Going beyond grocery: variety sprouts in Houston’s retail pipeline

​​​​​HOUSTON – After a slow start to the construction cycle, developments are finally moving forward. A full construction pipeline is needed as limited supply continues to constrain leasing, according to CBRE’s 1Q​​2016 MarketView of Houston Retail.

Class A space is 97.7 percent occupied and tenants looking for quality space will likely turn to new developments underway.

Currently 2.2 million sf of retail space is under construction, of which 35 percent is grocery-anchored centers.

Grocery has dominated leasing and construction due the aggressive expansion plans of Kroger and H-E-B as well as national big box grocers and small specialty grocers like Trader Joe’s, Sprouts and Aldi.

Despite softening fundamentals in the office and multifamily sectors, more mixed-use developments are underway across the market.