Houston Retail Rents on Rise

Marcus & Millichap published its 4Q 2024 Houston Retail Market Report.    

“The Houston retail market has demonstrated steady resilience as we close 2024, with suburban demand driving growth while urban areas begin to show signs of recovery,” stated the company’s Ford Noe.  

Marcus & Millichap’s Houston Retail 4Q 2024 report includes: 

• Annual inventory growth slowed to 0.8%, matching the lowest rate since 2011, with construction concentrated outside the Highway 8 Beltway in the southwest and northwest suburbs. 

• Houston’s vacancy rate is projected to close the year at 5.4%, reflecting an increase driven by store closures in the Inner Loop but remaining below the long-term average of 6.3%. 

• Despite pressure from available big box space, average asking rents are expected to rise to $20.70 per square foot, maintaining Houston’s strong trajectory as the second-fastest-growing major Texas market.  

• Northwest Harris County and Montgomery County saw the largest absorption rates, fueled by grocery-anchored centers and lifestyle retailers expanding footprints in response to growing suburban populations.