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Overall vacancy is at 7.9%, up from this time last year at 6.1%, due in part to the 8.0 million sq. ft. of vacant space delivered to the market so far in 2020—58.1% of the total 13.7 million sq. ft. completed.
Vacancy at 7.9%. Overall vacancy is at 7.9%, up from this time last year at 6.1%, due in part to the 8.0 million sq. ft. of vacant space delivered to the market so far in 2020—58.1% of the total 13.7 million sq. ft. completed. Of the 17.1 million sq. ft. currently under construction, 54.8% of that space is available for lease. The vacancy rate for Class A properties is at 16.1%, up from 10.3% this time last year. The Houston industrial market has recorded 9.2 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—while net absorption (move-ins minus move-outs) is at 5.7 million sq. ft., up from 4.5 million sq. ft. in June 2019. The asking price for industrial properties is currently at an average monthly rate of $0.64 per sq. ft., up from this time last year at $0.60 per sq. ft. due primarily to the new product added to the market.
Taking a closer look at supply chains. Hallmark Floors purchased a 170,476-sq.- ft. distribution center at 730 Genoa Red Bluff Road near Port Houston. During this year’s economic shift, an opportunity to be closer to consumers and manufacturing locations made strategic sense. The seller, Vigavi SECD, LLC, developed the facility which delivered in January 2020.
Port Houston Cargo Report. Port Houston’s total twenty-foot equivalent units (TEUs) in April decreased 12% compared to April of 2019. For the full year, TEUs through April increased by 5% compared to the first four months of 2019. Total tonnage at Port Houston’s public facilities was down 10% in the month of April for short tons, a decrease of 3% year-to-date. Steel, primarily used in the energy industry, is down 50% year-to-date through the end of April.
Director of Research
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