HOUSTON INDUSTRIAL MARKET

Transcription

REAL ESTATE OUTLOOK
HOUSTON
INDUSTRIAL MARKET
FIRST QUARTER 2016
Southeast Port Market Outperforms
Population growth drives demand for goods and services
OV E R V I E W
Strong preleasing drives fundamentals
The Houston industrial market saw vacancy tick up further this quarter,
but higher preleasing in deliveries propelled absorption back positive.
Demand remains strong for retail distributors and third-party logistics
providers with new leases by Advance Auto Parts and Serta, among
others in 2016. Despite the energy downturn, Houston remains a
gateway city with a world-class port, and low commodity prices
are fueling petrochemical growth along the Gulf Coast. Sublease
inventories are on the rise, especially in the manufacturing sector, but
vacancy remains tight overall. Rental rates remained flat this quarter as
pressure on effective rents increased.
NET ABSORPTION
Net Absorption by Sector
SECTOR
Q1 2016
Flex
59,000 SF
Manufacturing
266,000 SF
Warehouse/Distribution
Total
1,796,000 SF
2,121,000 SF
Vacancy by Sector
Absorption rebounds in Q1
Net absorption for all sectors totaled 2.1 million SF at first quarter,
driven largely by preleased deliveries. Warehouse/distribution
recorded 1.8 million SF of net absorption as deliveries were 64%
preleased, adding 2.1 million SF of occupied space to the market.
Over the same period, manufacturing recorded 266,000 SF, and
flex had 59,000 SF of net absorption. Oil supply and demand is not
projected to rebalance for another 12 to 18 months which will continue
to cause weaker demand for some subsets of industrial space.
SECTOR
DIRECT
OVERALL
Flex
6.8%
7.1%
Manufacturing
1.6%
1.6%
6.0%
6.2%
Total
5.4%
5.6%
Notable Q1 Leases
SF
LEASE TYPE
BUILDING
SUBMARKET
Advance Auto Parts
441,000
Serta
268,482
New
Beltway Crossing NorthWest
Northwest Far
New
Fallbrook Pines Business Park
Northwest Far
United Stationers
211,000
New
Cole Creek Business Center
Northwest Far
Maintenance Supply Headquarters
209,000
Prelease
Beltway Southwest Business Park
Southwest Far
Homelegance, Inc.
175,000
Prelease
Beltway Southwest Business Park
Southwest Far
TENANT
HOUSTON METRO MARKET
FIRST QUARTER 2016
VAC A N C Y
Vacancy rising as expected
Industrial Under Construction
The overall industrial vacancy rate (including sublet) was 5.6% at
first quarter, up from 5.3% at year-end. Direct vacancy was 5.4%, up
from 5.2% last quarter. Broken out by sector, vacancies for flex and
manufacturing were unchanged from year-end, while warehouse/
distribution continued rising with the addition of new supply to the
market. Industrial vacancy is likely to continue climbing in the period
ahead as Houston comes down from the high of the development
cycle, and low oil prices impact demand for space. Additionally,
sublease space could become a concern in 2016 as total available
sublet has grown by 75% over the last year to 3.5 million SF.
Houston Metro | Q1 2016
S U P P LY A N D D E V E L O P M E N T
Pipeline edges down slightly
There was 11.6 million SF of industrial space under construction at
first quarter, up significantly from 9.5 million SF at year-end. This space
was 78% preleased, up from 60% last quarter. The Northwest Far and
East-Southeast Far submarkets account for 71%, and warehouse/
distribution product comprises 61% of the space under construction.
The largest projects under construction are the 3.9 million SF Daikin
campus and the 800,000 SF FedEx facility, both in the Northwest Far
submarket just west of the Grand Parkway.
SF
% PRELEASED
Northwest Far
4,913,840
98%
East-Southeast Far
3,248,995
81%
North Far
SUBMARKET
1,456,625
32%
Southwest Far
861,407
39%
Southwest Near
730,295
52%
South Far
210,000
100%
Sugar Land
106,000
100%
North Near
35,000
100%
11,562,162
78%
Total
INDUSTRIAL DELIVERIES HOUSTON METRO
Millions of SF
The first quarter remained a busy one for deliveries with 3.6 million
SF delivered at 65% preleased. The most notable project was Aldi's
650,000 SF distribution center in Sugar Land. The full development
pipeline is at 3.5% of standing inventory, and developers are
continuing to break ground despite the uncertain economy.
14
R E N TA L R AT E S
4
Rent growth remains flat
Asking rental rates for all sectors dropped just 0.3% to $6.66 per
SF at first quarter as rents face pressure from economic weakness
and negative news. Quoted base rents for new distribution space
are between $5.00 and $5.30 per SF triple net with an allowance of
$5.00-$6.50 per SF for initial improvements. Due to the volume of new
supply, greater concession packages are being offered especially on
speculative construction projects, a trend expected to continue.
INVESTMENT SALES
SF Leased at Delivery
12
10
8
6
2
0
76%
31%
33%
29%
24%
81%
82%
62%
60%
46%
43%
65%
05
06
07
08
09
10
11
12
13
14
15
16*
SOURCE CoStar, Transwestern *Through Q1 2016
Multi-tenant vs Transwestern market coverage
Sales activity slows in Q1
The metro recorded $155.3 million in industrial sales transactions
during the first quarter, and sales for all of 2015 totaled a revised $2.0
billion. Cap rates covered a wide range depending on the type and
class of product. Class A properties sold in the 5-6% range, while Class
B traded in the 7-9% range.
