Houston’s industrial historical and projected construction
- Houston’s industrial construction pipeline remains robust, with 29.7 msf underway and 24.8 msf projected to be delivered by year-end.
- Nearly half of the new construction (49.2%) are buildings larger than 500k sf, developed in anticipation of continued demand from e-commerce. However, leasing demand for large occupiers above 500k sf has declined in recent quarters, causing absorption to normalize and return to pre-pandemic levels.
- Only 26.1% of current developments underway are pre-leased, and recent deliveries are 42.1% leased. Vacancy will continue to climb as new product is delivered but is expected to stabilize in 2024.
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