Houston’s industrial market sees continued growth on the east side due to boom in petrochemical industry

During the first half of 2017, 3.0M SF of Houston’s industrial inventory was absorbed, all occurring during the first quarter. Second quarter absorption was close to zero, posting only -13,100 SF.

The average vacancy rate increased 20 basis points over the quarter from 5.3% in to 5.5%. A little over 1.5M SF of new product delivered during the second quarter, bringing the mid-year new inventory total to over 5M SF. There is currently 4.2M SF under construction and 77.2% is pre-leased. Most of the leased space under construction are build-to-suit projects for companies such as Amazon, FedEx, Katoen Natie and Vinmar International. In addition to the Industrial distribution and warehouse space under construction, two large petrochemical plants have been announced in recent months. Brazil-based Braskem announced...click here to visit our website and view the full report.