Download the PDF
Stable retail environment. Year-to-date Houston retail market occupancy remained at a strong 94.4%—unchanged from this time last month. Occupancy of the 3.0 million sq. ft. delivered to the market year-to-date stands at 75.0%, and of the 140 properties with 4.1 million sq. ft. currently under construction, just 35.5% of that space is available for lease. Year-to-date net absorption totals 2.5 million sq. ft., while there have been 1,429 deals, 5,000 sq. ft. and over, resulting in 4.2 million sq. ft. of leasing activity. The rising average asking rate of renting retail space is $17.10 per sq. ft. on a triple net basis, up 4.3% from year-end 2017 at $16.39 per sq. ft.
Year-to-date through August investment sales up. According to Real Capital Analytics, investment sales of retail properties in the Houston area totaled $1.4 billion, an increase of 42.9% from one year ago. Private and cross-border capital have been the most active buyer types for 2018, each comprising 43.0% of Houston’s total sales volume, followed by institutional buyers at 10.0% and user/other investors at 4.0%.
Big-box shopping center expansion in Katy. Plans are in the works to break ground on a 66,000-sq.-ft. expansion of Grand Morton Town Center, at the Grand Parkway and Morton Ranch Road, with the majority of preleasing secured by HomeGoods, Michaels, Petco and Hallmark. The stores are estimated to open by summer 2019. The project’s new buildings will be situated next to the 123,531-sq.-ft. Kroger Marketplace, and at build-out, the mixed-use development will total 600,459 sq. ft.
Director of Research
tel 713 275 9618