Increasing Population and Demand for Speedy Delivery Heats Up Houston’s Industrial Market
2018 saw the start of 16 MSF of industrial construction, nearly a third of that in Q4 2018, which ended with the vacancy rate hovering around 5%, continuing a downward vacancy trend (and an upward absorption trend). And in 2019, the trend holds strong with Houston being a hub for capital investment, a home for several massive new warehouse facilities and an increasingly popular port. The market is hot, space is scarce, and rents are only going to rise. The time has never been better to get warehouse space in Houston.
It’s no wonder Houston is a growing hub for shipping and commerce. Centrally located in the country, the nation’s fourth largest city sits on a 50-mile channel that feeds in from the Gulf of Mexico. Hundreds of ships travel the channel each day, picking up and dropping off containers. George Bush Airport is the 15th busiest in the nation, serving over 40 million passengers a year. But according to the Houston Business Journal it’s Houston’s population growth (and that of Texas in general) and its residents’ demands for same and next-day delivery that’s fueling demand for industrial space.
In fact, UPS announced recently that it strategically chose Northwest Houston for its new facility. With several major airports, access to an extensive railway network and major US highways, not to mention the ports and the city’s proximity to the Mexican border, it’s an ideal location for an international business looking to increase efficiency and better serve Texas’ fast-growing population and increased shipping demands.
The Home Depot, too, announced just this month that it leased a warehouse in Northwest Houston as part of a $1.2 billion strategy to increase delivery speed to its customers and stores.
If you’re in the market for industrial space, now is the time to get it. All you have to decide is where.