Houston Retail Market Report – Q4 2013

by CoyDavidson on February 14, 2014

iStock_000002536959Small

Houston’s Strong Economy Helps Push Retail Vacancy Rates to Historic Lows

Houston’s retail market posted 1.2M SF of positive net absorption in the fourth quarter, bringing the years total to 3.0M SF. Some of the tenants who opened new locations during the fourth quarter include Wel-Farm Supermarket, Aldi, PetSmart, and CVS.

254,000 SF of new retail space delivered during the fourth quarter bringing the average citywide vacancy to 6.6%, which is 40 basis points lower than last quarter’s 7.0% vacancy rate. Currently, there is 947,000 SF in Houston’s retail construction pipeline, which includes a 71,400-SF Whole Foods Market located in Vintage Marketplace and a 53,000-SF Top Golf USA located on Spring Park Center Blvd, just east of I-45 N.

The citywide average quoted rental rates for all property types increased 0.7% between quarters from $14.63 to $14.73 per SF. Since Q4 2012, average rental rates have increased 2.7% from $14.32 to $14.73. Houston retail rental rates vary widely from $10.00 to $70.00 per square foot, depending on location, property type, and building class.

The Houston metropolitan area added 86,200 jobs between November 2012 and November 2013, an annual increase of 3.1% over the prior year’s job growth. Local economists have forecasted 2014 job growth to remain steady, adding between 68,000 and 72,000 jobs. Further, Houston’s unemployment fell to 5.6% from 5.8% one year ago. Houston area home sales increased 19.4% between November 2012 and November 2013.

You can view and download the full report here.

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.