Robert C. Kramp Robert C. Kramp[/caption]

Researchers with the commercial real estate company CBRE reported earlier this month that 2016 yielded record-breaking demand for retail space in the Greater Houston area with net absorption—the amount of new space occupied—topping four million square feet.

Community Impact Newspaper reached out to Robert Kramp, CBRE's director of research and analysis, to learn about how retail demand stacked up in the Cy-Fair area and what could be in store for 2017.

Community Impact: What was you main takeaway from 2016 in regards to retail demand in the Greater Houston area and in the Far Northwest submarket?

Robert Kramp: As the city extends its great reach—thanks in part to the Grand Parkway—retail is needed to serve the growing populations, which is why the market is seeing the largest growth in the far outlying communities in contrast with development in the trendy Inner Loop. Expansions led to over four million square feet of absorption last year [in the Greater Houston area], the most retail demand the city has ever seen. The Far Northwest was one of the top performing submarkets in 2016, smashing absorption records with over 560,000 square feet occupied. The ten-year average absorption for the Far Northwest is only 240,000 square feet.

CI: Is there anything notable about the types of retail development that were seen in the Far Northwest in 2016?

RK: Unlike the city overall, the [Far Northwest] submarket absorption was not due only to large grocery expansions, but rather an influx of big box and junior box tenants such as Home Goods, Fitness Connection, Party City [and] Rooms To Go in addition to Kroger occupying at Grand Morton Town Center. The result of three years of stronger than average growth has produced a 98.7 percent occupancy rate in prime properties—there is virtually no space available.

CI: What do you anticipate for the Far Northwest market in 2017?

RK: With the rate of construction slowing, fewer planned developments in the pipeline, and limited Class A available space, demand volumes could moderate slightly next year.



Editor’s Note: This is the second story in a 3-part series on retail development in Cy-Fair. To learn more, see the January issue of Community Impact Newspaper Cy-Fair, in mailboxes and online starting Saturday, Jan. 21. The first part, which details plans for the Lakeland Village Center in Bridgeland, can be found here.