houston retail

MARKET WATCH
HOUSTON RETAIL
FEBRUARY 2016
R E C E N T R E TA I L L E A S E S
RETAIL LEASE STATISTICS
Fairfield :: Fitness Connection
44,189 SF new lease at Jones Plaza
Asking Rental Rates (NNN)
Overall Vacancy Rates
Spring Branch :: SOAP Hand Car Wash
11.0%
$18.25
10.0%
$18.00
11,740 SF new lease at Lake Country Plaza
9.0%
$17.75
R E C E N T R E TA I L S A L E S
8.0%
$17.50
7.0%
$17.25
6.0%
$17.00
31,000 SF new lease at Shoppes at Memorial Villages
Atascocita :: Lone Star Athletics
Fairfield :: Cypress Town Center
55,090 SF
Buyer: Spigel Properties, Inc
Seller: Inland Real Estate Corporation
5.0%
R E TA I L I N T H E N E W S
Q4
12
High-end bowling alley moves forward on first
Houston location
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
$16.75
Q4
15
Source: CoStar - Houston retail buildings 5,000 SF and greater
link to story
Retail Sales Statistics
Houston Business Journal, February 23, 2016
HOUSTON MSA
Iconic Tex-Mex joint snaps up shuttered
steakhouse for a move across the street
QUARTER TO LAST QUARTER
DATE
(Q4 2015)
link to story
Volume ($
Mil)
No. of
Properties
CultureMap Houston, February 22, 2016
New upscale H-E-B opens in growing Houston
‘burb
Total SF
link to story
Average
Price/SF
Average Cap
Rate (Yield)
Houston Business Journal, February 17, 2016
$53.7
$464.1
UNITED STATES
TRAILING 12
MONTHS
LAST QUARTER
(Q4 2015)
TRAILING 12
MONTHS
$1,848.1
$22,739.7
$88,019.5
9
48
182
1,835
7,195
285,105
2,926,371
11,842,857
114,802,709
427,643,487
N/A
$233
$186
$210
$218
N/A
6.3%
6.9%
6.4%
6.5%
Source: Real Capital Analytics
Retail Market Indicators
DIRECT
VACANT (SF)
DIRECT VACANCY
RATE
OVERALL VACANCY
RATE
SF UNDER
CONSTRUCTION
2015 NET
ABSORPTION
13,213,520
950,302
7.9%
7.9%
20,342
(38,187)
31,511,311
1,067,241
3.9%
3.9%
27,865
627,822
North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North &
57,386,772
3,067,292
5.8%
5.9%
190,539
348,405
Northeast (Near Northeast, Lake Houston, Kingwood & Liberty County)
12,797,899
541,904
7.2%
7.4%
307,000
192,139
Northwest (Addicks, Bridgelands, Cypresswood, Fairfield, Far Katy North, Far Northwest,
57,110,793
2,785,724
5.9%
5.9%
1,098,176
825,624
SUBMARKET
TOTAL RBA (SF)
East (Chambers County/Baytown, Channelview & Pasadena/Galena Park)
Inner Loop (CBD, Galleria, Uptown, University, River Oaks, Heights & East End)
Montgomery County)
Far Tomball, Jersey Village, Near Northwest Oaks, Near NW Spring Valley, Willowbrook)
South (Far South & Near South)
13,734,228
739,349
6.1%
6.1%
164,730
112,723
Southeast (NASA/Clear Lake, Near Southeast, Southeast Outlier )
51,364,503
3,010,201
5.8%
5.9%
731,736
761,060
Southwest (Near SW Central, Stafford, Sugar Land, Far New Territory, Far West, Far
42,514,647
2,502,000
6.5%
6.6%
261,575
263,580
Southwest )
West (Near West, Westchase, Far West, Far Katy South)
Total - Houston
39,259,163
1,952,320
4.9%
5.1%
127,898
1,219,962
318,892,836
16,616,333
6.0%
6.0%
2,929,861
4,313,128
Source: Costar - Houston retail buildings 5,000 SF and greater
HOUSTON RETAIL MARKET WATCH
FEBRUARY 2016
Houston | RETAIL SUBMARKETS
5
6
10
1
4
6
3
5
9
45
610
3
4
45
2
10
Inner Loop
249
6
2
290
3
3
90
7
4
4
2
1
3
1
5
8
1
2
2
10
3
4
2
See
Inner Loop
Map
1
1
6
99
10
1
1
2
4
8
2
2
59
288
45
35
1
3
3
East End
6
The Woodlands - Montgomery
1
Memorial
1
Sharpstown - Southwest Central
2
Westchase
2
West Oaks
M AR
T WATCH
H OU S TON RETA IL MARKET
FEBRUA
RY 2016
3K EEnergy
Corridor
3 Sugar
Land - Stafford
4
Katy - Cinco Ranch
4
Richmond Rosenberg
NORTHEAST
SOUTHEAST
1.
