Published Apr 08, 2022 by Brina Morales
Houston’s big-box industrial market is booming. According to March data from CBRE, Houston experienced an 11.1% increase in warehouse or distribution centers over 200,000 sq. ft. in 2021, landing the city as the market with the most growth nationwide.
“Houston’s pro-business environment, favorable real estate conditions and population growth continue to drive its thriving big-box industrial market,” said CBRE Senior Managing Director Peter Mainguy in the report.
According to the report, tenants across the nation leased an unprecedented amount of industrial space last year to serve a growing number of online customers and combat supply chain disruptions.
General retailer and wholesalers and third-party logistic companies were the most active occupier types in 2021, according to the report.
Houston decreased its vacancy rate to 6.6% in 2021 from 7.9% in 2020.
“Houston is poised for perhaps the most cap rate compression of all the major Texas markets this year,” CBRE Executive Vice President Jonathan Bryan said. “After the incredible rent growth of 2021, landlords have more opportunity to raise rents than any time in recent history.”
The report states businesses are attracted to Houston’s tax incentive programs and access to an array of logistics hubs, including four deep-water seaports, rail service, two international airports and an extensive highway system.
“We expect 2022 to be another great year for Houston Industrial,” Mainguy said.