2024 News Archive

The Houston retail market continues to be durable with vacancy and availability rates remaining below the 5-year average. Therefore, demand has outpaced supply over the past five quarters. Demand surged to 787,531 SF, marking a 20.9% increase compared to the previous year. Net absorption, at 582,772 SF, outpaced the introduction of new supply, highlighting a market where occupancy is growing faster than new space is being made available. Overall, the retail market remains strong with high demand, which should continue for the next few quarters.

In 2Q24, the Houston Industrial market continued to thrive due to sustained tenant demand, which fueled active leasing activity and led to several large deals being finalized. This momentum resulted in positive net absorption, with 5.5 million SF of space absorbed. While net absorption has remained relatively steady on a year-over-year basis, it showed an uptick compared to the previous quarter. Moreover, with a substantial 27.6 million SF of tenant demand in Houston, the market is set for continued expansion. This persistent industrial activity is anticipated to further decrease vacancy rates as 2024 progresses. Additionally, economies of scale play a significant role, as tenants who lease larger spaces often secure lower per-square-foot rates. This makes leasing more industrial space a cost-effective option for tenants.