MARKET WATCH HOUSTON RETAIL - Houston · PDF fileSource: CoStar - Houston retail buildings...

HOUSTON RETAILAUGUST 2015

RECENT RETAIL LEASES

Near North :: dd’s DISCOUNTS21,000 SF new lease at Eastex Shopping Center

Bridgelands :: CVS15,300 SF new lease at Lakeland Village Center

Far North :: Dollar Tree9,450 SF new lease at Cypress Station Square Center

RECENT RETAIL SALES

Channelview :: San Jacinto Mall 1.2 million SFSale Price: undisclosed Buyer: Fidelis Realty PartnersSeller: TriYar Companies

RETAIL IN THE NEWS

Retail centers are white hot investments as occupancy hits 10-year high link to storyRealty News Report, August 17, 2015

Coffeehouse developers to launch new doughnut shop in the Heights link to storyHouston Business Journal, August 11, 2015

Renovations underway at Willowbrook Mall link to storyHouston Chronicle, August 10, 2015

RETAIL LEASE STATISTICS

Source: CoStar - Houston retail buildings 5,000 SF and greater

Retail Market IndicatorsSUBMARKET TOTAL RBA (SF)

DIRECT VACANT (SF)

DIRECT VACANCY RATE

OVERALL VACANCY RATE

SF UNDER CONSTRUCTION

Q2 2015 NET ABSORPTION

East (Pasadena/Galena Park, Channelview/Beaumont & Baytown/Chambers) 13,170,754 913,943 8.9% 8.9% 9,960 35,529

Inner Loop (CBD, Bellaire/West U, Galleria/Uptown, River Oaks, Heights & East End) 26,839,751 1,129,294 4.2% 4.2% 284,865 (32,093)

North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North & The Woodlands/Montgomery)

56,636,692 2,904,431 7.1% 7.2% 96,063 199,747

Northeast (Near Northeast, Atascosita, Kingwood & Liberty County) 12,501,866 568,654 7.5% 7.5% - 133,866

Northwest (NW Oaks, Spring Branch, Willowbrook, Jersey Village, Copperfield, Fairfield, Cypress/Bridgelands, Far Katy North, Far NW & Tomball/Spring Cypress)

56,440,553 2,975,567 6.3% 6.3% 956,331 98,378

South (Pearland/Manvel & Near South) 13,473,374 664,771 6.9% 6.9% 164,640 168,115

Southeast (Gulf Frwy/Pasadena, Baybrook/Clear Lake & Old Pearland/Alvin) 50,203,689 2,944,715 5.9% 5.9% 260,752 128,720

Southwest (Sharpstown/Southwest Central, West Oaks, Sugar Land/Stafford & Richmond/Rosenberg)

42,935,002 2,657,211 7.3% 7.4% 66,275 132,197

West (Memorial, Westchase, Energy Corridor & Katy/Cinco Ranch) 38,410,219 2,096,968 5.5% 5.7% 193,750 85,059

Total - Houston 310,611,900 16,855,554 7.1% 7.2% 2,032,636 949,518 Source: Costar - Houston retail buildings 5,000 SF and greater

Retail Sales StatisticsHOUSTON MSA UNITED STATES

QUARTER TO DATE

LAST QUARTER (Q2 2015)

TRAILING 12 MONTHS

LAST QUARTER (Q2 2015)

TRAILING 12 MONTHS

Volume ($ Mil)

$169.9 $267.5 $1,682.1 $19,060.0 $90,511.0

No. of Properties

12 36 166 1,669 7,277

Total SF 1,841,594 1,527,059 9,869,868 92,564,426 436,822,702

Average Price/SF

N/A $187 $193 $220 $216

Average Cap Rate (Yield)

N/A 7.2% 7.1% 6.5% 6.6%

Source: Real Capital Analytics

MARKET WATCH

Overall Vacancy Rates Asking Rental Rates (NNN)

Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 $17.00

$17.20

$17.40

$17.60

$17.80

$18.00

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

http://realtynewsreport.com/2015/08/17/retail-centers-are-white-hot-investments-as-occupancy-hits-10-year-highs/

http://www.bizjournals.com/houston/morning_call/2015/08/coffeehouse-developers-to-launch-new-doughnut-shop.html?iana=ind_retail

http://www.houstonchronicle.com/neighborhood/spring/business/article/Renovations-underway-at-Willowbrook-Mall-6435093.php

