Q3 2022 Houston Industrial Occupiers Guide
Houston’s industrial market continues to be hot, with 12-month net absorption far outpacing the national average and ranking near the top of all US metros. Demand is being driven in large part to the growing activity at the Port of Houston as well as an explosion of population growth. Friendly zoning restrictions have long attracted industrial developers, creating an active supply pipeline that had pushed vacancy rates up and restricted rent growth. But even with 55 MSF of space scheduled to deliver in 2022-2023, vacancy is once again contracting having nearly been halved over the past two years. With more than 32 MSF under construction, oncoming supply could once again drive vacancy up as nearly 75% of said space remains unleased. Even with still growing demand from e-commerce and logistics companies this wave of new product could begin to place added pressure on landlords.