What’s happening to Montrose? Is there some sort of shift happening? (Houston: lease, neighborhoods)

[clutchcity]

Seems like restaurants are closing left and right in Montrose recently. I understand the shelf life for restaurants isn’t very high in the first place, but there seems to be a fundamental shift going on right now in Montrose with all these closures.

Is Montrose continuing on its way up? Or is it on a decline from a price per square foot perspective?

[westhou]

I haven't noticed any decline. Seems to be a lot of development in the area.

[LocalPlanner]

I think it's just a cycling out of upscale, trendy restaurants that reached the end of their life cycle. Restaurants of this class, by their very nature, are intended to be "of the moment" - it's hard to last more than 10 years with that position in the consumer imagination, especially if they're not a cheap night out.

[hbcu]

I see restaurants opening in these areas paying an arm and leg for rent just to be in that area only to fail. Who are advising these folks?

The guy that ran Holley’s opened up on high traffic location in midtown but he never had a restaurant before and it took just one disaster to close. If you got good food people will travel. Save up first.

[hendersj31]

I read recently that the rents have increased substantially and it has become difficult for many businesses to stay open. Also the article did mention a shift toward upscale due to the high costs as well as a few high end developers were beginning projects. Sorry I cannot remember what I was reading but will see if I can find it.

[dejamiller]

Yes. Montrose is a totally different animal then what is was a few years ago. Even the “Sunday Funday” scene is different.

[LocalPlanner]

Originally Posted by hbcu

I see restaurants opening in these areas paying an arm and leg for rent just to be in that area only to fail. Who are advising these folks?

The guy that ran Holley’s opened up on high traffic location in midtown but he never had a restaurant before and it took just one disaster to close. If you got good food people will travel. Save up first.

You've hit on the really big problem. Lease rates in "hot" neighborhoods like Montrose are really high. A restaurant has to generate lots of high-dollar tickets to pay their monthly rent check. However, there's room for only so many high-dollar restaurants in central Houston (let alone the more outlying areas), even in a city this size.

Restaurateurs have been quoted stating that they feel like there's very few affordable options anymore in the parts of town where they have confidence their envisioned customers could find them. For the most part, they're still too nervous about locating in more pioneering areas like East End, 3rd Ward, Near Northside, etc., though some have made it work (the new Indigo that's gotten so much buzz, for example). Frankly, I think so much comes down to whether they think affluent Anglo women will be willing to venture to a cheaper location.

Also, remember that newly built space will always have a relatively higher lease rate. Plus, too many restaurateurs think they need a fancy build-out that puts them in the hole early. This is Houston - we don't need LA/Vegas/Miami-style hangout spots (despite what some in this forum seem to think).

[houston-nomad]

I wish they would branch out a little. Our little Southwest side of the loop is so underserved by restaurants and bars. Even if they're not going to come all the way to Westbury, we could use more buzzy places in Bellaire. I LOVE the '401 but it's really the only place in the neighborhood I particularly want to go.

[LadyMill00]

I was thinking that it was the homeless problem forcing restaurants out of the area! I feel like it's gotten pretty dumpy in the Montrose area over the last couple of years as that area is a hot spot for the homeless (especially around the area where Dolce Vita is). I'd rather go to nice restaurants in the Heights/Washington, Uptown, River Oaks areas because it's an overall nicer area and I feel safer.

[snackdog]

I see more openings than closings. About the same as ever as this business always churns. Montrose will always be the hot spot for dining due to the fabulous location. Many locations are only suitable for restaurants so they will get used, even if rents eventually have to fall for that to happen.