Houston Retail Market Report | Q2 2024

HOUSTON - July 26, 2024 - PRLog -- "Key fundamentals in Houston's retail sector led to a robust second quarter. Demand outpaced new supply, resulting in low vacancy and availability rates.

Retailers are finding fewer options due to limited availability, while Houston's continued population growth fuels consumer spending."

Danny Rice | President

2024 REPORT REVISIONS

The Q2 2024 Houston retail market report reflects a significant change carried over from the first quarter but different from prior years.

Colliers now includes statistics on all retail properties 5,000 square feet or greater.

Due to this revision, direct comparisons to prior published editions of the Houston retail market report will be challenging.

Key Takeaways

• Absorption soars
• Leasing activity increases
• Vacancy marginally declines
• Rental rates up for year

Houston Highlights

Houston's vacancy rate marginally declined to 5.2% from 5.3% during second quarter. Demand soared to 787,531 SF, a 20.9% increase year over year, with net absorption outpacing new supply of 582,772 SF. The Northwest led all submarkets with 554,472 SF absorbed and 339,370 SF delivered. The South and North reported the most space underway, 890,343 SF and 436,432 SF, respectively. Leasing activity of 2.1 M SF is similar to last quarter but 18.2% higher year over year. The construction pipeline at 2.7M SF is below the previous quarter and down 23.9% year over year. Although the average rental rate dropped to $20.38 from the prior quarter, that rate represents a 3.2% increase year over year.

View the full report: colliers.com/en/research/houston/q2-2024-houston-retail