CBRE: Houston retail leasing strong amid nationwide closures

​​HOUSTON – According to CBRE’s Houston retail report for first quarter 2018, strong net absorption and heavily pre-leased deliveries pushed local retail occupancy to 94.4 percent. That’s above its eight-year average of 93.1 percent.

However, as new construction slows and completions require more time, CBRE expects occupancy and rent rates to be temperate in the short-term.

Nearly 3.4 million sf of retail space is under construction with 903,438 sf coming online in first quarter 2018. Grocery-anchored retail accounts for 40 percent of recent completions. Net absorption is down to 48,991 sf.

Despite nationwide retail bankruptcies dominating headlines, local retail demand remains healthy. From 2011 to 2017, the metro added around 2,700 people per week, supporting expanding retail.