Southwest - Houston Industrial MarketWatch

Market Watch
HOUSTON INDUSTRIAL
February 2015
recent Industrial Leases
INDUSTRIAL LEASE STATISTICS
Northwest Near :: Banta
201,600 SF renewal at West by Northwest Business Park
Asking Rental Rates (NNN)
Overall Vacancy Rates
Northeast Near :: FXI, Inc.
6.0%
$6.50
5.5%
$6.25
30,000 SF new lease at Udelson Industrial Park
5.0%
$6.00
recent Industrial sales
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
56,700 SF renewal at Eastwood 4
North Near :: SRS Distribution
Southwest Near :: Freeport SW Business Park
145,120 SF manufacturing property
Buyer: Satake USA, Inc.
Seller: Sherman Family Trust
3.0%
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
$5.00
4Q14
Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings
Industrial Market Indicators
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
OVERALL VACANCY RATE
SF UNDER
CONSTRUCTION
2014 NET ABSORPTION
Central Business District
East-Southeast Far
North Far
North Near
Northeast Far
Northeast Near
Northwest Far
Northwest Near
South Far
South Near
Southeast Near
Southwest Far
Southwest Near
Sugar Land
30,218,438
45,245,610
58,941,575
17,624,441
1,064,701
30,081,678
58,606,937
86,918,130
29,369,278
12,154,332
30,734,163
9,095,235
38,656,794
17,945,559
1,434,767
2,759,321
4,898,511
1,162,762
405,700
2,424,623
2,504,827
622,379
515,664
407,652
489,142
1,424,781
1,030,297
4.7%
6.1%
8.3%
6.6%
0.0%
1.3%
4.1%
2.9%
2.1%
4.2%
1.3%
5.4%
3.7%
5.7%
4.7%
6.1%
8.5%
6.7%
0.0%
1.3%
4.2%
3.0%
2.2%
4.2%
1.3%
5.4%
3.7%
5.8%
1,226,938
2,078,754
42,600
20,000
3,305,593
628,478
219,841
406,630
37,296
681,000
112,000
1,815,000
1,307,000
594,000
4,000
225,000
1,651,000
1,288,000
994,000
268,000
489,000
43,000
66,000
100,000
TOTAL
466,656,871
20,080,426
4.3%
4.4%
8,645,130
8,956,000
SUBMARKET
Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings
Houston Industrial Submarkets
Industrial Sales Statistics
Houston MSA
Click Map below to Expand
United States
Quarter to
Date
Last Quarter
(4Q14)
Trailing 12
Months
Last Quarter
(4Q14)
Trailing 12
Months
$22.5
$303.0
$997.7
$6,667.1
$53,864.0
N
249
290
90
Volume ($ Mil)
No. of Properties
Total SF
3
46
131
1,942
5,962
240,472
5,575,059
16,484,297
248,628,360
781,440,971
Average Price/SF
N/A
$44
$64
$75
$71
Average Cap Rate (Yield)
N/A
N/A
7.5%
7.0%
7.2%
Source: Real Capital Analytics
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
Houston | INDUSTRIAL
SUBMARKETS
February 2015
45
249
2
290
2
90
2
1
1
10
10
1
1
1
1
1
6
99
8
2
3
59
288
2
centr al
south
north
1. Houston CBD
1.
2.
1.
2.
SW
2. 2 East-Southeast
Southwest Far Far
3
Sugar Land
northeast
1.
2.
Northwest Near
2
East-Southeast Far
2
Northwest Far
1
South Near
1
North Near
2
South Far
2
North Far
NW
1
1. Northwest Near
2. Northwest Far
Southeast Near
1
N
Southeast
Southwest Near
1. 1 Southeast
Near
northwest
SE
Southwest Near
Southwest Far
Sugar Land
1 Houston CBD
S
1.
2.
3.
North Near
North Far
M AR K E T WATCH H OU S TON INDUST RIA L MA RKET FEBRUARY 201 5
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
2
Northeast Far
35
45
HOUSTON INDUSTRIAL MARKET WATCH
February 2015
A B OUT TRANSWESTERN
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Managing Director
713.270.3321
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Senior Vice President
713.270.3325
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Vice President
713.270.3318
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Senior Vice President - Tenant Advisory
713.231.1627
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713.270.3342
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713.270.3398
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Associate
713.490.3784
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Methodology
Rachel Alexander
Director of Market Research
713.270.3344
[email protected]
The information in this report is the result of a compilation of publicly available data from a variety of
commercial and government sources.
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