Following the summer’s wave of COVID-19 cases that restrained economic activity in July, key indicators suggest activity rebounded in August and into September. The U.S. consumer is the star performer with some measures of retail sales now on a par with year-ago levels.
Retail fundamentals took a hit this quarter as Houston saw the highest amount of negative absorption reported in a quarter in the past decade. However, this 1.4 million sq. ft. of negative absorption only led to occupancy dropping 80 basis points (bps) to 93%.
Despite the economic slowdown from COVID-19, grocery stores continue to remain active in the market with H-E-B and La Michoacana delivering new stores this quarter.
Space City has also seen its unemployment rate decline consistently each month since the record high of 14.3% in April.