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Vacancy rate has tightened by over 20% in past 12 months.
Robust industrial market in Northwest Houston
The NW/Highway 290-SH 249 sub-market encompasses a 5-mile radius of the immediate area containing 91 million sq. ft. of industrial/flex inventory. Of the 191 million sq. ft. of industrial and flex buildings in the entire Northwest Houston submarket, the largest concentration is in the Highway 290-SH 249 area, representing almost 50% of the total stock. The NW/Highway 290-SH 249 submarket has posted positive net absorption for the past three consecutive quarters, and vacancies have continued to tighten since the start of the COVID-19 pandemic in early 2020.
Strong logistical location
The NW/Highway 290-SH 249 sub-market has experienced an inventory expansion since the oil downturn in 2014, adding 251 industrial properties totaling an additional 17 million sq. ft., representing 23% growth. Development is still increasing, with 2.1 million sq. ft. underway. 12% of the total amount (16.9 million sq. ft.) of industrial construction is in the Houston metro. The largest industrial occupiers in the submarket include Dril-Quip (1.3 million sq. ft.); Home Depot-Distribution (771,000 sq. ft.); and Home Depot-Warehouse (658,000 sq. ft.). The largest recent completions include Home Depot’s Warehouse, 658,000 sq. ft. in the NW/Highway 290-SH 249 area, and Amazon’s 141,000-sq.-ft. distribution center in Republic Business Center at 11311 N. Gessner Road.
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