SF Available at Delivery
MULTI-TENANT
ENTIRE MARKET
Inventory
197.0 MSF
482.6 MSF
Overall Vacancy
8.6%
5.6%
Q1 Net Absorption
1.3 MSF
2.1 MSF
WHY OUR METHODOLOGY IS THE BEST INDICATOR OF CURRENT MARKET CONDITIONS
We include owner occupied and single-tenant buildings in our inventory, vacancy and absorption statistics to capture more market activity than many of our competitors. This allows us to better
correlate changes in the market with changes in employment. As single-tenant space does compete with multi-tenant space, we believe it is critical to understand all components of the market.
The inclusion of single-tenant and owner-occupied space tends to yield lower vacancy rates and higher absorption totals than some of our competitors’ results, but our coverage of the market is
more comprehensive.
2 R E AL E STATE OUTLOO K HO UST ON MET RO Q 1 2016
However, well-located Class A distribution projects are currently
trading in the mid-5% range based on the abundance of capital still
looking for core investments. Active industrial buyers in the Houston
market include: Prologis, TA Realty, CABOT, TIAA-CREF, Crow
Holdings, Invesco, Travelers, Industrial Property Trust, Liberty Property
Trust, Clarion Partners, Principal and GLP.
The decline in oil prices has resulted in increased caution from some
investors, though long-term fundamentals project favorably for
continued industrial investment. Despite the soft economy, cap rates
for Class A, core industrial product will likely remain stable. Cap rates
for Class B will continue rising based on age of product, tenant base
and concerns about future demand and rent growth in the sector. In
the period ahead, the perceived "headline risk" in Houston could
make debt and equity more challenging.
COMPARATIVE INDUSTRIAL INVESTMENT SALES VOLUME
SELECT METRO AREAS
Sales Volume in Billions
Atl
Dal
Hou
LA
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$0.0
05
06
07
08
09
10
11
12
13
14
15
16*
SOURCE Real Capital Analytics, Transwestern ,*Through Q1 2016
INDUSTRIAL SUBLEASE LEVELS HOUSTON METRO AREA
OUTLOOK
Market shows resilience thus far
3,500,000
While manufacturing has lost more jobs than any other sector over the
last 12 months, warehouse/distribution space accounts for more than
75% of the total inventory in Houston, and it is performing well. Daiken,
UPS and FedEx are all building new distribution centers across the
metro to accommodate future growth. This trend is likely to continue
as strong distribution channels and investment in the Port of Houston
provide a major competitive advantage. The East-Southeast Far
submarket is expected to outshine all others in 2016. In addition, there
is over $50 billion in investment currently being poured into downstream
projects along Texas' Gulf Coast which will effectively create a new
export gateway for LNG products.
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
-
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
SOURCE CoStar, Transwestern *Through Q1 2016
We anticipate the overall vacancy rate for all sectors of industrial to
rise into the low-7% range over the next 12 months with the volume of
deliveries set to hit the market, and low oil prices affecting job growth
and reducing demand for space. Net absorption will likely remain
fairly positive, though not near the levels seen in 2014 and 2015. Rents
are expected to remain relatively flat in 2016 though concessions will
become more prevalent, especially for new construction. Increasing
sublease space could also present new challenges for the Houston
industrial market.
Notable Q1 Transactions
PROPERTY
SUBMARKET
SALE PRICE
CAP RATE
SELLER
BUYER
Bondesen North Business Park
(11-property portfolio)
Northwest Far
$65.7 million ($130/SF)
6.1%
DCT Industrial Trust
Industrial Property Trust
Northwest Point Business Park
Northwest Far
$15.6 million ($67/SF)
6.7%
EastGroup Properties
Sealy & Co
R E A L E STATE OU TL OOK H OU STON M E T R O Q 1 2 0 1 6 3
HOUSTON METRO MARKET
FIRST QUARTER 2016
Houston Industrial Market Indicators
SUBMARKET
INVENTORY
SF AVAILABLE
IMMEDIATELY
DIRECT
VACANCY
2015
DIRECT
VACANCY
Q1 2016
VACANCY
WITH SUBLET
Q1 2016
UNDER
CONSTRUCTION
NET
ABSORPTION
Q1 2016
Central Business District
Flex/R & D
Manufacturing
Total - Central Business District
583,281
51,329
9.3%
8.8%
8.8%
-
3,000
6,137,612
104,339
0.4%
1.7%
1.7%
-
(80,000)
23,497,545
1,456,848
6.0%
6.2%
6.6%
-
(47,000)
30,218,438
1,612,516
4.9%
5.3%
5.6%
-
(124,000)
East-Southeast Far
Flex/R & D
1,917,546
195,590
13.5%
10.2%
11.6%
-
63,000
