Houston’s Industrial Sector Expanding – Connect CRE
Marcus & Millichap (NYSE: MMI) has published its Midyear 2024 Houston Industrial Market Report.
Highlights include:
- Houston’s industrial inventory expanded by 20% since 2019, adding over 110 million square feet, which increased the vacancy rate to 7.5% by mid-2024.
- A shift in the supply pipeline is helping to stabilize the market, with nearly 75% of the new space already pre-leased as of June 2024.
- The second half of 2024 will see a reduced slate of new deliveries, with about 2.8 million square feet less than the first half, signaling a slowdown in construction.
- Houston’s average asking rent is projected to grow for the fifth consecutive year, reaching $9.07 per square foot by year-end, despite trailing rates in Austin.
“While vacancy pressures have been a challenge, the industrial market is showing promising signs of recovery, particularly in areas like the Southeast and Southwest corridors,” added Marcus & Millichap’s Ford Noe.
