Colliers: Houston industrial market ends 2016 on positive note

​​HOUSTON – During the final quarter of 2016, 1.9 million sf of Houston’s industrial inventory was absorbed, reports Colliers International in its latest quarterly market update. 

That’s substantially less than the 6.3 million sf absorbed in the third quarter. However, 3.9 million sf of that was a result of Daiken occupying a massive new facility.

Industrial leasing activity decreased between quarters, dropping from 4.3 million to 3.2 million sf.

The average vacancy rate increased ten basis points over the quarter from 5.5 to 5.6 percent. About 70 percent of the 2.3 million sf of new space delivered in 4Q2016 was preleased, and 78 percent of the 5.2 million sf currently under construction is preleased.

More than 2.4 million of the 5.2 million sf currently under construction is in the East-Southeast Far submarket where the Houston Ship Channel and the Port of Houston are located.

The average citywide quoted industrial rental rate increased 3.3 percent on a quarterly basis from $6.87 per sf triple net to $7.10 per sf triple net.