Wulfe & Co.: 23 percent Houston retail development dip projected

​​​​HOUSTON – Wulfe & Co.’s 25th Annual Retail Survey projects 3.3 million sf of new retail shopping center space will be built and opened in the area in 2018. 

According to the survey, this represents a "more typical year" compared with the past two, which averaged 4.4 million sf each year. ​

"This year’s square footage projection is realistic and appropriate when considering that the sf average over the previous ten years was three million per year," said Ed Wulfe, chairman and CEO of Wulfe & Co. 

The​ firm attributed the downturn partially to the aftermath of Hurricane Harvey, which ​​​pushed completion of construction on several projects into 2019. Also,​​​​​​ many major retail chain stores focused on ecommerce over their brick-and-mortar stores last year. ​​​

"Even with the new retail space, overall retail occupancy in Houston will continue strong and approach an all-time high rate of an estimated 95 percent," added Wulfe. "Retail rental rates will increase slightly in response to the limited availability of shopping center space, higher land and development costs, and estimated increases in interest rates." ​