Manufacturing
6,195,146
346,928
5.1%
5.6%
5.6%
130,000
(31,000)
Total - East-Southeast Far
40,002,235
2,600,145
5.7%
6.5%
6.6%
3,118,995
309,000
48,114,927
3,142,663
5.9%
6.5%
6.7%
3,248,995
341,000
North Far
Flex/R & D
8,138,519
504,588
6.3%
6.2%
6.3%
50,000
8,000
Manufacturing
7,690,733
255,332
3.4%
3.3%
3.4%
141,875
180,000
47,130,625
5,561,414
11.3%
11.8%
12.0%
1,264,750
199,000
62,959,877
6,321,334
9.7%
10.0%
10.2%
1,456,625
387,000
Flex/R & D
1,097,470
84,505
6.9%
7.7%
8.6%
-
(9,000)
Manufacturing
3,283,704
0
1.4%
0.0%
0.0%
-
46,000
Total - North Far
North Near
Total - North Near
13,564,966
975,321
7.2%
7.2%
7.5%
35,000
141,000
17,946,140
1,059,826
6.1%
5.9%
6.2%
35,000
178,000
Northeast Far
Flex/R & D
Manufacturing
Total - Northeast Far
22,500
0
0.0%
0.0%
0.0%
-
0
182,720
0
0.0%
0.0%
0.0%
-
0
859,481
0
0.0%
0.0%
0.0%
-
0
1,064,701
0
0.0%
0.0%
0.0%
-
0
Northeast Near
Flex/R & D
Manufacturing
419,469
28,943
7.5%
6.9%
6.9%
-
3,000
5,931,399
23,726
0.0%
0.4%
0.4%
-
(24,000)
23,836,810
262,205
1.4%
1.1%
1.5%
-
97,000
Total - Northeast Near
30,187,678
314,874
1.2%
1.0%
1.4%
-
76,000
Northwest Far
Flex/R & D*
5,536,890
238,086
3.5%
4.3%
4.7%
-
(44,000)
Manufacturing
8,973,362
100,502
1.5%
1.1%
1.1%
-
120,000
Total - Northwest Far
49,247,077
4,161,378
8.7%
8.5%
8.6%
4,913,840
753,000
63,757,329
4,499,966
7.2%
7.1%
7.2%
4,913,840
829,000
22,000
Northwest Near
Flex/R & D
10,813,931
875,928
8.3%
8.1%
8.4%
-
9,327,202
139,908
1.5%
1.5%
1.5%
-
0
67,509,875
2,477,612
3.5%
3.7%
4.1%
-
(74,000)
Total - Northwest Near
87,651,008
3,493,449
3.9%
4.0%
4.4%
-
(52,000)
Manufacturing
SOURCE Inventory and vacancy from analysis of CoStar data, net absorption computed by Transwestern
NOTE Includes buildings 15,000 SF RBA and greater, does not include buildings under construction or owned by the government
See next page for balance of industrial indicators.
4 R E AL E STATE OUTLOO K HO UST ON MET RO Q 1 2016
Houston Industrial Market Indicators
SUBMARKET
INVENTORY
SF AVAILABLE
IMMEDIATELY
DIRECT
VACANCY
2015
DIRECT
VACANCY
Q1 2016
VACANCY
WITH SUBLET
Q1 2016
UNDER
CONSTRUCTION
NET
ABSORPTION
Q1 2016
South Far
Flex/R & D
1,303,105
31,275
1.9%
2.4%
2.4%
-
(7,000)
Manufacturing
6,872,511
27,490
1.0%
0.4%
0.4%
-
41,000
Total - South Far
21,655,178
740,607
2.9%
3.4%
3.5%
210,000
(93,000)
29,830,794
799,372
2.4%
2.7%
2.7%
210,000
(59,000)
8,000
South Near
689,156
130,250
20.0%
18.9%
18.9%
-
Manufacturing
Flex/R & D
1,509,616
16,606
1.1%
1.1%
1.1%
-
0
9,955,560
288,711
2.4%
2.9%
2.9%
-
(50,000)
12,154,332
435,568
3.2%
3.6%
3.6%
-
(42,000)
(4,000)
Total - South Near
Southeast Near
Flex/R & D
363,962
14,558
3.0%
4.0%
4.0%
-
9,947,061
0
0.0%
0.0%
0.0%
-
0
20,423,140
506,494
2.5%
2.5%
2.5%
-
6,000
Total - Southeast Near
30,734,163
521,052
1.7%
1.7%
1.7%
-
2,000
Flex/R & D
1,593,356
213,510
8.4%
13.4%
13.8%
200,000
4,000
Manufacturing
1,580,397
17,384
1.1%
1.1%
1.1%
-
0
6,509,119
527,239
7.5%
8.1%
8.1%
661,407
(3,000)
Total - Southwest Far
9,682,872
758,133
6.6%
7.8%
7.9%
861,407
1,000
Manufacturing
Southwest Far
Southwest Near
Flex/R & D
6,602,139
316,903
6.1%
4.8%
4.8%
-
86,000
Manufacturing
4,608,887
138,267
3.3%
3.0%
3.0%
-
14,000
27,993,549
1,506,053
4.0%
5.4%
5.4%
730,295
(57,000)
Total - Southwest Near
39,204,575
1,961,222
4.3%
5.0%
5.0%
730,295
43,000
Flex/R & D
3,082,022
197,249
4.0%
6.4%
6.6%
106,000
(74,000)
Manufacturing
2,510,135
17,571
0.7%
0.7%
0.7%
-
0
13,474,905
993,100
7.0%
7.4%
7.5%
-
615,000
19,067,062
1,207,921
5.6%
6.3%
6.5%
106,000
541,000
Sugar Land
Total - Sugar Land
Houston
Flex/R & D
42,163,346
2,882,715
6.8%
6.8%
7.1%
356,000
59,000
Manufacturing
74,750,485
1,188,053
1.6%
1.6%
1.6%
271,875
266,000
Total - Houston
365,660,065
22,057,127
5.7%
6.0%
6.2%
10,934,287
1,796,000
482,573,896
26,127,896
5.2%
5.4%
5.6%
11,562,162
2,121,000
SOURCE Inventory and vacancy from analysis of CoStar data, net absorption computed by Transwestern
NOTE Includes buildings 15,000 SF RBA and greater, does not include buildings under construction or owned by the government
CONTACT
Rachel Alexander
Director of Market Research
713.270.3344
rachel.alexander@transwestern.com
METHODOLOGY
Kevin Roberts
President, Southwest
713.270.3347
kevin.roberts@transwestern.com
The information in this report is the result of a compilation of information on office,
industrial, retail, multifamily and healthcare properties located in the Houston
metropolitan area. This report includes single-tenant, multi-tenant and owner-user
properties and excludes properties owned and occupied by a government agency.
Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered
by Transwestern from various primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any
responsibility for any inaccuracy contained herein.
Market Watch
HOUSTON INDUSTRIAL
February 2016
R e c e n t I n d u s t ri a l L e a s e s
INDUSTRIAL LEASE STATISTICS
Northwest Near :: The Service Center
81,350 SF renewal at West by Northwest
Asking Rental Rates (NNN)
Overall Vacancy Rates
North Near :: Circle 8 Services
6.0%
$6.75
5.5%
$6.50
37,651 SF prelease at Beltway Southwest Business Park
5.0%
$6.25
Northwest Near :: Specialty Rolled Metals
4.5%
$6.00
4.0%
$5.75
3.5%
$5.50
38,620 SF new lease at Udelson Industrial Park
Southwest Far :: Dräger
32,787 SF renewal at Windfern Distribution Center
R e c e n t I n d u s t ri a l s a l e s
Northwest Far :: Bondesen North Business Park
519,853 SF, 11 property portfolio
Buyer: Industrial Property Trust
Seller: DCT Industrial Trust
3.0%
Q4
12
Q1
13
Q2
13
Q3
13
Q4
13
Q1
14
Q2
14
Q3
14
Q4
14
Q1
15
Q2
15
Q3
15
$5.25
Q4
15
Source: Transwestern analysis of Costar data, includes buildings 15,000 SF RBA and greater, excluding government owned buildings
Industrial Market Indicators
SUBMARKET
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
TOTAL
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
OVERALL VACANCY RATE
SF UNDER
CONSTRUCTION
2015
NET ABSORPTION
30,218,438
47,439,662
62,289,927
17,796,140
1,064,701
30,171,678
62,969,456
87,609,008
29,810,794
12,154,332
30,734,163
9,552,615
38,855,575
18,352,062
1,488,648
2,808,593
6,038,488
1,087,575
374,480
4,540,907
3,398,840
720,904
393,370
523,540
628,820
1,655,077
1,034,045
4.9%
5.9%
9.7%
6.1%
1.2%
7.2%
3.9%
2.4%
3.2%
1.7%
6.6%
4.3%
5.6%
5.0%
6.0%
9.9%
6.4%
1.2%
7.3%
4.1%
2.6%
3.3%
1.7%
6.6%
4.3%
5.7%
1,896,026
1,333,311
30,000
4,138,840
42,000
210,000
743,757
349,000
756,000
(55,000)
2,071,000
2,208,000
247,000
120,000
1,578,000
(137,000)
343,000
123,000
(116,000)
318,000
(31,000)
403,000
479,018,551
24,693,287
5.2%
5.3%
9,498,934
7,072,000
Houston Industrial Submarkets
Industrial Sales Statistics
Houston MSA
United States
Quarter to
Date
Last Quarter
(Q4 2015)
Trailing 12
Months
Last Quarter
(Q4 2015)
Trailing 12
Months
$57.2
$536.7
$1,829.7
$26,193.0
$76,568.0
Click Map below to Expand
N
249
290
90
Volume ($ Mil)
No. Of Properties
Total SF
7
54
162
2,586
7,417
800,113
7,731,993
25,349,342
441,004,109
1,138,130,622
Average Price/SF
N/A
$101
$77
$75
$75
Average Cap Rate
(Yield)
N/A
N/A
7.8%
6.6%
6.8%
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 2016
45
2
249
290
2
90
1
2
1
1
10
10
1
1
1
1
6
99
8
3
2
59
288
2
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 6
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
Northeast Far
35
45
HOUSTON INDUSTRIAL MARKET WATCH
February 2016
A B OUT T R ANSWESTE R N
Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and
sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors,
owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of
independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 U.S. offices and assists clients through more
than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Paribas Real Estate.
Transwestern was founded in Houston, Texas in 1978, and Houston remains the corporate headquarters today. As one of the preeminent commercial real estate
firms in Houston, we offer a comprehensive menu of real estate services designed to provide owners, tenants and investors with the optimum solutions for their
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Transwestern’s Houston office currently employs over 400 team members and has been an innovator in the Houston market for 38 years.
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
DENVER
ST. LOUIS
PHOENIX
BETHESDA
WASHINGTON DC
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
BALTIMORE
NORTHERN
VIRGINIA
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
HOUSTON I NDUST R I AL TEA M
Brian Gammill
Managing Director
713.270.3321
brian.gammill@transwestern.com
Darryl Noon
Senior Vice President
713.270.3325
darryl.noon@transwestern.com
Jude Filippone
Vice President
713.270.3318
jude.filippone@transwestern.com
Micheal Palmer
Senior Vice President - Tenant Advisory
713.231.1627
micheal.palmer@transwestern.com
Michael Snodgrass
Managing Director - Structured Finance
713.270.3342
michael.snodgrass@transwestern.com
Jan Sparks
713.270.3398
jan.sparks@transwestern.com
Methodology
Contact
Rachel Alexander
713.270.3344
Rachel.Alexander@transwestern.com
Carter Thurmond
Associate
713.272.1254
carter.thurmond@transwestern.com
Kevin Roberts
713.270.3347
Kevin.Roberts@transwestern.com
The information in this report is the result of a compilation of publicly available
data from a variety of commercial and government sources.
