New development announced to rise alongside Houston's Texas Medical Center

now building

The Levit Green development will feature office, research, residential, retail, and dining components, along with outdoor amenities and green space. Image courtesy of Hines

Two Houston-based commercial real estate companies — Hines Interests LP and 2ML Real Estate Interests Inc. — have teamed up to develop a 52-acre life-sciences-anchored, mixed-use project adjacent to the Texas Medical Center.

The Levit Green development will feature office, research, residential, retail, and dining components, along with outdoor amenities and green space. In a June 15 release, the developers say Levit Green will sit "at the epicenter of Houston's biotech, corporate life sciences, and medical research hub."

Levit Green will be near the planned TMC³ biomedical research campus. The Hines-2ML project will be built at the northwest corner of Holcombe Boulevard and U.S. Highway 288 on an industrial site that was the headquarters of The Grocery Supply Co. Inc., the predecessor of 2ML.

Being built at a cost of $1.5 billion, the 1.5 million-square-foot, 36-acre TMC³ campus is set for completion in 2022.

"At 15.5 percent, Houston has one of the highest five-year growth rates in life sciences establishments in the United States. Impressive advancements in therapeutics, science, and innovation are driving demand for real estate," John Mooz, senior managing director of Hines, says in the release.

Privately held Hines is a real estate investor, developer, and manager whose portfolio comprises $133.3 billion in assets across 24 countries.

Because Levit Green remains in the master-planning phase, the developers aren't able to provide the project's square footage. They plan to break ground once design work for the initial buildings is finished. The developers decline to disclose a price tag for the project.

"Given the explosive growth and investment in innovation in the life science sector, there is an intense need for state-of-the-art facilities which enable the research required to bring these planned advances into being," Mooz tells InnovationMap in a statement. "As Houston is an ascending life science cluster city, which also includes the world's largest medical center, the need to create facilities that enhance research and development was, to us, obvious."

An initial parcel for Levit Green was purchased by Joe Levit, founder of The Grocers Supply Co., which grew into a major independent wholesaler of groceries in the U.S. and the largest supplier of Hispanic groceries in the U.S. The Levit family owns 2ML.

"Our family has deep roots in the neighborhood, and we believe this development will add tremendous value to the area and the Texas Medical Center," Max Levit, president of 2ML, says in the release.

The Levits entered the retail sector with the purchase of the Gerland's Inc. and Fiesta Mart Inc. grocery chains. In 2014, the family sold its wholesale business and the Grocers Supply name. The following year, the company sold Gerland's and Fiesta Mart.

In conjunction with the sale of the wholesale business and the brand, The Grocers Supply Co. changed its name to 2ML Real Estate Interests. The renamed company controls a portfolio of more than 5.2 million square feet of warehouses, shopping centers, supermarkets, and office buildings. The bulk of 2ML's portfolio is in the Houston area.
WeWork opened the doors to its fourth Houston location. Courtesy of WeWork

Photos: WeWork opens 4th Houston location in Hines downtown trophy tower and plans expansion in the Galleria

Coworking it out

WeWork has officially doubled down on its downtown presence in Houston. The coworking company has officially opened the doors of its space within Hines' trophy tower.

The coworking space makes up 50,000 square feet on two floors of 609 Main St. The 48-story building, which is owned and developed by Houston-based Hines, premiered on the downtown Houston skyline in 2017.

"The new WeWork space at 609 Main Street is a great complement to our state-of-the-art office building in downtown Houston," says Philip Croker, senior managing director at Hines, in a news release. "It's been a pleasure to work with this team and we are eager to see their space filled with Houston's cutting-edge businesses. We know WeWork in Houston is strong and look forward to our partnership growing in the years to come."

Meanwhile in the Galleria area, WeWork is opening two additional floors of its space in Galleria Tower I this month. More details on the expansion are still to come.

The new 609 Main location, which was originally announced this summer, joins the Galleria location and a Woodlands location in Hughes Landing, which also just announced its new location recently, as well as another downtown location in the Jones Building — just across the street at 708 Main St.

