With more than 4.2M SF of new product delivered in the third quarter, Houston's industrial market continues its blazing streak, according to Avison Young's Q3 market report. Houston's direct vacancy stands at 5%.
And there is no slowdown in sight.
The construction pipeline increased to 10.3M SF during the quarter with 63 buildings under construction, representing mostly warehouse and distribution space. They are 37% pre-leased.
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The key factors pushing the demand for the industrial product include the growth of e-commerce suppliers and the influx of traffic at Port Houston, which has moved to top 5 in container traffic in the U.S. More big-box retailers like Best Buy and Conn's HomePlus have announced plans to open distribution centers.
While distribution centers are launching throughout Houston, petrochemical activity has concentrated on developing in the southeast near the port and e-commerce companies have been attracted to the northern corridor.
Other trends that support the industrial sector include the recovery of the energy sector, employment growth and the healthy construction pipeline, according to the report.
Using data provided by Transwestern, Bisnow has compiled the largest industrial developments to break ground this year:
10. North Houston Logistics Center |
Address: 30 Esplanade Blvd.
Tenant: None disclosed
Rental space: 351K SF
Percent leased: 0%
Developer: IDI Logistics
Submarket: North Houston
Expected Delivery: Q4 2019
9. Underwood port logistics Center |
Address: 4600 Underwood Road
Tenants: None disclosed
Rental space: 404K SF
Percent leased: 0%
Developer: Triten Real Estate Partners
Submarket: Southeast
Expected Delivery: Q1 2019
8. Plastic Bagging & Packaging Distribution Center |
Address: 5055 East Grant Parkway S.
Tenants: Plastic Bagging & Packaging
Rental space: 519K SF
Percent leased: 100%
Developer: Trammell Crow Co.
Submarket: Southeast
Expected Delivery: Q2 2019
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7. Best Buy Distribution Center |
Address: 636 Highway 90
Tenants: Best Buy
Rental space: 550K SF
Percent leased: 100%
Developer: Seefried Properties Inc.
Submarket: Southwest
Expected Delivery: Q4 2018
6. Port Crossing Commerce Center |
Address: 1302 Wharton Weems Blvd.
Tenants: None disclosed
Rental space: 600K SF
Percent leased: 79%
Developer: Liberty Property Trust
Submarket: Southeast
Expected Delivery: Q1 2019
5. Fallbrook pines building phase 2 |
Address: 9800 Derrington Road
Tenants: None disclosed
Rental space: 660K SF
Percent leased: 0%
Developer: Trammell Crow Co.
Submarket: Northwest
Expected Delivery: Q4 2020
4. Conn's homeplus Distribution CENTER |
Address: 1401 North Rankin Road
Tenants: Conn's HomePlus
Rental space: 657K SF
Percent leased: 100%
Developer: Liberty Property Trust
Submarket: North
Expected Delivery: Q2 2019
3. PARK AIR 59 |
Address: Highway 59 and Will Clayton Parkway
Tenants: None disclosed
Rental space: 685K SF
Percent leased: 0%
Developer: Archway Properties Development
Submarket: Northeast
Expected Delivery: Q2 2019
2. Grocers Supply Distribution Center |
Address: 14803 Woodham Drive
Tenant: Grocers Supply
Rental space: 728K SF
Percent leased: 100%
Developer: Liberty Property Trust
Submarket: North
Expected Delivery: Q2 2019
1. Pinto Business Park |
Address: Interstate 45 and Beltway 8
Tenants: The Coca-Cola Co.
Rental space: 1M SF
Percent leased: 100%
Developer: Hines
Submarket: North
Expected Delivery: Q1 2020
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