Q1 2016 Houston Industrial Insight and Market Statistics

0 CommentsBy

April 25, 2016

Houston Industrial MarketLeasing activity in the Houston industrial market slowed significantly in the first quarter and began to reflect tenants’ more conservative outlook during an uncertain market. The Houston industrial market saw first quarter leasing of just over 2.1 million square feet. The size of leases also reflected a more cautious market. The majority of activity involved deals of 40,000 square feet and under; while only 8 transactions of greater than 100,000 square feet were signed during the first quarter.

In terms of construction and development, the divide between west and east Houston grew more pronounced during the first quarter of 2016. Large block availabilities within under construction buildings in east Houston dipped to 32 options with greater than 100,000 square feet available, while west Houston’s supply was nearly double that.

This geographic distinction was also observed in the way key submarkets were impacted by space availabilities. For instance, the North and Northwest submarkets had total availability rates rise by 10 percent on average, as tenant demand in the near term shifted to the petrochemical dominated east side.

Despite ongoing activity on the east side of Houston, weakening demand began to impact asking rents throughout multiple submarkets. Asking rents during the first quarter of 2016 saw a pullback from year-end 2015 high watermarks.

Click on the links below to view the full Houston industrial market reports and statistics for Q1 2016.

Q1 2016 Houston Industrial Insight

Q1 2016 Houston Industrial Statistics

Subscribe CTA

Leave a Reply

Your email address will not be published. Required fields are marked *