HOUSTON RETAILAUGUST 2015
RECENT RETAIL LEASES
Near North :: dd’s DISCOUNTS21,000 SF new lease at Eastex Shopping Center
Bridgelands :: CVS15,300 SF new lease at Lakeland Village Center
Far North :: Dollar Tree9,450 SF new lease at Cypress Station Square Center
RECENT RETAIL SALES
Channelview :: San Jacinto Mall 1.2 million SFSale Price: undisclosed Buyer: Fidelis Realty PartnersSeller: TriYar Companies
RETAIL IN THE NEWS
Retail centers are white hot investments as occupancy hits 10-year high link to storyRealty News Report, August 17, 2015
Coffeehouse developers to launch new doughnut shop in the Heights link to storyHouston Business Journal, August 11, 2015
Renovations underway at Willowbrook Mall link to storyHouston Chronicle, August 10, 2015
RETAIL LEASE STATISTICS
Source: CoStar - Houston retail buildings 5,000 SF and greater
Retail Market IndicatorsSUBMARKET TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
OVERALL VACANCY RATE
SF UNDER CONSTRUCTION
Q2 2015 NET ABSORPTION
East (Pasadena/Galena Park, Channelview/Beaumont & Baytown/Chambers) 13,170,754 913,943 8.9% 8.9% 9,960 35,529
Inner Loop (CBD, Bellaire/West U, Galleria/Uptown, River Oaks, Heights & East End) 26,839,751 1,129,294 4.2% 4.2% 284,865 (32,093)
North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North & The Woodlands/Montgomery)
56,636,692 2,904,431 7.1% 7.2% 96,063 199,747
Northeast (Near Northeast, Atascosita, Kingwood & Liberty County) 12,501,866 568,654 7.5% 7.5% - 133,866
Northwest (NW Oaks, Spring Branch, Willowbrook, Jersey Village, Copperfield, Fairfield, Cypress/Bridgelands, Far Katy North, Far NW & Tomball/Spring Cypress)
56,440,553 2,975,567 6.3% 6.3% 956,331 98,378
South (Pearland/Manvel & Near South) 13,473,374 664,771 6.9% 6.9% 164,640 168,115
Southeast (Gulf Frwy/Pasadena, Baybrook/Clear Lake & Old Pearland/Alvin) 50,203,689 2,944,715 5.9% 5.9% 260,752 128,720
Southwest (Sharpstown/Southwest Central, West Oaks, Sugar Land/Stafford & Richmond/Rosenberg)
42,935,002 2,657,211 7.3% 7.4% 66,275 132,197
West (Memorial, Westchase, Energy Corridor & Katy/Cinco Ranch) 38,410,219 2,096,968 5.5% 5.7% 193,750 85,059
Total - Houston 310,611,900 16,855,554 7.1% 7.2% 2,032,636 949,518 Source: Costar - Houston retail buildings 5,000 SF and greater
Retail Sales StatisticsHOUSTON MSA UNITED STATES
QUARTER TO DATE
LAST QUARTER (Q2 2015)
TRAILING 12 MONTHS
LAST QUARTER (Q2 2015)
TRAILING 12 MONTHS
Volume ($ Mil)
$169.9 $267.5 $1,682.1 $19,060.0 $90,511.0
No. of Properties
12 36 166 1,669 7,277
Total SF 1,841,594 1,527,059 9,869,868 92,564,426 436,822,702
Average Price/SF
N/A $187 $193 $220 $216
Average Cap Rate (Yield)
N/A 7.2% 7.1% 6.5% 6.6%
Source: Real Capital Analytics
MARKET WATCH
Overall Vacancy Rates Asking Rental Rates (NNN)
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 $17.00
$17.20
$17.40
$17.60
$17.80
$18.00
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
MARKET WATCH HOUSTON RETAIL MARKET AUGUST 2015
HOUSTON RETAIL MARKET WATCHAUGUST 2015
45
45
45
10
10
610
10
290
59
90
288
99
249
8
35
6
11
11
1111
11
22
22
55
44
33
33
3344
44
55
66
66
77
88
99
1010
11 11
11
11
22
22
22
22
22
22
33
33
33
33
44
44
22
3344
55
66
See Inner Loop
Map
Inner Loop
Gulf Freeway/Pasadena
Baybrook / Clear Lake