1900 West Loop South, Suite 1300
Houston, Texas 77027
T 713.270.7700 F 713.270.6285
www.transwestern.net/houston
Copyright © 2016 Transwestern. All rights reserved. No part of this work may be reproduced or distributed to third parties without written permission of the copyright owner. The information contained in this report was gathered by
Transwestern from CoStar and other primary and secondary sources believed to be reliable. Transwestern, however, makes no representation concerning the accuracy or completeness of such information and expressly disclaims any
Market Watch
HOUSTON INDUSTRIAL
DEcember 2015
South Far :: Gulf Winds International
345,100 SF renewal at Central Industrial Park
Northwest Near :: Janco Foods
6.0%
$6.75
5.5%
$6.50
5.0%
$6.25
4.5%
$6.00
4.0%
$5.75
3.5%
$5.50
61,500 SF renewal at Silber Roads Business Center I
Northwest Far :: The Brandt Cos
56,255 SF prelease at Sam Houston Business Park
Northwest Far :: Mason Creek Business Center
45,000 SF warehouse property
Buyer: Foxmark
Seller: MCA Mason Creek
3.0%
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Q2 15
$5.25
Q3 15
SUBMARKET
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
TOTAL
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
Q3 2015
NET ABSORPTION
30,218,438
46,683,708
61,911,981
17,720,540
1,064,701
30,151,678
62,805,363
87,382,138
29,810,794
12,154,332
30,734,163
9,552,615
38,780,779
17,976,559
1,488,648
2,587,352
5,502,827
963,326
326,602
4,220,307
2,724,073
781,900
311,584
525,804
657,527
1,487,806
644,192
4.9%
5.5%
8.9%
5.4%
1.1%
6.7%
3.1%
2.6%
2.6%
1.7%
6.9%
3.8%
3.6%
5.0%
5.6%
9.0%
5.7%
1.1%
6.7%
3.5%
2.7%
2.6%
1.7%
6.9%
3.9%
3.7%
2,332,176
846,251
75,600
4,584,529
226,870
652,500
424,236
650,000
(47,000)
111,000
561,000
114,000
82,000
219,000
214,000
63,000
75,000
(24,000)
(17,000)
(67,000)
11,000
476,947,789
22,221,949
4.7%
4.8%
9,792,162
1,295,000
Houston MSA
United States
Quarter to
Date
Last Quarter
(Q3 2015)
Trailing 12
Months
Last Quarter
(Q3 2015)
Trailing 12
Months
$384.1
$390.7
$1,626.2
$13,396.1
$65,891.0
N
249
290
90
Volume ($ Mil)
No. Of Properties
Total SF
35
28
152
1,369
6,588
5,747,451
4,933,307
23,460,937
171,414,176
936,362,563
Average Price/SF
N/A
$82
$74
$80
$74
Average Cap Rate
(Yield)
N/A
7.3%
7.8%
6.8%
6.9%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
December 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 Dec em ber 201 5
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
2
Northeast Far
35
45
December 2015
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
DENVER
ST. LOUIS
PHOENIX
BETHESDA
WASHINGTON DC
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
BALTIMORE
NORTHERN
VIRGINIA
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Methodology
Contact
Rachel Alexander
713.270.3344
Vince Strake
Associate
713.490.3784
vince.strake@transwestern.com
Kevin Roberts
713.270.3347
T 713.270.7700 F 713.270.6285
MARKET WATCH
HOUSTON INDUSTRIAL
AUGUST 2015
RECENT INDUSTRIAL LEASES
East-Southeast Far :: Modern Polymer Products
300,000 SF renewal at 3041-3053 SH 225
North Far :: General Cable
51,750 SF renewal at Prologis Business Park
Northwest Near :: Custom Form Transportation
27,000 SF renewal at 1217 N Post Oak Rd
RECENT INDUSTRIAL SALES
Southwest Near :: 1705 Oliver St
750,000 SF manufacturing property
Buyer: Gulf Coast Commercial Group
Seller: Tarkett, Inc
6.0%
$6.50
5.5%
$6.25
5.0%
$6.00
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
3.0%
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
$5.00
Q2 15
SUBMARKET
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
TOTAL
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
Q2 2015
NET ABSORPTION
30,218,438
46,484,028
60,842,825
17,720,540
1,064,701
30,081,678
60,994,750
87,095,190
29,810,794
12,154,332
30,734,163
9,534,615
38,696,794
17,976,559
1,441,653
2,498,088
4,994,595
1,076,846
339,122
3,297,075
2,650,829
844,771
386,167
501,599
623,160
1,336,827
654,833
4.8%
5.4%
8.2%
6.1%
0.0%
1.1%
5.4%
3.0%
2.8%
3.2%
1.6%
6.5%
3.5%
3.6%
4.8%
5.4%
8.4%
6.3%
0.0%
1.1%
5.4%
3.3%
2.9%
3.2%
1.7%
6.6%
3.5%
3.7%
905,327
1,739,219
75,600
70,000
6,048,908
513,818
596,750
423,796
650,000
(125,000)
1,067,000
533,000
(25,000)
27,000
997,000
236,000
245,000
43,000
(74,000)
259,000
47,000
124,000
473,409,407
20,645,565
4.4%
4.4%
11,023,418
3,354,000
HOUSTON MSA
UNITED STATES
QUARTER TO
DATE
LAST QUARTER
(Q2 2015)
TRAILING 12
MONTHS
LAST QUARTER
(Q2 2015)
TRAILING 12
MONTHS
$98.5
$330.1
$1,436.2
$16,714.7
$63,903.6
CLICK MAP BELOW TO EXPAND
N
249
290
90
Volume ($ Mil)
No. Of Properties
Total SF
10
36
157
1,586
6,470
1,614,612
4,887,696
21,743,651
228,574,710
917,057,852
Average Price/SF
N/A
$48
$66
$72
$73
Average Cap Rate
(Yield)
N/A
8.3%
7.8%
6.8%
7.0%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
AUGUST 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 A UGUST 2015
Northeast Near
Northeast Far
1 Northeast Near
NE
SOUTHWEST
South Near
South Far
2
2
Northeast Far
35
45
AUGUST 2015
ABOUT TR ANSWESTERN
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
DENVER
ST. LOUIS
PHOENIX
BETHESDA
WASHINGTON DC
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
BALTIMORE
NORTHERN
VIRGINIA
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
HOUSTON INDUSTRIAL TEAM
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
