Sprouting Up – Grocer Adding New Stores

HOUSTON – (Realty News Report) — Sprouts Farmers Market has a new store in the works near Baybrook Mall as part of a national expansion that includes several locations across suburban Houston.

The Phoenix-based grocer, which focuses on fresh produce at the center of the store and targets health-minded shoppers, plans to take over the former Party City space in the Baybrook Gateway shopping center in Webster. Sprouts will begin remodeling the space into a 23,024-SF grocery store in September, according to a filing with the Texas Department of Licensing and Regulation. Completion is targeted in June 2026.

Sprouts will be adjacent to the Ashley furniture store in the center, joining other anchors including Barnes & Noble, Michael’s, and Painted Tree Boutiques.

Sprouts and other chains that have backfilled vacant space previously occupied by distressed retailers such as Party City, Big Lots, and 99 Cents Only contributed to Houston’s healthy 95.5% retail occupancy rate, according to a midyear report by commercial real estate Weitzman.

Sprouts, which has more than 450 stores including 58 in Texas, has announced plans to open at least 35 stores this year. The company closed three underperforming stores in the Houston area in 2023 as part of a strategy to focus its growth on smaller format stores around 23,000 SF.

Building upon six local stores, Sprouts has set an August 8 opening date for its next store in Waterview Town Center off the Grand Parkway at Harlem Road in Richmond. Future stores, according to TDLR filings, include 4303 Kingwood Drive in Kingwood in 2026 and 4775 W. Panther Creek Drive in The Woodlands in 2027. Sprouts will fill spaces previously occupied by H-E-B in Kingwood and Randalls in The Woodlands. The opening dates are subject to change.

The upcoming Webster store, to be located at 1001 W. Bay Area Blvd., is being developed in a growing area of southeast Houston. It is near a recently built H-E-B grocery at Baybrook East shopping center across Interstate 45 South from Baybrook Mall.

In residential developments, Brookfield Residential and CDC Houston recently announced a master planned community that will bring 2,800 homes to the area. Named Midline, the community will span 1,066 acres near Baybrook Mall with 271 homes in the first phase. The region is home to many long- established communities such as Clear Lake City.

Recent Comp:

NASHVILLE, Tenn. — Hanley Investment Group Real Estate Advisors and CP Partners arranged the $9.45 million sale of a newly constructed, single-tenant property occupied by Sprouts Farmers Market in Nashville. The store sits on a 2.9-acre parcel.

NASHVILLE, Tenn. — A newly-built 22,988-SF Sprouts Farmers Market store in Nashville was recently sold for $9.45 million. Image Courtesy Hanley Investment Group Real Estate Advisors and CP Partners.
Boilerplate:

Sprouts Farmers Market (shares traded on the Nasdaq exchange with the symbol: “SFM”) is one of the largest and fastest-growing specialty natural and organic grocery chains in the United States. As of March 30, Sprouts operated 443 stores in 24 states. The company expects to open at least 35 new locations in 2025.


July 17, 2025 Realty News Report Copyright 2025

Feature Photo Baybrook Gateway center in southeast Houston. Photo credit: Realty News Report, Copyright 2025

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