Subscribe to Our Research Content

  • This field is for validation purposes and should be left unchanged.

Share

Houston Industrial North Submarket Spotlight Commercial Real Estate Market Data and Economic Information - Coca-Cola southwest beverages bottling plant

Download the PDF

 


The North submarket contains 102 million sq. ft. of inventory, with Warehouse/Distribution representing 78 million sq. ft. of that total, Manufacturing 12 million sq. ft., and Flex space 10 million sq. ft. Of the more than 579 million sq. ft. of industrial buildings in Houston, the second largest concentration is in the North submarket.


Strong industrial market in North Houston. The North submarket contains 102 million sq. ft. of inventory, with Warehouse/Distribution representing 78 million sq. ft. of that total, Manufacturing 12 million sq. ft., and Flex space 10 million sq. ft. Of the more than 579 million sq. ft. of industrial buildings in Houston, the second largest concentration is in the North submarket, representing 17.6% of the total stock. The North submarket has posted positive net absorption in all but two quarters during the past five years, and vacancies have remained steady, averaging 7.6% during the same time period. 

No decrease in need for warehouse and distribution space. The North submarket has experienced an inventory expansion since the oil downturn in 2014, adding 217 industrial properties totaling an additional 13.3 million sq. ft. representing 15.1% growth. And development is still increasing with 5.4 million sq. ft. underway, over one-third of the total amount of industrial construction in the Houston metro. The largest industrial occupiers in the submarket include USPS Distribution (914,000 sq. ft.), Amazon (855,000 sq. ft.), and International Association of Drilling Contractors (851,000 sq. ft.). With the ongoing demand for warehouse and distribution space, the largest projects under construction include Coca-Cola Southwest Beverages $250 million, 1 million-sq.-ft. facility located near Beltway 8 and Interstate 45; Grocers Supply 727,600-sq.-ft. distribution center; and Conn’s HomePlus 657,000-sq.-ft. warehouse in Rankin Road DC. The submarket’s location near Beltway 8 and Interstate 45, access to the Hardy Toll Road and I-69, ease to Bush IAH and the Port of Houston continue to be invaluable to national, regional and local warehouse and distribution operations.

More groundbreaking growth. Cypress Preserve Logistics Center, a 560,000-sq.-ft. distribution center will sit on a 31.9-acre site close to Interstate 45 and Hardy Tollway, delivering in Q4 2019. The 525,000-sq.-ft. Kennedy Greens Distribution Center I is being built on 29 acres at JFK Blvd. and Lauder Rd. The distribution facility site plans allow for an additional 500,000-sq.-ft. expansion, with completion scheduled for fourth quarter 2019. In addition, Conroe Park North Industrial Park’s foreign trade zone has been expanded, and three new out-of-city municipal utility district’s totaling more than 3,000 acres–one of the largest ever incorporated–in a growth-motivated move to appeal to employers in manufacturing, distribution and professional and technical services.

Houston Industrial North Submarket Spotlight Commercial Real Estate Market Data and Economic Information - Market Indicators table

Houston Industrial North Submarket Spotlight Commercial Real Estate Market Data and Economic Information - Rent graph

Houston Industrial North Submarket Spotlight Commercial Real Estate Market Data and Economic Information - Construction graph

Houston Industrial North Submarket Spotlight Commercial Real Estate Market Data and Economic Information - Supply and Demand graph


Leta Wauson
Director of Research
leta.wauson@naipartners.com
tel 713 275 9618

We Want to Hear From You

  • This field is for validation purposes and should be left unchanged.