The new location is modern and high-end, per the release, which juxtaposes its historic sister location in downtown. The 609 Main location has a more executive feel than the homey environment of the Jones Building. For that, the new location charges a bit of a premium. Private offices at 609 Main begin at $780 a month, compared to the rates of $550 at the Jones Building and $580 at Galleria Tower I. Unassigned desk memberships are around $300 monthly for the two older locations, compared to closer to $400 for 609 Main.

"WeWork is eager to continue its expansion in the Houston area with the opening of our fourth location in Houston and second downtown," says Nathan Lenahan, general manager for Texas at WeWork, in the release. "The space at 609 Main Street is a perfect location for those businesses and entrepreneurs downtown looking to expand and have a flexible, creative office environment that promotes community."

Last month, the New York Times announced job cuts companywide for WeWork, however there has not been any regional reports for the coworking company or any information on how the cuts will affect Houston locations.

Executive feel

wework 609 main

Courtesy of WeWork

Compared to WeWork's other Houston locations, the 609 Main space has more of an executive feel — and monthly membership reflects that. Rates are a full $200 more a month for a private office compared to WeWork's other downtown location.

Houston-based real estate giant enters the coworking space with 2 locations and more in the works

Hines²

Houston-based real estate investor and developer Hines Interests LP is eyeing a piece of the burgeoning market for coworking space.

Hines just unveiled Hines², a platform for flexible office space at Hines-owned buildings. Hines² already is up and running at two locations: 717 Texas, a 33-story Class A office tower in Houston, and The Kearns Building, a 10-story office building in Salt Lake City.

Justin Boyar, director of market analytics at CoStar Group, a provider of commercial real estate data and analytics, points out that the two Hines buildings where Hines² has launched had vacancy rates of 48.6 percent (717 Texas in Houston) and 32.4 percent (Kearns Building in Salt Lake City) in the third quarter of this year.

Landlords like Hines increasingly are incorporating coworking into their office buildings "as a way to creatively entice tenants to buildings otherwise suffering high vacancy rates," Boyar says.

"Office landlords have been under siege this cycle by new space utilization trends — including increased density and efficiency, open floorplates, remote work, hoteling, and coworking," he says. "Office landlords now not only have to compete with structurally shrinking office demand but also with coworking providers who now offer hotel-like amenities and programming."

On the horizon are Hines² setups in markets such as Atlanta, Boston, Denver, New York City, the San Francisco Bay Area, and Washington, D.C. Eventually, Hines plans to enter other markets in North America, South America, Europe, and Asia.

New York City-based Industrious, a provider of flexible workspace, is Hines' operating partner for the new venture. Industrious runs more than 80 flexible-workspace sites in more than 40 U.S. cities. Additionally, Hines has teamed up with New York City-based Convene to provide event management and meeting services.

"Hines' workplace services offering will serve as a complement to our existing office capabilities, strengthening our position as the preferred partner for tenants and investors around the world, without changing our risk profile or leasing strategy. It's a natural extension of our vertically integrated operating model," Charlie Kuntz, chief innovation officer at Hines, says in a release.

Inside Hines properties, Industrious will operate centers known as The Square, which will supply coworking and flexible-workspace options, meeting and event services, food, beverages, collaboration areas, and community programming.

"The Square is a direct response to the changing needs of our current and future building tenants — our core customers. Hines has a 60-plus-year track record of providing superior space and service, and flexible workspace and office hospitality are a logical progression for us," Kuntz says.

In the coworking sector, Hines goes up against established players like Regus and WeWork. Working to Hines' advantage in the increasingly competitive coworking field is that it already owns the office buildings where Hines² will operate.

Coworking ventures like Hines² continue to emerge, given that flexible workspace and shared-amenity spaces are projected to make up about 30 percent of the U.S. office market by 2030, according to a forecast from commercial real estate services company JLL. Today, coworking accounts for less than 1 percent of the U.S. office market, according to CoStar.

CoStar says Regus ranks first among U.S. providers of coworking space, with about 16.8 million square feet. At No. 2 is WeWork, with 14.8 million square feet. Boyar predicts WeWork might surpass Regus by the end of 2019 to claim the No. 1 spot.

