SVN Research
Market Spotlight - 2025 Q1 Retail | Houston, TX Metro Area
May 05, 2025
- May 05, 2025
- Kyle Kretsinger
There are sign the Houston retail market is softening. Demand has fallen to just over 2 million Square feet. Lower demand can be attributed to an increase in store closures and an excess in net deliveries. The availability rate has reached a three-year high at 5.9%. As retail follows rooftops, over half of the 3.6 million SF under construction are to the north and west of Houston, where most of the market’s population growth is happening. With limited available space to move into, net absorption is following new supply as tenants expand into the new growth areas. Previous high rent growth has squeezed tenants’ profit margins, thus sending rent growth plummeting to just over 1%, a 5-year low and under the national average of 1.8%
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