1. www.colliers.com/houston
Q4 2013 | RETAIL MARKET
HOUSTON RETAIL
MARKET INDICATORS
Q4 2012 Q4 2013
CITYWIDE NET
ABSORPTION (SF) 1.1M 1.2M
CITYWIDE AVERAGE
VACANCY 7.3% 6.6%
CITYWIDE AVERAGE
RENTAL RATE $14.32 $14.73
DELIVERIES (SF) 756K 254K
UNDER
CONSTRUCTION (SF) 737K 947K
Houston’s retail market posted 1.2M SF of positive net absorption in
the fourth quarter, bringing the years total to 3.0M SF. Some of the
tenants who opened new locations during the fourth quarter include
Wel-Farm Supermarket, Aldi, PetSmart, and CVS.
254,000 SF of new retail space delivered during the fourth quarter
bringing the average citywide vacancy to 6.6%, which is 40 basis
points lower than last quarter’s 7.0% vacancy rate. Currently, there is
947,000 SF in Houston’s retail construction pipeline, which includes a
71,400-SF Whole Foods Market located in Vintage Marketplace and a
53,000-SF Top Golf USA located on Spring Park Center Blvd, just east
of I-45 N.
The citywide average quoted rental rates for all property types
increased 0.7% between quarters from $14.63 to $14.73 per SF. Since
Q4 2012, average rental rates have increased 2.7% from $14.32 to
$14.73. Houston retail rental rates vary widely from $10.00 to $70.00
per square foot, depending on location, property type, and building
class.
The Houston metropolitan area added 86,200 jobs between November
2012 and November 2013, an annual increase of 3.1% over the prior
year’s job growth. Local economists have forecasted 2014 job growth
to remain steady, adding between 68,000 and 72,000 jobs. Further,
Houston’s unemployment fell to 5.6% from 5.8% one year ago.
Houston area home sales increased 19.4% between November 2012
and November 2013.
ABSORPTION, NEW SUPPLY & VACANCY RATES
0%
2%
4%
6%
8%
10%
12%
-500,000
0
500,000
1,000,000
1,500,000
2,000,000
Absorption New Supply Vacancy
Houston’s Strong Economy Helps Push
Retail Vacancy Rates to Historic Lows
HOUSTON RETAIL MARKET
RESEARCH & FORECAST REPORT
Houston
UNEMPLOYMENT 11/12 11/13
HOUSTON 5.8% 5.6%
TEXAS 6.0% 5.8%
U.S. 7.4% 6.6%
JOB GROWTH
ANNUAL
CHANGE
# OF JOBS
ADDED
HOUSTON 3.1% 86.2K
TEXAS 2.5% 275.7K
U.S. 1.7% 2.3M
JOB GROWTH & UNEMPLOYMENT
(Not Seasonally Adjusted)

2. RESEARCH & FORECAST REPORT | Q4 2013 | HOUSTON RETAIL MARKET
SALES ACTIVITY
Houston’s fourth quarter retail
investment sales activity
included 81 sales transactions.
Total sales transaction volume
totaled $334M and the average
price per SF was $170. The
average cap rate was 8.3%.
Several of the more significant
transactions that closed during
the fourth quarter are highlighted
at left.
LEASING ACTIVITY
Houston retail leasing activity in
the fourth quarter reached 1.5M
SF, bringing the 2013 total to
5.6M SF. Overall, transactions
under 10,000 SF comprised the
largest group of retail leases,
with the market recording
thirteen leases over 10,000 SF
and only two over 20,000 SF in
the fourth quarter.
A partial list of the leases signed
during the fourth quarter are
listed in the table below.
COLLIERS INTERNATIONAL | P. 2
Shops at Clear Lake
13914 SH 3, Webster, TX
NASA/Clear Lake Submarket
RBA: 10,425 SF
Built: 2008
Buyer: Michael Vaupel
Seller: Wile Interests, Inc.
Date: November 26, 2013
Price: $3.1M or $300/SF
Cap: 7.9%
Northchase Plaza
4415-4449 W FM 1960, Houston, TX
FM 1960/I-45 Submarket
RBA: 116,414 SF
Built: 1996
Buyer: Unilev Capital Corp.
Seller: Azrieli Group
Date: October 8, 2013
Price: $11.9M or $102/SF
Cap: 8.8%
Shops at Wallisville
15634 Wallisville Rd, Houston, TX
Channelview Submarket
RBA: 11,834 SF
Built: 2008
Buyer: Baba Invs Wallisville LLC
Seller: Edry-tx GP
Date: December 16, 2013
Price: $2.7M or $227/SF
Cap: 8.0%
RETAIL SALE TRANSACTIONS
Office Depot
1401 N Loop W Fwy, Houston, TX
Inner Loop/Heights Submarket
RBA: 20,898 SF
Built: 2008
Buyer: Orangestone Bevis LLC
Seller: Cole REIT
Date: December 18, 2013
Price: $3.7M or $178/SF
Cap: 9.4%
Building Name/Address Submarket SF Tenant Lease date
Clear Lake Center NASA/Clear Lake 33,494 Sears Outlet Center Oct-13
Sherwood Village Southeast Outlier 15,300 Forgotten Angles Dec-13
Point Nasa Shopping Ceter NASA/Clear Lake 15,040 Harbor Freight & Tools Dec-13
Fairway Centre Southeast Outlier 10,000 Rue21 Nov-13
6516-6522 Westheimer Rd Near West 8,778 Sketchers Shoes Nov-13
4400-4424 North Fwy Near North 8,700 Ashley Stewart Dec-13
West Bellfort Schopping Center Southwest 8,640 Bee Busy Wellness Center Dec-13
Cypress Hollow Plaza Jersey Village 7,680 Junkyard Bar & Grill Oct-13
8700-8704 S Gessner Dr Southwest 7,349 Children's 1st Dental Oct-13
9401 Katy Fwy Near West 6,450 LongHorn Steakhouse Nov-13
8400 S Gessner Rd Southwest 5,000 Title Max Oct-13
Q4 2013 Top Retail Leases

