HOUSTON (Colliers.com) – Houston’s industrial market continues to strengthen, adding 354,000 sf of positive net absorption in the fourth quarter. That brought the year-to-date total to 4.8 million sf, up significantly from the positive net absorption of 1.7 million sf recorded in 2009.
Vacancy also posted a slight gain with the citywide average at 6.2 percent in last quarter 2010, down from 6.7 percent from 2009. The quoted citywide rental rate for industrial space increased by 8.5 percent over the same period last year.
On the leasing front, 21 leases more than 100,000 sf were signed in 2010, with seven leases over 200,000 sf. A significant boost to the market’s stabilization has been disciplined curtailment of new speculative construction activity, with only 207,000 sf in the construction pipeline at the close of 4Q10, compared with 1.3 million sf under construction.