Q2 2016 Houston Retail Market Research Report
Houston’s retail market continues to expands with 3.9M SF under construction. According to our data provider, CoStar Property, Houston ranks first in construction activity when compared to other U.S. markets. Northern New Jersey was second with 3.7M SF and Dallas/Ft. Worth third with 3.5 M SF.
Approximately 82.6% of the 3.9M SF of retail space under construction at the close of Q2 2016 is pre-leased. Despite the 1.8M SF of new inventory delivered in Q2 2016, Houston’s average retail vacancy rate remained under 6.0%, decreasing to 5.8% over the quarter from 5.9% in Q1 2016.
Last quarter we listed several large tenants, including Sports Authority, with plans to close and exit the Houston market. Since that time, Dick’s Sporting Goods was awarded the Sports Authority brand name and its existing leases in bankruptcy auction. No details about the Houston locations have been made public yet, but the company did state it plans to expand.
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