The Woodlands area retail has shown tremendous growth in the previous 5 years. Over 2,000,000 sf of new retail has been added to the market while occupancy rates have held steady at an above Houston MSA average rate of 95%. In addition to this growth and absorption to the area retail market, the overall base rent has increased from $17 psf in 2013 to over $22 psf year ending 2017. When occupancy rates decrease and rental rates increase over a period of expansive growth to the retail market we can reflect on the retail market as being a healthy and robust. A huge contributor to the additional retail growth was the construction and completion of the Grand Parkway. The Grand Parkway was a springboard for numerous new retail developments throughout the southern Montgomery and northern Harris counties. Other sizable contributors to the new retail growth would include the additional retail along the Interstate 45, Kuykendahl, Rayford Road and FM 1488 corridors. The quality of the retail tenants joining the mix are also a great indicator of the healthy market we are currently experiencing, with many retailers rolling out concepts that are completely new to our area, with some of those choosing to be here as their first point of entry into the entire Houston market.
Overall, many factors that have contributed to the strong retail market The Woodlands area is currently experiencing, and with the substantial activity we have seen starting off 2018, it’s very likely that these positive trends will continue.
Presented by: Jeff Tinsley & Lindsey McKean of the J. Beard Real Estate Company