Nearly 5M SF of Retail Rising in Houston Area

HOUSTON-A top-ranked housing market and positive economic fundamentals due to the energy industry have boosted Greater Houston’s retail market to 88.5% occupancy. Local experts caution overbuilding might result, but occupancy is expected to remain fairly level.

According to a yearend report by Dallas-based Weitzman Group, the region’s inventory has hit 132 million sf, with 4.6 million sf under construction. In 2006, four million sf was added. Researchers say this year’s construction pipeline is due to regional projects and shopping center expansions.

Lyle Cowand, senior vice president with Weitzman’s Houston office, says local brokers are bracing for construction to reach nearly five million sf before the year is done. He says much of the new product will be grocery-anchored neighborhood centers, big-box retailers and junior anchors.