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CBRE: El Paso industrial market 'challenging' for usersCBRE: El Paso industrial market 'challenging' for usershttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=170372017-07-07T05:00:00Z2017-07-07T16:00:00Z

​​​EL PASO – An industrial market expert with CBRE says the local industrial market is showing the strongest fundamentals he's seen in his 15-year career, but there are challenges ahead.

"Low vacancy in the face of strong demand is driving rental rates higher," said Christian Perez Giese, CBRE senior vice president and director​. "We will need to see some new speculative construction soon as we are quickly running out of space for new tenants or those that need to grow.

“It is a challenging market for industrial users in El Paso today. Rental rates are on the rise, and there is simply a declining supply of warehouse and light industrial space across town. Tenants looking for spaces under 100,000 sf are going to have a very hard time today, and they better be prepared to pay a higher rent than they have grown accustomed to in the past ten-plus years."

Other local market observations from CBRE:

  • El Paso absorbed more industrial space in Q2 2017 than the four previous quarters combined.
  • Vacancy decreased 80 basis points (bps) quarter-over-quarter and 70 bps year-over-year.
  • The Northeast and Central submarkets saw asking rent increases. The market average decreased by $0.05 per sf since Q1 2017 and $0.03 per sf year-over-year.
  • A speculative development and a build-to-suit lease broke ground in Q2 2017, the first of their kind in the current cycle.​
CBRE
El Paso
Industrial
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