METHODOLOGY
CONTACT
Rachel Alexander
713.270.3344
Vince Strake
Associate
713.490.3784
Kevin Roberts
713.270.3347
T 713.270.7700 F 713.270.6285
Market Watch
HOUSTON INDUSTRIAL
June 2015
East-Southeast Far :: Gulf Intermodal Services
113,000 SF new lease at Underwood 2
East-Southeast Far :: Abrasive Products &
Equipment
6.0%
$6.50
102,508 SF new lease at 3009 State Hwy 225
5.5%
$6.25
North Far :: Pathmark Transportation
5.0%
$6.00
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
76,234 SF new lease at 14810 North Freeway
North Far :: Beltway North Commerce Center
352,680 SF
Buyer: TIAA-CREF
Seller: Amstar & Davis Commercial Development joint
venture
3.0% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 $5.00
SUBMARKET
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
TOTAL
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
1Q 2015 NET ABSORPTION
30,218,438
45,530,288
60,086,663
17,720,540
1,064,701
30,081,678
59,540,324
86,918,130
29,606,619
12,154,332
30,734,163
9,135,235
38,696,794
17,976,559
1,317,280
2,612,039
4,771,019
1,052,362
365,789
2,839,947
2,710,124
885,848
429,128
428,075
482,129
1,383,538
778,564
4.4%
5.7%
7.9%
5.9%
0.0%
1.2%
4.8%
3.1%
3.0%
3.5%
1.4%
5.3%
3.6%
4.3%
4.4%
5.7%
8.1%
5.9%
0.0%
1.2%
4.8%
3.2%
3.1%
3.6%
1.4%
5.4%
3.6%
4.4%
1,938,642
1,724,943
42,600
20,000
3,036,696
668,078
24,175
443,630
37,296
650,000
117,000
358,000
1,272,000
206,000
39,000
518,000
(139,000)
(26,000)
87,000
(20,000)
47,000
81,000
283,000
469,464,464
20,055,844
4.3%
4.3%
8,56,060
2,823,000
Houston MSA
United States
Quarter to
Date
Last Quarter
(1Q15)
Trailing 12
Months
Last Quarter
(1Q15)
Trailing 12
Months
$326.6
$513.4
$1,325.0
$21,370.2
$63,765.0
N
249
290
90
Volume ($ Mil)
No. Of Properties
Total SF
28
35
147
1,696
6,431
3,935,811
6,461,856
20,258,403
252,442,226
863,628,324
Average Price/SF
N/A
$93
$66
$81
$75
Average Cap Rate
(Yield)
N/A
N/A
7.7%
7.0%
7.1%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
June 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 June 2015
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
2
Northeast Far
35
45
June 2015
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
BETHESDA
WASHINGTON DC
DENVER
ST. LOUIS
PHOENIX
BALTIMORE
NORTHERN
VIRGINIA
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Vince Strake
Associate
713.490.3784
Contact
Methodology
Rachel Alexander
713.270.3344
The information in this report is the result of a compilation of publicly available data from a variety of
commercial and government sources.
T 713.270.7700 F 713.270.6285
Market Watch
HOUSTON INDUSTRIAL
March 2015
Sugar Land :: Professional Packing Systems
171,000 SF new lease at Sugar Land Interchange
Distribution Center
6.0%
$6.50
120,000 SF new lease at Bay Area Business Park
5.5%
$6.25
Northwest Near :: Wilsonart
5.0%
$6.00
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
East-Southeast Far :: Eugene B. Smith & Co.
68,210 SF renewal and expansion at Pine Forest Business
Park
East-Southeast Far :: Bayport North Distribution
Center
565,000 SF warehouse/distribution property
Buyer: Industrial Property Trust
Seller: Carson Cos
3.0%
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
$5.00
4Q14
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
2014 NET ABSORPTION
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
Houston MSA
United States
Quarter to
Date
Last Quarter
(4Q14)
Trailing 12
Months
Last Quarter
(4Q14)
Trailing 12
Months
$140.6
$356.9
$1,051.6
$16,821.4
$52,687.4
N
249
290
90
Volume ($ Mil)
No. Of Properties
Total SF
10
49
134
1,963
5,994
1,727,017
6,436,064
17,345,302
250,440,302
773,664,522
Average Price/SF
N/A
$49
$64
$75
$72
Average Cap Rate (Yield)
N/A
N/A
7.5%
7.0%
7.2%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
March 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 marc h 2015
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
2
Northeast Far
35
45
March 2015
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
BETHESDA
WASHINGTON DC
DENVER
ST. LOUIS
PHOENIX
BALTIMORE
NORTHERN
VIRGINIA
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Vince Strake
Associate
713.490.3784
Contact
Methodology
Rachel Alexander
713.270.3344
T 713.270.7700 F 713.270.6285
Market Watch
HOUSTON INDUSTRIAL
February 2015
recent Industrial Leases
Northwest Near :: Banta
201,600 SF renewal at West by Northwest Business Park
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
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
2014 NET ABSORPTION
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
Houston MSA
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
N/A
N/A
7.5%
7.0%
7.2%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
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
February 2015
A B OUT TRANSWESTERN
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
BETHESDA
WASHINGTON DC
DENVER
ST. LOUIS
PHOENIX
BALTIMORE
NORTHERN
VIRGINIA
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
HOUSTON I NDUSTR I AL TEA M
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Vince Strake
Associate
713.490.3784
Contact
Methodology
Rachel Alexander
713.270.3344
T 713.270.7700 F 713.270.6285
Market Watch
HOUSTON INDUSTRIAL
December 2014
recent Industrial Leases
Northeast Near :: Atlantic Clothing, Inc.
