Houston Retail Is Building More, Even as Leasing Slows

Houston ended the third quarter of 2026 with 4.5 million square feet of retail space under construction, its largest development pipeline in three years. Yet quarterly leasing activity fell to its lowest level since early 2021.

According to Cushman & Wakefield, retail vacancy remained at just 5.7%, while asking rents climbed 8.2% year over year.

The numbers reveal an interesting moment for Houston retail. Development remains active, but the projects taking shape across the region reflect different investment strategies, from large new commercial destinations to the redevelopment of existing properties.

Two Sides of Houston's Retail Pipeline

In west Katy, there's an approximately 800,000-square-foot retail destination along Interstate 10. Construction of its multi-tenant phase began earlier this year, expanding a project intended to serve one of Houston's fastest-growing residential corridors.

Across the region, The Woodlands Mall is taking a different approach.

Plans registered with the Texas Department of Licensing and Regulation in October call for the redevelopment of approximately 82,760 square feet. The work includes reconfiguring the former anchor space for future tenants, with additional improvements planned in the surrounding mall.

The contrast is notable. One development is adding substantial commercial space to an expanding suburban market. The other is repositioning an established retail property for its next generation of tenants.

Both represent significant investment at a time when leasing activity has moderated.

Construction Activity Extends Beyond New Development

The range of projects moving through Houston's construction market is equally apparent at the individual property level.

New retail centers continue to follow residential growth, while established shopping destinations are undergoing façade improvements, landlord work, tenant transitions, and renovations.

The work varies considerably from one property to another, and many active commercial developments involve several distinct construction assignments over time.

For general contractors with experience across both ground-up development and existing commercial properties, that creates a broad range of opportunities throughout the market.

United's Work Across Greater Houston

United Constructors of Texas is involved in many of the same types of commercial construction activity shaping the region.

In Missouri City, United is serving as general contractor for The Market at Waters Lake, a three-building, approximately 37,700-square-foot ground-up retail development in Sienna. The project will introduce new restaurant, retail, and service space along Sienna Parkway.

Our project roster also includes Shoppes at Memorial Village in Houston and Center at Baybrook façade work in Webster, reflecting our involvement with established shopping centers and commercial property improvements.

At the I-45 Telephone Road Shopping Center in Houston, United's project records include multiple assignments at the same property, including landlord work associated with Fun City and demolition work for a Ross space.

Our retail work also extends to individual brands and tenant locations, with projects including Chair King in Katy, Hobby Lobby in Webster, and Goodwill G2 Outlet Center in Houston.

Together, these projects reflect the breadth of United's commercial construction services, from new retail buildings and shopping center improvements to landlord work, renovations, and tenant-specific construction.

With nearly three decades of experience across Texas, we work alongside developers, property owners, architects, and tenants on projects of varying scope and complexity.

Looking Ahead

Houston's retail construction pipeline remains substantial, even as the pace of leasing changes. The developments we are seeing illustrate how investment continues across both new and established retail destinations.

For United Constructors of Texas, that activity aligns closely with the work we've built our reputation on: ground-up commercial construction, retail centers, tenant improvements, renovations, and long-term relationships with the owners and businesses investing in Texas.

United Constructors of Texas

United Efforts...Successful Projects.