Q3 2025 | Houston Retail Market Report

HOUSTON - Rezul -- "Houston's retail sector continued to outperform expectations in Q3 2025, with net absorption jumping over 60% quarter over quarter as tenant demand outpaced new supply for the first time since 2023."

Danny Rice | President

Market Trends

• Houston's retail market demonstrated solid momentum in Q3 2025, with demand outpacing new supply for the first time since late 2023.
• Net absorption surged to 838,910 SF, up 63.7% from the previous quarter and 51.8% year over year.
• Overall vacancy held steady at 5.8% quarter over quarter despite an uptick from 5.5% a year ago.
• Although slowing, Houston remains one of the nation's top retail construction markets, with 2.4M SF underway, with four key sectors – North, Northwest, South and Southwest – accounting for 85.0% of the pipeline.
• Deliveries fell 20.3% quarter over quarter and 38.5% year over year.
• Leasing activity totaled 1.8M SF, declining 5.7% quarter over quarter and down from 2.3M SF, or 20.3%, from a year ago.
• The average rental rate at $20.37 PSF marginally increased from Q2 but dropped from $20.67 PSF year over year.
• Retail sales volume more than doubled from the previous quarter and almost doubled from a year ago, although the average sales price of $307 PSF is below last quarter's $340 PSF but up from $287 PSF a year ago.

Read the full report at colliers.com/houstonresearch.

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