XSpace, an innovative commercial real estate company, has partnered with three Houston firms to help grow its footprint. Rendering via xspacegroup.com

Texas-based XSpace Group has brought onboard three partners from the Houston area to ramp up the company’s national expansion.

The new partners of XSpace, which sells high-end multi-use commercial condos, are KDW, Pyek Financial and Welcome Wilson Jr. Houston-based KDW is a design-build real estate developer, Katy-based Pyek offers fractional CFO services and Wilson is president and CEO of Welcome Group, a Houston real estate development firm.

“KDW has been shaping the commercial [real estate] landscape in Texas for years, and Pyek Financial brings deep expertise in scaling businesses and creating long‑term value,” says Byron Smith, founder of XSpace. “Their commitment to XSpace is a powerful endorsement of our model and momentum. With their resources, we’re accelerating our growth and building the foundation for nationwide expansion.”

The expansion effort will target high-growth markets, potentially including Nashville, Tennessee; Orlando, Florida; and Charlotte and Raleigh, North Carolina.

XSpace launched in Austin with a $20 million, 90,000-square-foot project featuring 106 condos. The company later added locations on Old Katy Road in Houston and at The Woodlands Town Center. A third Houston-area location is coming to the Design District.

XSpace condos range in size from 300 to 3,000 square feet. They can accommodate a variety of uses, such as a luxury-car storage space, a satellite office, or a podcasting studio.

“XSpace has tapped into a fundamental shift in how entrepreneurs and professionals want to use space,” Wilson says. “Houston is one of the best places in the country to innovate and build, and XSpace’s model is perfectly aligned with the needs of this fast‑growing, opportunity‑driven market.”

The XSpace has tapped The Woodlands for its third location. Rendering via xspacegroup.com

Customizable commercial condo concept expands to The Woodlands

coming soon

An Austin-based company that provides ownable multi-use space is expanding in the Houston area.

XSpace has announced that it will break ground next year in The Woodlands and open near the intersection of Six Pines Drive and Lake Woodlands Drive in 2025. Both it and the Houston location, which is slated to open at 7022 Old Katy Road in 2024, are already fully committed, but prospective buyers may still put their names on a waiting list.

“We’re a cool warehouse space that you own,” said XSpace founder Byron Smith told InnovationMap about the Houston location last May. In Houston, confirmed owners in May included “car guys,” such as a car-wrapping business; media companies that plan to podcast from XSpace; and an interior design company. The first location, in Austin, is already active.


Those interested can now get on the waitlist. Rendering via xspacegroup.com

“The Woodlands’ incredible reputation and status as one of the top-selling communities in the Greater Houston area made this an ideal location for our third XSpace. XSpace The Woodlands will offer owners and tenants a dynamic and thriving community in a beautifully designed space,” says Smith on the company’s website.

Architect Francisco Gonzalez Pulido of FGP Atelier has designed The Woodlands space. Pulido is best known for his work on the stadium of Diablos Rojos and Felipe Ángeles International Airport in Mexico City, the Veer Towers complex in Las Vegas, and the Shanghai International Financial Center. The design is reflective of The Woodlands’ natural landscapes, but buyers will be able to customize their own spaces to their liking.

“The XSpace model works because it allows immense scalability and customization to an incredibly broad group of owners and tenants,” says XSpace chairman, Howard Ecker. “XSpace The Woodlands location will be accessible to young entrepreneurs who want to own and customize their first office, as well as a more mature owner who might want to scale a business or invest in multi-use storage spaces. XSpace is poised to become the newest trend and standard for the market for customizable space.”

To join the waitlist for The Woodlands’ location, business owners should visit the XSpace website.

XSpace is based in Austin and first announced its Houston expansion earlier this year. Rendering via xspacegroup.com

XSpace — a huge multi-use commercial condo concept — will be opening its Houston facility in the next few months. Rendering courtesy of XSpace

Innovative company with ownable multi-use concept shares details on Houston facility opening

coming soon

To some, Houston’s lack of zoning laws is a beautiful thing. The first time Byron Smith visited the city, he remarked on seeing a church, school, office building, and strip club all in startlingly close proximity.

