Houston retail occupancy hits ten-year high

HOUSTON – Prices for Houston retail properties jumped sharply in the last 12 months — more than 20 percent in some cases, reports Deal Sikes & Associates, a Houston-based real estate valuation firm.

Investors are finding the inventory of available retail properties is tight and prices are very strong, says Mark Sikes of the Deal Sikes firm.

Houston’s retail occupancy rate is over 94 percent, the highest in over ten years, reports Lisa Bridges, director of research for Colliers International in Houston. Colliers reports only 2 million sf of new space is in the construction pipeline.

The new retail space in the pipeline is 78 percent preleased, Colliers reported. During second quarter, 933,719 sf of Houston’s retail inventory was absorbed.

Houston’s average retail vacancy rate decreased slightly from 6.2 percent a year ago to 5.8 percent in the second quarter.

The citywide average quoted retail rental rate increased to $15.30 per sf, up 2.3 percent from $14.96 per sf a year ago.

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