HOUSTON - Houston posted 1.4 million sf of positive net absorption in fourth quarter 2012, pushing the year-end total to 6.2 million sf. Leasing activity reached 3.3 million sf in 4Q 2012, pushing the year-to-date total to 13.2 million sf.
Houston’s average industrial vacancy rate decreased from 5.3 percent in 3Q 2012 to 5.2 percent in 4Q 2012.
The overall average quoted industrial rental rate increased from $5.51 to $5.59 per sf between quarters, and increased by 2.6 percent on a year-over-year basis from $5.45 per sf at the end of 2011.
Houston’s lack of available industrial inventory has spurred demand for new product. Developers have responded and currently have over 2.5 million sf under construction. Additionally, there are now more spec developments (1.9 million sf) than build-to-suit projects.
Source: Colliers International.
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