Houston’s Retail Occupancy Continues to Strenghten

by CoyDavidson on August 24, 2011

Houston  Retail Market Report – 2Q 2011

Houston’s retail market continued to improve in the second quarter of 2011 with positive net absorption and lower vacancy rates.  Over the last two years, Houston’s retail market has posted positive net absorption. Retail vacancy rates for all product types stood at 7.8%, down from 8.4% at this time last year.  Developers have curtailed development, delivering only 190,600 SF of new retail space year-to-date through the second quarter and have only nine projects currently under construction.  Overall, the local market is performing well under less than optimal economic conditions, namely sluggish job growth and low consumer spending levels.

Macro factors driving the absorption of retail space ultimately ties back to job count.  According to the Texas Labor Market Review, total nonagricultural employment in Texas netted only 8,800 jobs in May, while at the local level, Houston’s MSA gained 16,500 jobs. Texas  annual employment grew by 2.0%, while Houston’s grew by 1.8%.

Houston Retail Market: 2Q 2011

2011 2Q Houston Retail Market Report

Previous post:

Next post:


Disclaimer: All blog entries on this site are the opinion of the author and not those of either Colliers International - Houston or Colliers International (collectively, "Colliers"). Colliers neither endorses, sponsors nor necessary shares the opinions of the author, regardless of whether any blog is posted by any employee, officer, agent, or representative of Colliers. Colliers has not authorized or verified any statement of fact made in a blog, and any such statement does not constitute a statement of fact by Colliers. Colliers is not responsible for the monitoring or filtering of any blog, nor does Colliers claim ownership or control over any blog content.