Boyar says that Regus and WeWork still dwarf other coworking providers in terms of lease space, although he notes that Hines partner Industrious is one of the fastest-growing providers in the U.S.

Nearly 47 percent of coworking occupancy in the U.S. is spread among six major office markets, according to CoStar. They are New York City; Los Angeles; Washington, D.C.; San Francisco; Boston; and Chicago.

Paul Leonard, managing consultant at CoStar Portfolio Strategy, says that although coworking is experiencing rapid growth, "it remains a small piece of the office universe and today is more of a collaborator with landlords than a competitor. That may change with time, but operators like WeWork have a far smaller share of office demand compared to other disruptors like Airbnb for hotels or Uber for rideshare and taxi services."

In Houston, coworking represents less than 0.5 percent of leased office space, or about 1.4 million square feet, according to Boyar. An estimated 190 buildings in the Houston area lease space to coworking tenants.

"Surprisingly, even this little amount of coworking space puts Houston in the conversation with the largest coworking markets in the U.S.," he says.

Boyar says it makes sense for Houston-based Hines to break into the coworking market in its hometown and elsewhere.

Hines is "seen by many industry insiders as the gold standard, so their foray into the coworking space represents an acceptance, of sorts, that coworking is here to stay," he says. "Subjectively, I think their partnership with Industrious and Convene represents formidable competition in the coworking space."

That being said, Boyar doubts Hines will embark on aggressive growth in coworking, as WeWork has. But he says Hines² "will allow them the ability to offer more flexible solutions to their tenants. If I were Hines, I would see this a risk worth taking."
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4 startups pitch at virtual demo day for Houston accelerator program

resillience

In light of COVID-19, it is more relevant than ever to discuss and support startups with sustainability and resiliency in mind. At the Ion Smart and Resilient Cities Cohort 2 Demo Day, a virtual audience was reminded of that.

"So, 2020 has certainly been a year of unprecedented uncertainty and change for Houston, for Texas, for our country, and for our world," says Christine Galib, director of the accelerator. "The past few months in particular have been especially difficult as the global pandemic and civil unrest continue to spotlight systemic and structural scars on the face of humanity."

The virtual event was streamed on July 1 and hosted several thought leaders and presenters before concluding with pitches from four of the cohort companies.

"Through it all, and in a virtual world, Cohort 2 startups, the mentors, and our Ion team have been the change we wish to see in the world," Galib continues. "For these startups, failure is simply not an option — and neither is going at it alone."

Earlier this year, Galib announced the second cohort would be focused on solutions for Houston's air quality, water purification, and other cleantech needs. The program, backed by Intel, Microsoft, and TX/RX, launched on Earth Day and commenced shortly after. Cohort 3 is expected later this year.

Here are the four companies that pitched and the problems they are trying to solve.

Re:3D

re:3D was founded just down the street from NASA's Johnson Space Center to address the need for a mid-market 3D printing solution. The Houston-based startup also wanted to create their 3D printer that operates on recycled plastics in order to prevent excess waste.

"Where some see trash, we see opportunity," Charlotte Craff, community liaison at Re:3D says in her presentation.

Re:3D's clients can get their hands on their own Gigabot for less than $10,000, and the printer uses pellets and flakes from recycled plastics —not filament — to print new designs. Clients are also supported by the company with design software and training.

"We can help the city of Houston help meet its climate action and resilient city goals by transforming the way people think about recycling," Craff says about Re:3D's future partnerships with the city.

Water Lens

While two-thirds of the world is covered in water, only 0.7 percent is drinkable. And of that fresh water, 92 percent of it is used in agricultural and industrial settings. This is how Keith Cole, CEO and founder of Water Lens, set the scene for his presentation.

Water Lens, which is based in Houston with a lab located in Austin, wants to solve the problem of cities and countries running out of fresh, drinkable water by equipping huge water-using companies with a water testing tool.

"We've developed a system to let anyone test any water literally anywhere in the world," Cole says, citing clients like ExxonMobil, Shell, and Halliburton.