MARKET WATCH HOUSTON RETAIL MARKET AUGUST 2015

HOUSTON RETAIL MARKET WATCHAUGUST 2015

45

45

45

10

10

610

10

290

59

90

288

99

249

8

35

6

11

11

1111

11

22

22

55

44

33

33

3344

44

55

66

66

77

88

99

1010

11 11

11

11

22

22

22

22

22

22

33

33

33

33

44

44

22

3344

55

66

See Inner Loop

Map

Inner Loop

Gulf Freeway/Pasadena

Baybrook / Clear Lake

Old Pearland / Alvin

1

2

3SOU

THE

AST

Pasadena / Galena Park

Channelview / Beaumont

Baytown / Chambers

1

2

3

EA

ST

Pearland / Manvel

Near South

1

2SOU

TH

Near North

FM 1960 & I-45

Greens Point - North Belt

Spring Creek

Far North

The Woodlands - Montgomery

1

2

3

4

5

6

NO

RTH

Near Northeast

Atascocita

Kingwood

Liberty County

1

2

3

4

NO

RTH

EA

ST

1

2

3

4

SOU

THW

EST

1

2

3

4

5

6

INN

ER

LO

OP

1

2

3

4

5

6

7

8

9

10

NO

RTH

WE

ST

1

2

3

4

WE

ST

CBD

Bellaire / West University

Galleria/Uptown

Inner Loop / River Oaks

Heights

East End

Northwest Oaks

Spring Branch

Willowbrook

Jersey Village

Copperfield

Fairfield

Cypress/Bridgelands

Far Katy North

Far Northwest

Tomball/Spring Cypress

Memorial

Westchase

Energy Corridor

Katy - Cinco Ranch

Sharpstown - Southwest Central

West Oaks

Sugar Land - Stafford

Richmond Rosenberg

Houston | RETAIL SUBMARKETS

INNER LOOP

1. CBD2. Bellaire/West University3. Galleria/Uptown4. Inner Loop/River Oaks5. Heights6. East End

WEST

1. Memorial2. Westchase3. Energy Corridor4. Katy/Cinco Ranch

NORTH

1. Near North2. FM 1960 & I-453. Greens Point/North Belt4. Spring Creek5. Far North6. The Woodlands/Montgomery

SOUTHWEST

1. Sharpstown/Southwest Central2. West Oaks3. Sugar Land/Stafford4. Richmond/Rosenberg

NORTHWEST

1. Northwest Oaks2. Spring Branch3. Willowbrook4. Jersey Village5. Copperfield6. Fairfield7. Cypress/Bridgelands8. Far Katy North9. Far Northwest10. Tomball/Spring Cypress

NORTHEAST

1. Near Northeast2. Atascocita3. Kingwood4. Liberty County

SOUTH

1. Pearland / Manvel2. Near South

EAST

1. Pasadena/Galena Park2. Channelview/Beaumont3. Baytown/Chambers

SOUTHEAST

1. Gulf Freeway/Pasadena2. Baybrook/Clear Lake3. Old Pearland/Alvin

Copyright © 2015 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 Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any responsibility for any inaccuracy contained herein.

HOUSTON RETAIL MARKET WATCHAUGUST 2015

SEATTLE

WALNUT CREEK

LOS ANGELES

SALT LAKECITY

DENVER

MINNEAPOLIS

MILWAUKEE

ST. LOUIS

CHICAGO

DETROIT GREENWICHNEW YORK

NEW JERSEY

BALTIMORENORTHERNVIRGINIA

BETHESDAWASHINGTON DC

DALLASFORTWORTH

HOUSTONAUSTIN

SAN ANTONIO

OKLAHOMACITY

NEW ORLEANS

ATLANTA

FORT LAUDERDALEORLANDO

MIAMI-DADE

SANFRANCISCO

PHOENIXORANGE COUNTY

SAN DIEGO

BOSTON

SILICONVALLEY

TRANSWESTERNLOCATIONS

HOUSTON RETAIL TEAM

Nick HernandezManaging [email protected]

Micha van Marcke, CCIMSenior Vice [email protected]

Tony ArmstrongVice [email protected]

Grant WalkerVice [email protected]

Crystal AllenVice [email protected]

Cindy NguyenSenior [email protected]

METHODOLOGY

The information in this report is the result of a compilation of publicly available data from a variety of commercial and government sources.

CONTACT

Rachel AlexanderDirector of Market [email protected]

T 713.270.7700 F 713.270.6285www.transwestern.net/houston

1900 West Loop South, Suite 1300Houston, Texas 77027

Chace [email protected]

Chris [email protected]

Danielle SchidlowskiAssociate713.231.1584danielle.schidlowski@transwestern.com

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 38 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 37 years.

Alex [email protected]

Sage [email protected]

Lauren [email protected]

Ryan [email protected]

Kevin RobertsPresident, [email protected]

MARKET WATCH HOUSTON RETAIL - Houston · PDF fileSource: CoStar - Houston retail buildings...

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