Massive Uptick in Leasing Dots Houston’s Southeast Submarket
The Southeast submarket is tightening dramatically from an overall availability standpoint. In recent weeks, more than 1.3 million square feet of new leases have been signed in the submarket, says Justin Robinson, managing director and partner at Stream.
“All three leases are new to the Houston market and illustrate the massive uptick in leasing activity we are experiencing across the city,” Robinston says. “With development becoming increasingly difficult near Port Houston, Bay Area’s location-based logistical advantages continue to set it apart.”
Vacancy rates are quickly decreasing in the Southeast submarket due to lack of new development and a substantial uptick in leasing velocity, according to Stream’s market research.
“Although it’s not reflected in the stats yet, it’s a phenomenon we are seeing across the city, not just in the Southeast,” says Robinson. “Development on the infill side of this submarket, south of the Houston ship channel, has become increasingly difficult due to the lack of obvious, developable sites and more stringent flood plain legislation that disproportionately impacts this area, given its near sea level elevation. Our belief is the infill side of the market will see a substantial rent growth over the next few years for these reasons.”