HOUSTON – (Realty News Report) – Houston’s retail occupancy surpassed 95% in 2025 as expanding businesses found new locations, often in places vacated by stores that didn’t make it.
95% Occupancy Rate
Strong demand and a moderate amount of new construction kept Houston’s retail spaces relatively full, according to a year-end report by Weitzman, a Texas commercial real estate firm.
Weitzman noted that Houston retail occupancy has exceeded 90% for more than a decade and is currently outperforming other commercial real estate sectors. Weitzman’s report examined 167.5 million SF of Houston retail space in multi-tenant retail projects with 25,000 SF or more.
Out With the Old, in With the New
Shopping centers left vacant in recent years by failed retailers such as Conn’s, Big Lots, Joann, and Party City are filling with new tenants.
Vevor, a global home improvement retailer that got its start as an eBay seller in 2007, recently announced plans to open its first brick and mortar store in the U.S. in Houston. The 31,977-SF store at 10951 FM 1960 W. will open in a former Big Lots in February. It will focus on a “buy online, pick up in store” model and cater to the DIY market.
Hobby Lobby is planning a crafting store in the long-vacant Palais Royal store in Meyerland Plaza.
Dave & Buster’s and Ace Pickleball will backfill a long-vacant former Gander Mountain at Highway 59 and Grand Parkway in Sugar Land. The popularity of pickleball continues to expand, one of the biggest success stories in the last decade.
A Backfilling Party
Books A Million is backfilling several former Party City stores, including a 15,000-SF space at Fairfield Town Center on Highway 290 in Cypress; Valley Ranch Town Center in New Caney; and The Shops at Bella Terra on the Grand Parkway in Richmond. Bookseller Barnes & Noble took over former Party City spaces at Grand Parkway Marketplace in Spring and Greentree Shopping Center in Katy.
Flooring, Fitness, and More
Some shuttered grocery stores are getting new uses. Floor & Décor plans to open a 56,208-SF store in the former Randalls at 4800 W. Bellfort near Meyerland. Joan Collum of Partners assisted Floor & Décor with the new location. Crunch Fitness will open a 56,000-SF gym in the former Kroger space at 3410 Gulf Freeway in Dickinson.
Sprouts, a specialty grocer, will backfill a former Randalls in The Woodlands as well as a former Party City at Baybrook Gateway shopping center in Webster, and a former H-E-B in Kings Crossing in Kingwood.
Trader Joe’s will be occupying an empty Randalls location in a Kimco property at the corner of Bellaire Boulevard and South Rice, according to the City of Bellaire.
Score Entertainment will transform the 150,000-SF former Sears space at Deerbrook Mall in Humble. Round1 Bowling and Arcade occupies half of the former Sears store at Willowbrook Mall in northwest Houston.
AR Entertainment backfilled a former 40,000-SF Conn’s space at 19746 Interstate 45 in Spring.
One Million SF Delivered
On the new construction side, the greater Houston retail market delivered 1,117,300 SF in new and expanded retail projects in 2025, according to Weitzman. That was down from 1.3 million SF in 2024, but above 2022 and 2023 levels.
New developments are opening with many of the spaces already leased, keeping the region’s overall occupancy level high.
Manvel Town Center, a long-term development of Weitzman on Highway 288 and Highway 6 in Manvel, is preparing to open a new Lowe’s Home Improvement. The H-E-B-anchored center opened in 2023.
The Grand at Aliana, a project of NewQuest Properties in Richmond, just launched its final phase of expansion in Richmond. New retailers coming to the center on the Grand Parkway at West Airport Boulevard include Dick’s Sporting Goods and Havertys Furniture.
In Katy, Texas Heritage Marketplace will be anchored by a Sam’s Club, Target, and EoS Fitness. NewQuest is developing the 750,000-SF mixed-use center at the Katy Freeway and Texas Heritage Parkway.
Last year’s new retail construction projects included a 124,440-SF Target store at The Grid in Stafford. Walmart opened a 204,000-SF Store of the Future in Cypress, its first new-construction store in the U.S. in four years.
Houston’s population and housing growth are driving retail demand, according to Weitzman. The greater Houston area had added more than 1.5 million residents since 2010.
Jan. 19, 2026 Realty News Report Copyright 2026
Photo by Realty News Report, Copyright 2026.
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File: Backfill: Vacant Retail Space Soaked Up by New Stores Weitzman Backfill: Vacant Retail Space Soaked Up by New Stores Trader Joe’s, Randalls, Pickleball