HOUSTON – Houston’s retail vacancy hit a record low in the second quarter, according to Colliers International. Vacancy was 6.3 percent in the second quarter, down from 6.8 percent a year earlier.
Houston’s retail market posted 1.2 million SF of positive net absorption in the second quarter. Some of the tenants who opened new locations during the quarter include Whole Foods Market, Kroger Marketplace, Conn’s Appliances, Horse & Rider, Vineyard Vines, Trina Turks, Brucettes Shoes and Harbor Freight Tools.
Colliers reported there is 1.2 million SF in Houston’s retail construction pipeline, which includes a 136,000-SF Sam’s Club located at the NEC of Bellaire and West Grand Parkway, and a 90,900-SF HEB located on the southeast corner of San Felipe and Fountainview.
The citywide average quoted rental rate for all property types increased 3.1% from $14.73 to $15.19 per SF between quarters and 3.0% from $14.75 in the second quarter of 2013. Houston retail rental rates vary widely from $10.00 to $85.00 per SF, depending on location, property type and business class, Colliers said.
The Houston metropolitan area added 93,300 jobs between May 2013 and May 2014, an annual increase of 3.3% over the prior year’s job growth.