103,950 SF new lease at 8605 City Park Loop
Northwest Near :: Veritrust Corp.
6.0%
$6.50
5.5%
$6.25
5.0%
$6.00
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
87,000 SF renewal & expansion at 2000 Afton Road
North Far :: Hunting Energy Services
81,000 SF renewal at 4400 N Sam Houston Pkwy
recent Industrial sales
Northwest Near :: 5200 Jensen Dr
Buyer: En-Fab Holdings LLC
Seller: Goodwill Industries of Houston
3.0%
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
$5.00
3Q14
Source: Transwestern analysis of Costar data - Houston industrial buildings 5,000 SF and greater, excluding government owned buildings.
SUBMARKET
TOTAL RBA (SF)
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
TOTAL
DIRECT VACANT (SF)
DIRECT VACANCY RATE
30,218,438
44,778,610
58,156,827
17,504,441
1,064,701
30,061,678
58,334,324
86,869,130
29,349,384
12,154,332
30,734,163
9,095,235
38,566,794
17,945,559
1,535,948
3,560,387
4,274,678
1,152,938
464,833,616
SF UNDER
CONSTRUCTION
523,934
2,447,538
3,136,341
647,162
567,816
509,768
490,648
1,401,184
1,113,461
5.1%
8.0%
7.4%
6.6%
0.0%
1.7%
4.2%
3.6%
2.2%
4.7%
1.7%
5.4%
3.6%
6.2%
5.1%
8.0%
7.4%
6.6%
0.0%
1.7%
4.2%
3.7%
2.3%
4.7%
1.7%
5.4%
3.6%
6.2%
21,361,803
4.6%
4.6%
3Q2014 NET ABSORPTION
12,000
757,000
(19,000)
31,000
117,334
1,662,963
120,000
40,000
2,891,792
26,250
90,000
31,000
132,000
440,000
291,000
332,000
84,000
116,000
(5,000)
167,000
(32,000)
5,199,180
2,306,000
219,841
Houston MSA
United States
Quarter to
Date
Last Quarter
(3Q14)
Trailing 12
Months
Last Quarter
(3Q14)
Trailing 12
Months
$114.2
$191.3
$1,032.3
$12,795.1
$52,986.4
N
249
290
90
Volume ($ Mil)
No. of Properties
Total SF
20
31
131
1,356
5,603
2,337,038
3,020,544
17,359,364
170,396,650
782,692,919
Average Price/SF
N/A
$66
$63
$77
$70
N/A
7.0%
7.6%
7.2%
7.3%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
december 2014
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 dec em ber 201 4
Northeast Near
Northeast Far
1 Northeast Near
NE
Southwest
South Near
South Far
2
2
Northeast Far
35
45
DecemBer 2014
A B OUT TRANSWESTERN
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
BETHESDA
WASHINGTON DC
DENVER
ST. LOUIS
PHOENIX
BALTIMORE
NORTHERN
VIRGINIA
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
HOUSTON I NDUSTR I AL TEA M
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
micheal.palmer@tramswesterm.com
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Vince Strake
Associate
713.490.3784
Contact
Methodology
Rachel Alexander
713.270.3344
T 713.270.7700 F 713.270.6285
MARKET WATCH
HOUSTON INDUSTRIAL
SEPTEMBER 2014
RECENT INDUSTRIAL LEASES
North Far :: DB Schenker
150,000 SF at Kenswick AirFreight & LogisticsCentre
South Far :: Office Furniture Connection
6.0%
$6.50
5.5%
$6.25
80,625 SF at 7441 E Orem Dr
5.0%
$6.00
RECENT INDUSTRIAL SALES
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
125,278 SF at 13101 Almeda Rd
South Far :: Composite Advanced Technologies
Sugar Land :: 1601 Gillingham Ln
Buyer: Dalfen America Corp
Seller: Northstar Commercial partners
3.0%
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
$5.00
2Q14
SUBMARKET
TOTAL RBA (SF)
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
TOTAL
DIRECT VACANT (SF)
DIRECT VACANCY RATE
30,218,438
44,733,610
57,902,825
17,504,441
1,064,701
30,121,918
57,584,798
86,853,130
29,199,557
12,154,332
30,734,163
9,095,235
38,566,794
17,945,559
1,547,614
4,271,983
4,128,188
1,184,911
463,679,501
SF UNDER
CONSTRUCTION
802,879
2,181,481
3,410,458
829,102
651,363
625,669
486,032
1,568,033
858,296
5.1%
9.5%
7.1%
6.8%
0.0%
2.7%
3.8%
3.9%
2.8%
5.4%
2.0%
5.3%
4.1%
4.8%
5.1%
9.5%
7.2%
6.8%
0.0%
3.1%
3.8%
4.1%
3.0%
5.4%
2.2%
5.3%
4.2%
4.9%
22,546,010
4.9%
5.0%
156,334
1,432,223
120,000
274,000
784,000
