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Houston Retail Market Outlook: The Houston retail market is stabilizing, with net absorption declining post-2020 while deliveries remain steady but lower than pre-pandemic levels. Vacancy rates, which had been declining until 2017, are now expected to hover around 5-6% through 2027, with a slight increase in a downside scenario. For investors, this suggests a moderate risk environment favoring well-located assets. Developers should focus on strategic, experience-driven projects, while brokers must prioritize tenant retention and evolving retail trends. Key Insights: Net Absorption vs. Net Deliveries (2014-2024) Net absorption (yellow bars) and net deliveries (blue bars) fluctuate over time. Between 2014-2020, net absorption and deliveries showed higher volatility. Post-2020, absorption declines while deliveries remain steady but lower than pre-2020 levels. Vacancy Trends (2014-2027) The green line represents the historical and projected vacancy rate (House View). The red dashed line shows an alternate scenario (Moderate Downside), predicting a slightly higher vacancy rate than the House View. Vacancy rates were declining from 2014 to around 2017, then stabilized, followed by a slight increase leading up to 2025. Post-2025, vacancies are projected to remain steady or slightly rise under the downside scenario. Forecast (2025-2027) Future net absorption and deliveries are expected to stay low. Vacancy rates are projected to hover around 5-6%, with a potential slight increase under the downside scenario. Takeaway The Houston retail market is stabilizing with moderate supply and demand levels. Vacancy rates are expected to rise slightly but remain relatively stable. The market’s future outlook depends on demand recovery and economic conditions. Bottom Line: The Houston retail market is moving toward?stabilization, not aggressive expansion. Investors should target?prime locations, developers need?strategic, experience-driven projects, and brokers should focus on?strong tenant relationships and future-forward leasing strategies Connect with local businesses and leaders and learn more about what’s happening in the Houston market at RETAIL FORWARD powered by ICSC on April 10:?https://bit.ly/4hXpGIZ #ICSC #ICSCCreator #Partnership #houstonretail #retailcre #cre #retailshoppingcenter #houston #womenincommercial #commercialrealestate

ICSC Federal Fly-In: Why Advocacy Matters for Retail Real Estate. For 35 years, ICSC members have been walking the halls of Congress, making sure our industry’s voice is heard. The policies decided in Washington impact the way we invest, develop, and operate retail properties across the country. This year, we continue the fight—defending against policies that could negatively impact our industry, from organized retail crime to the potential elimination of 1031 exchanges and the push to tax carried interest as ordinary income instead of long-term capital gains. Other industries have successfully mobilized their members to communicate with Congress and protect their interests—we need to do the same. If GPs (general partners) in private equity real estate funds lose the long-term capital gains treatment on their carried interest while LPs (limited partners) keep it, that creates a major tax disparity that disincentivizes long-term ownership. Meanwhile, eliminating 1031 exchanges would reduce liquidity, disrupt investment cycles, and hurt small investors. And if organized retail crime isn’t addressed, it will continue to drive costs up and tenants out. Policies like these can shape the long-term viability of our properties and the communities we serve. Long-term investors take better care of their assets, work strategically with tenants, and invest in improvements that enhance neighborhoods. But if tax policies push GPs into shorter-term deals, that’s bad for retail properties, bad for tenants, and bad for local economies. That’s why ICSC is leading the charge, and why we need to show up in Washington. If you’re attending the ICSC Federal Fly-In, let’s connect and make sure retail real estate concerns aren’t just heard—they’re understood and acted upon. #ICSC #ICSCCreator #Partnership