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Record high asking rents. Houston has maintained a steady, high occupancy rate in the retail sector at or above 94.0% during the last five years, registering at 94.4% nearing the end of the first quarter of 2019. Of the 3.7 million sq. ft. currently under construction, 42.5% of that space is available for lease. The rising average asking rate of renting retail space is at a record high for Houston at $17.89 per sq. ft. on a triple net basis, up 5.6% from this time last year at $16.94 per sq. ft.
Cinco Ranch at Market Center sold. Phillips Edison & Company has acquired Cinco Ranch at Market Center. The 97,761-sq.-ft. retail center is located at 23610-23730 Westheimer Parkway in Katy. The Blackstone Group sold the property for $21.4 million, or about $218 per sq. ft., according to CoStar. The center was 97% leased at the time of the sale, anchored by HomeGoods and shadow anchored by Target. The roster of national and regional tenants included OfficeMax, Michaels, Which Wich, Marco’s Pizza, Supercuts and Massage Envy.
Rooftops and retail. According to the Houston Association of Realtors, sales of single-family homes were statistically flat in February, with 5,280 homes sold compared to 5,265 a year earlier, marking the end of three straight months of declines. Improved sales volume followed the end of the winter months along with strong performance among rental properties signifying that many consumers are opting to rent until they find the right home at the right price. The 30-year mortgage rate remains below 5%, lower than this time last year, with anticipated housing demand to remain at a healthy level in 2019.
Director of Research
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