Houston Retail Market Report | Q2 2023

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HOUSTON - Rezul -- Population growth and a strong job market have combined to attract new or expanding retailers, who are finding limited options and increased competition vying for the perfect location.

Simultaneously, rising costs have delayed retail construction starts in Houston, adding further challenges to support strong retail demand.

Danny Rice | President

Key Takeaways
  • Vacancy remains steady
  • Positive absorption continues
  • Leasing activity slows
  • Rental rates increase slightly

Houston Highlights

Houston's vacancy rate stabilized at 6.4% during second quarter, representing a decrease of 30 basis points from a year ago. Demand outpaced new supply, with the retail sector recording 238,130 square feet of net absorption and 50,892 square feet of new deliveries. Leasing activity slowed, dropping 30% from both the first quarter and year-over-year. The construction pipeline remains limited with 1.1 million square feet currently underway, although several larger projects are proposed and ready to break ground in the South and North. Rental rates show slight increases from both the previous quarter and year-over-year.

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See the full report here: https://www.colliers.com/en/research/houston/q2-2023-houston-retail

Contact
Crystal Kingsbury
***@colliers.com


Source: Colliers | Houston
Filed Under: Real Estate

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