Houston Industrial MarketView Q4 2017
- Robust organic demand driven by expansions and move-ins.
- Net occupier demand in Q4 2017 totaled over 1 MSF, pushing 2017 YE net absorption over 7 MSF.
- Overall availability tightens by over 60 BPS.
- Direct vacant space decreased 800 KSF and total availability decreased by 3 MSF, quarter-over-quarter.
- Development pipeline grows as more spec projects break ground.
- Port and West Houston logistics demand drive construction, as 3.3 MSF of new projects get underway.
- User requirements and pipeline timing provide expectations for tightening in H1 2018.
- Another record-setting year for Port Houston volume, and the emergence of the Gulf Coast as a globally low-cost petrochemical manufacturer, leaves Houston’s industrial sector well positioned entering 2018.