New retail space projections for Houston lowest in 10 years

Some new mixed-use development

Wendy Natt, Apr 29, 09.

Houston will add approximately 2.9 million square feet of new retail space in 2009, less than 50 percent of what it added last year, according to Ed Wulfe, President of Wulfe & Co, a Houston-based retail real estate brokerage, development and property management firm. Wulfe’s predictions were presented at an O’Connor & Associates Annual Retail Forecast Luncheon and, later, in a press release.

While the projected square footage of new retail space is the lowest that Wulfe says Houston has seen in 10 years, he says that this more modest growth “will allow the Houston market time to absorb more new space and replace the almost 1.0 million square feet of existing closed store spaces generated by store closings and bankruptcies” of several big-box chain stores.

In his statements at the forecast luncheon, Wulfe attributed the sharp reduction of new retail space to “the soft economy, lack of financing for both development and tenants, and the lockdown of chain store expansion plans.”

The Wulfe & Co. forecast for the distribution of the space sees the largest portions going toward “spec space” (26 percent), “other anchors” (24 percent), and supermarkets (18 percent).

Their press release notes that four new mixed-use developments that will incorporate retail space are currently underway in Houston, including the downtown Houston Pavilions, City Center at Town & Country, the West Ave project at Westheimer and Kirby, and Wulfe’s Boulevard Place complex on Post Oak Boulevard at San Felipe.

The Houston Chronicle also covered the story.

(Photo credit: dankos)