Quarterly Snapshot 4Q24 | Retail | The Houston Retail Market Stays Resilient as Construction Slows
Despite a slowdown in construction and new supply, Houstona™s retail market remained active in 2024, with major retailers expanding their presence. Construction in 4Q24 dropped to its lowest post-pandemic level at 3.0 million SF, marking a 31.7% decline from the previous year. Annual absorption hit a record low of 1.8 million SF, while total deliveries for the year reached 3.2 million SF. Retail giants like Costco, HEB, and Home Depot continued growing, each adding two new locations. The vacancy rate held steady at 5.4%, slightly above last yeara™s level. Meanwhile, rental rates rose 2.5% to $24.03 PSF, and leasing volume increased 2.4% to 8.3 million SF.