Houston Retail Market Report
High-Level of Pre-Leasing, Fewer Deliveries and Renewed Job Growth Will Help Stabilize Retail
Economic recovery advancing, long-term tailwinds promising. The centerpiece of the Houston economy, the energy sector, has been recuperating jobs as per barrel prices heighten alongside greater demand for production amid more people traveling. Mass vaccination is also helping the service sector recover positions, while a broader economic diversification is ongoing with firms relocating into and expanding operations in the metro. Companies attracting personnel from outside the market and people migrating in for quality-of-life considerations support a household expansion of 5.5 percent over the next three years, well above the national 3.0 percent gain. After dropping by 6 percent year over year in the second quarter, total metro retail sales improved to 7 percent higher annually at year end, and momentum carried into 2021 will underpin greater space absorption.