Houston construction shows striking increase

HOUSTON – The City of Houston issued $431.9 million worth of building permits in April 2013, a 46.6 percent increase over April 2012.

Year-over-year growth was evenly spread among residential and nonresidential permits. Residential permits increased 44.5 percent to $170.3 billion, and commercial permits grew 48.1 percent to $261.6 billion. The Greater Houston Partnership tracks the data.

Retail stores accounted for one-third of the year-over-year growth in commercial permits. Permits for retail buildings in Houston valued at $21.2 million in April 2013, four times more than the $4.8 million issued in April 2012. The greater Houston area has experienced improvements in its retail market for the past four quarters.

According to CBRE’s first quarter 2013 report on the Houston region’s retail sector, vacancy rates have decreased from 8.1 percent in 1Q 2012 to 7.7 percent in 1Q 2013, positive net absorption has been recorded for the past four consecutive quarters, and average asking rents have grown from $17.08 in 1Q 2012 to $19.37 in 1Q 2013.