Industrial market Houston: healthy growthIndustrial market Houston: healthy growthhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=68672013-07-10T08:44:00Z2013-07-10T00:00:00Z

HOUSTON - Second quarter 2013 demonstrated a healthy industrial market and growth, according to Transwestern.

  • Net absorption: 926,000 SF in Q2 2013; 3.0 million sf in the first half of the year.
  • Overall vacancy: 4.4 percent, down from 4.6 percent a year ago.
  • Industrial asking rents: Declined 1.1 percent in the first half 2013 after rising 4.8 percent in 2012.
  • Outlook: Steady growth ahead, particularly in the warehouse/distribution sector.

A growing retail segment benefits the distribution market. 

Net Absorption in SF
Type Q2 2013 YTD 2013
Flex/R&D 313,000 481,000
Manufacturing -41,000 -276,000
Warehouse/Dist. 654,000 2,790,000

Industrial submarkets that are likely to outperform in the period ahead, with declining vacancy and rising rents include North, Northwest and Southeast.

Houston’s industrial vacancy rate will likely decline to approximately 4.2 percent over the next 12 months, as steady demand continues to outpace the pipeline of new supply.

Vacancy will continue to decline until the development of new product escalates and catches up to demand. However, Transwestern does expect groundbreakings to increase during the second half of 2013.

Houston-The Woodlands-Sugar Land
http://www.transwestern.net/market-research/pages/research.aspxRead more at {Source}

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