April 7, 2017
NAI Partners’ “Houston Retail | March 2017” report painted a picture of a sector in which asking rents are increasing and vacancies falling. In Q1 2017, the average ask was $16.36 per square foot, up from the $15.76 per square foot reported in Q4 2016. Vacancy continues to be at, or below, 6%.
NAI Partners’ analysts note that the reason for retail’s good performance in and around the Bayou City is due to master-planned communities, “and the grocery-anchored shopping centers that came with them.” Cinco Ranch, in Katy, TX is close to build-out. However, newer communities are springing up in the region, including Elyson, under development by Newland Communities, and Johnson Development’s Harvest Green in Richmond, TX.
Though the energy sector has been taking a beating (and taking some facets of the Houston area down with it), Houston remains the No. 2 homebuilding market nationally, with the highest activity in the suburbs, according to Metrostudy.
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