CBRE: McAllen industrial market 2Q 2014CBRE: McAllen industrial market 2Q 2014https://www.recenter.tamu.edu/news/newstalk-texas/?Item=34132014-08-12T07:45:00Z2014-08-12T00:00:00Z

McALLEN - Industrial real estate activity continues on a good path as the McAllen industrial market produced a third consecutive quarter of positive net absorption, according to CBRE’s 2Q 2014 Industrial MarketView.

The net absorption of 298,896 sf sets a new 11-quarter-high dating back to 3Q 2011 and keeps the transitioning market afloat.

The current vacancy rate of 12.0 percent is up 50 basis points (bps) quarter-over-quarter and 200 bps year-over-year. Despite the higher vacancy rate, the consecutive positive net absorption benefits the transitioning market after a handful of large vacancies pushed the vacancy rate up in 2013.

Q2 2014 recorded an increase of $0.06 per sf in the average annual asking industrial lease rate from $3.83 to $3.89 per sf. Although the vacancy rate sits at 12 percent, the market remains relatively active, which continues to marginally increase asking rates.

The supply of industrial buildings in McAllen increased in 2Q 2014 with the addition of two existing buildings that were previously not tracked.

This quarter also saw the delivery of 348,000 sf for Royal Technologies in the Mission submarket, making it the single largest construction project seen since 2005.

CBRE: McAllen Industrial Market 2Q 2014
Market Rentable
McAllen 11,497,177 1,711,597 14.9%
Pharr 3,549,899 197,903 5.6%
Edinburg 2,237,969 44,000 2.0%
Hidalgo 1,435,748 231,850 16.1%
Mission 1,436,640 101,560 7.1%
Other 2,149,098 384,645 17.9%
Totals 22,306,531 2,671,555 12.0%

Source: CBRE Research 2Q 2014

For CBRE’s full report, click here.

For more news, click McAllen-Edinburg-Mission NewsTalk Texas.

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