Houston Industrial Market Report Q4 2021

Despite adding approximately 25 million square feet of new industrial space in 2021, the market took it in stride and managed to absorb a record 28.5 million feet and drive the vacancy rate down to 7.1%.
By: Colliers Houston
 
HOUSTON - Jan. 25, 2022 - PRLog -- Demand for industrial space shows no signs of letting up in 2022 and we expect another strong year for this sector, both in Houston and nationwide.

Patrick Duffy | President of Colliers in Houston

Key Takeaways
  • Robust investment activity
  • Historical positive net absorption recorded
  • Leasing velocity gained momentum, reaches historical high
  • Vacancy rate drops on a quarterly and annual basis
  • Port Houston sets records

Houston Highlights

Houston's Industrial market continued to gain momentum as leasing velocity reached 9.0 million square feet in the fourth quarter, pushing the year-end volume to a historical record of 44.5 million square feet. The increase in demand for space continued to spur new development with over 16.6 million square feet under construction and an additional 51.1 million square feet proposed or in the final planning stage. Houston's industrial market recorded 9.6 million square feet of absorption in the fourth quarter, bringing the year-end total to a historical high of 28.5 million square feet of positive absorption. The vacancy rate decreased 140 basis points annually from 8.5% in Q4 2020 to 7.1% in Q4 2021.

Executive Summary

Commentary by Robert L. Alinger | Principal & Director


2021 was a banner year for Houston Industrial real estate. A number of factors contributed to record setting deliveries and absorption. Among those are historically low interest rates, increased port activity, e-commerce expansion, increased capital investment in U.S. CRE, and continued pent-up consumer demand due to COVID-19. Each element contributed to what was a... To read the full report, click here: https://www.colliers.com/en/research/houston/q4-2021-hous...

Contact
Lisa Bridges | Director of Market Research
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Tags:Houston industrial report
Industry:Real Estate
Location:Houston - Texas - United States
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