Latest Insights

The Houston Retail market continues to be the healthiest of Houstona€™s commercial real estate markets. The overall vacancy rate has remained steady quarter to quarter, ranging from 4.8% to 5.1%. Additionally, as of 4Q23, Houston recorded a total absorption of 2.8 million SF over the past 12 months. This absorption was predominantly concentrated in the general retail sector (1.8 million SF) and neighborhood center segment (120,000 SF). Because of this, Houston secured the second position nationally in terms of new demand during this period. As the year progresses, we should see more space being absorbed and demand continue to heighten.

The Houston Industrial market continues to outperform other U.S. markets primarily due to high tenant demand. In 4Q23, the demand for industrial space in Houston increased quickly, reaching 10.2 million SF of transactional leasing activity. This was the highest amount of total space leased in any quarter of 2023, with most of the leases consisting of third-party logistics companies and manufacturers. Furthermore, the market's resilience persists with positive absorption continuing to be a highlight, reaching 4.2 million SF in 4Q23. This trend will more than likely continue throughout 2024, but could be outpaced by supply given the under-construction pipeline.