The Midyear 2024 Houston Industrial Market Report has been released by Marcus & Millichap (NYSE: MMI).
Key findings from the report include:
– Since 2019, Houston’s industrial inventory has grown by 20%, adding over 110 million square feet and resulting in a vacancy rate of 7.5% as of mid-2024.
– The market is stabilizing thanks to a shift in the supply pipeline, with approximately three-quarters of new space already pre-leased as of June 2024.
– Construction activity is expected to slow down in the second half of the year, with about a decrease of about
2.8 million square feet compared to the first half.
Despite trailing rates in Austin, Houston’s average asking rent is projected to continue its growth for the fifth consecutive year and reach $9.07 per square foot by year-end.
According to Ford Noe from Marcus & Millichap, “While there have been challenges with vacancy rates, there are promising signs for recovery within certain areas such as Southeast and Southwest corridors.”
