Quarterly Snapshot 3Q23 | Retail | The Houston Retail Market Remains Resilient
The resiliency of the Houston retail market is being tested while absorbing the three-year high of new supply and dealing with an uncertain economy. A total of 4.5 million SF of new supply was delivered to the Houston market in 2021 and 2022. In 2023 the new construction pipeline expects to deliver approximately 4.9 million SF. Furthermore, the vacancy rate of 4.9% remained unchanged in 3Q23. The lack of construction in 2022 is a leading cause of the current vacancy rate. However, with most of the current new construction to be completed by the end of 2023, we forecast the vacancy rate to level off over the next few quarters.