8/2/2019 1Q2012 Colliers Houston Retail Snapshot

http://slidepdf.com/reader/full/1q2012-colliers-houston-retail-snapshot 1/2Accelerating success.

Q1 2012 | RETAIL MARKET

MARKET INDICATORS

1Q11 1Q12

CITYWIDE NET

ABSORPTION (SF) 268k (352k)

CITYWIDE AVERAGE

VACANCY 7.8% 7.2%

CITYWIDE AVERAGE

RENTAL RATE $14.83 $14.71

DELIVERIES (SF) 49k 142k

UNDER CONSTRUCTION

(SF) 486k 561k

National and regional restaurants and grocerexpand in the Houston Retail Market

As Houston’s population grows so does the need for food, and national anregional retailers are responding to this demand. In the past 15 months 450,00square feet of new restaurant and grocery store space has been added Houston’s retail market. Some of the tenants that have expanded in Houstoinclude Raising Cane’s, Carl’s Jr., Freddy’s Frozen Custard & Steakburgers, Worof Beer, Buffalo Wild Wings, Cheddar’s, la Madeleine, Panera Bread, H.E.B., JoV’s Smart Shop, Trader Joe’s, Whole Foods Market, and Aldi.

According to numbers released by the U.S. Bureau of Labor Statistics, Houstoadded 12,800 retail jobs over the past year, a 4.9% growth rate. 10,000 of thos jobs came from the food and beverage stores sector.

Houston’s retail market posted 352,000 square feet of negative absorption in Q2012 mainly due to tenants vacating older highly depreciated shopping centersThe average retail vacancy rate remained unchanged between Q4 2011 and Q2012 at 7.2%, but decreased from 7.8% on a year-over-year basis. The overacitywide average rental rate decreased between quarters; however, up-sca

rental rates increased slightly or remained the same. Most of the retail growhas occurred in submarkets near and around master-planned residentineighborhoods such as Telfair, Cinco Ranch and The Woodlands.

The Houston metropolitan area added 93,400 jobs between February 2011 anFebruary 2012, a 3.7% increase. Unemployment fell to 7.2% from 8.4% one yeago. Houston area home sales increased by 16.9% compared to February 20sales. As Houston’s MSA continues to see healthy job growth and a stronhousing market, Houston’s economy is expected to remain healthy for both thnear and long-term.

0%

2%

4%

6%

8%

10%

12%

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

 Absorption New Supply Vacancy

ABSORPTION, NEW SUPPLY & VACANCY RATES

HOUSTON RETAIL MARKET

RESEARCH & FORECAST REPORT

Data source: CoStar Property 

UNEMPLOYMENT 2/11 2/12

HOUSTON 8.4% 7.2%

TEXAS 8.1% 7.2%

U.S. 9.5% 8.7%

JOB GROWTHANNUALCHANGE

# OF JOBSADDED

HOUSTON 3.7% 93.4k

TEXAS 2.6% 266.2k

U.S. 1.9% 2.6m

JOB GROWTH & UNEMPLOYMENT(Not Seasonally Adjusted)

8/2/2019 1Q2012 Colliers Houston Retail Snapshot

http://slidepdf.com/reader/full/1q2012-colliers-houston-retail-snapshot 2/2

RESEARCH & FORECAST REPORT | Q1 2012 | HOUSTON RETAIL SNAPSHOT

Accelerating succe

COLLIERS INTERNATIONAL

Lisa R. BridgesDirector of Market ResearchHoustonDirect +1 713 830 2125Fax +1 713 830 2118lisa.bridges@colliers.com

Colliers International1300 Post Oak BoulevardSuite 200Houston, TX 77056United Stateswww.colliers.com

HOUSTON RETAIL PROJECTS UNDER CONSTRUCTION

Submarket Property N ame A ddress RBA

%

Leased

Estimated

Delivery

Southeast Outlier Tanger Outlet Center-Phase I I-45 S 350,000 100.0 Oct-12

Fairfield Fairway Point 15103 Mason Rd 62,000 0.0 Jul-12

Montgomery County The Woodlands Crossing 10864-10872 Kuykendahl 45,450 59.0 Jun-12

North Belt/Greenspnt 13970 North Fwy 13970 North Fwy 41,195 100.0 Jun-12

Lake Houston Woodland Hills Crossing Beltway 8 23,000 0.0 Aug-12

Southeast Outlier Highland Glen Retail Center Pearland Pky @ Forest Park 20,000 0.0 Jan-13

Inner Loop River Oaks Heights Marketplace I Heights Blvd 19,470 76.9 Oct-12

Total retail under construction 561,115

HOUSTON Q1 2012 RETAIL DELIVERIES

Property NameAddress Submarket RBA % Leased

Shops at Bella Terra Grand Parkway & Bellaire Far Southwest 74,561 89.1

Royal Oaks Centre 11700 Westheimer Rd Far West 20,555 100.0

Fadi's Mediterranean Grill 703 Bonaventure Way Southwest 15,453 100.0

Shops of Town Square Phase III 3805 Center St NASA/Clear Lake 10,700 58.4

Walgreens 9610 Fm 1097 Rd Montgomery County 10,522 100.0

Richmond Square 9347 Richmond Ave Near West 10,000 100.0

Total retail delivered 141,791

Rentable

Area

Direct

Vacant SF

Direct

Vacancy

Rate

Sublet

Vacant SF

Sublet

Vacancy

Rate

Total

Vacant SF

Total

Vacancy

Rate

1Q12 Net

Absorption

4Q11 Net

Absorption

Class A

Rental Rate

(in-line)*

Strip Centers (unanchored) 31,112,003 3,158,975 10.2% 9,491 0.0% 3,168,466 10.2% (112,187) 50,122 $20.00-$35.

Neighborhood Centers

(one anchor)70,092,687 7,387,068 10.5% 137,714 0.2% 7,524,782 10.7% (333,080) 112,922 $20.00-$32.

Comm unity Centers(two anchors)

41,647,110 2,832,095 6.8% 147,180 0.4% 2,979,275 7.2% 45,308 273,582 $15.00-$30.

Power Centers

(3 or more anchors)18,037,255 971,944 5.4% 84,381 0.5% 1,056,325 5.9% 57,573 37,967 $10.00-$35.

Lifestyle Centers 4,488,464 317,907 7.1% - 0.0% 317,907 7.1% 1,547 (9,980) $40.00-$70.

Outlet Centers 1,056,792 70,542 6.7% - 0.0% 70,542 6.7% 2,470 10,703 N

Theme/Entertainment 635,802 50,950 8.0% - 0.0% 50,950 8.0% $25.00-$35.

Single-Tenant 58,574,993 1,433,041 2.4% 33,660 0.1% 1,466,701 2.5% (30,083) 210,752 N

Malls 32,365,757 1,924,827 5.9% 58,539 0.2% 1,983,366 6.1% 16,746 123,504 N

Greater Houston 258,010,863 18,147,349 7.0% 470,965 0.2% 18,618,314 7.2% (351,706) 809,572

*Rental Rates Source: Colliers Retail Practice Group 

HOUSTON RETAIL MARKET SUMMARY STATISTICS

Colliers InternationStatistic

Revenue$1.8 Billio

Countrie6

Office52

Professionals & Sta12,30

Broker4,80

Square Feet Manage1,250 Millio

Lease/Sale Transaction76,00

Total Transaction Valu$68 Billio

Based on 2011 resul

*The combination of CollieInternational and FirstService resu

in 2.5 Billion under management - 2largest in the wor