RETAIL EXISTING CONDITIONS Pearland’s retail sector has experienced major growth in the last decade. In comparison to that of the Greater Houston area, Pearland’s commercial retail vacancy rate has always been roughly 4% lower than that of Houston’s. Additionally, Pearland’s average rent per square foot in retail lease space had increased in the last decade and surpassed that of Houston. While Houston’s retail rent has largely remained stable at $19 per square foot between 2017-2023, Pearland’s retail rent has increased from $18 in 2017 to $23 in 2023. See Figures 7.11 and 7.12. FIGURE 7.11: RETAIL VACANCY PERCENTAGES Source: REIS
RETAIL SUPPLY AND DEMAND In retail gap analysis, the supply and demand can paint a picture of the retail surplus and leakage. When there is a positive retail gap, like in the case of Motor Vehicles & Parts Dealers in Figure 7.13 below, that implies that consumers must go outside of the retail areas in order to meet the demand. A positive retail gap is also indicative of retail leakage, meaning the opportunity to meet retail needs is leaked outside the retail area. On the other hand, when there is a negative retail gap, that is indicative of a retail surplus. In the exhibit below, general merchandising stores shows a retail surplus. FIGURE 7.13: RETAIL GAP ANALYSIS OF INDUSTRIES IN PEARLAND Industry Vehicles & Parts Dealer Demand Supply Retail Gap Motor Vehicles & Parts Dealers $514,237,628 $87,964,505 $426,273,123 Furniture & Home Furnishings $86,374,076 $25,452,751 $60,921,325 Electronics & Appliance Stores $88,777,815 $62,325,194 $26,452,621 Building Materials & Supply Stores $160,940,232 $96,537,242 $64,402,990 Food and Beverage Stores $422,858,988 $264,327,824 $158,531,164 Health & Personal Care Stores $132,820,111 $89,575,949 $43,244,162 Gasoline Stations $232,215,725 $86,727,623 $145,488,102 Clothing & Clothing Accessory Stores $111,963,841 $116,674,024 -$4,710,183 Sporting Goods, Hobby, Books & Music Stores $84,369,276 $58,540,965 $25,828,311 General Merchandise Stores $419,110,379 $572,767,057 -$153,656,678 Miscellaneous Store Retailers $93,136,310 $57,054,766 $36,081,544 Nonstore Retailers $35,163,912 $5,056,484 $30,107,428 Non-Restaurant Eating/Drinking Places $13,346,604 $2,891,520 $10,455,084 Restaurants/Other Eating Places $259,224,437 $211,665,893 $47,558,544 Source: ESRI BAO
Pearland
Houston
14%
12%
10%
8%
6%
4%
2%
0
2017
2018
2019
2020
2021
2022
2023
FIGURE 7.12 RENT PER SQUARE FEET RETAIL LEASED Source: REIS
BRAZORIA COUNTY
TEXAS
FIGURE 7.14: RETAIL LEAKAGE BY SECTOR
$24 $21 $22 $22 $20 $19 $18 $17 $16 $15
Motor Vehicles & Parts Dealers Gasoline Stations Food and Beverage Stores Building Materials & Supply Stores Furniture & Home Furnishings Restaurant/Other Eating Places Health & Personal Care Stores
Miscellaneous Store Retailers
Nonstore Retailers
Electronics & Appliance Stores
Non-Restaurant Eating/Drinking Places Clothing & Clothing Accessory Stores Sporting Goods, Hobby, Books & Music Stores
2017
2018
2019
2020
2021
2022
2023
General Merchandise Stores
-$200,000,000
$0
$200,000,000
$400,000,000
PEARLAND COMPREHENSIVE PLAN 2040
112
Chapter 7
113
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