3. RESEARCH & FORECAST REPORT | Q4 2013 | HOUSTON RETAIL MARKET
RENTAL RATES
The citywide average quoted
rental rate for all property types
increased 0.7% from $14.63 to
$14.73 per SF between quarters
and 2.7% from $14.32 in Q4
2012.
Class A retail rental rates vary
widely due to location and center
type. Recent quoted rates for
neighborhood centers, power
centers and unanchored strip
centers, range from $20.00 -
$35.00 per SF while theme/
entertainment centers range from
$25.00 - $35.00 per SF. Lifestyle
centers and newly constructed
strip centers in Class A locations
such as High Street, Uptown
Park and The Vintage range from
$40.00 - $70.00 per SF.
VACANCY & AVAILABILITY
Houston’s retail vacancy fell 40
basis points between quarters to
6.6%, from 7.0% in the previous
quarter. By product type on a
quarterly basis, outlet centers
posted the largest decrease in
vacancy, 110 basis points,
followed by neighborhood
centers decreasing 70 basis
points and community centers
decreasing 60 basis points. Mall
vacancy dropped 40 basis points
and strip center vacancy dropped
30 basis points. Both single
tenant and power center vacancy
fell 20 basis points. In contrast,
theme/entertainment centers
rose by 50 basis points and
lifestyle centers increased by 30
basis points.
Houston’s retail construction
pipeline contains 947,000 SF and
fourth quarter deliveries totaled
254,000 SF.
ABSORPTION & DEMAND
Houston’s retail market posted
1.2M SF of positive net
absorption in the fourth quarter,
bringing the 2013 total positive
net absorption to 3.0MSF. Some
of the tenants that moved into
space during the fourth quarter
are listed in the table below.
HOUSTON RETAIL MARKET STATISTICAL SUMMARY
COLLIERS INTERNATIONAL | P. 3
Rentable
Area
Direct
Vacant SF
Direct
Vacancy
Rate
Sublet
Vacant SF
Sublet
Vacancy
Rate
Total
Vacant SF
Total
Vacancy
Rate
Q4 2013
Net
Absorption
YE 2013 Net
Absorption
Class A
Rental Rates
(in-line)*
Strip Centers (unanchored) 32,461,877 3,302,070 10.2% 1,000 0.0% 3,303,070 10.2% 187,460 350,703 $20.00-$35.00
Neighborhood Centers (one anchor) 68,503,893 6,786,622 9.9% 128,892 0.2% 6,915,514 10.1% 582,319 1,037,847 $20.00-$35.00
CommunityCenters (two anchors) 43,097,749 2,513,195 5.8% 94,012 0.2% 2,607,207 6.0% 170,251 567,644 $18.00-$30.00
Power Centers (3 or more anchors) 18,275,073 832,959 4.6% 23,483 0.1% 856,442 4.7% 44,487 213,128 $20.00-$35.00
Lifestyle Centers 3,204,008 131,819 4.1% - 0.0% 131,819 4.1% 8,587 1,108 $40.00-$70.00
Outlet Centers 1,899,333 274,219 14.4% - 0.0% 274,219 14.4% 20,014 13,596 N/A
Theme/Entertainment 752,640 269,931 35.9% - 0.0% 269,931 35.9% (41,118) (41,118) $25.00-$35.00
Single-Tenant 66,961,050 1,436,802 2.1% 64,554 0.1% 1,501,356 2.2% 129,160 649,914 N/A
Malls 29,531,180 1,637,406 5.5% 58,539 0.2% 1,695,945 5.7% 102,308 195,901 N/A
Greater Houston 264,686,803 17,185,023 6.5% 370,480 0.1% 17,555,503 6.6% 1,203,468 2,988,723
Q4 2013 ABSORPTION
Tenant/
Submarket
SF
Occupied
Wel-Farm Supermarket
Stafford 42,500
Habitat for Humanity
ReStore
Fairfield 29,946
PetSmart
Far West 27,218
Northwest Assistance
Ministries
FM 1960/I-45 20,579
99 Cents Only
Katy Far North 18,700
Aldi
Southeast Outlier 18,146
CVS Pharmacy
Far Katy South 14,741
Florence’s Furniture
Channelview 11,697
DXL Men’s Apparel
North Belt/Greenspoint 10,558

4. RESEARCH & FORECAST REPORT | Q4 2013 | HOUSTON RETAIL MARKET
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COLLIERS INTERNATIONAL
1233 W. Loop South
Suite 900
Houston, Texas 77027
Main +1 713 222 2111
LISA R. BRIDGES
Director of Market Research | Houston
Direct +1 713 830 2125
Fax +1 713 830 2118
lisa.bridges@colliers.com
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