Retail real estate continues to outperform the “brick-and-mortar slowdown” narrative in many U.S. markets, with Houston providing a clear example of how demand from expanding retailers can keep occupancy levels strong.

According to a midyear review from Weitzman, Houston’s multi-tenant retail market totaled approximately 168.9 million square feet and was 95.2 percent occupied. That level of occupancy reflects a market where available space is being absorbed by active retailers, while new construction is generally opening with tenants already committed.

The report also points to one of the more important drivers behind today’s retail strength: disciplined supply. Houston is expected to add about 1.8 million square feet of new or expanded retail space in 2026, up from roughly 1.2 million square feet in 2025. Even with that increase, new development remains measured relative to the size of the market and is largely focused on projects with anchor or junior-anchor demand in place.

For investors and property owners, the trend reinforces the importance of evaluating retail assets through the lens of tenant quality, location fundamentals and long-term demand drivers. While retail has faced years of disruption from e-commerce and shifting consumer habits, well-positioned centers in growing markets continue to benefit from limited vacancy, steady leasing activity and retailers’ continued need for physical locations.

Houston’s performance may be market-specific, but the broader takeaway is relevant across growth markets: retail real estate remains healthy where population growth, consumer spending and careful development align.

Source:  ConnectCRE