HOUSTON — Developers are expected to break begin ground on more speculative industrial projects as a result of increased demand and decreased vacancy.
Houston’s industrial vacancy rate decreased to 5.9 percent during the third quarter of 2011, down 10 basis points from the second quarter, Grunn & Ellis reported.
The Houston industrial market experienced approximately 908,000 square feet of positive net absorption during the quarter, raising year-to-date absorption to roughly 2.6 million. The significant third quarter absorption growth was offset by nearly 530,000 square feet of newly vacant space delivered in the quarter, Grubb & Ellis said.