Subscribe to Our Research Content

  • This field is for validation purposes and should be left unchanged.

Share

Download the PDF

 


Overall vacancy is at 7.5%, up from this time last year at 6.0%, due in large part to the 17.4 million sq. ft. delivered to the market during the last 12 months with an occupancy rate of 42%.


Vacancy increases. Overall vacancy is at 7.5%, up from this time last year at 6.0%, due in large part to the 17.4 million sq. ft. delivered to the market during the last 12 months with an occupancy rate of 42%. Of the record-breaking 25.3 million sq. ft. currently under construction, 61% of that space is available for lease. The vacancy rate for Class A properties is at 14.7%, up from 10.0% this time last year. In addition, single tenancy of those Class A properties is at 3.5% vacancy, compared to multiple tenancy at 22.4% vacancy. The asking price for industrial properties is currently at an average monthly rate of $0.62 per sq. ft., up from this time last year at $0.60 per sq. ft.

Sizzling East-Southeast submarket. The East-Southeast submarket has over 4.6 million feet under construction—18% of the total 25.3 million underway in the Houston metro. Two of the largest developments are the 784,000-sq.-ft. distribution center at Bay Area Business Park-Building 10, scheduled to deliver in May 2020, and Cedar Port Logistics’ 644,000-sq.-ft. project in Baytown at Highway 99 and FM 1405, with completion planned for Q2 2020. In the flight-to-quality movement, tenants are demanding space with state-of-the-art features such as higher ceilings or multilevel facilities for more efficient storage, and additional cross-docks and doors to facilitate faster deliveries.

Port Houston container volume increases. Container activity at Port Houston was up 25% in January compared to the same period a year ago. The growth in container units follows a record-setting year in 2019, when Port Houston saw an annual increase of 11%. It was the eighteenth consecutive

 

 

 

 

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

We Want to Hear From You

  • This field is for validation purposes and should be left unchanged.