Jan. 19, 2017
Houston’s red hot retail sector continued its growth cycle through year-end thanks to home sales, food and entertainment.
Another record year for home sales
Despite continued softer conditions in Houston’s overall economy, home sales did not let off the gas in 2016. In fact, weakness in the oil and gas sector allowed supply to begin to catch-up with the record-setting demand of 2014 and 2015. Year-end 2016 data revealed that the market experienced a third consecutive year of record single-family sales. Strength in both master-planned communities and smaller subdivisions is driving growth in the retail sector across the metro.
Fast casual and specialized food offerings capturing demand
Fast causal chains have exploded across the metro, forcing both quick and full-service restaurants to adapt to be successful. This also comes as unique concepts, such as Whiskey Cake and Local Foods, are capitalizing on a customer segment interested in “locally-sourced” offerings. These restaurants are rising across Houston and capturing greater slices of market share as they tap into unmet demand.
Entertainment and experiential concepts multiply across the metro
With its high population growth and diverse consumer base, Houston has emerged as a highly profitable location for entertainment concepts to put a stake in the ground and presents an opportunity for experiential retail. Carvana opened only its second vehicle vending machine in the U.S. this quarter, joining the likes of bowling and rock-climbing venues that have entered the Houston market in recent months. These new-to-market retailers are a driver behind Houston’s significant growth in retail inventory this cycle. An impressive 18.9 million square feet of new retail supply has been added to Houston’s inventory in the last five years.
For more data on Houston’s retail market, download our Q4 2016 Retail Insight & Statistics.