Luna Core's Strategy
Retail Information
This project is a 26,000 square foot retail center located off Kingsland Boulevard in Katy, Texas. The development consists of a single building situated on a 3.5- acre tract, with a construction cost of $153 per square foot. The project required approximately three years for planning and permitting and is currently eight months into construction, with pre-leasing already underway. Stabilization and full-cycle execution are projected within the next 12-18 months.
About Retail:
Retail assets span a wide range of formats and strategies, including strip centers, outlet centers, single-tenant properties, and big-box retail, with both anchored and non-anchored configurations. These properties are positioned across hard corners, master-planned communities, and neighborhood-serving locations, accommodating a mix of national and local tenants throughout the Houston market. This diversity in property type and tenancy supports broad demand across multiple use cases. Driven by sustained population growth and expanding residential development, retail demand in Houston remains strong, with welllocated assets maintaining low vacancy levels and continued need for new retail centers in high-growth submarkets.
Key Facts:
- Houston Vacancy rate for retail is 5-7%
- 1800-2500 square feet in avg. unit size
- High premium on stabilized new developments
- $25-$33+ SF annual rent | $6-$9 SF NNN
- 3-5% annual rent growth
- 5-10+ year lease terms
- Build cost $115-$150+ SF
- Market Cap Rate is 6.25-7.5%
Our Strategy:
Luna Core Capital targets approximately 3.5-acre land tracts to develop 20,000-50,000 square foot retail centers in high-traffic corridors and within or adjacent to master-planned communities. This development profile supports strong rental rates, long-term rent growth, and reduced tenant vacancy while maintaining operational efficiency. By concentrating on these high-demand submarkets, Luna Core is positioned to create significant development-driven equity. Upon stabilization, these assets align well with the deep buyer pool for Texas retail properties in the $5-$10 million range, including family offices, institutional capital, private equity groups, REITs, 1031 Exchange and more
Flex Information
This project consists of a 60,000 square foot small-bay industrial development located off the Sam Houston Parkway, featuring six buildings situated on a 4-acre tract with construction cost at around $80 per square foot. The projected timeline includes roughly two years for demolition, permitting, and construction, followed by an estimated one-year lease-up period to stabilization. This business park is less than one year away from going to full cycle since the acquisition back in 2023.
About Flex:
Flex Properties – often referred to as office-warehouse, small-bay or business parks – are typically shallow-bay industrial buildings designed to serve local small businesses. This asset class offers flexibility to accommodate industrial, office, and select retail users, creating a broad and resilient tenant base. The diversified nature of multiple small bays reduces reliance on any single tenant, materially lowering vacancy risk. In the Houston market, supply of flex space under 20,000 square feet remains extremely limited amid strong demand, supporting durable fundamentals. Over the past decade, accelerated by the post-2020 surge in entrepreneurship and small business formation, flex assets have gained increased traction among both tenants and investors.
Key Facts:
- Houston Vacancy rate for small bay is 4-7%
- 1500-2000 square feet in avg. unit size
- 10-30% office space | 70-90% warehouse
- $14-$18+ SF annual rent | $4-$7 SF NNN
- 3-5% annual rent growth
- 3-5 year lease terms
- Build cost $100-$130+ SF
- Market Cap Rate is 6.5-7.5%
Our Strategy:
Luna Core Capital targets the acquisition of approximately 4+ acre land tracts to develop 50,000–90,000 square foot flex industrial parks in high-growth residential markets. This development scale allows for diversified tenancy, reducing exposure to single-tenant vacancy risk while maintaining operational efficiency. By focusing on underserved submarkets with limited nearby flex inventory, Luna Core aims to capture durable local demand. The long-term strategy is to build a branded, scalable portfolio of flex assets positioned for a premium exit to family offices, institutional capital, and private equity buyers.
Value-Add Retail/Industrial
About Value-Add Retail/Industrial
Value-Add Retail/Industrial has experienced significant growth over the past decade across the United States, driven by rising consumer demand and expanding residential development. These facilities are typically positioned along high-traffic corridors near large subdivisions and multifamily communities, capturing a broad and durable customer base. The asset class serves a wide range of use cases, from non-climate and climate-controlled units to RV, boat, outdoor, yard, and vehicle storage, creating highly diversified demand. While operationally business-oriented, modern self-storage facilities are largely automated and scalable, with performance closely tied to population growth—making the asset class viable across a wide range of markets.
Key Facts:
- Houston Vacancy rate for self storage is 8-12%
- Monthly rental rate management for revenue control
- Mostly automated, gives a stress free operation
- Month-to-month short term leases
- $13-$19+ SF annual rent
- 2-4% annual rent growth
- Build cost $90-$150+ SF
- Market Cap Rate is 5.5-6.75%
Our Strategy:
Luna Core Capital targets the acquisition of 4+ acre land tracts to develop 50,000–100,000 square foot self-storage facilities with a mix of traditional, RV, and boat storage. These projects are strategically planned along high-traffic corridors and within or near master-planned communities to capture sustained residential-driven demand similar to retail. This strategy targets early-stage growth areas with strong demographic momentum, positioning assets ahead of broader commercial expansion and supporting long-term value creation. This development profile has historically supported durable rental rates and long-term growth and has evolved into a core asset class for institutional investors and private equity groups.
Self-Storage Information
About Self-Storage:
Self-storage has experienced significant growth over the past decade across the United States, driven by rising consumer demand and expanding residential development. These facilities are typically positioned along high-traffic corridors near large subdivisions and multifamily communities, capturing a broad and durable customer base. The asset class serves a wide range of use cases, from non-climate and climate-controlled units to RV, boat, outdoor, yard, and vehicle storage, creating highly diversified demand. While operationally business-oriented, modern self-storage facilities are largely automated and scalable, with performance closely tied to population growth—making the asset class viable across a wide range of markets.
Key Facts:
- Houston Vacancy rate for self storage is 8-12%
- Monthly rental rate management for revenue control
- Mostly automated, gives a stress free operation
- Month-to-month short term leases
- $13-$19+ SF annual rent
- 2-4% annual rent growth
- Build cost $90-$150+ SF
- Market Cap Rate is 5.5-6.75%
Our Strategy:
Luna Core Capital targets the acquisition of 4+ acre land tracts to develop 50,000–100,000 square foot self-storage facilities with a mix of traditional, RV, and boat storage. These projects are strategically planned along high-traffic corridors and within or near master-planned communities to capture sustained residential-driven demand similar to retail. This strategy targets early-stage growth areas with strong demographic momentum, positioning assets ahead of broader commercial expansion and supporting long-term value creation. This development profile has historically supported durable rental rates and long-term growth and has evolved into a core asset class for institutional investors and private equity groups.