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Despite a slowdown in construction and new supply, Houstona€™s retail market remained active in 2024, with major retailers expanding their presence. Construction in 4Q24 dropped to its lowest post-pandemic level at 3.0 million SF, marking a 31.7% decline from the previous year. Annual absorption hit a record low of 1.8 million SF, while total deliveries for the year reached 3.2 million SF. Retail giants like Costco, HEB, and Home Depot continued growing, each adding two new locations. The vacancy rate held steady at 5.4%, slightly above last yeara€™s level. Meanwhile, rental rates rose 2.5% to $24.03 PSF, and leasing volume increased 2.4% to 8.3 million SF.

In 4Q24, the Houston Industrial market saw a shift as demand grew and supply became increasingly constrained. The vacancy rate decreased by 60 basis points, ending the year at 6.2%, while the availability rate dropped by 40 basis points to 7.4%. An influx of international businesses into the region has further fueled this growth, with Houstona€™s favorable location and economic opportunities drawing attention. The rise in tariffs on foreign goods has also encouraged companies to seek local solutions. In the fourth quarter alone, net absorption totaled 4.8 million SF, bringing the annual total to 21 million SF, reflecting a strong and active market.