Q3 2023 | Houston Industrial Market Report

HOUSTON - Oct. 26, 2023 - PRLog -- "As the global economy faces growing headwinds, construction levels throughout Greater Houston have slowed. However, the industrial leasing market remains active with 6.7 million square feet of positive net absorption and leasing activity of 7.8 million square feet.

Developers completed construction on more than 9.7 million square feet of product, bringing the total under construction down to 22.3 million square feet, 27.3% less than the prior quarter.

With new supply outpacing absorption during the quarter, vacancy rates increased but the market is expected to remain steady and active through 2023 and into 2024."

Danny Rice | President

Key Takeaways

• Construction volume declines
• Deliveries and absorption up
• Leasing activity slows
• Rental rates increasing

Houston Highlights
The industrial market's activity level slowed during the third quarter with new supply at 9.7 million square feet, outpacing net absorption of 6.7 million square feet. Almost twice as much new product has been delivered than absorbed year-to-date. Developers have reduced the construction level to 22.3 million square feet after achieving record-level totals in previous quarters. The overall vacancy rate increased 30 basis points to 6.5% in the third quarter from 6.2% in the second quarter, while rents reported a slight increase to $9.35 per square foot from $9.23 last quarter. Leasing activity totaled 7.8 million square feet, down from 8.3 million square feet the previous quarter and 12.2 million square feet year-over-year. Rents marginally increased to $9.35 per square foot from $9.23 psf last quarter and 7.7% year-over-year.

Read the full report here: https://www.colliers.com/en/research/houston/q3-2023-hous...