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Houston Retail Market Commercial Real Estate - West Oaks

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Occupancy edging ever higher and rising rental rates. Houston’s retail market year-to-date 2018 reports an occupancy rate of 94.6%, a strong figure that is up 20 basis points from this time last month at 94.4%. In addition, Houston’s retail market has seen 911,865 sq. ft. in deliveries, 2.6 million sq. ft. under construction, and a rising average asking NNN rent at $16.94 per sq. ft., up from $16.73 in February.

The Outlet at West Oaks. 1st Emporium, the real estate division of Houston-based Mehta Investments, purchased the two-building, 243,337-sq.-ft. vacant Macy’s in West Oaks Mall, at the corner of Westheimer Road and Highway 6 S. The buyer, which also purchased the remainder of the mall in 2017, plans to redevelop the space into a department store that will be branded The Outlet at West Oaks.

Grocery-anchored centers still preference of retail investors. According to CoStar’s 2018-2022 U.S. retail forecast, annual demand growth for neighborhood grocery-anchored centers has exceeded supply since 2010 and is expected to do so again in 2018 before reaching a tipping point next year. However, with increased competition, there are still some risks as a result of oversaturation and weakening store productivity.

Houston housing market inventory still constrained. Single-family home sales increased 5.3% year-over-year to 5,260 in February. In addition, total property sales were up 3.1%, and the total dollar volume jumped 4.5% to more than $1.71 billion, reported the Houston Association of Realtors. Even as the Houston area’s housing demand has continued to grow consistently, supply has shrunk following Harvey.

Houston Retail Market Commercial Real Estate

Houston Retail Market Commercial Real Estate

Houston Retail Market Commercial Real Estate


Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

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