Houston Retail Market Leasing and Rental Rates Smash Records

The Houston metro triple net average (NNN) asking rent is at an all-time high of $19.35 per square foot, up 3.5% from the previous year. An NAI Report predicted that strong population growth and a steady development pipeline will prime the pump even more for rent growth in the near term.

The strong report is driven by positive trends in leasing and absorption with net absorption up 25% year-over-year.

Overall vacancy in the Houston retail market has tightened to 5.6%, down 70 basis points from the same time last year. The first four months of the year marked the highest amount of leasing activity in January through April on record.

Notable transactions include Academy Sports + Outdoors lease for 59,095 square feet in South Cross Center in the inner Loop University submarket, and Vettrus signed a 50,526 square foot lease in Mainland Crossing in Texas City.