Houston Retail Market Report

Shopping centers show resilience in more selective environment. Vacancy pressure is expected to moderate in Houston in 2026 as bankruptcy-driven closures slow, with multi-tenant properties likely to anchor performance. In north, northwest, and southwest Houston, shopping center vacancy held flat or declined last year even as single-tenant availability increased, reflecting grocery, fitness, and experiential tenants clustering in high-traffic centers. Supply dynamics have reinforced this trend, with only about 35 percent of delivered space since 2020 being multi-tenant product. Leasing volume also held near the metro’s past-decade average in 2025, totaling more than 9 million square feet and signaling durable tenant demand that is likely to support further tightening, particularly in higher-income trade areas. Less-affluent neighborhoods in the east and south have lagged, but several large-format backfills slated for 2026 should support absorption and point to sustained tenant confidence.