2016 Has Already Absorbed More Retail Space Than 2010, 2011 And 2013 Combined
CBRE's Q2 retail market report showed some extremely encouraging signs. Houston's retail market had the strongest absorption in a single quarter since Q4 2007. Over 1.5M SF was soaked up, more than the annual absorption in 2010, 2011 and 2012 combined.
The retail pipeline is packed. 3M SF of retail product is underway, with the majority in the far north, far northwest and far west submarkets. The pipeline only represents 1% of total inventory. Additionally, the new projects are pre-leased at a whopping 85%.
Occupancy has climbed to a new historical high at 94.2% in the overall market, with Class-A space coming in even higher. As developers move forward with plenty of speculative construction, demand must continue to grow to keep up the historical rates.