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Houston industrial market continuing strong performance. Nearing the end of the third quarter the vacancy rate was unchanged from this time last month, at 5.7%. Of the 8.9 million sq. ft. delivered to the market year-to-date, about 3 million sq. ft. (32.8%) is unoccupied. Of the 88 properties with 11.0 million sq. ft. currently under construction, 63.2% of that space is available for lease. Year-to-date net absorption totals 5.3 million sq. ft., while there have been over 1,150 deals representing 16.0 million sq. ft. of leasing activity. The average asking rate of renting industrial space was unchanged from last month at $0.60 per sq. ft. per month.
1.4 million-sq.-ft. industrial facility coming to Katy. Chevron Corp. has sold a 103-acre tract at Clay Road and State Highway 99 near Katy. Landmark Industries purchased the land from Chevron, selling a 78-acre share to Duke Realty. According to papers filed with the Harris County Clerk, Duke Realty Corp. plans to develop 1.39 million sq. ft. of industrial space on the land between five recently constructed buildings.
Houston ranked No. 2 in manufacturing GDP in the U.S. Recently, Houston was named by Business Facilities as the No. 1 large metro for potential economic growth. The metro has one of the largest concentrations of industrial space in the nation and remains among the top cities for manufacturing employment growth, noting that the region has about 6,400 manufacturers that employ more than 240,000 skilled workers and produce $80 billion in goods a year.
Director of Research
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