- Nov. 10, 2023
-- "Although vacancy and absorption has remained relatively stable over the past few quarters, leasing activity during Q3 jumped more than 15% from the previous quarter
as retailers continue to secure their positions in the Houston market.
As the global economy faces economic challenges, Houston's resiliency
, especially in the retail sector, has allowed retailers to grow
in a market bolstered by strong population growth, competitive cost of living and wide-ranging diversity. The recent leasing activity provides a positive outlook as we wrap up 2023 and head into 2024."Danny Rice | President
- Vacancy plateaus at 6.5%
- Absorption negative but positive year-to-date
- Leasing activity increases QoQ and YoY
- Rental rates continue to rise
Houston's vacancy rate stabilized at 6.5% during third quarter, representing a decrease of 10 basis points from a year ago.New supply outpaced demand as 138,219 square feet of additional retail space was delivered while net absorption totaled a negative 38,914 square feet, representing the first negative absorption in 2.5 years. Year-to-date absorption is 732,548 square feet. Leasing activity of 1.2 million square feet jumped 15.5% from the prior quarter and 4.7% year-over-year. The construction pipeline remains limited with 1.2 million square feet currently underway. Rental rates reported marginal increases from both the previous quarter and year-over-year.
See the full report here: https://www.colliers.com/en/research/houston/q3-2023-hous...