Looking Back, Moving Forward: 20 Years of Baker Katz

As we celebrate the 20th anniversary of Baker Katz, we’re taking the opportunity to reflect on two decades of milestones, challenges, and achievements. We’ve weathered market fluctuations, carved out a niche in the greater Houston area, and built thriving development and tenant representation practices. The last 20 years have been nothing short of transformative — and we’re just getting started.

Early Lessons From a Market Correction

The early years of Baker Katz were exciting, marked by moments of amazing growth and learning. Little did we know that amid all the activity, we were about to meet our first major obstacle: the 2007–2008 financial crisis. Unlike real estate veterans at the time, this market correction was unlike anything either of us had experienced. Initially, it was disorienting. However, it quickly became apparent that this was an opportunity that could shape the future trajectory of our firm.

We reevaluated everything, from our business model and annual goals all the way down to our company website. Nothing was sacred. In the process, we adopted a guiding principle: our choices in the next 18 months would inform how we operated our company over the coming 18 years into the future. It turned out we were right. In hindsight, this uncertain and tumultuous time was one of the most critical periods in our firm’s history — proof that our greatest achievements often stem from our toughest challenges.

Milestone Acquisitions and Strategic Decisions

We have celebrated many milestones over the years, but a few key projects and decisions stand out. One was the choice to purchase a former grocery store on Shepherd Drive in 2008. As the first redevelopment project we had managed in-house, this was uncharted territory. From hiring consultants to permitting, navigating each step of the process from A to Z was eye-opening and a great learning experience.

The next notable acquisition was a lender-foreclosed property in Tomball, Texas, known as Four Corners. When we purchased the site in 2011, it was in poor condition, and occupancy had dwindled to 25%. Our team believed the residents of Tomball wanted and deserved better. We undertook a comprehensive redevelopment that included both aesthetic and circulation improvement and, ultimately, transformed the project into a popular community hub. Today, Four Corners is 97% leased and remains under the ownership and management of Baker Katz.

An equally important milestone was our decision to restructure the firm around brokerage and development arms in late 2011. This was driven by our desire to develop dual lines of business while expanding into an area we recognized had enormous potential. At the same time, we also chose to focus our brokerage practice exclusively on tenant representation. These strategic decisions allowed our team to take full ownership of our projects while defining the company’s identity and solidifying its reputation in Houston.

Adapting Through Crisis

Since its inception, Baker Katz has developed more than 80 projects and worked with over 150 national retailers/service providers. While the lessons learned in our early years laid the foundation for this growth, we have continued to adapt in the face of new challenges and opportunities. A prime example was the COVID-19 pandemic. None of our team members, let alone anyone in the industry, had ever experienced an upheaval of this nature. As such, this moment of crisis provided a chance to reassess how we, as a firm, respond to change and communicate proactively along the way.

When it felt like everything was in flux, we concentrated on the core elements of our business that remained the same, doubling down on our relationships and developing new ways to communicate with our staff, clients, and external partners. As a result, we were able to keep our entire team intact throughout the pandemic and emerge stronger on the other side.

Relationships and Reputation: The Constants in Change

The Houston real estate market has evolved significantly during the last 20 years. We’ve seen phases of rapid development and times when construction has slowed. Until recently, we were in a period of cap rate compression — something that is now shifting. Many retailers have also adjusted their approach and now often prioritize opening a few new locations over aggressive growth, which has influenced how we manage and expand both our portfolio of clients and the assets in which we choose to invest.

Our company has evolved, too. Our team has grown, our focus has sharpened, and, with each new project, the breadth and depth of our expertise has increased. However, the things we truly value have remained constant. We know that as real estate professionals, we’re only as good as the relationships we build and the reputation we maintain. We’re proud to have established Baker Katz as a reliable, trustworthy name in our industry — and we’re grateful for the clients and collaborators who have joined us along the way. Like any investment, it takes time to fully realize the rewards of hard work and commitment. And because of that, we’re looking forward to the next two decades of growth, learning, and success.