S2G Energy

S2G Energy, based in Mexico, is focused on optimizing energy management in order to digitize, empower, and unlock potential for cost-saving efforts and technology.

In his pitch, Geronimo Martinez, founder of S2G Energy, points out that restaurants, commercial buildings, and other adjacent industries can save money by implementing energy management solutions that come out of S2G Energy's expertise. In Mexico, Martinez says, clients include the top two restaurant chains that — especially during COVID-19 — need optimization and cost saving now more than ever.

Eigen Control

A refinery's distillation columns are expensive — their fuel use accounts for 50 of operating costs, says Dean Guma, co-founder and CEO of Houston-based Eigen Control.

Guma explains in his pitch how Eigen Control's technology can plug into existing sensors, model networks based on data, and employ the startup's artificial intelligent technology to reduce carbon emissions and save money on operating costs.

Houston researchers find new eco-friendly way to preserve produce

preventing waste

Hunger impacts over 800 million people worldwide, leaving nearly 10 percent of the population suffering from chronic undernourishment. The distressing reality of food shortages co-exists in a world where 1.3 billion tons of food — nearly a third of what's produced — is wasted each year, according to the Food and Agriculture Organization of the United Nations. Rice University's scientific research team's latest discovery takes a crack at ending food shortages and improving sustainability with a common kitchen necessity: eggs.

The discovery of egg-based coating is promising to researchers, as it manages to both prolong produce shelf-life by double while impacting the environment.

"We are reducing the cost, and at the same time we are reducing the waste," says Muhammad M. Rahman, a research scientist at Rice University. "One in every eight people are hungry...on the other side, 33 percent of food is wasted."

It's no secret that overflowing landfills contribute to the climate crisis, piling high with food waste each year. While the United States produces more than seven billion eggs a year, manufacturers reject 3 percent of them. The Rice University researchers estimate that more than 200 million eggs end up in U.S. landfills annually.

According to the Environmental Protection Agency, half of all landfill gas is methane, a hazardous greenhouse gas that contributes to detrimental climate change. Landfills are the third-largest contributor to methane emissions in the country, riding the coattails of agriculture and the energy industry.

COVID-19 has upended supply chains across the nation, and in recent months food waste has become an even more pressing issue. The disruptions of consumer purchasing habits and the indefinite closures of theme parks and select restaurants put a burden on farmers who planned for larger harvests and restaurants unsure of how to adjust. With more Americans cooking at home, panic-buying from grocery stores is also playing a role in accumulating waste.

To understand the challenges of the food industry, it's important to acknowledge the biggest menace to the supply chain: perishability. Fruits and vegetables only last a few days once arriving in grocery stores due to culprits like dehydration, texture deterioration, respiration and microbial growth. Rice University researchers sought to create a coating that addresses each of these issues in a natural, cost-effective way.

Brown School of Engineering materials scientist, Pulickei Ajayan, and his colleagues, were looking for a protein to fight issues like food waste. Rahman, a researcher in Ajayan's lab, received his Ph.D. from Cornell University studying the structure-property relationship in green nanocomposites. He and his fellow researchers found that egg whites were a suitable protein that wouldn't alter the biological and physiological properties of fruit. The study published in Advanced Materials took one year and three months to complete.

According to Rahman, the egg-based coating is non-toxic, biodegradable and healthier than other alternatives on the market. Wax is one common method of fruit preservation that can result in adverse effects on gut cells and the body over time.

"Long-term consumption of wax is not actually good and is very bad for your health," says Dr. Rahman. After wax is consumed, gut cells fragment the preservatives in wax to ions. This process can have a negative impact on "membrane disruption, essential metabolite inhibition, energy drainage to restore homeostasis, and reductions in body-weight gain," according to the research abstract.

Preservation efforts like wax, modified atmospheric packaging and paraffin-based active coatings are not only more expensive and less healthy, but they also alter the taste and look of fruits.

"Reducing food shortages in ways that don't involve genetic modification, inedible coatings or chemical additives is important for sustainable living," Ajayan states in a press release.

