HOUSTON – The market for retail center real estate is strong in Houston, with high occupancy rates and a brisk pace of leasing up new space, according to the CBRE Research.
“The trend of record high occupancy continues across Houston; the average occupancy increased to 94.3 percent in the third quarter of 2016. Occupancy levels will remain at this level due to the heightened leasing activity,” CBRE said in its third quarter report. “Houston has absorbed 2,756,503 sq. ft. while delivering 2,700,200 sq. ft. keeping space availabilities extremely tight.”
Houston retail construction has been in a catch-up mode as retail developers and the operators of stores and restaurants build new projects to serve a growing population. The Houston area has been one of the national leaders in population growth over the last decade.
Over 1.3 million SF of new retail space is scheduled to deliver this year as well as 2.5 million SF of planned projects are expected to break ground in 2017, CBRE reported. And the construction pace could be stronger. But lending constraints are producing a conservative construction cycle.
The retail construction pipeline has significant pre-leasing and many of the new projects are anchored by grocery stores, such as Kroger and H-E-B.
Oct. 3, 2016 Realty News Report Copyright 2016