Houston Industrial Rental Rates Growing Considerably
As the 4th biggest city in the United States, the Houston commercial real estate market has become one of the largest in the United States. Furthermore, its location near the port of Houston, which is considered to be the busiest port in America, has made the city an industrial hotspot for manufacturing and distributing goods in the same location. Sea transportation is cheaper than many other forms of transportation and that makes owning even just a warehouse in Houston all the more lucrative. In fact, warehouse/distribution properties made up 85% of purchased industrial vacancies in the second quarter of 2014.
Distribution/warehouse centers in Houston have become amazing assets in a city that never seems to stop growing. In fact, Grocers Supply Inc., a Houston-based wholesale supplier, has endeavored to build a 1.7 million-square-foot warehouse and distribution facility in North Houston’s Pinto Business District. It’s expected to be completed at least by the end of 2014, and it is expected to markedly increase industrial vacancies across Houston. Currently, industrial vacancies rest at 6.3%, which is markedly high for a city as big as Houston. Shockingly, that number is one of the lowest vacancies they’ve posted in years, illustrating just how high demand has become for the Bayou city. The number is even lower for manufacturing facilities, hovering round 4.3%.
This increased demand has driven an increase in Houston’s industrial rental rates–12% in the last year, currently residing around $7.09 per square foot across the city. That number is only expected to go up so long as vacancies drop further. So if you have any plans to open industrial locations for your business in the Houston area, make sure you do it soon. The longer you wait, the more expensive it might become.
How To Use This Information
If you are interested in getting your business into the Houston market, then you will need a space that fits exactly what you are looking for. At Capital Realty Group, we strive to ensure that the spaces we choose for you are as close to your ideal location as possible. At Capital Realty Group, dream spaces get as close to reality as they possibly can. To learn more about our properties in Houston, call us at 713-452-9000.
What is your experience with the Houston industrial real estate market recently?
Categorized in: Houston Real Estate News
This post was written by Capital Realty