The magic of preservation is all in the ingredients. Rice University's edible coating is mostly made from household items. Seventy percent of the egg coating is made from egg whites and yolk. Cellulose nanocrystals, a biopolymer from wood, are mixed with the egg to create a gas barrier and keep the produce from shriveling. To add elasticity to the brittle poly-albumen (egg), glycerol helps make the coating flexible. Finally, curcumin—an extract found in turmeric—works as an antibacterial to reduce the microbial growth and preserve the fruit's freshness.

The experiment was done by dipping strawberries, avocados, papayas and bananas in the multifunctional coating and comparing them with uncoated fruits. Observation during the decaying process showed that the coated fruits had about double the shelf-life of their non-coated counterparts.

For people with egg allergies, the coating can be removed simply by rinsing the produce in water. Rice University researchers are also beginning to test plant-based proteins for vegan consumers.

For its first iteration, Rahman finds that the coating shows "optimistic results" and "potential" for the future of food preservation.

"These are already very green materials. In the next phase, we are trying to optimize this coating and extend the samples from fruits to vegetables and eggs," says Rahman.

Researchers will also work to test a spray protein, making it easier for both commercial providers as well as consumers looking for an at-home coating option. From a lab in Rice University to a potential shelf life in stores, the innovation of food coating is just beginning.

3 Houston innovators to know this week

Who's who

It's a new month and Houston's innovation ecosystem is continuing to grow amid the coronavirus pandemic. This week's Houston innovators to know roundup reflects that growth with a new-to-town incubator's newly names leader — plus an entrepreneur creating an virtual reality app to escape and a communications expert's advice on navigating COVID-19.

Juliana Garaizar, launch director of Greentown Houston

Juliana Garaizar is working to help set up Houston's Greentown Labs incubator with diversity and inclusion in mind. Courtesy photo

Juliana Garaizar has had to keep a huge secret for a while. The launch director of new-to-Houston Greentown Labs has known about the cleantech incubator's plan to expand to the Bayou City for a while, and now the news is out. Of course, launching amid a pandemic isn't ideal, but Garaizar says its allowed a strong relationship with the original group based in Boston to form.

"I think the silver lining of this COVID-19 experience is that we are much more integrated with the Boston team, and we're learning at a much faster rate," she says. "That's why we decided to also open Houston for virtual memberships before we open our building in Q1 of 2021."

Garaizar joined the Houston Innovators Podcast last week to share her experience with the organization and how she'll be setting up Houston operations with diversity and inclusion in mind. Read more and stream the episode.

Derek Armstrong, CEO and founder of Armstrong Innovations

Derek Armstrong, a Houston native, founded his design company, Armstrong Innovations. Photo courtesy of Oculus Go

Derek Armstrong had been working on a new virtual reality app for relaxation and meditation that users can enter into for an opportunity to escape reality for a bit — little did he know that was something more people than ever would want to do.

His company, a Houston-area industrial design startup, Armstrong Innovations, just launched two Oculus Go app games, aptly named 'Escape'. The VR app was designed with relaxation and meditation in mind but has doubled as a new way to relax and sightsee without leaving your home during the COVID-19 pandemic.

"The sights and sounds of our new app assist with mindfulness and meditation," says CEO and founder Derek Armstrong. "It's about focusing on the sights and sounds, especially with the virus growing. It's a quick getaway without having to physically go anywhere." Read more.

Megan Silianoff, founder and creative director of Mad Meg Creative Services

Megan Silianoff has been helping clients navigate communications during a pandemic. Courtesy photo

The worst part of contracting COVID-19 — aside from suffering from the disease itself — is diligently communicating the risk of exposure to people you've been around especially to coworkers, employees, clients, etc. In a guest article for InnovationMap, Megan Silianoff of Mad Meg Creative Services, sets the scene for you to be prepared should you find yourself in this situation,

"We understand as communication experts, informing a client, boss, or anyone that you've potentially exposed them is scary messaging to share," she writes. "Guilt is the number one emotion people report experiencing when they realize they've potentially exposed someone or a group of people, even though the respective exposure was inadvertent. Nevertheless it's crucial to communicate the exposure quickly and effectively as that's how Houston can hinder the spread of this disease through our city." Read more.

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