At the time, the Sydney-born entrepreneur, whose previous experience was primarily in the automotive industry, was living in New York. But he fell in love with Space City.

“I was like, ‘We need to be in Texas,” he recalls, referring to expanding his next venture, XSpace, to the Lone Star State.

XSpace is a multi-use commercial condo building that allows entrepreneurs to own a home for their business.

“We’re a cool warehouse space that you own,” Smith explains, calling it “evolutionary space” where a business can grow from the roots up.

Though his family business was commercial real estate, Smith first dipped his toe into working with buildings with last year’s opening of the first XSpace in Austin. The city became “a natural fit” for the first project because Smith identified it as “a little bit more receptive to new things.” But Houston was part of the plan from the very beginning.

Located at 7022 Old Katy Road — close to both an escape room and an Aston-Martin dealership, among other diverse businesses — the Houston XSpace’s 86 units are already between 20- and 30-percent pre-sold, says Smith.

Rendering courtesy of XSpace

Confirmed owners of the spaces include “car guys,” such as a car-wrapping business; media companies that plan to podcast from XSpace; and an interior design company. Smith says that he’s been impressed with Houston’s depth of market.

“We’re trying really hard not to be rich-guy car condo stuff,” explains Smith. “It’s about cool, interesting people who are successful or are going to be successful.”

Though multiple businesses will all operate in XSpace, don’t think of it as a coworking space. In fact, coworking space is just a component included in the package of what owners get when they purchase part of XSpace. That’s inside the Owner’s Lounge, a flexible 4,000-square-foot area.

Each unit has natural light, but also metered electric and hot and cold running water. The whole facility is air-conditioned and well-ventilated and offers 24/7 access. The building is triple-gated for optimum security and includes a backup generator to ensure that owners will be able to work even in the case of another power grid failure.

Smith says that groundbreaking for XSpace will take place in seven weeks. Likely, owners will be able to start moving into the building in the summer of 2024. Until then, Smith says to expect some “sexy announcements” about upcoming partnerships and additional XSpace sites.

Though Smith says that global expansion isn’t yet in the plans for XSpace, “North American domination” is.

“All the cool cities, we’re going to be there,” he says. And it was all inspired by the coolest city of all and its eclectic business landscape.

Rendering courtesy of XSpace

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New UH survey reveals concerns over AI data center growth in Houston

data findings

A new report out of the University of Houston shows that area residents remain wary of the long-term effects of operating data centers.

The recent survey from the University of Houston’s latest SPACE City Panel, conducted by the Center for Public Policy at the Hobby School of Public Affairs, shows that while 85 percent of Houston-area residents use AI, nearly 63 percent oppose the construction of AI data centers within 1 mile of their homes.

Respondents’ concerns centered around data centers’ high energy demand and the area’s power grid reliability. According to the survey, 32 percent of residents who oppose local data center projects would be more likely to support the centers if they relied on renewable energy over fossil fuels.

“Respondents understand that AI can bring economic and educational benefits, but they are also concerned about the physical infrastructure needed to fuel AI, especially data centers,” Soran Mohtadi, post-doctoral fellow at the Hobby School and a researcher on the report, said in a news release. “This physical infrastructure demands more electricity and water, leading to environmental impacts.”

Experts estimate that 6.5 gigawatts of data center capacity will be added to the Texas grid by 2030. And Houston’s data center capacity is predicted to more than double by 2028.

The Electric Reliability Council of Texas also projects electricity demand could reach 218 gigawatts by 2031, which would be more than double the record peak set in August 2023. Data centers are expected to account for 86 gigawatts of that new demand.

Survey respondents also said they are concerned about the state's future water supply, given the large amounts of water that data centers need to stay cool.

In terms of who’s responsible for that issue, 57.6 percent of respondents said they put the onus on Texas lawmakers, while 31.5 percent say tech companies should be responsible.

Additionally, more than 75 percent of respondents believed that data center developers and technology companies—not residents—should bear the cost of infrastructure upgrades to support data centers.

“Every decision legislators make has implications on residents’ everyday lives and local infrastructure now and in the future,” Maria P. Perez Arguelles, lead researcher on the report and research assistant professor at the Hobby School, added in the news release. “This issue is going to become more important in years to come, so this is just the beginning.”

