Q1 2023 | Houston Industrial Market Report

HOUSTON - Txylo -- "Despite a slight weakening, the industrial market in the Greater Houston MSA remains active and healthy, with 4.3 million square feet of net absorption and a construction pipeline of over 36 million square feet.

Although vacancy rates are expected to increase later in 2023, the market is likely to remain steady and strong, barring any major economic downturn."

Patrick Duffy | President

Key Takeaways
  • Vacancy remains stable
  • Construction volume unchanged
  • Deliveries increasing
  • Leasing activity drops
  • Rental rates increasing
Houston's industrial market remained active during Q1 with deliveries outpacing net absorption and leasing activity slowing. Leasing volume was 8.9 million square feet, equivalent to 2019 and 2020 averages, but 70% of the average per quarter in both 2021 and 2022. New development is never-ending, with 36.3 million square feet constant with the previous quarter. Positive net absorption during the first quarter was 4.3 million square feet, a 33% drop from the previous quarter, while deliveries increased to 6.8 million square feet. Although the vacancy rate remained steady at 5.7%, that could change during the second quarter as more than 17 million square feet are projected to be delivered with only 23% preleased.

More on Txylo.com
See the full article here: https://www.colliers.com/en/research/houston/q1-2023-houston-industrial

Crystal Kingsbury

Source: Colliers | Houston
Filed Under: Real Estate

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