Houston retail market stable in first quarter 2025 

HOUSTON – The city’s retail market remained stable in first quarter 2025 with a 5.4 percent vacancy rate, just above the five-year average.  

Net absorption was 155,610 sf for the quarter—down 66.9 percent from the previous quarter but contributing to a 1.8 million sf annually.  

Leasing activity totaled 1.8 million sf, down 16.1 percent quarterly and 30.8 percent year-over-year (YoY).  

Construction deliveries fell 29 percent from last quarter and 53 percent YoY to 586,813 sf, while the construction pipeline dropped 19 percent to 3.7 million sf.  

Average asking rent reached $20.87 per sf, up 0.7 percent YoY.  

Investment sales volume hit $361 million across 613 deals, with an average price of $228 per sf and a 6.9 percent cap rate.