CBRE: Houston retail 3Q 2014 review
HOUSTON - The Houston retail market was characterized by increasingly tight vacancy rates despite an influx of completed retail projects in third quarter 2014, according to the report released by CBRE.
Available retail space is becoming increasingly difficult to find as the local economy continues to perform well and businesses expand. The average vacancy rate across the metro dropped to 6.4 percent in 3Q — the largest quarter-over-quarter decline in vacancy in over two years for Houston.
Occupancy rates are well above 90 percent in centers located within key trade areas in Cypress, The Woodlands, Galleria and Sugar Land. Available big box spaces in prime centers are few and far in between.
Grocery-anchored centers continued to account for a large portion of new retail construction projects. Over 700,000 sf of grocery-anchored retail space delivered in 3Q and 12 grocery stores remain under construction with many more in the pipeline.
Mixed-use developments are becoming more prevalent as demand for a live-work-play lifestyle grows.
| Market | No. of Centers | Net Rentable Area (SF) | Total Vacant | Avg. Asking Rate ($/SF/Year) | 3Q Total Net Absorption (SF) | YTD Total Net Absorption (SF) |
| Far North | 426 | 30,233,393 | 2,050,656 | $26.00 | 50,396 | 448,699 |
| Far Northwest | 440 | 26,808,101 | 1,833,326 | $25.25 | -766 | 314,457 |
| Far Southwest | 340 | 22,224,294 | 1,495,101 | $25.50 | 110,632 | 202,911 |
| Far Southeast | 295 | 20,745,330 | 1,303,434 | $20.50 | 12,749 | 86,853 |
| Far West | 267 | 17,408,422 | 1,284,737 | $30.50 | 1,733 | 126,694 |
| Northeast | 236 | 15,303,211 | 1,362,152 | $15.00 | 117,271 | 234,288 |
| Total** | 3,264 | 209,787,905 | 13,880,947 | $22.06 | 369,169 | 1,792,703 |
*Ranked by net rentable area.
**Totals are based on all submarkets. Only top six are shown above.
To see more retail stats, check out Houston-Sugar Land-Baytown Market Data Sources.
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