Houston Retail Figures - Q1 2025

— The Houston retail market closed out Q1 2025 with an availability rate of 5.5%. Owing to the strength of Houston’s retail market, availability has remained largely unchanged since 2022 despite the infusion of a few million square feet of new developments.
 
— Asking rents increased again over the last quarter and despite peaking in 2023 at the market level, most properties are quoting ever-increasing rents thanks to higher concessions and buildout/operating costs. 

— Expect fewer new construction starts in 2025 given financing challenges and other headwinds. Despite this, there are still developments underway, led by national grocery chains. This includes a new Target in Katy and a few newly announced Sprout's and Trader Joe's locations.

— The effects of recent bankruptcies like Forever 21 and Party City will trickle down to the Houston market, potentially creating negative net absorption in coming months.