Retail Report: What’s Filling Houston’s Vacancies, Market briefs

In Houston, Houston stores stayed relatively full at midyear as bookstores, gyms, grocers, home improvement, and other retailers backfilled vacancies, even as the pace of new construction accelerated.

Houston area retail occupancy held steady at a healthy 95.2% as of midyear, as stated by new report by Weitzman, a commercial real estate firm based in Dallas.

New retail buildings are delivering with leasing commitments largely in place, keeping occupancy levels high.

The Houston market is on track to deliver just over 1.8 million sq ft of new and expanded retail projects in 2026, up from 1.1 million sq ft in 2025, as stated by Weitzman. While an increase, the deliveries remain conservative and measured in a market with about 169 million SF of retail inventory. Weitzman reviews projects with 25,000 SF or more for its market analysis.

New construction projects in progress around the Houston region include The Grande at 249 in Tomball, Dunham Pointe in Cypress, Elyson Town Center in the Katy area, Texas Heritage Marketplace in Katy, and Manvel Town Center. A new phase will add to the small shop retail at Bellaire Market District on Bellaire Boulevard.

Troubled retailers have freed up space for other retailers in the space they left behind. The vacated spaces include three locations for Saks Off 5th that closed as part of the bankruptcy of Saks Global Holdings, six Painted Tree Boutiques that closed as the chain went out of business, and Kroger stores in the Heights and Spring.

Here are highlights of retailers that are filling the voids left by shuttered stores:

Vevor, an online home improvement retailer, picked Houston for its first ever brick and mortar store. The company backfilled a former Big Lots in Jones Square in Northwest Houston this year.

Parisina Fabrics, Mexico’s largest fabric retailer, took over the former Joann space in Woodpark Shopping Center in Spring.

Dave & Busters and Ace Pickleball filled a long-vacant former Gander Mountain store at Riverpark Shopping Center in Sugar Land.

Sprouts Farmers Market opened in a former Party City Space at Baybrook Gateway in Webster. The specialty grocer also opened a Kingwood store and has another store in the works in The Woodlands.

Ikea opened a 93,000-SF store in a former Bel Furniture location at the Center at Baybrook in Webster.

Trader Joe’s will anchor the redevelopment of Bellaire Boulevard Shopping Center, a property of Kimco at 5130 Bellaire Blvd. A vacant midcentury building last occupied by Randalls in 2021 was torn down to make way for the project.

Edwin Watts Golf is backfilling an 11,112-SF former Party City on the Southwest Freeway near Buffalo Speedway.

Barnes & Noble opened a 22,000-SF store in the former Party City in Katy.

EoS Fitness opened new locations at 6425 San Felipe and 9244 W. Sam Houston Parkway North. The spaces were previously occupied by 24 Hour Fitness and LA Fitness.

Crunch Fitness will open a 56,000-SF gym in a former Kroger store in Dickinson.

Hobby Lobby is coming to the long-vacant Palais Royal space in Meyerland Plaza.

Primark, a global fast-fashion retailer, opened its second Houston area location in a portion of the former Sears store at Willowbrook Mall.

Houston’s population, job, and housing growth are boosting retail demand. The region’s population grew by 126,720 to nearly 7.9 million, according the Greater Houston Partnership. Job growth is projected to double this year to 31,000 net new jobs.

However, tenant demand could weaken as concerns of inflation, global conflict, and high energy prices impact consumer confidence, as stated by Weitzman. If price issues persist, the company forecasts a stable retail market that could show a slight decline in occupancy at year-end.