HOUSTON – (Realty News Report) – At year-end, Avison Young reports 19.1 million SF of industrial space is under construction in 112 buildings in the Houston area, a record high.
Growth of industrial sector is fueled by expansion in e-commerce and activity at the Port of Houston.
Year-end vacancy stood at 6 percent and 2 million SF was absorbed in the fourth quarter, Avison Young reported. For now, supply and demand is stabilized.
“Industrial business parks are popping up in the outskirts of Houston due primarily to higher land prices within the city, commented Grant Hortenstine,a Vice President in the firm’s Houston office. “A lot of these projects are currently under construction and more are on the way.”
Four of the five largest projects are build-to-suit representing almost 3.9 million SF. The largest build-to-suit project, Medline’s 1.3 million SF project off Interstate 10 in Katy, broke ground during fourth quarter. Coca Cola’s new 1 million SF manufacturing plant in Pinto Park is the second largest, followed by Five Below’s 860,000-SF building in Conroe and Home Depot’s 770,640-SF warehouse/distribution center in Grand National Business Park in the Northwest.
In the Southeast/Port area, major projects include the Bay Area Business Park by Stream Realty Partners and Principal Real Estate Investors; and Cedar Port Logistics, a 644,000-SF industrial project by Avera.
Jan. 6, 2020 Realty News Report Copyright 2020
A BOOK for THE NEW YEAR – by Ralph Bivins, Editor of Realty News Report
Houston 2020: America’s Boom Town – An Extreme Close Up
Available on Amazon http://tiny.cc/4a2g6y