McAllen Industrial Vacancy at a New Low
McAllen, TX’s industrial sector set records in Q4 2016, according to metrics released by CBRE. The annual net absorption for the year was the highest in the current cycle (at 1.4 million square feet), while the year-end vacancy rate of 6% was a new low in the current economic cycle. Construction during the quarter was 211,250 square feet, with average asking rent at $4.16 per square foot.
The McAllen-Edinburg-Mission’s position as host of the Hidalgo-Pharr point of entry helped increase demand. Export trade from the U.S. to Mexico reached $8.6 billion (year-to-date) as of October 2016, 5.3% below the same period a year ago. However, imports from Mexico to the U.S. totaled $15.9 billion, a 3.6% increase above the same period the year before.
The demand for cold-storage industrial remains hot. This has led to new development of cold-storage buildings, particularly in Pharr, TX, which is the largest gateway for produce out of Mexico.
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