During the final quarter of 2016, 1.9 million SF of Houston's industrial inventory was absorbed, substantially less than the 6.3 million SF absorbed in the third quarter. However, 3.9 million SF of the space that was absorbed in the previous quarter was a result of one tenant, Daiken occupying a massive new facility. Industrial leasing activity decreased between quarters, dropping from 4.3 million SF to 3.2 million SF.
The average vacancy rate increased 10 basis points over the quarter from 5.5% to 5.6%. About 70.0% of the 2.3 million SF of new space delivered in Q4 2016 was pre-leased, and 78.0% of the 5.2 million SF currently under construction is pre-leased. More than 2.4 million SF of the 5.2 million SF currently under construction is located in the East-Southeast Far submarket where the Houston Ship Channel and the Port of Houston are located.
Q4 2016 HIGHLIGHTS
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