Read the full report here.

Houston-born Cemvita makes breakthrough in sustainable fuel production

clean fuels

Houston-based biotech company Cemvita announced that it recently reached a critical milestone in the development of its FermOil product, which can be used to create Sustainable Aviation Fuel (SAF) and other renewable fuels at industrial scale.

The company shared in a news release that it completed a 75,000-liter industrial fermentation run at Belgium's Bio Base Europe Pilot Plant.

The campaign achieved target technical metrics for the production of FermOil, Cemvita’s renewable natural oil (RNO). FermOil is produced from industrial crude glycerin, an industrial byproduct, as opposed to traditional sugar-based feedstocks used in many bio-oil fermentation processes. It's designed to be a drop-in feedstock for creating SAFs.

Cemvita had previously advanced its FermOil production process through multiple scale-up stages before successfully reaching the 75,000-liter demonstration campaign, according to the company.

“This is not just a fermentation milestone,” Moji Karimi, CEO at Cemvita, said in the release. “It is a blueprint for how existing industrial infrastructure can evolve into circular bioeconomy infrastructure. Every biodiesel plant generating crude glycerin is a potential platform for renewable natural oil production.”

The milestone also supports the deployment of Cemvita’s industrial biomanufacturing platform, FermWorks, which integrates with existing energy and industrial infrastructure to turn waste carbon streams into SAFs and other materials. According to the release, Cemvita plans to move forward with commercial deployment discussions with partners in Brazil, Europe and in the UK. Cemvita already has a partnership with the Brazilian sustainable research institution REMA.

“We are proud to support innovative companies like Cemvita in scaling breakthrough industrial biotechnology solutions,” Hendrik Waegeman, head of business operations at Bio Base Europe Pilot Plant, added in the release. “Successfully operating at the 75,000-liter scale using a feedstock such as crude glycerin highlights both the maturity of the technology and the quality of the scale-up execution achieved by the Cemvita team.”

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Eli Lilly scoops up Houston biotech startup in $300 million deal

big pharma deal

Pharmaceutical giant Eli Lilly has acquired Houston biotech startup CrossBridge Bio, which develops antibody-drug conjugates for cancer, in a deal worth up to $300 million. The deal was celebrated by TMC Venture Fund and the University of Texas Health Science Center at Houston last week.

CrossBridge, founded in 2023, is developing ADCs based on research by Kyoji Tsuchikama and Zhiqiang An, both of UT Health Houston. Tsuchikama is an associate professor of medicinal chemistry and a globally recognized ADC pioneer, and An is a professor of molecular science and vice president of drug discovery.

Antibody-drug conjugates (ADCs) are a potent combination of targeted therapy and chemotherapy that kills cancer cells while saving healthy tissue.

Clinical trials for CrossBridge’s primary ADC candidate, CBB-120, are expected to start this year, pending approval from the U.S. Food and Drug Administration (FDA).

“I’m proud of how well our team has executed and advanced our platform in such a short time since the company’s founding,” Michael Torres, co-founder and CEO of CrossBridge, said in a news release. “By becoming a part of Lilly, a leader in patient-focused therapeutic development, we are well-positioned to further accelerate the clinical potential of this approach.”

Under the Lilly deal, CrossBridge shareholders were expected to receive an upfront payment along with a follow-up payment based on the achievement of certain milestones.

In 2024, CrossBridge closed a $10 million seed round. Among the investors in CrossBridge are the Texas Medical Center Venture Fund, CE-Ventures, Alexandria Venture Investments, Portal Innovations, Linden Lake Labs, and the Cancer Prevention and Research Institute of Texas (CPRIT). It was formed in TMC Innovation’s Accelerator for Cancer Therapeutics program."Built within the TMC ecosystem, CrossBridge Bio grew with the support, funding, and resources that helped shape its trajectory. TMC led the company's early financing and watched it evolve from its earliest days to its acquisition by Eli Lilly," William McKeon, president and CEO of the Texas Medical Center, shared in a LinkedIn post. "[This is a] strong reminder that breakthrough science and the right early backing can change what’s possible."