Head above water From the cover
A closer look
The overview
Brett Nuttall, who opened Pop Drinks Atascocita with his wife in 2024, said he’s had to reduce the size of their supply orders to reduce costs. “We just can’t keep dollars sitting on the shelves for undetermined periods of time,” Nuttall said. Nuttall said the strain caused by ination might lead to higher prices at his store. “It’s all we’ve got left to do,” Nuttall said. Landry said he is taking a dierent approach with his new business, noting he’s aiming to reduce the number of orders he places by buying more food with each order. “We’re buying in bulk less frequently, so we’re fully stocked at all times,” Landry said. From 2021 to 2025, the average rental rate for retail space in the Lake Houston area rose from around $18.25 per square foot to $25.10 per square foot, said Ashley Brown, Realtor with Red Door Realty & Associates and the Polompsky Team. “Even a 1,500-square-foot space can easily cost $4,000 or $5,000 a month once you factor in taxes, insurance and maintaining your business,” she said. Additionally, Brown said new businesses tend to sign shorter leases, leaving them open to quick rate hikes once their initial contract expires.
utilities and rent were all going up at the same time,” Landry said. Landry soft opened a new restaurant, Landry’s Creole and Cajun Seafood, in mid-April, but he noted he was required to alter his business plan moving forward to account for increased costs. While Ray Hernandez, president and CEO of Partnership Lake Houston, said the rising cost of rent and increased costs due to ination have caused some diculties for area businesses, he said business owners have access to several loans and counseling options aimed at easing their struggles.
Business and restaurant owners across the Lake Houston area have said they are struggling as operating costs increase due to rising ination and a more expensive rental market. While more than a dozen businesses in the area have closed dating back to 2024, others remain open but are struggling to make ends meet. Andrew Landry, who opened Juicy Heads and Spicy Tails in Humble in 2023, said he was forced to shut down his business in 2024 after freezing temperatures depleted the area’s supply of crawsh. “That was the primary reason that I sold the business, and then, obviously, the cost of food,
Lake Houston-area business closures since 2024
13
NORTHPARK DR.
7
494
SORTERS MCCLELLAN RD.
Kingwood
8
9
3B
1
59
2 3A
16
Lake Houston-area rental property prices Average price per square foot $30
W. LAKE HOUSTON PKWY.
15
17
5
LAKE HOUSTON
F I R S T S T
10A
1960
Humble
+37.53%
12
14
10B
6
W. MAIN ST.
$25
WILSON RD.
O N P K W Y .
W I L L
$20
Atascocita
11
S. HOUSTON AVE.
4
N
$15
Business
Dining
$0
2020 2021 2022 2023 2024 As of the third quarter of each year
7 Optimum Store 4103 W. Lake Houston Parkway, Kingwood 8 Painted Tree Boutiques 1153 Kingwood Drive, Kingwood
1 Don’t Axe 1660 W. Lake Houston Parkway, Kingwood 2 Forever 21 20131 Hwy. 59, Humble 3 Francesca’s A 20131 Hwy. 59, Humble B 732 Kingwood Drive, Kingwood 4 Ingenious Brewing Co. 1986 S. Houston Ave., Humble 5 Joann Fabric and Crafts
11 Abbott’s Frozen Custard 17630 W. Lake Houston Parkway, Atascocita 12 Juicy Heads & Spicy Tails 1502 First St. E., Ste. G, Humble 13 Kingwood Craw sh Company 1965 Northpark Drive Kingwood 14 Korner Slice 5326 FM 1960 Road E., Humble 15 Outback Steakhouse 9753 FM 1960 Bypass, Humble 16 TGI Fridays 20430 Hwy. 59, Humble 17 96 Cafe 20026 Hwy. 59 N., Humble
Nationwide change in ination Consumer price index 350
9 Pet Supplies Plus 4520 Kingwood Drive, Kingwood
+29.9%
300
330.213
10 99 Cents Only Stores A 216 FM 1960, Humble B 7130 FM 1960, Humble
250
20424 Hwy. 59, Humble 6 King 99 Cent Store 25 W. Main St., Humble
254.202
SOURCE: RED DOOR REALTY & ASSOCIATES, U.S. BUREAU OF LABOR STATISTICS COMMUNITY IMPACT 0 2019 2020 2021 2022 2023 2024 2025 2026 As of March 1 each year
This list is not comprehensive.
SOURCES: PARTNERSHIP LAKE HOUSTON, INDIVIDUAL BUSINESSESCOMMUNITY IMPACT
14
COMMUNITYIMPACT.COM
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