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.
Director of Research
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