HOUSTON – (Realty News Report) – Houston’s warehouse construction hit an all-time high in 2018, CBRE reported. The boom erupted as retailers leased huge distribution centers while demand was strong for industrial real estate related to petrochemical and the oil and gas industry near Port Houston.
CBRE reported 16.3 million SF on industrial construction starts in Houston in 2018. The previous annual record was set in 2014 when 13.6 million SF was built.
CBRE released the data Wednesday in a report entitled: “Developers Bullish in Red Hot Industrial Market.”
Vacancy declined in the fourth quarter to 5 percent, despite the addition of new space. It was the lowest industrial vacancy rate since the second quarter of 2016, CBRE said.
For the year, Houston had 10.6 million SF of absorption, with firms like Best Buy, Conn’s and Amazon filling space.
Sixty industrial properties – about 14 million SF – are currently under construction, CBRE said.