According to a recent Partners survey, the Houston retail market remained balanced in the first half of 2025, with the overall average vacancy rate at 5.5%, which is the five-year historical average.

This stability is attributed to the balance between supply and demand, as net absorption for the quarter came in at -62,531 square feet, which was negative compared to the previous quarter but not surprising, with an additional 846,000 square feet added to inventory. The negative did not affect the annual demand total, which remains positive at 1.8 million square feet.

Leasing activity increased 7.4% quarterly but decreased 19.8% year-over-year. Havertys Furniture, Sky Zone, and Yoyo Adventure Land signed some notable leases. Construction deliveries increased 44.2%, with 846,158 square feet delivered in Q2, representing a 5.3% annual increase.

Meanwhile, average asking rents dropped 2.4% from record highs to $20.37 per square foot and by 0.8% year over year.

Buy, Build, Sell, Hold – The clock’s ticking! Be in the room when forward thinking developers and investors explain how they are capitalizing on market shifts—new construction, repositionings, acquisitions, and more. Register to attend Connect Texas Multifamily now, before the discounted pricing ends on Thursday – and be there to hear how the industry leaders are turning today’s challenges into long-term opportunity and positioning for the next wave of multifamily growth. www.ConnectTXMF2025.com | EVENT DATE: Thursday, August 28^th | VENUE: The Joule, Dallas