Industrial Vacancy Rates Tighten
Vacancy rates continue to stiffen in Houston's industrial market, according to the June Houston Industrial Market Snapshot by NAI Partners. The rate lowered 10 basis points to 5.4% in June compared to this time in May at 5.5%.
Activity is looking good for that strength to continue. Occupancy of the 4.3M SF added to the market year-to-date stands at 76%. Forty percent of the 11.7M SF under construction has been claimed. Net absorption is 2.5M SF so far in June, up from 1.7M SF in May. Asking rent in Houston ticked up seven cents from the previous month to $6.96.
This is likely being driven by overall economic strength in the metro. New jobs in Metro Houston also hit a historic high. There were 3.1 million workers on payrolls in May, according to the Texas Workforce Commission. The region created 79,200 jobs or a 2.6% increase for the 12 months ending in May. Construction, manufacturing and employment services took the lead in job growth, behind about 45% of the job creation. Houston’s unadjusted employment rate decreased year over year from 4.8% to 4.2% in May, but remained unchanged from April at 4.2%.