Quarterly Snapshot 1Q23 | Retail | Houston Retail Market Expands to Meet Demand
The Houston retail market looks promising as it works to keep up with rooftops and strong consumer demand. Houston retail is the 5th largest market in the US with over 428 million SF supporting its robust, growing population. With only 20.6 million SF available, its 4.8% vacancy is primarily older centers looking for new life. This lack of new product has motivated tenants and developers to deliver over 993,000 SF in 1Q23 and start construction on over 4.5 million SF of new retail projects, which is already over 60% pre-leased. The Houston region will continue to be a bright spot in the quarters ahead as jobs and growth continue to attract all ages to move to Houston or one of its many suburban master-planned communities. Houstona™s retail sector remains optimistic due to its location, strong population, household growth, and affordability.