Still, George Weatherall, executive vice president in the Houston office, says the market remained stable and steady based on calculations for a 2001 wrap-up. "Leasing and construction remained active," he says, "although both are likely to slow during 2002 as the market adjusts to changes in the economy."

According to Weitzman, occupancy rates slipped to just under 87% based on a total market inventory of 110 million sf at the 2001 close. At midyear, occupancy was 89%. The backslide was blamed on store closings at 25 Weiner's stores, six Krause Sofa Factory stores, three HomeLife furniture stores, three SuperStand stores, three Gerlands supermarkets, a handful of Albertsons, seven Montgomery Ward stores and five Warner Bros stores.

Single- and multi-tenant retail construction was up by two million sf over the 2000 total, coming in at six million sf. "Much of the new construction was in large-format, single-tenant buildings for retailers such as Wal-Mart Supercenter, SuperTarget, Kmart, Home Depot, Lowe's, Costco, Sam's, Garden Ridge and the Great Indoors," says Weatherall.

The report predicts stability for the retail market this year. Building has slacked off, new construction is being pre-leased, still positive job growth is forecast and the housing market remains strong, he says.