Q4 2022 Houston Industrial Occupiers Guide
Houston’s white hot industrial market continues to lap the city’s other real estate sectors, with the trailing 12-month absorption the highest in the US. Demand continues to be driven in large part to record-breaking activity at the Port of Houston as well as an explosion of population growth. Even still, as friendly zoning restrictions attract industrial developers, an active supply pipeline and wave of spec development has pushed vacancy rates above historical averages and hamstrung rent growth compared to the national average. With more than 35 MSF currently under construction, oncoming inventory could once again push vacancy higher as nearly 85% of said space is 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.