Houston Industrial Q1: Drop in Absorption, Bump in Vacancy

Q1 2019 numbers for Houston’s industrial sector varied from source to source. However, all agreed that the absorption numbers were down, year over year, while vacancy numbers increased. Part of the reason, according to NAI Partners, was due to new construction deliveries, which it pegged at 3.4 million square feet. JLL’s analysis supported the assertion, pointing out that, while construction numbers declined slightly, much of it is speculative, and not yet preleased.

None of the sources, however, were particularly panicked by the metrics. CBRE, for example, noted that the market fundamentals remain positive, with tenant interest focused on newer assets. Avison Young agreed, pointing to Port Houston as “the driving force of the robust industrial market,” thanks to its position as the largest Gulf Coast container port.

Pictured: Port of Houston

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