HOUSTON INDUSTRIAL

Monthly Market Snapshot

DECEMBER 2020

Market Highlights
Market Activity
Vacancy at 8.9%. Overall vacancy in the
November 2020 November 2019
Houston industrial market is at 8.9%, up from
Year-to-Date Year-to-Date
6.6% in November 2019. The increase in vacancy
is due in part to 27.2 million sq. ft. delivered Vacancy 8.9% 6.6%
to the market so far in 2020, of which half is
vacant. In addition, there is 13.1 million sq. ft. Availability 13.5% 11.2%
currently under construction, with 64% of that Net Absorption (SF) 11,330,014 6,347,128
space available for lease. The vacancy rate for
Leasing Activity (SF) 25,230,407 20,761,134
Class A properties is at 19.0%, up from Q3 2020
at 18.0%, although up more significantly from Deliveries (SF) 27,165,254 13,683,771
November 2019’s 12.6%. The Houston industrial
Under Construction (SF) 13,096,005 18,271,630
market has recorded 25.2 million sq. ft. of leasing
activity—which is comprised of both new leases NNN Avg Asking Rent (PSF) $0.64 $0.61
and renewals—while net absorption (move-ins
minus move-outs) is at 11.3 million sq. ft., up
from 6.3 million sq. ft. year-to-date November
2019. The asking price for industrial properties
is currently at an average monthly rate of $0.64
per sq. ft., up from this time last year at $0.61 Supply & Demand
per sq. ft., due primarily to the new product Deliveries Net Absorption
added to the market. 30
Millions (SF)

25
East End Maker Hub. The approximately
20
300,000-sq.-ft. facility under construction at
6501 Navigation Blvd. in Houston's East End 15

will house a makerspace for companies in 10

equipment manufacturing, 3D printing, heavy 5
fabrication, and hardware innovation. Recently,
0
Volumetric, a startup founded by Rice University 2015 2016 2017 2018 2019 2020 YTD
bioengineers, signed an 11,200-sq.-ft. lease
for manufacturing and lab space, doubling
its square footage. The expansion is a sign of
Houston’s growing bioengineering sector as the
city aims to become the third coast for medical Construction Activity
innovations and research.
Available Leased
Port of Houston #1 Port in U.S. The Houston
Southwest
Ship Channel port complex and its public and
Southeast
private terminals, collectively known as the
Port of Houston, is now the number one port in Northwest

the United States in terms of total waterborne North

tonnage, newly released government statistics
South
show. It is also ranked first for foreign waterborne
0 1 2 3 4 5 6
tonnage and number of vessel transits. Nearly Millions (SF)
285 million tons of cargo moved through the Port
of Houston overall in 2019, which was about 47
million tons more than any other U.S. port and Leta Wauson
a 6% increase compared to the previous year. Director of Research
leta.wauson@naipartners.com
tel 713 275 9618