As population of Houston residents is growing, so is the retail commercial buildings according NewQu
• HOUSTON’S RETAIL MARKET IS GOING NORTH AND WEST. Following Houston’s major areas of population growth, Houston’s retail market is going north and west. Since 2011, Houston has grown by more than 450,000 people, and the shopping center business will continue to follow the growing population centers in the north and west of Houston. • GROCERY IS DRIVING RETAIL DEVELOPMENT. The primary drivers of retail development in Houston are grocery chains, including Kroger, Walmart, HEB and Whole Foods. For example, Kroger is doing very well, with a great market share in Houston. They achieved their 44th consecutive quarter of 5.6% supermarket sales growth. • HIGHER RENT AND HIGH LAND COSTS BALANCE. We have very limited space for retail and high demand: as a result, rent is up nearly 35% for the first time in a very long time. However, the tremendous rise in land costs are beginning to balance out this increase in returns for retail developers. • NEW ACCESS DUE TO GRAND PARKWAY HAS OPENED UP SPECULATION. The opening of the west Grand Parkway has opened up so much speculation in retail development because of new access. It will continue to increase speculation as more sections of the road become available. Any developer with money, capacity and abilities is looking at the Grand Parkway – that’s where it’s all happening.