Houston Industrial Market Report | Q2 2022

HOUSTON - July 29, 2022 - PRLog -- "Capital flows are still robust for industrial assets despite some near-term headwinds as the sector continues to show strength on the user (leasing) demand side and reasonable new construction pipelines. We believe that the central part of the country, including SE Texas, are well positioned for robust future industrial growth as the Gulf of Mexico Ports and North/South rail options push more distribution from the backlogged West Coast to this region."

Patrick Duffy | President of Colliers in Houston

Key Takeaways

• Robust leasing activity
• Positive net absorption
• Vacancy drops
• Rental rates increase
• Construction starts up

Houston Highlights
Houston's industrial market continued to gain momentum as leasing velocity reached over 10 million square feet in the second quarter. The increase in demand for space continued to spur new development with over 21 million square feet under construction and an additional 65 million square feet proposed or in the final planning stage. Houston's industrial market recorded 6.6 million square feet of positive net absorption in the second quarter. The vacancy rate decreased 280 basis points annually from 8.5% in Q2 2021 to 5.7% in Q2 2022.

Executive Summary
Commentary by Jim Pratt | Principal

The headlines for the 2nd Quarter of 2022 might mimic a political campaign of yesteryear, "It's the economy, stupid!" While that may be somewhat harsh, we are certainly in a period of dramatic change and uncertainty in the Houston industrial market. With inflation at 40-year highs, currently exceeding 9%, and YTD increases of...  to read the full report click here: https://www.colliers.com/en/research/houston/q2-2022-hous...