Old Pearland / Alvin
1
2
3SOU
THE
AST
Pasadena / Galena Park
Channelview / Beaumont
Baytown / Chambers
1
2
3
EA
ST
Pearland / Manvel
Near South
1
2SOU
TH
Near North
FM 1960 & I-45
Greens Point - North Belt
Spring Creek
Far North
The Woodlands - Montgomery
1
2
3
4
5
6
NO
RTH
Near Northeast
Atascocita
Kingwood
Liberty County
1
2
3
4
NO
RTH
EA
ST
1
2
3
4
SOU
THW
EST
1
2
3
4
5
6
INN
ER
LO
OP
1
2
3
4
5
6
7
8
9
10
NO
RTH
WE
ST
1
2
3
4
WE
ST
CBD
Bellaire / West University
Galleria/Uptown
Inner Loop / River Oaks
Heights
East End
Northwest Oaks
Spring Branch
Willowbrook
Jersey Village
Copperfield
Fairfield
Cypress/Bridgelands
Far Katy North
Far Northwest
Tomball/Spring Cypress
Memorial
Westchase
Energy Corridor
Katy - Cinco Ranch
Sharpstown - Southwest Central
West Oaks
Sugar Land - Stafford
Richmond Rosenberg
Houston | RETAIL SUBMARKETS
INNER LOOP
1. CBD2. Bellaire/West University3. Galleria/Uptown4. Inner Loop/River Oaks5. Heights6. East End
WEST
1. Memorial2. Westchase3. Energy Corridor4. Katy/Cinco Ranch
NORTH
1. Near North2. FM 1960 & I-453. Greens Point/North Belt4. Spring Creek5. Far North6. The Woodlands/Montgomery
SOUTHWEST
1. Sharpstown/Southwest Central2. West Oaks3. Sugar Land/Stafford4. Richmond/Rosenberg
NORTHWEST
1. Northwest Oaks2. Spring Branch3. Willowbrook4. Jersey Village5. Copperfield6. Fairfield7. Cypress/Bridgelands8. Far Katy North9. Far Northwest10. Tomball/Spring Cypress
NORTHEAST
1. Near Northeast2. Atascocita3. Kingwood4. Liberty County
SOUTH
1. Pearland / Manvel2. Near South
EAST
1. Pasadena/Galena Park2. Channelview/Beaumont3. Baytown/Chambers
SOUTHEAST
1. Gulf Freeway/Pasadena2. Baybrook/Clear Lake3. Old Pearland/Alvin
Copyright © 2015 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.
HOUSTON RETAIL MARKET WATCHAUGUST 2015
SEATTLE
WALNUT CREEK
LOS ANGELES
SALT LAKECITY
DENVER
MINNEAPOLIS
MILWAUKEE
ST. LOUIS
CHICAGO
DETROIT GREENWICHNEW YORK
NEW JERSEY
BALTIMORENORTHERNVIRGINIA
BETHESDAWASHINGTON DC
DALLASFORTWORTH
HOUSTONAUSTIN
SAN ANTONIO
OKLAHOMACITY
NEW ORLEANS
ATLANTA
FORT LAUDERDALEORLANDO
MIAMI-DADE
SANFRANCISCO
PHOENIXORANGE COUNTY
SAN DIEGO
BOSTON
SILICONVALLEY
TRANSWESTERNLOCATIONS
HOUSTON RETAIL TEAM
Nick HernandezManaging [email protected]
Micha van Marcke, CCIMSenior Vice [email protected]
Tony ArmstrongVice [email protected]
Grant WalkerVice [email protected]
Crystal AllenVice [email protected]
Cindy NguyenSenior [email protected]
METHODOLOGY
The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources.
CONTACT
Rachel AlexanderDirector of Market [email protected]
T 713.270.7700 F 713.270.6285www.transwestern.net/houston
1900 West Loop South, Suite 1300Houston, Texas 77027
Chace [email protected]
Chris [email protected]
Danielle SchidlowskiAssociate713.231.1584danielle.schidlowski@transwestern.com
ABOUT TR ANSWESTERN
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 38 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
Transwestern was founded in Houston, Texas in 1978, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients. Transwestern’s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 37 years.
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Kevin RobertsPresident, [email protected]
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