HOUSTON – All local industrial submarkets except the CBD had positive net absorption in the first quarter, according to CBRE's latest market update.
Several manufacturing consolidations led to a loss in occupied space. The Southeast contributed over 2.2 million sf of net absorption of the 3.1 million sf market total. The majority of the market total was preleased deliveries.
Vacancy increased by 10 basis points quarter-over-quarter. Robust deliveries added 1.5 million sf of vacant space to the market, increasing total vacancy to 5.2 percent.
The development pipeline continues to ebb. The amount of space under construction is now half of last year’s peak.
A modest uptick in vacancy is expected through mid-year as capacities reach equilibrium.
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