HOUSTON – The local industrial market yielded 2.6 million sf in net absorption in first quarter 2020, which was led by consumer goods, according to CBRE.
Nearly 5.4 million sf of new available space was delivered during the quarter. The vacancy rate increased 77 basis points from the previous quarter to 6.6 percent.
Development efforts kicked off the quarter with a record-breaking 22 million sf currently under construction.
Three projects account for over 21 percent of current construction. They are distribution centers for Ross (2.2 million sf), Medline (1.3 million sf), and Dollar Tree (1.2 million sf).
In response to COVID-19, supply of new space is expected to slow as projects are put on hold, but demand for consumer goods should continue to increase as things turn around.
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