McALLEN - The regional industrial market registered a positive, but somewhat softer, net absorption after a strong opening quarter.
The 109,354 sf of net absorption in second quarter 2016 continued the 11th quarter positive streak in net demand and offset the largest wave of vacancies since 4Q 2014.
The market vacancy rate fell by 10 basis points (bps) quarter-over-quarter and 320 bps below year-over-year.
One construction site started moving dirt in 2Q 2016 which pushed total under construction square feet to a three year high. This is expected to be delivered fully occupied.
Produce out of Mexico continued pushing demand for cold storage warehouse. This industrial segment is essentially at full occupancy.
Click to see the full CBRE McAllen Industrial MarketView 2Q 2016 (PDF).
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