HOUSTON – (Realty News Report) — Despite continued departures by several national retailers, a steady stream of new entrants and expansions helped keep Houston-area retail occupancy high at midyear 2025.
Leasing activity by grocers, home-improvement chains, fitness centers, entertainment venues and restaurants supported a 95.5% occupancy rate across local shopping centers at midyear, according to a midyear report from Weitzman, a Texas-based real estate firm. That figure remained unchanged from year-end 2024.
Occupancy Rate 95.5% at Houston Shopping Centers
With relatively modest new construction underway across greater Houston, many recently closed stores are being repurposed quickly, creating opportunities for retailers to expand in a tight market.
Weitzman projects about 1.2 million square feet of new and expanded retail space to come online in 2025 in the Houston region, slightly below the roughly 1.3 million square feet delivered in 2024. The firm tracks roughly 167.5 million square feet of retail inventory for centers with 25,000 square feet or more in the local market.
Several national chains’ closures — including Big Lots, Forever 21, Joann, 99 Cents Only, Conn’s and Party City — have produced vacancies that are now being filled by new concepts and expanding regional and national tenants.
Key highlights from Weitzman’s report follow.
Sysco Debuts a New Retail Concept
Sysco launched Sysco to Go, a retail-format grocery store aimed at members such as restaurants, caterers and community organizations, opening its first location in a former Bed, Bath & Beyond near Memorial City. A second Sysco to Go is planned at the former Sprouts location on Old Spanish Trail near NRG Park.
Backfilling Former Grocery Stores
Trader Joe’s is taking about 17,000 square feet of a closed Randalls for a new store at Kingwood Commons.
Sprouts Farmers Market will occupy part of a former H-E-B site in Kingwood’s Kings Crossing shopping center and will also open in a former Randalls store on Panther Creek Drive in The Woodlands.
Planet Fitness and Dollar Tree split space in the former Kroger at Conroe’s River Pointe Shopping Center, illustrating how large grocery footprints are being subdivided to accommodate multiple tenants.
Retailers Expanding Their Houston Footprint
Barnes & Noble is continuing to grow in Houston by opening stores in former Party City locations on Spring Stuebner Road in Spring and on South Fry Road in Katy.
Burlington, amid a national expansion, is converting several former 99 Cents Only, Big Lots and Staples buildings across the Houston area.
Havertys Furniture has taken over part of a former Sam’s Club at Valley Ranch Town Center in New Caney, with Lumos, an entertainment concept, filling additional adjoining space.
Sky Zone Houston plans to open trampoline parks at Baytown Shopping Center and in a former Conn’s location at 6148 Highway 6. On the fitness side, Crunch Fitness will occupy a former Bed Bath & Beyond on Highway 6; Planet Fitness converted a Palais Royal store in Dickinson; and EoS Fitness intends to open next year in a former 24 Hour Fitness on San Felipe.
Reviving Long-Vacant Big-Box Locations
Several large-format stores that have stood empty for years are finally finding new uses. Two former Sears stores that closed in 2020 are slated for redevelopment in 2025: Willowbrook Mall and Deerbrook Mall will each host new entertainment-oriented tenants. Deerbrook Mall is set to welcome Score Entertainment, which will build out roughly 150,000 square feet for mini golf, bowling and family entertainment, while Round1 bowling and arcade will occupy a portion of the former Willowbrook Sears.
The long-vacant Gander Mountain property in Sugar Land is being repurposed to house Dave & Buster’s alongside Ace Pickleball, bringing both dining and active recreation to the site.
Ground-Up Development and Major Retailers
New construction remains active as well, with major chains such as Lowe’s, Target and Walmart expanding into new stores in 2025.
Manvel Town Center, a Weitzman development anchored by H-E-B south of Pearland, will include a Lowe’s as part of a multi-phase plan for the project. Lowe’s also recently opened a 110,000-square-foot store in Magnolia Village in Magnolia earlier this year.
Walmart opened a new “Store of the Future” prototype in Cypress that will serve as a model for future new and converted locations.
Other planned and recently opened grocery and big-box entries include H-E-B at Jordan Ranch in Fulshear, Sprouts in Richmond, and a Target location at The Grid in Stafford.
July 7, 2025 Realty News Report Copyright 2025
Image: Courtesy Weitzman
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