Houston industrial market splits as new supply pressures landlords, PlaceMKR says
XLRE•PlaceMKR’s Houston industrial analysis found strong tenant demand alongside rising speculative supply. Third-quarter vacancy estimates ranged from 6.3% to 7.4%, while asking rents fell 1.6% year over year to $9.45 per square foot.
1. Demand and supply diverge
PlaceMKR’s analysis found strong tenant demand coexisting with rising speculative supply in Houston’s industrial market. Third-quarter vacancy estimates ranged from CBRE’s 6.3% to CoStar’s 7.4%, reflecting differences in market coverage.
2. Leasing and rents
CBRE tracked 14.7 million square feet of leases exceeding 50,000 square feet, the strongest quarter in three years. CoStar data showed asking rents fell 1.6% year over year to $9.45 per square foot, the steepest decline since 2010. Landlords commonly offered four to six months of free rent on five-year leases.
