HOUSTON – Last year’s strong retail sector momentum has continued into 2022, and key indicators such as leasing activity, net absorption, and rent continued to grow in the first quarter.
According to NAI Partners, pent-up demand from the pandemic continues to strengthen retail leasing activity. Local retail activity was at 2.4 million sf in first quarter 2022, up from 1.7 million sf in first quarter 2021.
Demand has outpaced delivered supply for the past four quarters. From 1Q2021 to 1Q2022, net absorption increased from around 832,800 sf to 1.3 million sf.
With just under 908,400 sf delivered since the beginning of the year, 3.7 million sf under construction, and an additional 7.4 million sf planned through 2023, the demand for retail real estate may continue to outpace supply.
These positive leasing and absorption trends have pushed retail asking rents to $19.19 per sf, up from $18.55 in first quarter 2021.
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Source: NAI Partners