Property Type

HOUSTON — Although vacancy ticked up slightly and asking rents fell marginally relative to the fourth quarter of 2019, Houston’s retail market emerged from the first quarter of 2020 with a high occupancy rate (94.6 percent), positive net absorption (400,000 square feet) and positive year-over-year rent growth (6.5 percent triple-net), according to a new report from Colliers International. The market also had 1.7 million square feet of new retail space under construction at the end of the first quarter, which the report cites as one of the lower quarterly figures for this cycle. However, negative impacts due to the COVID-19 outbreak will inevitably hit the market during the second and third quarters, the report projected. The Colliers research team found that Houston restaurants that have traditionally favored dine-in service have reported revenue declines as high as 90 percent in some cases. With many retailers not expected to reopen after the pandemic subsides, the report found that Houston’s vacancy rate could spike to 12 or higher by year’s end, putting downward pressure on rents.

PHOENIX — Sprouts Farmers Market has expanded its grocery pickup and delivery platform to 30 of its store in Texas as the Phoenix-based grocer faces heightened demand amid the COVID-19 outbreak. Customers may choose between same-day pickup and ordering several days in advance. Sprouts has partnered with Instacart to roll out its delivery service and plans to have it available at its 340 nationwide stores by early May. Sprouts currently operates about 45 stores in Texas, with two more slated to open in the coming months in Houston and Tyler.