Houston retail occupancy shows slight dip in 2008

Houston’s retail sector posted a lower occupancy rate in 2008 than in 2007, but it was only a slight dip year over year, according to The Weitzman Group.
Weitzman found that Houston had an occupancy rate of 87.8 percent at the end of 2008, down from 88.5 percent at the end of 2007.
The Dallas-based retail brokerage firm based its report on data from roughly 137 million square feet of retail space in shopping centers in the Houston area that have at least 25,000 square feet of space.
Store closures had an impact on occupancy rate, as national retailers reacted to the economic downturn.
The occupancy rate was also affected by the fact that in 2008 Houston experienced its highest level of retail building since 2001 when 6 million square feet of space was developed. Nearly 5 million square feet of retail space was added during 2008, according to Weitzman.
Most of the new projects were planned and funded before the credit crisis, which has brought new development to a halt because of a lack of financing.
Weitzman expects a number of retail projects will be completed in 2009, but fewer new deals are expected to be announced this year compared to last. For more information see ; www.houstonrealtyadvisors.com or www.houstonrealtyadvisors.net