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Houston industrial fundamentals remain strong. The vacancy rate nearing the end of February 2019 is at 6.0%, up 40 basis points from this time last year. Of the 1.6 million sq. ft. delivered so far this year, the availability rate stands at 52.3%, and of the near-record-breaking 15 million sq. ft. of space currently under construction, 27.8% 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. The average monthly asking rate of renting industrial space is at $0.60 per sq. ft. on a triple net basis, up 6.1% from this time last year at $0.56 per sq. ft.
Port Houston delivers strong performance in 2018. Several records were broken in 2018, including that total tonnage at Port Houston facilities set a record of 35.7 million tons, which reflected an increase of 9% from 2017. In addition, container twenty-foot equivalent units increased 10% to 2.7 million, a new record for the Port Authority. This activity has created a balance of imports to exports for the year of 50/50 import to export, lining up well-positioned growth in the future.
Houston industrial in 2019. E-commerce, oil services support and increased tonnage of goods moving through the Port of Houston have supported steady activity in Houston’s industrial sector. While there is momentum, there are also challenges ahead, reported experts at The ULI presentation in December. The industrial market continues to show robust demand throughout the metro, and in response, over 15 million sq. ft. of construction is underway, over double the amount this time last year—an 115.3% increase. In addition, the recovering energy sector is also strengthening the manufacturing industry in Houston, with the 2019 outlook the brightest it’s been in years, according to the Greater Houston Partnership’s 2019 Houston Employment Forecast.
Director of Research
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