Third-quarter economic activity recovered in the U.S. after a precipitous drop in Q2 as COVID lockdowns in most of the country were eased. The energy sector, a major contributor to the industrial industry in Houston, continued to struggle as rig counts dropped to a historically low level of approximately 270 active rigs in the U.S., down 570 from the same time last year and down by over 1,600 from the peak in 2014. Oil and gas prices have been trading in a range that will not spur new drilling of any significant amount in the near term. Oil field services firms, a significant component of our local industrial economy, have been hit very hard.

The Houston industrial market plodded through the 3rd quarter with a lower than average absorption number of 1.3 million square feet, but despite continued COVID slowdowns, leasing activity remained steady. At almost 6 million square feet of leases executed, Houston remained on par with the previous two quarters. General market uncertainty caused... Click here to read the full report.