The ten months of 2022 mark the highest leasing activity on record for the Houston retail market.
Vacancy rate at 5.3%
Ten months into 2022, overall vacancy in the Houston retail market has tightened to 5.3%, dropping 60 basis points from this time last year at 5.9%. Availability is at 6.1%, down 60 basis points from 6.7% in October 2021. The difference between this figure and the vacancy rate reflects expected future move-outs. The ten months of 2022 mark the highest amount of leasing activity in January through October on record for the Houston retail market. 7.4 million sq. ft. of leasing activity comprised of both new leases and renewals was recorded, while net absorption (move-ins minus move-outs) is at 4.3 million sq. ft., up 7.2% year over year.
Average retail NNN asking rents at all-time highs
Positive trends in leasing and absorption have driven average retail asking rents higher. The Houston metro NNN average asking rent is $19.61 per sq. ft., up 3% from $19.04 last year. Strengthened by the region’s strong demographic growth and a steady development pipeline, rent growth is expected to improve further through the near-term forecast so long as the local economic recovery continues.
Houston home sales cool as interest rates climb
Rapidly rising mortgage rates slowed home sales in the Greater Houston area in October as the housing market cooldown continued. However, home prices are still well above where they were a year ago. October marked the seventh consecutive month of declining sales and rising inventory as the market continued toward a more normalized, pre-pandemic pace. Single-family home sales fell 22.8%, with 6,641 units sold compared to 8,597 in October 2021. On a year-to-date basis, the market now lags 2021’s record-setting volume by 6.7%, according to the Houston Association of Realtors.
Director of Research
tel 713 275 9618