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from 2.5% in 2024-2025. “We are seeing a slightly accelerated pace of closures, because it has been so di cult to make the businesses work,” restaurant consultant Jonathan Horowitz said. “A lot of people are just kind of throwing up their hands [because] it’s just too hard.”
With growing food prices and lower foot tra c, many restaurants are also struggling to meet rent requirements, another factor that has surged in recent years, leading to vacancies. Data from Caldwell Companies shows vacan- cies along the Washington Corridor are at a 10-year high of 7.27% in 2025-2026—an increase
Although the price increase in leasing agreements is driving some owners toward closure, Horowitz said landlords are in the same economic position. “Their costs have gone up, whether it’s insurance or taxes [and] they have to respond to the market just like everybody else,” he said. Horowitz also said the restaurant industry is not structured to be able to pay incredibly high rents and that, although it is di cult, the trick is to nd the equilibrium between the two. However, with Houston hosting several large-scale events in 2026, such as the FIFA World Cup this summer, restaurants are hoping to see an increase in customer tra c and sales. “There’s going to be some movement for some areas of Houston, speci cally those restaurants inside the loop,” Michael Shine, executive director of the Greater Houston Texas Restaurant Association, said. “Those restaurants close to the action, they’re going to see some real movement, but Houston is so spread out.”
The rise in rent over time
Asking Rent in 2016 Asking Rent in 2026
Market data shows rents in various Houston submarkets approaching or setting 10-year highs.
27% increase
29.7% increase
22.9% increase
Washington Corridor
River Oaks Shopping District
Sawyer Yards
SOURCE: CALDWELL COMPANIES COMMUNITY IMPACT
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