Q4 2017 | Houston Retail | Research & Forecast Report
Houston's retail market remains healthy through year-end
Houston’s retail market has shown resiliency amid an energy downturn, retailer bankruptcies and store closings, as well as a category 4 Hurricane which flooded Houston in August. Despite these events, Houston’s average retail vacancy has remained under 6% over the past few years and the average retail vacancy rate remained steady between quarters, holding at 5.6%. Absorption slowed during the fourth quarter, but this was mostly due to decreased construction deliveries.
Recent announcements of store closings by Sam’s, Macy’s and Charming Charlie adds to a growing list that includes; Sears, Gander Mountain, Toys R Us, Sports Authority and Walgreens to name a few. As landlords look to backfill big box vacancies with indoor entertainment users, the larger retailers that are still in business are looking for creative ways to keep consumers happy and increase market share. Kohl’s for example, would like to partner with a food or convenience concept to help fill some of their unused space after downsizing and reconfiguring some of its stores. Amazon is looking to expand into brick and mortar with a possible acquisition of a retailer such as Target. E-commerce was the big story in 2017 with millions of consumers shopping online. H-E-B, Kroger, Walmart and Whole Foods have all jumped on the online shopping bandwagon with home delivery and curb side pickup. We expect the trend to continue and grow in 2018, as consumers look for ways to add a few extra hours back to their week.
Houston's average retail vacancy rate remained steady at....click here to visit our website and view the complete report.