HOUSTON – (Realty News Report) — Despite ongoing exits by troubled national retailers, a number of entries and expansions by stores in the Houston area kept the region’s retail occupancy at lofty levels at midyear.
Leasing activity by grocers, home improvement stores, fitness, entertainment, and restaurant tenants contributed to a healthy 95.5% occupancy rate at midyear 2025, according to a new report by Weitzman, a Texas-based real estate firm. The rate was unchanged from year end 2024.
Occupancy Rate 95.5% at Houston Shopping Centers
With a conservative amount of new retail construction under way across greater Houston, the shuttered stores are creating opportunities for other retailers to expand in a tight retail market.
The Houston region is expected to deliver 1.2 million SF of new and expanded retail projects in 2025, slightly below last year’s 1.3 million SF, according to Weitzman. The company tracks 167.5 million SF of retail inventory in projects with 25,000 SF or more in the local market.
Retailers are backfilling many recent vacancies created by store closures of chains such as Big Lots, Forever 21, Joann, 99 Cents Only, Conn’s, and Party City.
Here are some highlights provided by Weitzman.
A new Sysco concept
Sysco to Go, a new retail grocery store by food distribution giant Sysco for members such as restaurants and churches, opened its first location in a former Bed, Bath & Beyond near Memorial City. A second store is coming to the former Sprouts grocery store on Old Spanish Trail near NRG Park.
Filling Former Grocery Stores
Trader Joe’s will take 17,000-SF of a shuttered Randalls for a new store in Kingwood Commons.
Sprouts Farmers Market, a natural foods grocer, will backfill part of a former H-E-B in Kingwood’s Kings Crossing shopping center and will also open in a former Randalls store on Panther Creek Drive in The Woodlands.
Planet Fitness and Dollar Tree took a portion of the former Kroger in Conroe’s River Pointe Shopping Center.
Expanding in Houston
Barnes & Noble is further expanding in the Houston market with book stores in former Party City locations on Spring Stuebner Road in Spring and on South Fry Road in Katy.
Burlington, as part of the department store’s national expansion, is taking over some former 99 Cents Only, Big Lots, and Staples stores across Houston.
Havertys Furniture is taking some former Sam’s Club space in Valley Ranch Town Center in New Caney. Lumos, an entertainment concept, will also backfill some of the space.
Sky Zone Houston will open trampoline parks in Baytown Shopping Center and in a former Conn’s store at 6148 Highway 6.
On the fitness front, Crunch Fitness will fill a former Bed Bath & Beyond on Highway 6, Planet Fitness took over a Palais Royal store in Dickinson, and EoS Fitness plans to open in a former 24 Hour Fitness on San Felipe next year.
Long Vacant, but Not for Long
Some big box stores that have been empty a while are finally getting new life.
A couple of former Sears stores that closed in 2020 will bring new concepts to Willowbrook Mall and Deerbrook Mall in 2025, according to Weitzman. Score Entertainment will bring mini golf, bowling and more to 150,000 SF at Deerbrook Mall, while Round1 bowling and arcade will backfill a chunk of the former Willowbrook Sears.
The long vacant Gander Mountain in Sugar Land will be home to Dave & Busters and Ace Pickleball this year, according to Weitzman.
Developments From the Ground Up
On the new construction side, Lowe’s, Target and Walmart are expanding into new stores in 2025.
Manvel Town Center, a Weitzman development anchored by H-E-B south of Pearland, will welcome Lowe’s this year as part of the long-term development which will be built in phases over several years. The home improvement retailer opened a 110,000-SF store in Magnolia Village in Magnolia this year.
Walmart opened a “Store of the Future” in Cypress that serves as a model for new and converted stores.
Among other grocers, openings are planned at H-E-B Jordan Ranch in Fulshear, Sprouts in Richmond, and Target at The Grid in Stafford.
July 7, 2025 Realty News Report Copyright 2025
Image: Courtesy Weitzman
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