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Avison Young releases Fourth Quarter 2020 Market Reports for Houston industrial and office sectors

January 4, 2021

Largest square footage completions during a single year for industrial sector

Houston, TX Avison Young today released both its Fourth Quarter 2020 Office Market Report and Industrial Market Report for Houston. The industrial sector shattered last year’s development record of 15.4 million square feet (msf) by completing 26.5 msf during 2020, the most industrial square footage delivered during a one-year period in Houston’s history. The office market still faces challenges created by the pandemic and lackluster energy sector.

“Office tenants continued to benefit from concession packages that included lengthy rent abatements, large improvement allowances and significant amounts of free parking,” comments Anthony Squillante, Principal in the firm’s Houston office. “Also, as landlords of all building classifications including owners of class A buildings seek to capture demand, flight to quality is expected to remain a strong factor for companies pursuing newer and upgraded buildings.”

“Houston’s industrial market ended the year on a strong note with record-breaking completions,” commented Drew Coupe, a Vice President in the firm’s Houston office specializing in industrial tenant representation. “Supply surplus has given tenants an advantage as landlords continue to offer enticing concession packages with up to 10-month rent abatements on long-term deals, plus allowances for tenant improvements.”

Despite Houston’s soft office market, office users from around the country recognize the favorable business climate and diverse talent pool that is offered here, making Houston an attractive and viable option for a multitude of industries.

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