Tops in retail construction
Grocery-anchored centers helped drive growth during 2016
The Houston area led the state in such development for 2016.
The Houston area led the state in retail construction in 2016 as developers put up grocery-anchored shopping centers along the Grand Parkway and added onto malls atBaybrook andthe Galleria, according to a report.
The local market added 3.4 million square feet of space, according to Weitzman, a Texas real estate firm that tracks more than 155 million square feet of retail space in the Houston metro.
The last time more space was added was in 2008, when 4.9 million square feet was completed. The amount reflects a 26 percent rise over the 2.7 million square feet that came online in 2015.
The oil down turn has not stopped the need for more stores, as Houston’s population has continued to grow, andit’s still adding jobs, although at a slower pace.
The Weitzm an figures are lower than a study by Houston real estate firm Wul fe& Co., whichtracked 4.6 million square feet in newspacelast year.
In addition to grocers, retailers such as Academy Sports+ Outdoors, Marshalls, PetSmart and Houston newcomer Dick’ s Sporting Goods filled the new spaces.
Fresh Market, Sports Au- th or ity,Wa l-Mart and Neighborhood Market were among retailers that closed stores last year, putting morethanhalf a million square feet of vacant space on the market, according toWeitzman.
GrocerssuchasH-E-B in Texas City, Whole Foods Market in West chase and Fiesta Market in east Houston and Rosenberg filled spaces previously occupied by other tenants.
Occupancy stood at 95.5 percent at year end, one of the strongest onrecord but slightly below 2015, Weitzm an said.
Weitzm an projects another active year for construction in 2017, though the total maybe lower. Among the big projects this year are Grand Parkway Marketplace on Kuyk end ahl, anchored by Target; Grand Parkway Town Center at Texas 249, anchored by Sam’ s Club; and The Market at Springwoods Village at the Grand Parkway and Holz war th, anchored by Kroger.