CBRE: McAllen industrial market 3Q 2014
McALLEN – CBRE Research reports a fourth consecutive quarter of positive net absorption in the McAllen industrial market.
The third quarter 2014 net absorption of 146,976 sf decreased market vacancy rate to 11.4 percent and elevated the year-to-date net absorption to 486,846 sf.
McAllen seems to be on track to outperform 2012 and 2013 with a fourth consecutive quarter of positive net absorption in the industrial market.
The net absorption of 146,976 sf was the result of 373,602 sf of total gross absorption after the largest building in the market became leased.
The largest reported vacancy during Q3 2014 was by Sharp Electronics as they vacated 102,200 sf as part of a market relocation.
The McAllen industrial market includes 22.3 million sf spread across five major submarkets including Mission, Edinburg, Pharr, Hidalgo and McAllen.
Most of the major industrial areas are south of Hwy. 83, near the international bridges connecting the U.S. with Reynosa, Mexico. U.S.- Mexico trade is the major driver of industrial demand in McAllen in addition to produce distribution from South Texas and Mexico.
| Market | Rentable SF | Vacant SF | Vacancy Rate | Net Avg. Asking Rates SF/Yr. |
| McAllen | 11,497,177 | 1,517,256 | 13.2% | $3.86 |
| Pharr | 3,569,899 | 265,268 | 7.4% | $4.35 |
| Edinburg | 2,237,969 | 44,000 | 2.0% | $3.12 |
| Hidalgo | 1,435,748 | 231,850 | 16.1% | $4.17 |
| Mission | 1,436,640 | 101,560 | 7.1% | $4.45 |
| Off-Park | 2,149,098 | 384,645 | 17.9% | $3.61 |
| Totals | 22,326,531 | 2,544,579 | 11.4% | $3.92 |
Source: CBRE Research 3Q 2014
For CBRE’s full report, click here.
For more news, click McAllen-Edinburg-Mission NewsTalk Texas.
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