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Houston Industrial Commercial Real Estate Market Data and Information - Job Growth and Port Houston Barbours Cut Shipping Containers

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Market Highlights

Keeping up the pace in 2019. Overall vacancy is 5.7%, and the vacancy rate for Class A properties is 7.7%. Year-to-date net absorption stands at 1.3 million sq. ft., up 23% compared to this time last year. Of the near-record-breaking 15.3 million sq. ft. of space currently under construction, 22.0% has been spoken for. The highest amount of industrial space under construction at one time occurred during Q2 2015, at 15.4 million sq. ft. While the asking price for industrial properties steadily grew during the past year, it has remained at an average monthly rate of $0.60 since Q4 2018, an all-time high.

Port Houston well-positioned for continued growth. Mid-February marked the first time in Port Houston’s history to manage more than 10,000 transactions at both of its container terminals; Barbours Cut and Bayport. In addition, overall cargo activity in every category showed growth compared to the same time last year. Houston has now become a major distribution point and the expanded Panama Canal has allowed Houston to receive larger vessels from Asia, bringing down shipping costs and prompting retailers to open distribution centers.

Purchasing Managers Index points to growth. The Purchasing Managers Index from the Institute for Supply Management in Houston registered 56.1 in February. The index is strongly associated with job growth in Houston. Any reading above 50 indicates expansion for manufacturing in the region. The February score indicates that the Houston economy continues to expand, and that job growth is likely to be positive for the next three to four months. The unemployment rate in Houston ticked up to 4.3% in January on a rise in the local labor force. By comparison, the Texas rate was 3.8% and the U.S. was 4%. The biggest contributors to employment growth over the three months ending in January were professional and business services (7,500), education and health services (4,000) and manufacturing (3,200).

Houston Industrial Commercial Real Estate Market Data and Information - Market Activity table job growth

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

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


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

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