Houston Retail Market Watch

MARKET WATCH
HOUSTON RETAIL
JUNE 2016
R E C E N T R E TA I L L E A S E S
RETAIL LEASE STATISTICS
Pearland/Manvel :: Aldi
23,500 SF new lease at 205 E Hwy 332
Asking Rental Rates (NNN)
Overall Vacancy Rates
Far North :: Academy Day Care
11.0%
$18.25
10.0%
$18.00
9.0%
$17.75
8.0%
$17.50
7.0%
$17.25
Richmond/Rosenberg :: Riverpark Shopping
Center
6.0%
$17.00
308,405 SF
Buyer: Blackstone
Seller: RioCan REIT
5.0%
6,735 SF new lease at Popolo Village
Spring Branch ::Larry’s BBQ
5,625 SF new lease at Hollister Pointe Center
Far North :: Lush Spa
5,000 SF new lease at 8633 W Rayford Rd
R E C E N T R E TA I L S A L E S
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
Q4
15
$16.75
Q1
16
Source: CoStar - Houston retail buildings 5,000 SF and greater
R E TA I L I N T H E N E W S
ME2 Beauty Bar offers, ‘tweens a salon of their own
Retail Sales Statistics
HOUSTON MSA
link to story
QUARTER TO LAST QUARTER
DATE
(Q1 2016)
Houston Chronicle, June 15, 2016
Rumor no more: Legendary Memphis fried chicken
joint coming to Washington Avenue
link to story
Volume ($
Mil)
No. of
Properties
CultureMap Houston, June 13, 2016
Total SF
International jewelry brand makes U.S. debut in
River Oaks District
Average
Price/SF
Average Cap
Rate (Yield)
link to story
$282.0
$188.1
UNITED STATES
TRAILING 12
MONTHS
LAST QUARTER
(Q1 2016)
TRAILING 12
MONTHS
$1,290.8
$18,139.4
$81,286.1
18
26
155
1,672
7,206
1,256,857
954,807
8,569,674
104,728,340
427,002,596
N/A
$218
$199
$191
$206
N/A
7.3%
6.8%
6.6%
6.6%
Source: Real Capital Analytics
Houston Business Journal, June 10, 2016
Retail Market Indicators
DIRECT
VACANT (SF)
DIRECT VACANCY
RATE
OVERALL VACANCY
RATE
SF UNDER
CONSTRUCTION
13,294,367
917,311
6.9%
6.9%
99,707
39,525
31,569,594
1,010,227
3.2%
3.3%
51,818
(15,996)
North (Near North, FM 1960/I-45, Greenspoint/North Belt, Spring Creek, Far North &
Montgomery County)
57,926,824
3,070,122
5.3%
5.3%
619,399
491,778
Northeast (Near Northeast, Lake Houston, Kingwood & Liberty County)
12,966,748
868,772
6.7%
6.8%
731,895
15,807
Northwest (Addicks, Bridgelands, Cypresswood, Fairfield, Far Katy North, Far Northwest,
57,247,720
2,976,881
5.2%
5.2%
674,960
(105,255)
South (Far South & Near South)
13,911,039
806,840
5.8%
5.9%
173,896
54,481
Southeast (NASA/Clear Lake, Near Southeast, Southeast Outlier )
51,594,849
3,147,286
6.1%
6.1%
797,548
(205,616)
Southwest (Near SW Central, Stafford, Sugar Land, Far New Territory, Far West, Far
42,924,131
2,704,220
6.3%
6.3%
78,168
47,922
SUBMARKET
TOTAL RBA (SF)
East (Chambers County/Baytown, Channelview & Pasadena/Galena Park)
Inner Loop (CBD, Galleria, Uptown, University, River Oaks, Heights & East End)
Far Tomball, Jersey Village, Near Northwest Oaks, Near NW Spring Valley, Willowbrook)
Southwest )
West (Near West, Westchase, Far West, Far Katy South)
Total - Houston
Q1 2016 NET
ABSORPTION
39,604,466
1,861,410
4.7%
4.8%
87,794
147,175
321,039,738
17,363,070
5.5%
5.5%
3,315,185
469,821
Source: Costar - Houston retail buildings 5,000 SF and greater
HOUSTON RETAIL MARKET WATCH
JUNE 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
JUNE
3K EEnergy
Corridor
3 Sugar
Land2016
- 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
JUNE 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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MIAMI-DADE
H O U S T O N R E TA I L T E A M
Nick Hernandez
Managing Director
713.270.3354
[email protected]
Crystal Allen
Senior Vice President
713.270.3360
[email protected]
Cindy Pham
Senior Broker
713.231.1562
[email protected]
Lauren Heimann
Associate
713.231.1621
[email protected]
Micha van Marcke, CCIM
Senior Vice President
713.272.1231
[email protected]
Chace Henke
Vice President
713.272.1274
[email protected]
Danielle Schidlowski
Associate
713.231.1584
[email protected]
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Associate
713.231.1623
[email protected]
Grant Walker
Senior Vice President
713.270.3389
[email protected]
Chris Reyes
Vice President
713.272.1280
[email protected]
Alex Kelly
Associate
713.231.1568
[email protected]
Tyler Trevino
Associate
713.720.3388
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METHODOLOGY
CONTACT
Rachel Andrae
Research Analyst
713.272.1216
[email protected]
Kevin Roberts
President, Southwest
713.270.3347
[email protected]
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
Houston, Texas 77027
T 713.270.7700 F 713.270.6285
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responsibility for any inaccuracy contained herein.