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Occupancy is at 94.4% as the end of the third quarter of 2019 draws near, a rate that has remained at or above 94.0% for over five years. Of the 4.5 million sq. ft. currently under construction, 64% of that space has been spoken for.


Market Highlights

Active Houston retail market. Occupancy is at 94.4% as the end of the third quarter of 2019 draws near, a rate that has remained at or above 94.0% for over five years. Of the 4.5 million sq. ft. currently under construction, 64% of that space has been spoken for. The Houston retail market has recorded 4.3 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—slightly outpacing the year-to-date activity from one year ago. In addition, the net amount of square feet absorbed stood at 2.7 million, with new supply delivering 3.2 million sq. ft. to the market of this year of which 68% is occupied. The mounting average asking rate of renting retail space remains at record highs for Houston at $18.34 per sq. ft. on a triple net basis, up 7.3% from this time last year at $17.10 per sq. ft.

Renovating brick-and-mortar presence. H-E-B Grocery Co. has received building permits for two multimillion-dollar construction projects in Houston, one at 4625 Windfern Rd. for a distribution center and the other at 11815 Westheimer Rd. for a store renovation. In addition, phase one of a mixed-use development in the Washington Corridor that will be anchored by an H-E-B store is near completion. Named Buffalo Heights, the 742,000-sq.-ft. project is located near the intersection of Washington Avenue and South Heights Boulevard, scheduled to deliver this fall.

Blazing home sales in August. According to the Houston Association of Realtors, August single-family home sales were up 3.9% yearover- year marking the second largest onemonth sales volume of all time. On a year-to-date basis, sales are 3.1% ahead of 2018’s record volume. Strong inventory and low mortgage interest have generated a positive climate for home buyers and created one of the strongest summers in Houston real estate history. The median price of a single-family home reached the highest level ever for an August, climbing 4.5% to $249,000. The average price also set an August record, rising 3.4% to $310,409.

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

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