the center.

Tenants that remain open and operating throughout the construction period include Events, Jos. A Bank Clothiers, J.Jill, Sur La Table and Brasserie 19, which is next door to the tower site.

Two temporary tenants, Eyeful Art and King Ranch Saddle Shop, are in the construction zone and are scheduled to close before the start of construction.

During its third quarter, Weingarten reported net income of $72.6 million, or 56 cents per share, up from $51.9 million, or 40 cents per share, for the same period in 2016.

Funds from operations for the quarter totaled $79.7 million, or 61 cents per share, up 5.2 percent from $75.6 million, or 58 cents per share, a year ago.

The company said it had $800,000 in operating expenses related to hurricanes Harvey and Irma.