HOUSTON—A post-second quarter report released from Colliers International reveals that Houston is experiencing growth in virtually all sectors.
Houston's retail market showed 1.2 million square feet of positive net absorption in the second quarter. New tenants include Whole Foods Market, Kroger Marketplace, Conn's Appliances, Horse & Rider, Vineyard Vines, Trina Turk, Brucettes Shoes and Harbor Freight Tools. The average citywide vacancy rate fell to 6.3%.
Houston's medical office market occupancy increased during the first half of 2014, with the citywide average vacancy rate decreasing to 10.3% from 11.5% in the fourth quarter of last year.
The office submarket in the Woodlands contributed 25% (or 890,895 square feet) of Houston's YTD 2014 total suburban positive net absorption—notable because the submarket has only a 6% share of Houston's suburban office inventory.
The Fort Bend office submarket posted 227,064 square feet of positive net absorption in the second quarter of 2014, largely due to Texas Instruments' new building in Telfair. The average vacancy rate decreased to 13.0%. The average vacancy rate for medical office in the Fort Bend submarket increased to 8.6% between quarters. However, in Telfair, the Telfair Medical Centre, a 57,000-square-foot medical office building, is currently under construction and slated for completion in September. And in retail news, the Grand Parkway expansion is having a positive effect; retailer Gallery Furniture is staking a big presence here with a 165,000-square-foot showroom.
Over 17.8 million square feet of space is currently under construction in the office market, with more than 1.7 million square feet of new inventory delivered during the last quarter.
Houston is of the healthiest industrial markets in the nation, it is being sustained thanks to the expansion in the oil and gas industry. Texas is expected to out-produce all but one of the OPEC nations this year due to the booming Eagle Ford Shale and Permian Basin.
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