Houston had the country's largest drop in year-over-year industrial real estate availability — 6.3% — in Q2, according to JLL's recently released North America Seaport Outlook.
Gulf ports are gaining share of TEU volumes (the metric measuring cargo on ships) as a result of the Panama Canal expansion and subsequent larger vessels. That is driving industrial activity along the coast.
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Much of Houston's overall market activity is driven by the strength of the downstream sector and resulting petrochemical boom. Resins/plastics and chemicals/minerals account for 46.7% of the Port of Houston’s exported TEUs. An estimated 250,000 TEUs in new exports will be created by 2019 as newly delivered petrochemical projects ramp up production.
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To keep the growth going, the Port of Houston expects to invest $333M in capital projects over 2017 and 2018, including adding additional Post-Panamax cranes where needed. Bayport Wharf No. 2, the fourth wharf at the terminal, is under construction, and reconstruction of Barbours Cut Wharf No. 2 is progressing rapidly.
While not traditionally a big-box market, Houston is evolving as large industrial users seek to capitalize on the region’s shipping and distribution networks.
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