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Retail rents continue to soar. Houston’s retail market year-to-date occupancy rate dipped slightly to 94.5%, 10 basis points, from a robust 94.6% at the end of May. In addition, the total amount of square feet occupied grew by 1.3 million sq. ft. of positive net absorption, while new supply is somewhat ahead of demand, delivering 1.7 million sq. ft. to the market so far this year. The average asking rate of renting retail space increased to $17.06 per sq. ft. on a triple net basis, up $0.07 from this time last month, and the highest rate recorded since NAI Partners began reporting on this data.
H-E-B anchored Tanglewood Court sale. According to Real Capital Analytics, annual sales transaction volume totaled $565.3 million nearing the end of June in the Houston retail market. Private capital has been the most active buyer type for 2018, comprising 70% of Houston’s total sales volume. A recent transaction includes Tanglewood Court, a 125,500-sq.-ft., three-building, fully leased, H-E-B-anchored shopping center in Houston’s Galleria submarket.
Mixed-use project in Houston’s Uptown District. 3200 Post Oak Boulevard will be located between the Best Buy at 5133 Richmond Ave. and the Broadstone Post Oak Apartment complex. The project will include a 150-room hotel, a 350,000-sq.-ft. Class A office tower and 30,000 sq. ft. of exclusive retail. The project is scheduled to break ground in 2019 and deliver in 2023.
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