Skip to main content

Market Report

Houston Retail Market Report

4Q 2023

Strong Population Growth Warranting
Supply Additions, Bolstering Retail Operations

Retail outlook improves on back of in-migration upswell. After peaking in early 2021, retail vacancy across Houston has been on a steady decline, aided by favorable demographics and moderating new supply pressure. From 2017 to 2021, an average of 34,000 people moved to the metro on net per year. Net in-migration surpassed 90,000 in 2022, and is projected to top 70,000 again for 2023. This acceleration corresponded with a downshift in construction activity. Routinely topping 5 million square feet per annum between 2014 and 2020, retail deliveries have fallen under 3 million square feet since. Although that threshold will be surpassed this year, applying modest upward pressure to availability, metrowide vacancy remains well under the pre-pandemic norm. As retailers expand to meet the needs of a growing population, tenants will continue to explore both new and existing floor plans.
TO READ THE FULL ARTICLE
MM Texture Background