Oct 17, 2017
CBRE: Houston Retail MarketView 3Q 2017
HOUSTON – CBRE has released the third quarter 2017 Houston Retail MarketView report. Interested in submarkets? Then this report is for you!Key Highlights: Harvey impact minimalA dwindling pipeline, temporary requirements, increased demand from home improvement...
HOUSTON – CBRE has released the third quarter 2017 Houston Retail MarketView report.
Interested in submarkets? Then this report is for you!
Key Highlights:
Harvey impact minimal
- A dwindling pipeline, temporary requirements, increased demand from home improvement tenants, and sustained organic retail demand will keep Houston retail in very tight conditions.
- Prior to Harvey, Houston’s Class A retail market was 97.2 percent occupied. Since the storm, Class A occupancy has increased to 97.6 percent—approximately 35 basis points.
New developments capture bulk of absorption
- Almost all of the 311,552 sf of new absorption was taken up by newly delivered centers, including the Grand Parkway Marketplace located in the Far North submarket.
- Year-to-date, over 2 million sf was absorbed in new development—counterbalancing national closures and bankruptcies.
- Although more speculative strip centers are underway, projects delivered in third quarter 2017 were 89 percent leased. Of the 1.5 million sf currently under construction, 71 percent is pre-leased.
Consumer Outlook
- Retail sales should continue to see gains, especially in the automotive, home improvement, furniture and appliance segments.
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