Houston Retail Market Remains Healthy

Houston’s retail market for the past two years experienced vacancies created by the national failures of Big Lots, Forever 21, Joann, 99 Cents Only, Conn’s, Party City and a handful of others. 

But strong tenant demand is backfilling vacant locations, enabling the market’s retail inventory to continue to experience healthy occupancy of 95.5 percent as of mid-year 2025. 

The occupancy rate is based on Weitzman’s review of approximately 167.5 million square feet in multi-tenant retail projects with 25,000 square feet or more. 

Due primarily to expanding anchors like H-E-B, Lowe’s and Target, 2025 is on track to see deliveries of approximately 1.2 million square feet, which would mark the highest new construction since 2019. 

The area retail market is currently reporting its longest period of stability. Since 2013, the market has maintained healthy occupancy well above the 90-percent level.