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Vacancy gets even tighter. Nearing the end of the second quarter, the vacancy rate dropped 10 basis points to 5.4%, compared to this time last month at 5.5%. Occupancy of the 4.3 million sq. ft. delivered to the market year-to-date stands at 76%, and of the 96 properties with 11.7 million sq. ft. currently under construction, 40% of that space has been spoken for. Year-to-date net absorption totals 2.5 million sq. ft., while there have been 787 deals representing 10.5 million sq. ft. of leasing activity.
Breaking ground and moving forward. There have been 8.9 million sq. ft. of construction starts in the last 12 months in the Greater Houston area. Victory Commerce Center, a new industrial project is scheduled to deliver 349,050 sq. ft. of spec distribution space to the Southeast submarket in the first quarter of 2019, while a 727,600-sq.-ft. build-to-suit distribution center for Grocers Supply broke ground in the North submarket with an expected delivery date in the second quarter of 2019.
Metro Houston reaches milestone. In May, a landmark 3.1 million workers were on payrolls throughout the region, according to the Texas Workforce Commission. For the 12 months ending May 2018, metro Houston created 79,200 jobs, for a 2.6% increase. Construction, manufacturing, and employment services led job growth with the three sectors accounting for 45.6% of the jobs created. Houston’s unadjusted unemployment rate was 4.2% in May, unchanged from 4.2% in April and down from 4.8% in May 2017.
Director of Research
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