- Houston retail occupancy ended 2025 at 95.2%, sustaining a 12-year streak above 90%.
- Limited new supply—just 1.1M SF added in 2025—has kept the market balanced.
- Retail rents are rising, especially for remodeled or new space, with small-shop asking rents inside the 610 Loop at $50–$70 PSF.
- Large vacancies from recent chain closures are being rapidly backfilled by new tenants and entertainment concepts.
Longest High-Occupancy Run
The Houston retail market finished 2025 with 95.2% occupancy, continuing the market’s longest high-occupancy streak since 2013, reports Bisnow. The combination of resilient tenant demand and a lack of major new supply—only 1.1M SF delivered against a 167.5M SF total inventory—helped sustain tight conditions.
Rent Trends and Tenant Demand
Limited new construction and steady demand have pushed rents higher, notably in remodeled centers or newly added spaces. Small-shop rents within the 610 Loop averaged $50–$70 PSF, while those outside ranged from high $20s for Class B to $40–$55 PSF for new product. Despite these increases, landlords and occupiers have largely found equilibrium, though some tenants face affordability concerns as rates rise.
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Influence of Remodels and Closures
Remodeling is becoming a competitive response as new developments like Weitzman’s Manvel Town Center debut shop and pad spaces. Older centers may follow suit, potentially lifting rents further. Amid these trends, adaptive reuse has gained traction in Houston, with an increasing number of underused office properties being converted into other uses, including retail. Meanwhile, closures of chains like Conn’s, Party City, and Joann have renewed supply, but backfilling has occurred swiftly as concepts like AR’s Entertainment Hub and Sky Zone take over large boxes.
Outlook Ahead
With major vacancies quickly absorbed and ongoing job growth, Houston’s retail market remains well-positioned for continued stability through 2026 and beyond. Industry players view the city as resilient despite broader economic pressures in the US retail market.
