Record low supply next year could boost retail rent growth in Houston

Today, 3.6 million square feet of retail space is under construction, which comprises just 0.8% of the existing inventory. Even though approximately half of the square footage underway is available for lease, local participants are betting that most projects will be leased before they are even completed as quality space rarely hits the market. The impact of new supply is expected to be even lower next year when new construction falls to an all-time low.