Houston may see a slowdown in retail development in 2018 – but that probably isn’t a bad thing.
“Two years ago, there was no end in sight (to retail developments),” said Jason Baker of Baker Katz LLC. “That seems to have changed a bit.”
The Houston market is currently sitting on a retail vacancy rate of 5.6 percent, according to research from NAI Partners, so less development is welcome as retail tenants continue to figure out how to adapt in the age of Amazon and the rise of e-commerce.
The city’s retail occupancy rate is currently at 94.4 percent, and demand is still high, so a slowdown in retail developments means sustained rent rates and occupancy, Baker said.
Click to read more at Houston Business Journal.