Q4 2016 Houston Retail Research & Forecast Report
Houston’s retail market remains strong and moves into 2017 with a healthy outlook
Houston’s retail market ends 2016 on a positive note and moves into 2017 as the healthiest commercial real estate sector in the metro. The average vacancy rate remained unchanged at 5.8% on an annual basis and only increased 10 basis point on a quarterly basis from 5.7% in Q3 2016. Although Houston lost about 80,000 high income jobs between 2014 and 2016, retail market indicators show no signs of a struggling economy. According to our data provider, CoStar Property, Houston ranks fourth nationally in construction activity. Approximately 74.6% of the retail space under construction at the close of Q4 2016 is pre-leased. Despite the 1.3M SF of new inventory delivered in Q4 2016, Houston’s average retail vacancy rate remains low at 5.8%, only 10 basis points higher than the 5.7% recorded in the previous quarter.
Houston’s retail leasing activity, which includes renewals, decreased over the quarter from 1.4M SF in Q3 2016 to 1.1M SF. 2016 year-end leasing activity was actually more than the previous year, with 6.2M SF compared to 5.7M SF in 2015.
According to the U.S. Bureau of Labor Statistics, the Houston metropolitan area created...click here to visit our website and view the complete report.