Retail growth in the city of Magnolia is rising, as the city has a 92 percent retail occupancy rate within the city limits and plenty of undeveloped land allowing for future developments and growth. Despite being behind the growth curve of surrounding cities, such as Tomball and The Woodlands, Magnolia officials are anticipating significant growth in the area once road projects are completed and more homes are built. That, paired with significant interest in the city from a number of developers, makes Magnolia a prime location for continued retail development, city officials said.

"I have had more developers come and talk to me in the last three months than I have in the last four years," Magnolia City Administrator Paul Mendes said. "The growth is coming and all they are waiting on is the roads."

Within the city limits of Magnolia there is a total of 298,976 square feet of retail space, according to the Montgomery County Central Appraisal District. Of that, 245,762 square feet is currently under lease, leaving 53,214 square feet available. However, Tana Ross, economic development coordinator for Magnolia, said that 10 percent, or roughly 30,000 square feet, has to be added to current leased space to account for space occupied by utilities, which leaves only 23,214 square feet available for lease within the city limits, or roughly 8 percent. Ross said all non-residential areas within the city limits were counted as part of the total square footage, which includes retail, office and warehouse space.

"We saw some vacant places for quite a while, and we are just not seeing that now," Ross said. "In fact, if anything, I would say our area along with being prime for other developments is certainly prime for more retail as well."

Making room

Despite having a high retail occupancy rate and not much retail space available for lease, Ross said there is still plenty of area within the city limits for more retail developments to be constructed. The city has expanded its city limits in the past year to FM 1488 and FM 149 to the east and to FM 1774 and FM 1486 to the west, which are both areas that have undeveloped land and no retail developments.

"Our city limits have grown, but we still have the same retail we had when our city limits were smaller," she said.

Expansion of the city limits ensures the city will get sales tax from any retail developments that come to the area, which brings more revenue to the city, Magnolia Mayor Todd Kana said. The city is always interested in bringing in new retailers, and with the amount of vacant land in the extraterritorial jurisdiction, the city would be willing to expand its limits within the ETJ to annex any new retailers as long as the city's utilities could support the capacity, he said.

"Our hope is that when other businesses want to come to Magnolia that we find the space for them," Kana said. "I don't think we have cut ourselves off in terms of available space."

Growing pains

The retail growth in the city of Magnolia is mainly the addition of a number of smaller retail establishments. Magnolia has not experienced the retail growth surrounding areas, such as Tomball and The Woodlands, have experienced as of yet, Ross said.

Montgomery County Precinct 2 Commissioner Craig Doyal said one of the reasons for this is the lack of a proper road network and easy access to Magnolia. However, once road projects such as the Hwy. 249 tollway, the Grand Parkway, the overpass on FM 1488 over FM 149 and the widening of FM 1774 are completed, it will improve mobility in the region, allowing for increased development, he said.

"There is going to be a tremendous growth explosion on the western side of Montgomery County," Doyal said.

The construction and improvements on a number of road projects have created some issues for developers looking to come to the city of Magnolia because the mobility in the region is not where it should be, Ross said.

"The only thing that is squeezing us down right now, which is going to be one of our biggest payoffs, and that is the roadways that are going to be completed," Ross said. "With growth comes growing pains, and we are definitely in the phase of growing pains with these roadways. But those growing pains are going to be very short compared to the long-term benefit that is rapidly on the way."

Outside the city limits, but with Magnolia addresses, the stretch of FM 1488 near FM 2978 has seen significant retail growth and the addition of big box stores unlike the city of Magnolia. Susan Johnson, a Magnolia real estate agent and resident, said this area has benefitted from its proximity to The Woodlands as well as its proximity to I-45 and the completion of various road projects.

Johnson, who also serves as chairperson for the Magnolia Parkway Chamber of Commerce, said the main drivers for commercial developers on where to build are based on traffic counts and the number of households in a given area.

"Magnolia proper does not have the numbers to support major business growth as of yet, but it's not far off," Johnson said. "Developers comparing Magnolia proper to the area surrounding FM 1488 and FM 2978 are going to lean more toward the area that has more homes and employers."

Retail development is much like a domino effect, she said. For instance, Kroger opened at the intersection of FM 1488 and FM 2978 and shortly after came Walgreens, Target, TJ Maxx and Starbucks.

"Everyone waits for the first guy in the door, and once that happens, other businesses piggyback on that," she said.

Interest in Magnolia

As a result of the road improvements and home construction already underway in and around the city of Magnolia, Mendes said interest from developers in coming to Magnolia has skyrocketed.

Mendes said developers have shown interest in downtown Magnolia, along with other areas in the city limits as possible locations for both residential and commercial developments. He said there is also interest in areas that lie outside the city limits but within the ETJ, which means the city could have the option of annexing that land.

Ross said she believes the interest in the city is a precursor of the sheer excitement surrounding Magnolia.

"You have got to have the roadways, you have got to have the rooftops and the retail will come," she said.