Retail Begins To Cool After Red-Hot Cycle
Houston's booming retail market is rebalancing. According to JLL's Q1 research, construction declined for the third consecutive quarter, falling to 2.7M SF while vacancy rose to 5.1% from its cyclical low of 4.9%. Vacancy remains well below the 10-year average.
Demand will likely temper in 2017 as a weak office market impacts the sector, though indicators continue to point to a healthy level of growth for retail. As construction also drops, JLL predicts supply and demand will rebalance and vacancy will remain largely unchanged.