Overall vacancy is at 7.3%, up from this time last year at 6.0%, due in part to the 1.3 million sq. ft. of vacant space delivered to the market in January—85% of the total 1.5 million sq. ft. completed.
Record-level construction at 25.4 million sq. ft.
Overall vacancy is at 7.3%, up from this time last year at 6.0%, due in part to the 1.3 million sq. ft. of vacant space delivered to the market in January—85% of the total 1.5 million sq. ft. completed. Of the record-breaking 25.4 million sq. ft. currently under construction, 60% of that space is available for lease. The vacancy rate for Class A properties is at 14.1%, up from 7.5% this time last year. 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.
New build-to-suit projects.
One of the largest build-to-suit projects under construction is Hines 770,640-sq.- ft. distribution center in the 106-acre Grand National Business Park next to Sam Houston Race Park in northwest Houston – leased by Home Depot for 20 years. The project is scheduled to be completed in April 2020. While build to- suits are the bright light for Houston industrial, speculative construction is more worrisome. However, in the flight to- quality trend, tenants are demanding space with state-of-the-art features such as higher ceilings or multilevel facilities for dense and more efficient storage, and more cross-docks and doors to facilitate faster deliveries.
Port Houston sets record for containers.
Container activity rose in 2019 recording a substantial 11% increase and setting a record. This marks the eighteenth consecutive year of container growth at the largest container port on the U.S. Gulf Coast. Among the nation’s top ten container ports, Port Houston was 2019’s fastest-growing, according to data from maritime sector data vendor IHS Markit PIERS.
Director of Research
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