Leasing activity and asking rent both up year-over-year in Houston Industrial market.
VACANCY AT 9.0% Overall vacancy in the Houston industrial market is at 9.0%, up from 7.5% year-over-year in February 2020—though down from 9.2% in January 2021. The year-over-year increase in vacancy is due in part to the more than 30.3 million sq. ft. delivered during 2020, of which approximately 47% is vacant. In addition, there is 11.4 million sq. ft. currently under construction, with 66% of that space available for lease. The vacancy rate for Class A properties is at 18.9%, up slightly from Q4 2020 at 18.6%, although up more significantly from February 2020 at 14.6%. The Houston industrial market has recorded 4.7 million sq. ft. of leasing activity—which is comprised of both new leases and renewals—compared to this time last year at 4.0 million sq. ft. The asking price for industrial properties is currently at an average monthly rate of $0.63 per sq. ft., up from this time last year at $0.61 per sq. ft., due primarily to the new product added to the market.
FLOOR & DÉCOR BUILDING A 1.5 MILLION-SQ.-FT. DISTRIBUTION CENTER TGS Cedar Port Partners, L.P. announced the sale of 99.3 acres to Floor & Décor, closing on the property in December 2020. Construction is underway on the cross-dock distribution center located in Cedar Port Industrial Park with a scheduled completion by the end of 2021. This location will service the south-central United States.
PORT HOUSTON CONTAINER VOLUMES STABLE Container activity at Port Houston remained solid in January, easily surpassing the 250,000-unit mark and setting the stage for a strong 2021 if that pace continues. The number of containers handled in January 2021 was the second-highest January on record, behind only January of 2020. Port Houston handled 255,039 twenty-foot equivalent units (TEUs), compared to January of last year, when 268,773 TEUs were handled.
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