Space City industrial vacancy up, leasing down in 4Q2019
HOUSTON – The average industrial vacancy rate increased 150 basis points on an annual basis from 5.4 percent in 4Q2018 to 6.9 percent in 4Q2019, according to Colliers International.
At the end the quarter, the area had 38.8 million sf available for direct lease and an additional 2.2 million sf for sublease.
The market posted 2.4 million sf of positive net absorption in 4Q2019, pushing the year-end total absorption to 8.7 million sf.
The majority of the area’s positive net absorption occurred in the Northwest Corridor, recording 2.2 million sf.
According to CoStar Property, the citywide rental rate average for all product types decreased from $7.76 per sf NNN (triple net) to $7.52 per sf NNN over the quarter.
The market’s leasing activity decreased over the quarter from 7.2 million sf in 3Q2019 to 5.7 million sf in 4Q2019. This decrease in leasing activity can be attributed to more owner/users in the market.
Currently, 18.3 million sf is under construction, with 38.9 percent preleased.
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Source: Colliers International
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