Q1 2022 | Houston Industrial Market Report

HOUSTON - April 26, 2022 - PRLog -- "We expect user demand in SE Texas to remain very strong in the industrial market as re-shoring and supply chain adjustments accelerate. While there are many storm clouds on the horizon, we expect 2022 to be a solid year for industrial real estate in Houston and SE Texas."

Patrick Duffy | President of Colliers in Houston

Key Takeaways

• Robust leasing activity
• Positive net absorption
• Vacancy drops
• Rental rates increase
• Cap rates continue to compress

Houston Highlights

Houston's Industrial market continued to gain momentum as leasing velocity reached 10 million square feet in the first quarter. The increase in demand for space continued to spur new development with over 18 million square feet under construction and an additional 65 million square feet proposed or in the final planning stage. Houston's industrial market recorded 5.6 million square feet of positive net absorption in the first quarter. The vacancy rate decreased 220 basis points annually from 8.7% in Q1 2021 to 6.5% in Q1 2022.

Executive Summary
Commentary by Ryan Byrd | Principal

Houston's Industrial market shows no signs of letting up even after a record high 2021 performance. With Q1 2022 leasing activity of 10 million square feet and net absorption of 5.6 million square feet, the market remains on pace to match or exceed 2021. Vacancy fell below... Read the full report here: https://www.colliers.com/en/research/houston/q1-2022-hous...