Houston Industrial market posts highest net absorption in January through August on record.
An analysis of activity during the first eight months of the year—August 2022 compared to August 2021.
Houston industrial vacancy at 5.8%
Eight months into 2022, overall vacancy in the Houston industrial market is at 5.8%, dropping 170 basis points from 7.5% last year. Availability is at 9.9%, down 40 basis points from 10.3% in August 2021. The difference between this figure and the vacancy rate reflects expected future move-outs. The Houston industrial market has recorded 32.7 million sq. ft. of leasing activity, comprised of new leases and renewals, while net absorption (move-ins minus move-outs) is at 18.5 million sq. ft., up 5.6% year-over-year from 17.6 million-sq.-ft. August 2022 marks the second-highest amount of leasing activity and highest net absorption in January through August on record. The Houston metro NNN average asking monthly rent is $0.72 per sq. ft., up from $0.64 last year, an 11.7% increase.
Record-breaking leasing activity in 2022
Notable transactions contributing to the above-average activity so far in 2022 include Macy’s 908,853-sq.-ft. relocation of its distribution and fulfillment center to the proposed Interchange 249 business park; Warehouse Services’ 663,821 sq. ft. renewal in Citypark East Industrial; CyrusOne leasing 640,000 sq. ft. in CyrusOne West III at 11000 Corporate Centre Drive; and Performance Team taking 408,510 sq. ft. at 5800 Mesa Drive in the Northeast Highway 90 submarket.
Port Houston posts new record volume
Year-to-date, Port Houston has handled close to two million TEUs, an 18% increase compared to 2021. June container volume at Port Houston showed double-digit growth, totaling 323,823 TEUs, an 11% increase compared to the same month last year and the largest June ever for containers. It’s the fifth month this year with double-digit growth over 2021, a record year for Port Houston’s container volume.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618