A record-breaking 16M SF of industrial product is under construction in Houston. The number blows away the previous peak of 15.4M SF underway in Q2 2015, according to NAI Partners research.
Developers are bullish on the industrial space because of the city’s strong economic outlook, but industrial brokers disagree on whether there is enough demand to absorb the increasing supply in the Bayou City.
“The amount of industrial construction going on is mind-blowing,” Avison Young Vice President Grant Hortenstine said. “That is a massive amount of space. No one can say there are 15 Home Depots, Walmarts, Lowes, Conns or whoever looking for that much space because they just are not.” Ed Ayres at www.houstonrealtyadvisors.com says the number of industrial space seekers coming to USA and Houston may be due to the tariffs that President Donald TRUMP has threatened and already added.
