HOUSTON – Three million sf of local industrial inventory was absorbed during the first half of 2017, reports Colliers International in its second quarter market report. Almost all of that occurred during the first quarter. Second quarter absorption was close to zero, posting negative 13,100 sf.
The average vacancy rate increased 20 basis points over the quarter from 5.3 percent to 5.5 percent. A little over 1.5 million sf of new product delivered during the second quarter, bringing the mid-year new inventory total to over five million sf.
There is currently 4.2 million sf under construction, and 77.2 percent is preleased.
The average citywide quoted industrial rental rate decreased 2.7 percent on a quarterly basis from $7.08 per sf triple net to $6.89, and it decreased marginally on an annual basis from $6.97 per sf triple net.
Our twice-weekly e-newsletter provides a quick overview of Texas real estate markets. Because your time is valuable.