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Overall vacancy is at 6.3%, up from this time last year at 5.7%, due in part to the 5.6 million sq. ft. of vacant space delivered to the market in 2019—about 54% of the total 10.5 million sq. ft. completed. Of the 16.5 million sq. ft. currently under construction, about 70% of that space is available for lease. The vacancy rate for Class A properties is at 10.4%, up from 7.3% this time last year.


Market Highlights

16.5 million sq. ft. of construction underway. Overall vacancy is at 6.3%, up from this time last year at 5.7%, due in part to the 5.6 million sq. ft. of vacant space delivered to the market in 2019—about 54% of the total 10.5 million sq. ft. completed. Of the 16.5 million sq. ft. currently under construction, about 70% of that space is available for lease. The vacancy rate for Class A properties is at 10.4%, up from 7.3% this time last year. Year-to-date net absorption is at 4.9 million sq. ft., up from 4.1 million sq. ft., an 18.9% increase year-over-year. While the asking price for industrial properties has steadily grown over the past few years, it is currently at an average monthly rate of $0.61 per sq. ft. with slight fluctuations during the time in between.

Port Houston sets records on container and steel volumes. In an August press release from Port Houston, overall container volume continues to break records, up 12% for the year compared to last year. Port Houston facilities have handled nearly 1.5 million total container twenty-foot equivalent units (TEUs) through the first half of 2019. Steel movements into Houston’s multi-purpose terminals at City Docks, Woodhouse, Care and Jacintoport also continues to be strong and are up 14% for the year. Port Houston handles nearly 70% of all containers that move through the U.S. Gulf of Mexico and volume is growing rapidly due to surging demand for imports and a robust export base driven by petrochemical and resin markets.

Job growth accelerates. Employment growth accelerated from 3.3% over the three months ending in May to 3.6% over the period ending in June. While the fastest-growing industry was mining (3,000 jobs), employment gains were led by trade, transportation and utilities (6,700 jobs), and construction (5,600). Manufacturing was the only industry to register a drop (-1,700 jobs). Houston’s unemployment rate rose from a historic low of 3.4% in May to 3.6% in June. The unemployment rate in Texas dropped to a record low of 3.4%, and U.S. unemployment was 3.7%.

Houston Industrial Commercial Real Estate Market Snapshot Economic Data and Information - Market Activity table

Houston Industrial Commercial Real Estate Market Snapshot Economic Data and Information - Construction Activity graph

Houston Industrial Commercial Real Estate Market Snapshot Economic Data and Information - Supply and Demand graph


Leta Wauson
Director of Research
[email protected]
tel 713 275 9618

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