Houston's industrial market has been recognized as the nation's top emerging industrial market, according to a new report. Despite the delivery of 53M SF of new industrial facility space, the industrial vacancy rate in Houston has declined, and this was cited as a key reason for the city's top-ranking. Since the beginning of 2020, Houston's industrial market has experienced impressive activity driven by strong e-commerce and wholesaler/retailer activity. A report by Cushman & Wakefield noted that Houston recorded nine deals of over 1 million SF during this period.
Houston's recognition as the top emerging industrial market underscores its potential for growth, even in the face of increasing amounts of available space. Not only Houston, but Texas as a whole, has seen a surge in real estate activity. Houston emerged at the top of the list of the best real estate market, but closely following are San Antonio, Austin, Fort Worth, and Dallas. Here are some of the recent findings about Houston’s real estate market:
- Single-family Real Estate: The years 2021 and 2022 were the best for residential development in the decade, with an estimated 55,600 units, the most across the nation, being authorized.
- Multi-family Real Estate: Permits have been issued for about 90,000 new apartments in the multifamily sector.
- Office Sector: Corporate relocations contributed significantly to Houston's office boom. Houston's office sector grew by 27 million square feet, falling behind New York City.
- Industrial Sector: Industrial space increased by about 65 million square feet, ranking first nationally.
- Self-storage: The Houston self-storage sector has also seen a significant increase in new construction, addressing the city's complex space needs. Over the last ten years, the local inventory has grown by around 5.7 million square feet.
Houston's industrial market continued to expand exceptionally in the first quarter, with 6.9 million square feet (msf) of new deliveries led by robust occupier demand. Developers have boosted their product choices, with 33.8 million square feet of building currently ongoing. Population expansion, combined with increased shipping activity through the Port of Houston, has fueled growth in both e-commerce and consumer goods. Despite persistent global economic uncertainties, several multinational retailers and third-party logistics companies continue to pursue growth plans to support solid consumer growth.
Developers are keeping up with robust demand in each submarket by building at historic levels. Due to increased shipping activity at the Port of Houston, the Southeast sector currently leads all submarkets, with 7.6 million square feet or 23% of total market building underway.
Investing in real estate can be a tricky business if not done correctly. Having an expert guide you through the process is not just advised but is essential for successful investment. Do not make real estate or other investment decisions by yourselves without the supervision of an advisor or broker. TC Global Commercial offers expert advice, consultation, representation, and more. Get in touch with industry experts and begin your investment journey toward successful wealth management.
Where To Find Real Estate Investment Opportunities In The Current Market
Real Estate Articles / Mar 23, 2019
Commercial Real estate investors, looking to maximize profits have set their sights on Texas. The Lone Star State has made a name for its self as a strong market for Commercial Real Estate Investors.
Extending a Warm Welcome to Savings for All Property OWNER
Real Estate Articles / Oct 27, 2023
Texas\' Landmark Property Tax Reform: Securing Affordable and Sustainable Homeownership for Texans, Envisioning Average Yearly Savings of $1,300.
What developers are saying about the 2023 real estate market
Real Estate Articles / Apr 26, 2023
The 2023 market condition,specifically commercial real estate development and construction industry is set for significant growth and innovation. Developers are saying that recession may be mild, and many growth and investment opportunities\'ll arise.
How increase in interest rates will affect the real estate market in 2022
Real Estate Articles / Jul 08, 2022
2022 has proven to be a pivotal year for the housing and real estate market. With the ongoing Ukraine war on one side, and the rising interest rates on the other, the housing market is seeing a shift from the post-Covid boost.
Crypto is changing the real estate industry. Invest in real estate using crypto currency!
Real Estate Articles / Sep 01, 2022
With the economic inflation rising, the real estate and financial market is undergoing changes. Crypto currency is the new trend in real estate and in the investment world as more people are using crypto to invest in real estate.
Tesla moves to Texas - Impact on real estate and economy
Real Estate Articles / Jan 27, 2022
2021 was a big year for real estate in many ways, but the biggest news of the year came towards the end of it when billionaire magnate, Elon Musk announced his move from California to Texas.
Rise In Population Is Causing This Real Estate Phenomenon To Take Place In Cypress, Texas!
Real Estate Articles / May 20, 2023
Population rise causes a rise in need for medical institutes, hospitals and other commercial real estate in Cypress, Texas.
Who Should Invest In Commercial Real Estate
Real Estate Articles / Mar 16, 2019
There are several reasons why someone would choose to invest in commercial real estate.
Legal Victories Unleash Potential to Cut Property Taxes - Impact on Hospitality and more
Real Estate Articles / Nov 15, 2023
Landmark Court Decisions Pave the Way for Lower Property Taxes and Intangible Asset Considerations
Late 2022, Early 2023 Market Trends
Real Estate Articles / Dec 05, 2022
Real estate investors are keen to invest in real estate. End of year real estate trends and market predictions and trends that can be expected in commercial real estate for 2023.
