Quarterly Snapshot 2Q23 | Retail | Houston Retail Market Explodes to Meet Population Growth
Houstona™s population growth in the past 12 months has motivated retailers to launch and expand local businesses. This increased growth has elevated the Houston retail market to the third strongest market in the nation when it comes to new demand. The Houston retail market availability rate is 5.7% as of 2Q23, which balances out the high demand and low supply within the last year. To keep up with residential growth, more than 4.2 million SF of new retail space is expected to be delivered to the market this year, which is 3 times more than what was delivered in 2022. In 2024, we will determine if the market will be able to absorb that much new inventory without affecting rental rates.