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Houston has maintained a steadily high occupancy rate in the retail sector of 94% or higher for five straight years, and registered at 94.6% midway through the second quarter of 2019—unchanged from this time last year. Of the 3.9 million sq. ft. currently under construction, over half (55.6%) of that space has been spoken for.


Market Highlights

Record high asking rents continue. Houston has maintained a steadily high occupancy rate in the retail sector of 94% or higher for five straight years, and registered at 94.6% midway through the second quarter of 2019—unchanged from this time last year. Of the 3.9 million sq. ft. currently under construction, over half (55.6%) of that space has been spoken for. The rising average asking rate of renting retail space is at a record high for Houston at $18.06 per sq. ft. on a triple net basis, up 6.3% from this time last year at $16.99 per sq. ft.

Mixed-use is becoming a bigger component of retail. The first retail tenants have been announced for M-K-T, a 200,000-sq.-ft. redevelopment of five buildings in the Heights, located next to the Heights Hike and Bike Trail. Mendocino Farms Sandwich Market and Honeychild’s Sweet Creams have both signed lease agreements in the new project. Also signed is a national fitness concept, and the project’s first office lease is in the process of being finalized, reported CoStar. M-K-T is a redevelopment of industrial buildings on a 12-acre site at N. Shepherd St., between 6th St. and 7th St. Construction should begin in the next two to three months.

Rooftops and retail. According to the Houston Association of Realtors, April was a strong month for home sales throughout greater Houston. Sales of single-family homes increased 7.8% in April, with 7,586 homes sold compared to 7,035 in April 2018. That marks the third straight month of positive sales and the biggest volume gain of 2019. On a year-to-date basis, home sales are 2.2% ahead of last year’s record pace. In addition, single-family homes prices reached record highs for an April. The average price was up 1.9% to $310,676—the second highest average of all time.


Leta Wauson
Director of Research
[email protected]
tel 713 275 9618

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