2.
3.
4.
1. Gulf Freeway/Pasadena
2. Baybrook/Clear Lake
3. Old Pearland/Alvin
1. Pearland / Manvel
1 Near Northeast
2. Near South 2
Atascocita
EAST
Kingwood
1. Pasadena/Galena Park
4 Liberty County
2. Channelview/Beaumont
3. Baytown/Chambers
1 Pearland / Manvel
Fairfield
7
Cypress/Bridgelands
8
Far Katy North
9
Far Northwest
Tomball/Spring Cypress
EAST
SOUTH
6
10
Near Northeast
Atascocita
Kingwood
Liberty County
3
2
Near South
SOUTHEAST
6
NORTHWEST
Bellaire / West University
Memorial
Galleria/Uptown
Westchase
4Energy
Inner Corridor
Loop / River Oaks
Katy/Cinco Ranch
5
Heights
3
SOUTHWEST
WEST
1.
2.
3.
4.
1. Northwest Oaks
2. Spring Branch
3. Willowbrook
4. Jersey Village
5. Copperfield
6. Fairfield 1 Northwest Oaks
7. Cypress/Bridgelands
SOUTHWE
2 Spring Branch
2S TFM 1960 & I-45
1. Sharpstown/Southwest Central 8. Far Katy North
3 Willowbrook
3 Greens Point - North Belt
2. West Oaks
9. Far Northwest
3. Sugar4Land/Stafford
4 Jersey
Village
10. Tomball/Spring
Cypress
Spring Creek
4. Richmond/Rosenberg
5 Copperfield
5 Far North
NORTH
WES
2T
NORTHWEST
Near North
FM 1960 & I-45
Greens Point/North Belt
Spring Creek
Far North
The Woodlands/Montgomery
1 Near North
NORTHEAST
1.
2.
3.
4.
5.
6.
CBD
Bellaire/West University
Galleria/Uptown
Inner Loop/River Oaks
Heights
End
1East
CBD
SOUTH
NORTH
1.
2.
3.
4.
5.
6.
INNER LOOP
INNER LOOP
1
Pasadena / Galena Park
2
Channelview / Beaumont
3
Baytown / Chambers
1
Gulf Freeway/Pasadena
2
Baybrook / Clear Lake
3
Old Pearland / Alvin
HOUSTON RETAIL MARKET WATCH
FEBRUARY 2016
ABOUT TR ANSWESTERN
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and
sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors,
owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of
independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more
than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
Transwestern was founded in Houston, Texas in 1978, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate
firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their
unique requirements. Transwestern has seasoned veterans in every area of expertise with the integrity, experience and creativity to be the best partner for its clients.
Transwestern’s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 38 years.
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H O U S T O N R E TA I L T E A M
Nick Hernandez
Managing Director
713.270.3354
nick.hernandez@transwestern.com
Crystal Allen
Vice President
713.270.3360
crystal.allen@transwestern.com
Chris Reyes
Associate
713.272.1280
chris.reyes@transwestern.com
Lauren Heimann
Associate
713.231.1621
lauren.heimann@transwestern.com
Micha van Marcke, CCIM
Senior Vice President
713.272.1231
micha.vanmarcke@transwestern.com
Cindy Pham
Senior Broker
713.231.1562
cindy.pham@transwestern.com
Danielle Schidlowski
Associate
713.231.1584
danielle.schidlowski@transwestern.com
Ryan Holliday
Associate
713.231.1623
ryan.holliday@transwestern.com
Grant Walker
Vice President
713.270.3389
grant.walker@transwestern.com
Chace Henke
Associate
713.272.1274
chace.henke@transwestern.com
Alex Kelly
Associate
713.231.1568
alex.kelly@transwestern.com
METHODOLOGY
CONTACT
Rachel Alexander
Director of Market Research
713.270.3344
Rachel.Alexander@transwestern.com
Kevin Roberts
President, Southwest
713.270.3347
Kevin.Roberts@transwestern.com
The information in this report is the result of a compilation of publicly available
data from a variety of commercial and government sources.
1900 West Loop South, Suite 1300
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T 713.270.7700 F 713.270.6285
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Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by
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responsibility for any inaccuracy contained herein.