Houston gets Industrial

Lantana Place Retail Center

 

Overall vacancy is at 6.6%, up from this time last year at 5.5%, due in part to the 6.9 million sq. ft. of vacant space delivered to the market in 2019—half of the total 13.7 million sq. ft. completed. Of the 18.3 million sq. ft. currently under construction, about three-fourths of that space is available for lease.


Market Highlights

18.3 million sq. ft. of construction. The overall vacancy is at 6.6%, up from this time last year at 5.5%, due in part to the 6.9 million sq. ft. of vacant space delivered to the market in 2019—half of the total 13.7 million sq. ft. completed. Of the 18.3 million sq. ft. currently under construction, about three-fourths of that space is available for lease. The vacancy rate for Class A properties is at 12.1%, up from 7.6% this time last year. Year-to-date overall net absorption is at 6.3 million sq. ft., just south of the 7.1 million sq. ft. registered in October 2018. The asking price for industrial properties is currently at an average monthly rate of $0.61 per sq. ft., up 3.4% from this time last year at $0.59 per sq. ft.

Distribution center larger than NRG Stadium. Ross Stores Inc. bought 220 acres in Waller County for a planned distribution center at 31207 Kingsland Blvd., a mile south of Interstate 10 in Brookshire. The project is estimated to cost $180 million and is calculated to stretch almost 2.2 million sq. ft., larger than the 1.9 million-sq.-ft. home to the NFL’s Houston Texans. Completion of the project is projected for 2021, and at full build-out could employ approximately 1,300 people, becoming Brookshire’s largest private employer after Igloo, according to the Waller County Economic Development Partnership.

Crude Oil & Rig Count. According to the U.S. Energy Information Administration, the closing spot price for a barrel of West Texas Intermediate was $55.60 on October 28, 2019, with an average daily price during 2019 of $56.73. The price was $67.00 at this time last year. Baker Hughes reports 822 drilling rigs were working in the U.S. as of November 1, down 245 rigs, or 23.0%, from the same week in November last year, the lowest level since March 2017.

Houston Industrial Commercial Real Estate Market Data and Economic Information - Market Activity table

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

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