Opinion: The Future of Retail Is Suburban—And Montgomery County TX Just Proved It, Again
- RAI Commercial Group
- 2 days ago
- 3 min read
Updated: 2 days ago
Originally Published by CoStar, April 30, 2025
For years, the dominant retail narrative has been stuck in reverse: “Retail is in decline.” But if you look beyond the headlines and into the numbers—especially those coming out of Houston’s northern growth corridors—a very different story is unfolding.
A recent CoStar article caught our attention with a single, striking data point: Montgomery County TX just ranked third in the entire nation for retail space absorption. At a time when most markets are stalling, this suburban powerhouse is quietly surging.
That’s not a fluke. That’s a forecast.
This Is What Real Demand Looks Like
Montgomery County, along with nearby Bridgeland, is doing exactly what strong submarkets are supposed to do: following the rooftops. People are moving in droves—for affordability, for quality schools, and for lifestyle—and retail is moving right alongside them.
But what makes this more than just a population story is the income profile. In areas near The Woodlands, household incomes are well above $100,000, far surpassing the Houston median. This is not just suburban sprawl. This is intentional, high-quality growth.
And it’s translating into real retail demand. The 850,000+ SF Woodlands Mall remains a regional draw, and surrounding centers are thriving—not because of gimmicks, but because the fundamentals are strong: people, income, and a shortage of available space.
Developers Are Hitting Pause, Landlords Aren't
Retail construction starts in Houston have hit an all-time low, down more than 50% year-over-year. High construction and financing costs are sidelining new projects. But here’s what’s critical: demand isn’t slowing at the same rate.
That’s why landlords in places like Montgomery County TX are still pushing 3% annual rent escalations, even as broader Houston rent growth stagnates at 1.3%. In other words: the balance of power hasn’t shifted. It’s still a landlord’s market—for those holding the right real estate in the right location.
It's Time for Investors to Rethink Their Maps
This is the part that frustrates us most: Investors often stay fixated on downtowns and trophy corridors, completely missing the actual momentum. Montgomery County TX is no longer “up and coming.” It’s here. And it's outperforming.
If you’re still treating suburban markets like secondary plays, you're missing the reality: the future of retail is not urban—it’s suburban. It’s in places where people are choosing to live, raise families, and spend money. It’s in areas like Montgomery County, where rooftops aren’t just rising—they’re rising with money behind them.
Our Takeaway for Investors | Montgomery County TX
Retail isn’t dying—it’s evolving. And Montgomery County just gave us the playbook. If you’re serious about long-term retail investment, stop chasing outdated narratives and start paying attention to where the fundamentals are strongest.
This market isn’t a fluke. It’s a leading indicator.
READY TO INVEST WHERE GROWTH IS HAPPENING?
At RAI Commercial Group, we help investors capitalize on this momentum—by identifying the right properties, navigating local dynamics, and structuring deals that align with both short-term cash flow and long-term portfolio strategy. Our focus on high-growth submarkets like Montgomery County ensures you’re not just in the game—you’re ahead of the curve.
If Montgomery County is on your radar—or should be—we’re here to help you capitalize on the opportunity.
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Written by RAI Commercial Group
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