203,000
90,000
31,000
39,000
395,000
185,000
359,000
50,000
163,000
(12,000)
(110,000)
(21,000)
4,510,521
2,309,000
2,355,056
16,000
309,908
HOUSTON MSA
CLICK MAP BELOW TO EXPAND
UNITED STATES
QUARTER TO
DATE
LAST QUARTER
(2Q14)
TRAILING 12
MONTHS
LAST QUARTER
(2Q14)
TRAILING 12
MONTHS
$91.2
$247.2
$1,568.7
$12,047.6
$54,152.5
N
249
290
90
Volume ($ Mil)
No. of Properties
Total SF
14
30
123
1,312
5,600
1,426,035
4,205,096
18,136,568
176,920,361
801,448,370
Average Price/SF
N/A
$52
$63
$68
$67
N/A
8.2%
7.9%
7.1%
7.4%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45
HOUSTON
INDUSTRIAL
MARKET WATCH
SUBMARKETS
SEPTEMBER 2014
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 SEP T EMBER 20 1 4
Northeast Near
Northeast Far
1 Northeast Near
NE
SOUTHWEST
South Near
South Far
2
2
Northeast Far
35
45
SEPTEMBER 2014
ABOUT TR ANSWESTERN
SEATTLE
MINNEAPOLIS
BOSTON
MILWAUKEE
SAN
FRANCISCO
SILICON
VALLEY
DETROIT
GREENWICH
NEW YORK
NEW JERSEY
CHICAGO
WALNUT CREEK
LOS ANGELES
ORANGE COUNTY
SAN DIEGO
SALT LAKE
CITY
BETHESDA
WASHINGTON DC
DENVER
ST. LOUIS
PHOENIX
BALTIMORE
NORTHERN
VIRGINIA
OKLAHOMA
CITY
TRANSWESTERN
LOCATIONS
ATLANTA
FORT
DALLAS
WORTH
AUSTIN
SAN ANTONIO
HOUSTON
NEW ORLEANS
ORLANDO
FORT LAUDERDALE
MIAMI-DADE
HOUSTON INDUSTRIAL TEAM
Brian Gammill
Managing Director
713.270.3321
Darryl Noon
713.270.3325
Jude Filippone
Vice President
713.270.3318
Micheal Palmer
713.231.1627
micheal.palmer@tramswesterm.com
Michael Snodgrass
713.270.3342
Jan Sparks
713.270.3398
Vince Strake
Associate
713.490.3784
CONTACT
METHODOLOGY
Rachel Alexander
713.270.3344
T 713.270.7700 F 713.270.6285
Market Watch
HOUSTON INDUSTRIAL
JULY 2014
Recent industrial Leases
Northwest Far :: Lenox International
190,000 SF in DCT Northwest Crossroads Logistics Centre
North Far :: Bunzl
134,230 SF in Northpark Central
Northeast Near :: RL Building Supply
36,352 SF at 8615 North Loop East
6.0%
$6.50
5.5%
$6.25
5.0%
$6.00
4.5%
$5.75
4.0%
$5.50
3.5%
$5.25
Recent industrial Sales
Northwest Near :: Alliance Tire Americas
136,241 SF warehouse property
Buyer: 9700 West Wingfoot LLC
Seller: SSJ Investments Ltd
3.0%
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
$5.00
1Q14
SUBMARKET
TOTAL RBA (SF)
DIRECT VACANT (SF)
DIRECT VACANCY RATE
SF UNDER
CONSTRUCTION
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
33,114,815
65,148,508
67,296,016
20,504,903
1,718,879
33,692,599
69,681,346
104,056,474
38,805,099
14,669,608
40,064,076
13,084,353
54,828,412
22,645,418
1,788,735
4,687,053
3,810,961
1,027,007
7,326
882,088
2,357,365
3,698,774
1,084,709
788,501
785,615
566,875
1,758,593
886,139
5.4%
7.2%
5.7%
5.0%
0.4%
2.6%
3.4%
3.6%
2.8%
5.4%
2.0%
4.3%
3.2%
3.9%
5.4%
7.2%
5.7%
5.1%
0.4%
3.0%
3.5%
3.7%
2.8%
5.4%
2.0%
4.3%
3.2%
4.0%
10,560
1,870,224
499,923
460,232
26,250
208,800
58,000
(1,000)
178,000
509,000
250,000
4,000
(84,000)
610,000
265,000
258,000
82,000
108,000
59,000
(57,000)
70,000
TOTAL
579,310,506
24,129,741
4.2%
4.2%
5,636,439
2,251,000
100,456
1,930,744
471,250
Houston MSA
United States
Quarter to
Date
Last Quarter
(1Q14)
Trailing 12
Months
Last Quarter
(1Q14)
Trailing 12
Months
$145.2
$235.2
$1,563.8
$12,645.8
$52,686.8
N
249
290
90
Volume ($ Mil)
No. of Properties
Total SF
21
19
117
1,289
5,325
2,188,465
3,069,438
18,680,911
176,579,643
788,996,081
Average Price/SF
N/A
$87
$67
$67
66
N/A
N/A
N/A
7.4%
7.5%
NW
NE
10
10
CBD
610
8
6
99
SE
SW
59
288
S
35
45

HOUSTON INDUSTRIAL MARKET

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Level NRA - LaCenterra at Cinco Ranch

Flyer-9300_Synott

phase iv - LaCenterra at Cinco Ranch

Houston Retail Brochure

city of houston_case study

Greater Houston Port Bureau, Capt. Bill Diehl

GranQuartz

DiverseWorks presents L`esprit de l`escalier June 29 – August 17