HOUSTON – Retail sales are up sharply in the suburbs of Houston, where a number of new retail centers are being planned, reports the CBRE Research.
Five years of explosive population growth continues to drive consumer spending in the Houston region in both the dense urban core and rapidly expanding suburban counties. CBRE Research reported retail sales tax revenues climbed as much as 33.9 percent in May in the outlying cities.
“Offsetting the effects of soft crude prices, the downstream energy sector in east Houston is vibrant, attracting many displaced shale workers,” CBRE Research reported. “The state data further show that sales tax revenues collected in Houston’s chemical and refining areas, such as Freeport and Deer Park, are up 17.1 percent and 14.5 percent, respectively, year-to-date. In Baytown, robust multifamily demand brought by an influx of new residents, has dramatically increased tax revenues which saw the largest increase in Harris County.”
Many retail center developers have focused development efforts on growing counties surrounding Houston.
Southwest of Houston in the city of Richmond, where revenues increased by 12.1 percent this year, Paragon Outlets announced a new 300,000 sq. ft. outlet mall.
Brazoria County south of Houston has registered significant retail growth. “Lake Jackson collected 16.4 percent more sales taxes this period and a new Kroger and H-E-B are currently under construction in that area – an indication of healthy local future sales tax projections,” CBRE said.
In Houston, city sales tax revenues year-to-date are up 4.3 percent since 2014, Harris County rose further to 4.7 percent and the five-county region leapt 5.1 percent through May.